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As Thunder Valley Casino celebrated the completion of its new 300-room hotel, spa, pool and amphitheater at a ribbon-cutting event Monday, area leaders went "all in" voicing their support.
"They are good neighbors. They need to be thanked," Rocklin Mayor Scott Yuill told the more than 300 dignitaries and guests on hand.
"We are lucky that they are there," Roseville Councilwoman Carol Garcia told The Bee after a tour of the hotel.
The love-fest atmosphere Monday belied the acrimony that existed before the casino and regional communities worked out a groundbreaking agreement in the years leading up to the casino's 2003 opening.
Opposition was fierce in some Placer County communities. Placer County Supervisor Robert Weygandt said there was about a nine-month period where neither side spoke after the tribe stormed out of a Penryn town hall meeting.
The cities of Rocklin and Roseville were the last communities in the region to give up the fight against the casino, even going to federal court in an attempt to block the casino's construction.
In the face of the persistent opposition, the United Auburn Indian Community reached agreements to offset the casino's effect on the surrounding communities. That groundbreaking agreement jeered by other tribes at the time is now the template for all new casinos and has resulted in the tribe paying millions to area governments, officials said.
"Basically they agreed to the California Environmental Quality Act. They agreed to county ordinances. That was unheard of," said Cheryl Schmit, director of Stand up for California, an anti-gambling group that became a partner in the face of what she called the tribe's federally mandated "inevitable" right to build a casino in Placer County.
Weygandt said he opposed the casino early on, but then decided to focus on ensuring that the facility offset its negative impacts.
"Time heals all wounds," said Doug Elmets, a spokesman for the casino.
The parade of speakers Monday almost as if using the same talking points spoke about the casino's economic impact, and contributions to local governments and to area charities.
"They have done a lot in our community in giving back to the nonprofits in the region," Garcia said. That support includes in-kind and financial support of Placer Breast Cancer Endowment, a charity Garcia chairs.
On top of the $2.8 million annual contribution to the California Department of Forestry and Fire Protection for firefighting and emergency response, this year the tribe kicked in another $1.1 million for a new ladder truck and supplies for a new fire station.
The tribe has agreed to pay $1 million toward a Sheriff's Department helicopter, in addition to the $1.2 million annual payment to the department.
The tribe also played a key role in the acceleration of the planned Sunset Boulevard overpass and made a $150,000 annual transportation contribution.
Weygandt said United Auburn is paying more than its fair share for police, fire and transportation needs.
All of this is in excess of the nearly $42 million the tribe pays to the state and $2 million shared with tribes without casino revenue.
General Manager C.J. Graham scoffed at complaints that they don't pay some taxes paid by California businesses. He noted the 2,300 jobs created by the casino (700 hired to work the hotel) and the casino's practice of using local contractors.
"We may not pay any direct taxes, but we do put about $50 million a year into the local economy," Graham.
The hotel opens for general business on Thursday.
For David and Deborah Teja, the investment deal represented a chance to sock away college money for their two children, set aside a nest egg and have enough extra to give to charity.
It was, their investment advisers repeatedly told them, a "no brainer" that would pay them 12 percent interest on their investments, which would be guaranteed by the properties they bought to generate their cash.
Like many others, they attended a seminar presided over by investment guru Lawrence Leland "Lee" Loomis at a Holiday Inn and then went to a two-day event at the Gold Country Casino in Oroville to learn more. The high school teacher and social worker were surrounded by professionals much like themselves, who responded to the idea that their investments would enable folks in financial trouble to stay in their homes.
And so the Tejas, well educated with perfect credit scores and a successful business in Chico, took the bait, siphoning $150,000 in equity out of their home in 2006 and turning it over to Loomis Wealth Solutions, a firm Loomis started in Chico and later moved to Roseville.
Today, the money is gone, part of what federal authorities say was a $100 million Ponzi scheme that has spawned a years-long investigation, a maze of mortgage fraud, drug and hate crime charges, and financial woes for investors nationwide.
"Our credit is destroyed, and he just gets to walk the streets freely," David Teja said last week, sitting at the same dining room table where he signed the Loomis loan documents. "We have a 13-year-old and an 11-year-old, and they just destroyed our college fund. That was one of the motivators, to be able to put some money into a college fund."
For the most part, Loomis investors have been silent as they hold out hope for a fruitful investigation and some financial relief. But some, like the Tejas, are coming forward.
"He referred to himself as a Christian, God-fearing man," Deborah Teja said. She described the Hummers and Cadillac Escalades driven by the Loomis crowd as they explained how investors could buy into properties in various parts of the country that Loomis would rent out.
Loomis has denied wrongdoing to federal agents and through his attorney. According to Assistant U.S. Attorney Russell Carlberg, Loomis remains under investigation in an ongoing probe that has generated criminal charges against four of his lieutenants.
