The effort to dig up dirt on IH continues on Rossi’s blog. I covered this a week ago in A word to the wise is sufficient – a hint to the foolish is proof.
Then, it was Anonymous and “Leanne Tuffy” Now, it is Leanne, or is it Joanne? She seems a bit unclear on her name.
June 10, 2017 at 9:50 AM
Dr Andrea Rossi,
I discovered that Cherokee Investment Partners LLC, the company that owns Industrial Heat and is owned principally by Tom Darden and John Mazzarino, is liable for the catastrophic environmental disaster happened during the remediation and re-vitalization of a brownfield named “ZENECA SYTE- CAMPUS BAY”, in Richmond, California.
Not even Rossi claims any more that CIP owns IH. The claim that Darden and Mazzarino “own principally” Cherokee is probably false, but I’ve never seen ownership stats on Cherokee. As to Cherokee being liable for that “catastrophic environmental disaster,” this appears to be false. Bad start when the first paragraph is so densely wrong or so poorly established.
The poor grammar and spelling (site as “syte”) are SOP for Rossi blog socks as are various other usages (Taxpayer with a capital T, the use of “nothing,” etc.)
What happened is that they got financing for enormous amounts of money of the Taxpayer and after getting this big money they remedied nothing, re-vitalized nothing, but built houses upon the poisoned land of the brownfield.
I don’t think so. The story that Shane D. found has it quite differently. I have not seen figures for the financing of that project, nor has “Leanne,” apparently.
What Cherokee routinely does is to create an LLC for a project. They put in perhaps $25 million, other investors toss in their nickels, and then loans and grants are obtained. Some of these projects fail. “Taxpayer money”? Sometimes. In this case, as we will see below, the LLC involved with this project declared bankruptcy in 2012, I confirmed that. The major debt was $42 million from a loan, not taxpayer money. Without doing more specific research, I cannot tell if the LLC (Cherokee Simeon Ventures) received any grants. From the Law360 coverage of the bankruptcy:
EnviroFinance said that Cherokee Simeon failed to honor its loan obligations due to a flurry of interferences.
“Shortly after the loan was made, things started to fall apart for [Cherokee Simeon], EnviroFinance said. “A citizens’ group prodded the Department of Toxic Substances Control to take supervision of the property, and the remediation effort appears to have been more extensive than [Cherokee Simeon] expected. In addition, the real estate market fell apart and [Cherokee Simeon’s] financial condition worsened.”
As a result, Cherokee Simeon could not progress on the rehabilitation project, the firm said.
This is the story according to the company suing Cherokee Simeon. That is probably what happened! Back to “Leanne”:
In that field, upon which they built houses, the Department of Toxic Substances Control has found carcinogenic substances, hidden under the houses. I knew this from a person of a Citizens Committee, made after cases of cancer appeared with anomalous statistics in the area.
This appears to be a distorted rumor from what Shane found. Leanne is probably lying, telling a story derived from news. It does not appear that any houses were built.
This person informed me that Cherokee Investment Partners LLC, after the Department of Toxics Substances Control has published a report with the results of the discovery of the risk of cancer for the population, has filed for Chapter 11 (bankruptcy) in the State of Delaware of their “front company”, named Cherokee Simeon Venture I LLC, that they used for the “job”. Obviously the money collected from the Taxpayer disappeared.
The bankruptcy was filed in 2012, long after those problems were found. Cherokee Simeon was not charged with toxic waste violations, rather those charges were against Zeneca and the University of California.
Who is the “they” that used Cherokee Simeon? That is not a “front company,” it’s an actual remediation project company. If this is actually a Cherokee company (which seems possible, this is the kind of work they do), this is how they do it. “Front company” implies something that is not at all evidenced here.
When one of the project LLCs goes bankrupt, Cherokee loses their investment. If they actually made money “disappear,” they’d be in very hot water. In a bankruptcy, the creditors will be searching for any “leakages.” Basically, when one of these LLCs loses money, Cherokee loses money. They make money, overall, based on the balance, for when projects succeed, they can become very valuable. Some fail!
Now: I wonder how Cherokee Investment Partners LLC can still be qualified to receive public funding by means of their their society ” Brownfield Revitalization LLC”.
CIP didn’t go bankrupt. This particular project failed, the most likely reason being that cleanup was going to be far more expensive than anticipated. This extremely fuzzy thinking is common on Planet Rossi. So … ele brought this promptly to LENR Forum. At one point, ele claimed not to read JONP. Yeah, right. And Rossi surely never mentioned “Johnson Matthey.” They made that up, those greedy bastards. Heh heh.
