Category Archives: CAB scams

How CABs work

Posted on May 22, 2012 by hro50ta1

By Joel Thurtell Wanta parley three hundred bucks into five grand? Easy. Here’s how you could’ve done it last summer, had you known that the Poway Unified School District in San Diego was going to issue Capital Appreciation Bonds at … Continue reading →

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Hey, California! Michigan school sued lawyers & won $15 million

Posted on May 19, 2012 by hro50ta1

By Joel Thurtell Think about this, Californians: In the early 1990s, a Michigan school district actually sued its attorneys in a CAB deal turned sour. Amazing! Pontiac schools won a $15-million-dollar settlement against their bond counsel, the prestigious firm of … Continue reading →

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See no evil: CABS and media

Posted on May 16, 2012 by hro50ta1

By Joel Thurtell Thanks to Kevin Dayton of the Dayton Public Policy Institute for noticing my recent columns about the evils of Capital Appreciation Bonds. He covered the May 11, 2012 meeting of California’s League of Bond Oversight Committees annual … Continue reading →

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CABs and consequences

Posted on May 14, 2012 by hro50ta1

By Joel Thurtell Gray Davis. If I were a member of the Poway Unified School District in San Diego and my name was Penny Ranftle Linda Vanderveen Andy Patapow Mark Davis Todd Gutschow, I’d be wondering how soon I’d make … Continue reading →

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Scouting for graft: Look for Michigan in California

Posted on May 13, 2012 by hro50ta1

By Joel Thurtell If I were a district attorney or attorney general in California — someone with subpoena power — I’d be asking hard questions about the behavior of public school officials and the people who arrange loans, aka bonds, … Continue reading →

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CAB scam in Poway

Posted on May 12, 2012 by hro50ta1

Proposition C To provide safe and modern school facilities, improve student learning, and qualify for approximately $20 million in State matching money, shall School Facilities Improvement District No. 2007-1 of the Poway Unified School District issue $179 million in bonds … Continue reading →

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Disaster shadows Poway

Posted on May 10, 2012 by hro50ta1

By Joel Thurtell I thought Michigan was bad. Back in 1993, when I was writing about Michigan school debt, I was astonished to find school districts taking on debt with interest costs at two, three and in one case almost … Continue reading →

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Bond lawyers: Whose side are they on, anyway?

Posted on May 9, 2012 by hro50ta1

By Joel Thurtell Californians: Greetings from Michigan. In the early 1990s, a Michigan school district actually sued its attorneys in a CAB deal. Amazing! As you West Coasters read the following article, you might want to ask yourselves whether some … Continue reading →

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CABs and the high cost of secret deals

Posted on May 8, 2012 by hro50ta1

By Joel Thurtell If you want the best price, bid the work out. That’s a no-brainer, right? Well, the people who love high-interest Capital Appreciation Bonds also love making their deals behind the scenes. Why allow competitive bidding when you … Continue reading →

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Long after goodies are junk, it’s pay, pay, pay

Posted on May 5, 2012 by hro50ta1

By Joel Thurtell Who would pay $117.5 million for computers priced at $28 million? Who would pay interest three times principal years after the computers were junk? It happened in Romulus, Michigan in 1990. It’s happening in California now. From … Continue reading →

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