His financial empire is in ruins, and he and his father-in-law, John Hagener, are facing a civil complaint by the U.S. Securities and Exchange Commission, along with civil suits by investors who say they were duped out of money. Hagener answered the SEC complaint with a denial of wrongdoing; Loomis never responded and was found to be in default June 10.
The Tejas are among those suing Loomis. A group called Attorneys Against Abuse of Elders filed a proposed class-action suit in Sacramento Superior Court, calling the investment plan "an elegantly sophisticated scheme." That suit has since been moved to federal court.
Loomis, whose annual salary was $400,000, has moved out of his 7,553-square-foot, $1.9 million Granite Bay home and relocated to Roseville while the investigation continues. His attorney, Patrick Hanly, said the house is in foreclosure, and "the government shut his business down by seizing all of his records."
Meanwhile, the investors, who claim they were victimized, find themselves trying to avoid bankruptcy and foreclosure.
Sacramento resident James Wells said he bought into the Loomis Wealth Solutions plan with $350,000 that came from equity in his home and his wife's 401(k) retirement account. He said he had heard that Loomis had achieved profits for investors in the Chicago area. After attending the seminars, Wells said he felt he had found a sound plan that also would let him practice philanthropy.
"He was very believable," said Wells, an accounting manager for an Internet firm.
"At one point I was thinking, once the money came in, I'd start up a scholarship at Sac State. You want to do something for the community, also."
Wells said he invested in four properties, three in Florida and a condo development at a Colorado resort. "So, we were getting statements from Loomis every month and, hey, it's appreciating at 12 percent every month," Wells said.
In fact, he alleges, nothing was appreciating and the mortgages weren't being paid. All four properties ended up in foreclosure, and although he managed to work out agreements to get out from under the loans in Florida, he said the lender that bankrolled the Colorado property is still seeking $270,000.
Wells, who has two children, 12 and 8, said he has moved out of his El Dorado Hills home and now is renting.
The Tejas invested in two properties, one a condo in Cameron Park, the other a home in Orland where they thought they were helping occupants who had been unable to keep up the payments but rented the home back from Loomis after the Tejas invested.
They say they felt good about being able to help the family, although both agree that Deborah Teja never was entirely comfortable with the investments. They felt rushed when it came time to sign documents, and they would get a call around 8:30 p.m. from Loomis or an associate wanting to "whip by" at 9 and have them sign papers. When Deborah Teja would balk, they said, Loomis would get pushy. "He kept telling her, 'It's just a no-brainer' when he would bring the documents to sign," David Teja recalled.
"There were so many red flags," Deborah Teja added ruefully.
Last year, as Loomis' company was collapsing, David Teja drove to Roseville to try to get his money back. He got back to Chico with a napkin on which Loomis had scribbled an explanation of why the Tejas still had a sound investment, Deborah Teja said. (Her husband recalls the notations were on a piece of paper, not a napkin, but they agree he was less suspicious than he should have been).
"We'd probably own five houses if it wasn't for me," she said.
To add to the insult, the Tejas discovered the Cameron Park condo that was supposed to have been "rented" was actually occupied rent-free by Loomis' daughter.
The strain on the family is obvious.
"He's stripped us to nothing," Deborah Teja said. "When we tell the kids they can't have something we can't afford, they say, 'It's Lee Loomis isn't it? I hate Lee Loomis.' "
The painter of light is having a dark period.
Thomas Kinkade, the Placerville native who became one of the world's wealthiest artists with his sentimental landscapes and Christian motifs, has had a string of legal troubles.
His company owes millions of dollars to art gallery owners who successfully pressed fraud claims.
Earlier this month the firm filed for bankruptcy protection from those gallery owners and hundreds of other creditors.
And on Friday, the 52-year-old Kinkade, who calls himself "the painter of light," was arrested on a DUI charge outside Carmel, where he owns a home.
Kinkade could not be reached for comment Monday. But a company spokesman insisted all was well in the artist's empire.
"Tom is still painting and the business is still strong," said Dave Satterfield.
He said Kinkade would not comment on the DUI arrest on the advice of his lawyer. Officials at Kinkade's corporate offices were still reviewing the allegations, Satterfield said.
"We will have more to say once we've completed that review," he said.
According to the California Highway Patrol, a Monterey County sheriff's deputy stopped Kinkade's Mercedes- Benz for a vehicle code violation Friday night.
The deputy suspected Kinkade was under the influence and called the Highway Patrol for assistance, said CHP Officer Robert Lehman.
A CHP officer performed tests to determine if Kinkade was impaired and arrested him just after 10 p.m., Lehman said.
The arresting officer reported that Kinkade was "very polite," during the exchange, Lehman said.
The painter was booked into the Monterey County jail on suspicion of misdemeanor drunken driving, Lehman said.
Kinkade submitted to a blood test, but the CHP is not releasing his blood-alcohol content, the officer said.
