Posted by Pension Info 3 on 12/13/2005, 8:58 pm, in reply to "Re: Cliff Evans & UFCW Pension" We know from CCWIPP's financial statements that this deal cost them or, more precisely, cost the members even though it never happened. CCWIPP financial statements for 1995, 1996 and 1997 show losses of $12,000, $51,000 and $89,000 respectively for a Propco 10 investment described only as "inactive". Were these the legal fees from the lawsuit? Maybe or maybe not. CCWIPP's legal fees, including fees to Loopstra Nixon, were reported separately for those years. So who was getting paid in connection with this "inactive" investment? Even if a fraction of what Team CCWIPP said about Paul Scarponi was true they should never have become involved with him in the first place. Where was their due diligence? From their own sworn statements, the deal with him fell apart because he didn't cough up a check for $9,730.00 and not because they discovered a scam or become aware of any earlier failed real estate transactions. They checked this guy out and decided to lend him a million dollars for a nominal downpayment. Shame on who? What was Cliff Evans, leader of UFCW Canada and top dog on CCWIPP's investment committee (which makes decisions about where CCWIPP's funds will be invested) doing getting a house from this guy on the high cheap? Evans' role on the investment committee and the coincidental timing of his affordable house purchase and Scarponi's low downpayment mortgage... stink. That Scarponi changed his tune about just how many affordable houses he'd promised to sell to Evans and for how much after the deal fell apart doesn't change the fact - the most disturbing fact - that up to the time the deal went south Lord CCWIPP was going to get a nice peice of property for himself (not for the pension fund) out of the bargain. One that he could turn around and flip for double or triple his money. Nor does it explain how a bunch of well-paid advisors, some of whom were involved in their own land deals with CCWIPP, determined CCWIPP "should get involved" with him or why the CCWIPP trustees just let it happen. Nor does the fact that all of this took place more than ten years ago, minimize its importance. If anything, its significance is underscored by the fact that in 1990, CCWIPP officials were just getting into trustee directed investing and embarking upon a path that would lead the pension fund to hundreds of millions of dollars of failed investments and a whopping solvency deficiency. Indeed, CCWIPP's investment-that-almost-was in Paul Scarponi's land development venture bears many of the same attributes as ensuing CCWIPP investments: Millions of dollars invested,
69.159.28.22
From this intriguing story we know that Mike Rogerson was about to become a director of yet another Propco investment corporation, one which would funnel millions into the CCWIPP-fueled investment that would make a former Catholic priest and pedophile Ron Kelly a real estate tycoon.
on very favourable terms,
in high risk ventures or with enterpreneurs "just starting out",
through investment corporations controlled by members of CCWIPP's investment committee,
with a lot of CCWIPP hangers-on hanging around,
and the CCWIPP trustees going along for the ride.
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