New Letter from Corky and Noni Eley

Below is a letter from Corky and Noni Eley. Folks, PCM and GRF have to be replaced.

DATE: January 18, 2010

TO: Golden Rain Foundation Board
Third Laguna Hills Mutual Board
United Laguna Hills Mutual Board
Mutual Fifty Laguna Hills Mutual Board
All LWV Homeowners

RE: Violation of Corporate Code #8215 by LWV Boards and PCM.

Confusion!! Confusion!! Confusion!! This is the life style we bought into when we purchased a Cooperative or a Condominium in Leisure World/ Laguna Woods Village. The Governing Documents (Trust, Articles of Incorporation, Regulatory Agreements and CC&R’s) mean nothing to the Boards or PCM, the Managing Agent. Several written request have been made to LWV four Boards and PCM for open televised meetings on the interpretation of the Governing Documents and to whom these Governing Documents apply.

Golden Rain Foundation (GRF) for months has published paid advertisements each week in the Laguna Woods Globe with misleading information regarding the Governing Documents, Tax status, Corporation status and Banking procedures. Several of these ads are in violation of Corporation Code #8215.

PCM staff, as part of the Communication Plan, has created a monthly newsletter “United Laguna Hills Mutual-Village Snapshot” for LWV Boards. In the August Village Snapshot, under “Just the fact, Please,” the information staff gave the boards regarding the CC&R’s was incorrect. The December Village Snapshot, under the article “The Operating Budget,” was also Incorrect Information. GRF for the past 10 years has failed to deliver to each homeowner an Operating Budget as per the Amendment to the Trust, dated April 6, 1964. Perhaps staff should read the governing documents. In our opinion, Staff, by publishing false information in the Village Snapshot, which was delivered to the Board Members, has violated Corporate Code #8215.

Corporate code #8215 states: Any officers, directors, employees or agents of a corporation who do any of the following are liable jointly and severally for all the damages resulting there from to the corporation or any person injured thereby who relied thereupon or to both:

(a) Make, issue, deliver or publish any prospectus, report, circular, certificate, Financial statement, balance sheet, public notice or documents respecting the corporation OR its memberships, assets, liabilities, capital, dividends, business, earnings or accounts which is false in any material respect knowing it to be false, or participate in the making issuance, delivery or publication thereof with knowledge that the same is false in a material respect.
(b) Make or cause to be made in the books, minutes, records or accounts of a corporation and entry which is false in any material particular knowing such entry is false.
(c) Remove, erase, alter, or cancel any entry in any books or records of the corporation, with intent to deceive.

The latest announcement made in the Laguna Woods Globe, was “Laguna Woods Village gets New Cable Operator.” “Connexion Technology of North Carolina, beginning January 2010, will manage and operate the network, while GRF will still own the cable TV franchise and broadband network, The partnership will reduce GRF’s operating costs and capital expenses for the cable network, and savings will be passed on to residents, according to a statement released by the managing agent, PCM staff, on Tuesday, January 5, 2010. "In excess of a $1,000,000 a year," said Russ Ridgeway of expected savings. Russ Ridgeway said, "The current Broadband Staff will remain the same, although they will become Connexion Technology employees.”

Several questions need to be answered by GRF and PCM.

(1) How and Why was a partnership formed in the Laguna World Trust without the Homeowners approval?
(2) Is Connexion Technology a full partnership or a limited partnership?
(3) How much is Leisure World / Laguna Woods Village Cable TV worth?
(4) Was the $1,406,000 paid to GRF the full amount Connexion paid for the partnership?
(5) Broadband Staff are PCM’s employees and now they are going to be Connexion
Employees? Is Connexion a subsidiary of PCM?
(6) Who negotiated this 15 year contract/partnership?

It is time the four Boards (GRF, United, Third and Fifty) and PCM give the homeowners correct information on the governing documents, contracts or partnership the homeowners are responsible for. The homeowners, who pay the bills, should be fully informed as to what their obligation is and what has been sold, built, given or taken under these contracts or partnerships.

Sincerely yours,

Noni and Corkey Eley


Transmitted at the request of Noni and Corkey Eley.