Googling I have found also some interesting links with millions dollars of public money about that Brownfield Revitalization LLC:
I’m presenting the links more compactly, and giving the award sums. This is a series of awards to Brownfield Revitalization LLC, which provides loans for remediation projects. I’m also sorting this by year
If I understand well the average amount of public money given to that compeny was about 50M$/year for 6 years this sum up to about 300M$ !
Well, not necessarily. Is this an allocation of public money or is it something else. Perhaps the intrepid researcher here could get a little curious. These are NMTC Awards. TC means “Tax Credit.” From the About page of the Awards web site.
The CDFI Fund achieves its purpose by promoting access to capital and local economic growth in the following ways:
2. through its New Markets Tax Credit Program by providing an allocation of tax credits to Community Development Entities which enable them to attract investment from the private-sector and reinvest these amounts in low-income communities;
These are not cash grants. Rather, it appears that this program allows a CDE to provide financing for projects at lower interest or taking on higher risk, through allocations of tax credits (making the investments more attractive). Ele has completely misunderstood this. These are not “taxpayer dollars,” as such. No money is given to the LLC receiving the awards, just an allocation of tax credits which they may then provide to investors according to the rules of the program.
more documents can be found:
[Google “Cherokee Simeon Venture I LLC”]
So the content of the comment in the Rossi Blog seems real !
It seems real to those who have no clue what they are looking at, but are simply looking for dirt or what seems like dirt to them.
Rossi had attracted the interest of a group of investors who run a multibillion dollar company, apparently quite successfully, and he spat in their faces. Not so bright.
I found, through the search above, a ruling on a motion for sanctions against Cherokee Simeon Venture I LLC for an alleged bad faith bankruptcy filing. The document does give a little information. Yes, this is the same Cherokee (i.e, affiliated with Cherokee Investment Partners, though there are many related Cherokee funds). (The motion for sanctions failed.) Cherokee Simeon Venture I LLC was a joint venture of Zeneca and Cherokee Simeon Holding Company, LLC. Originally the latter was the managing partner, but in 2011 this was taken over by Zeneca.
I’ve been attempting to find out what ultimately happened to that Richmond property. There is no sign of taxpayer money going into it. Cherokee Simeon Venture withdrew that bankrutpcy petition and appears to still be operating. See this 2015 meeting requesting reduction in assessed value.
There is weird stuff in the search. There is a pages claiming that there is a women’s clothing store called “Cherokee Simeon Venture I LLC.” The address of the store is a toxic cleanup site. Dun and Bradstreet.
Proof of what, I have no idea, but WOW!
A more detailed newspaper story on the history of Zeneca / Campus Bay, Providing the history that UC Berkeley, owner of the adjacent contaminated propery, had joined with Simeon Properties as a partner, and Cherokee Investment Partners and Simeon created the joint venture that later filed for bankruptcy. However, as was surely missed by our intrepid wanna-be Sifferkolls, that bankruptcy petition was withdrawn. From the article:
While the university was legally responsible for cleaning up the legacy of California Cap, AstraZeneca—the giant London-based pharmaceutical and chemical manufacturer—was held liable both for the Stauffer site and for contamination at RFS that had come from the Stauffer plant.
Aha! Proof! A U.K. based chemical company! The plot thickens. Zeneca was also a partner in Cherokee Simeon.
Now, notice this: if one buys a contaminated site, one can become responsible for the cleanup, and at the time of purchase, the full expense of that may not be known. Doing what Cherokee does is then very risky, though ultimately beneficial. This would be the equivalent of a Cherokee LLC buying the PetrolDragon Italian properties, if we want to compare with Rossi’s history, as has now happened on JONP.
Reviewing this, it is completely obvious why Cherokee uses special-project LLCs for this investment: it would otherwise be way too risky, one failure could take it all down. The ultimate result is public benefit, but there is also a risk of public loss: these cleanup operations can attract grants, and sometimes a project that receives public funding fails. They can and do take out loans, mortgaging property. There are various missteps in this that could create more legal problems, but this is common in business.