It was the second time this month that Kinkade had been embroiled in legal woes.
On June 2, his company Pacific Metro, formerly known as Media Arts and the Thomas Kinkade Co., filed for bankruptcy protection in federal court.
The company, one of Kinkade's two major corporate arms, produces the paintings sold at galleries around the world, Satterfield said.
Another corporation handles licensing, he said.
Satterfield said reorganization under bankruptcy laws was needed because outsourcing had left the company with a fraction of its former work force but still holding long-term leases.
"The company is in serious financial condition and is unable to continue without debt relief," the bankruptcy filing said.
The company owes 1,000 to 5,000 creditors a total of $10 million to $50 million, according to court documents.
A list of creditors more than 100 pages long was appended to the bankruptcy filing. It included a cardboard-box company in Sacramento, the state Board of Equalization and small art galleries in Folsom, Auburn and Elk Grove.
At the top of the list were Karen Hazelwood and Jeff Spinello, art gallery owners from Virginia to whom Kinkade's company said it owed almost $2.4 million.
The debt stemmed from a fraud claim the couple won in arbitration in 2006. The 9th U.S. Circuit Court of Appeals upheld the award last June.
The couple and their lawyer could not be reached for comment Monday.
Second on the list were another set of art gallery owners who won a $1.4 million award in a similar case. That case is still being appealed, Satterfield said.
There had been a number of similar claims against the company which had failed, he said.
Two people have died in the crash of a small airplane near the Lincoln Airport.
Jill Thompson, public information officer for the city of Lincoln, the ultra-light craft went down about 8:15 p.m. between Flight Line Drive and Aviation Boulevard. Both people on board were killed.
Ian Gregor, a spokesman for the Federal Aviation Administration, said the plane was a Rans Coyotte. It is registered to Gorden S. Michael of Alaska.
The identities of the victims have not been released.
-- Cathy Locke
Firefighters have contained the Rocklin grass fire that had threatened homes this evening.
The fire broke out shortly before 5 p.m. near Clover Valley and Rawhide roads and was burning about 15 feet away from homes, a dispatcher said. Fire officials had recommended voluntary evacuations.
The fire was contained by 7:20 p.m.
No structures were damaged and no one was injured, according to reports.
-- Chelsea Phua
Conservative Placer County is doing a fair amount of head-scratching after Tuesday's vote. How did Democrat Jack Duran oust a Republican and claim a seat on the Board of Supervisors?
While Duran's backers point to his track record as trustee of the Roseville Joint Union High School District, Republican analysts say F.C. "Rocky" Rockholm got pulled under by the anti- incumbent riptide sweeping across the county.
"The only thing worse than being an incumbent is being an incumbent with a whiff of scandal," said Jeff Flint, a Republican political consultant who lives in Lincoln.
The final vote tally gave Duran a convincing victory, with 58 percent of the vote to Rockholm's 42 percent.
Duran's election wipes away a Republican advantage on the nonpartisan Board of Supervisors.
Jennifer Montgomery is also a Democrat, and Jim Holmes, who was a Republican, re-registered as a decline-to-state voter in October.
The county remains one of the most conservative in the state with 48 percent of voters registered as Republicans.
The Sacramento Central Labor Council gave a big boost to the Duran campaign, pumping in $18,000. In total, union committees gave Duran more than $52,000.
Bill Camp, the labor council's executive director, called Duran a nose-to-the-grindstone leader with a personal story that resonates with people.
Duran drove a UPS truck to put himself through college and law school, according to his website biography.
"He's a hard worker and he's smart," Camp said.
Doug Elmets, a local Republican political consultant, has a different take: "The vast majority in Placer County has no idea about Duran's story."
"Jack Duran was just more effective in getting out his message and was clearly more effective in negative campaigning," Elmets said.
Duran won largely because he attacked early and often, deftly painting Rockholm as wasteful, out-of-touch politician, Elmets said.
Rockholm was seeking his second four-year term as a supervisor.
Duran's campaign frequently reminded voters that in 2008, the county paid nearly $10,000 for a charter flight to shuttle a vacationing Rockholm to and from a critical board meeting at Lake Tahoe.
Rockholm said voters didn't know that he paid the county back.
Flint called the election a referendum on Rockholm. "It's a bad time to be an incumbent," he said.
Todd Stenhouse, Duran's campaign manager, said the campaign pointed out Duran's track record of "leadership by example" and consensus-building as he helped cut the school district budget.
It's not the first time fiscally conservative Democrats have made a strong showing in Placer County.
Charlie Brown nearly won the 4th Congressional District race against incumbent John Doolittle in 2006 and Tom McClintock in 2008. Stenhouse worked on both Brown campaigns.
Elmets said the Duran team, armed with union money and the knowledge of when and how to attack Rockholm, created a formidable campaign.
"It was a one-two punch that proved lethal," Elmets said.