However, entirely contrary to what was claimed on JONP, Cherokee did not cause the toxic waste problem, but attempted to support remediation. The citizens advisory groups were not angry with Cherokee, at all. The University of California took most of the flak, and the San Francisco Bay Regional Water Quality Control Board, which had asserted jurisdiction, and which was seen as inadequate (which could have come from their concern being water quality, due to toxic chemicals leaching into the Bay, possibly fixed, at least for the near future, by the burial and capping which was done
The plan the water board approved for cleanup at the Stauffer site proved controversial from the start, in part because it called for burial of most of the hazardous wastes on site rather than their removal to an approval toxic waste disposal landfill—the costlier option chosen by the university.
Possibly as a result of community pressure, jurisdiction ultimately devolved to the California Department of Toxic Substances Control (DTSC), an agency staffed with a wide range of scientific experts.
As a result, the Stauffer cleanup cost expanded dramatically and probably unexpectedly, and, as reported above, there was also a drop in real estate values, leading to possible Cherokee Simeon Ventures insolvency, hence the Chapter 11 protection issue. I still have no information on current status of the project, most Google hits are old.
So on JONP:
Dear Dr Andrea Rossi:
I read the comment of Leanne of today: now we can understand all the falsity and the hypocrisy of the “Minime” of Darden ( JT Vaughn) when in his deposition said how scandalized they got when they read about your past!!!
Please win for us all against this gang,
LENR Forum dislikes detailed examination of issues, but then tut-tuts when users, instead, simply express reactions, like, “What idiots! Pure Planet Rossi!” However, the solution: point to analysis elsewhere, like here! Increasingly, LF moderation is not tolerating evidence-free or misleading posts like those of ele.
So what is Leah talking about? There is no mention in the pleadings of Rossi’s Italian environmental disaster; my first thought was that “Leah” was thinking of Krivit, who is not mentioned anywhere in the case that I’ve seen (beyond a mention of him, mispelled, by APCO’s McLaughlin in an email to Rossi)
However, someone has possibly read the Vaughn depositions (there were at least two) and there is plenty in the depositions that has never been cited in the pleadings, such that I’d have noticed it. Slogging through this stuff can take high motivation. So who would be highly motivated?
The Vaughn depositions are listed on this study page. (Eventually I would hope to condense that; as can be seen, there are many exhibits from the same depositions, but they may include different deposition transcript pages. As the case stands, it is a colossal mess. However, depositions are generally text files and can be searched with the site search facility — many documents are images, not text. I’d say that the court system is about two decades archaic and primitive.)
“Petroldragon” is mentioned in the deposition of Rossi.
Not, apparently, in any Vaughn deposition, and I also looked for other terms with no success. However, anyone is free to point to what I might have missed due to the nonspecificity of the “Leah” claim or some inadequacy in my search.
It would not be surprising, and would not show any hypocrisy. Cherokee, and Vaughn — corporations cannot be “hypocritical,” that requires being human — did not cause the Zeneca-Campus Bay mess, it was created long before Cherokee existed. Rossi created the PetrolDragon mess, by commission or omission. People can argue about whether it was his “fault” or not, i.e., may assert “excuses,” but — no Rossi, no PetrolDragon disaster. Cherokee and Vaughn are not remotely close to that level of responsibility. Legally, they are not responsible for cleaning up the Zeneca site, rather than lies with those who caused it (Zeneca has inherited that responsibility from Stauffer), and then, that failing, with those who own the property, and the closest Cherokee Investment Partners gets to that is that they are investors in a joint venture that bought the property, so they can lose their investment. Zeneca is a large corporation, now AstraZeneca
with assets, according to Wikipedia, of $60 billion. However, notice: AstraZeneca did not buy the property, but Cherokee Simeon Ventures did; they are investors in CSV. The company most in trouble over Campus Bay would be AstraZeneca. How did that arise? Stauffer Chemical.
The wreckage of the past lands somewhere. It is only relatively rarely that we can find someone clearly responsible for cleaning it up, and possessing the means. Lack of caution about environmental damage was routine, until recent years.
Qur’an, about those who came before: “for them is what they earned, for you is what you earn.”
Look around! I point to what is obvious for me, with what I have seen, and I attempt to make it possible for others to see what I’ve seen. That can be quite unpopular: in my training, there is a saying, “If they are not shooting at you, you have not done anything worth wasting bullets on.”
If I err here, or anywhere, please: corrections are welcome. I am responsible for what I create, including all my errors and omissions. Taking responsibility is how we create a future worth living into.
Blaming others is how we maintain being stuck in the past. It is, practically by definition, disempowering.