Martinez News-Gazette March 13, 2020

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PRST STD US POSTAGE PAID MARTINEZ, CA PERMIT NO. 235 94553-9998

Volume 162 Issue 45

Established in 1858

Friday, March 13, 2020

$2.00 TAX included

MUSD unveils proposed budget cuts RICK JONES | EDITOR

T

he Martinez Unified School District outlined a draft of proposed budget reductions for the 2020-21 school year as the district tries to overcome a $1.5 million budget deficit. Superintendent CJ Cammack introduced the plan Monday, March 9 to the Board of Trustees. A standingroom only crowd attended the meeting, with almost 20 attendees speaking out on the proposed cuts. Cammack reiterated what he’s previously said about the arduous process of slashing a budget already drained from previous reduction, none of the “proposed cuts are being made in the best interest kids, staff or

Photo by Gazette 2020 MUSD Classified Employees of the Year.

community.” Inadequate state funding, unfunded state pension, and underfunded

The state of California continues to provide per pupil funding that ranks near the bottom of the nation in every significant measure" CJ CAMMACK

MUSD SUPERINTENDENT

BRIEFS California prison warden retired during theft investigation SACRAMENTO, CA — A California prison warden who abruptly retired last fall had been placed on administrative leave while under investigation for alleged theft from a thrift store and attempting to cover it up, a newspaper reported Tuesday. The investigation of former Mule Creek State Prison warden Joe Lizarraga concluded that his dishonesty, theft and “failure of good behavior” warranted firing, The Sacramento Bee said, citing a California Department of Corrections and Rehabilitation report obtained under the state Public Records Act. Corrections’ internal affairs office opened the investigation as soon as it became aware of the allegations, department spokeswoman Dana Simas said in an email to the newspaper. “The investigation concluded in December 2019, as a result, CDCR sustained that there had been instances of dishonesty and theft that would have been grounds to terminate Lizarraga’s employment,” she wrote. The investigation report said that on Sept. 14, 2018, Lizarraga removed price tags from winter equipment at Interfaith Food Bank Thrift Store in Sutter Creek and then suggested lower prices to the cashier. The report said Sutter Creek police investigated and that Lizarraga lied to the police chief when he said he didn’t suggest prices. It also said he told the chief he purchased the equipment for his family when it was really for personal financial gain. Lizarraga later wrote a personal money order for $125 to dissuade a witness from participating in a criminal prosecution and then made another bribe attempt using charitable funds from the prison, the report said. The Bee reported that the corrections report did not say whether Lizarraga was criminally charged and he did not respond to attempts to reach him by phone. Neither the police chief nor the Amador County District Attorney’s office responded to voicemails, the newspaper said. The report was heavily redacted,

See BRIEFS on page A3

state and federal special education costs have put district all over the state deep in the red. “The state of California continues to provide per pupil funding that ranks near the bottom of the nation in every significant measure when adjusted for inflation and cost of living,” Cammack reported.

Cammack reminded that Measure R passed in 2016 provided the district with building funds. “This money is legally restricted to facility improvements and cannot be used for general operating expenses in MUSD,” Cammack said. Cammack explained the “Governor's revised budget is released in May, and may or may not, provide an increase in funds.” But “March 15th employee notices are required prior to that May revision.” The proposed plan includes reducing “elementary library media assistant’s hours or positions. Would keep libraries open at all elementary sites but would significantly reduce the number of times students can access library services.” Several parents and staff from Las Juntas spoke at the meeting, imploring the district to look elsewhere for cuts. The speakers told the board that

INSIDE THIS EDITION

LOCAL NEWS

For a generation, school bonds have been more or less a slam dunk in California. Locally and statewide, voters consistently have supported borrowing to build and maintain classrooms...

See SCHOOL BONDS on page A2

See MUSD on page B10

Carpoffs enter guilty pleas, sentencing scheduled for May 19

CRIME AND INCIDENTS

San Francisco area man with a history of violence and mental illness is guilty of the random stabbing death of an 18-year-old woman at a commuter train platform two years ago...

See TRAIN MURDER on page A4

STAFF REPORT | MARTINEZ NEWS GAZETTE

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he Gazette has received several emails asking for an update regarding the DC Solar fraud case. Here is a story that appeared last month detailing the charges and a plea from the Carpoffs. The owners of DC Solar pleaded guilty January 24 in a Sacramento federal court. Jeff and Paulette Carpoff were charged with masterminding a billion-dollar Ponzi scheme involving mobile solar generators. According to court documents and the plea agreement Jeff Carpoff, 49, pleaded guilty to conspiracy to commit wire fraud and money laundering, faces up to 30 years in prison. Paulette Carpoff, 46, pleaded guilty to conspiracy to commit an offense against the United States and money laundering and faces up to 15 years in prison. The couple agreed to pay restitution of between $800 million and $1.6 billion. Malcolm Segal, an attorney for Mr. Carpoff, told the Wall Street Journal, DC Solar was started as a legitimate business, “but as it grew, it overwhelmed Mr. Carpoff.” “Because of that he began committing acts he knew were wrong and illegal,” Mr. Segal told the Journal. “But he tried to salvage the business and failed.” Mr. Carpoff is forfeiting personal and business property to pay back investors, Mr. Segal said. Bill Portanova, an attorney for Ms. Carpoff, told the Journal she “recognizes what she has done wrong over these past several years and she will be working for many years trying to make things right.” As previously reported federal agents seized over $60 million in personal property and liquid assets when they raided the DC Solar offices and the Carpoff ’s Martinez home in December 2018. A safe in Jeff Carpoff ’s office at the Benicia headquarters contained $1.7 mil-

SPORTS - PICTORIAL

File photo Paulette and Jeff Carpoff.

lion. Accord to the plea agreements, the couple will forfeit the millions seized by federal agents, as well as their interests in a Napa Valley winery, a cafe and various businesses, vehicles and villa at the Four Seasons Resort on St. Kitts in the Caribbean, court papers say. Various vehicles were auctioned off late last year and generated $8.2 million in revenues. The Securities and Exchange Commission also sued the Carpoffs in a civil complaint filed in Sacramento. The SEC said the couple, whose business is in bankruptcy, siphoned off at least $140 million of investor funds to pay for their personal expenses, which included the sports cars, dozens of properties, and a share in a private jet service. The investors were eligible for a 30% tax credit, which roughly covered the amount of cash they initially placed with DC Solar, the SEC said. The investors generally assumed an obligation to contribute millions more to the business through promissory notes, the SEC’s lawsuit says. The value of the promissory notes was roughly $1.8 billion, the SEC said, meaning the face value of total investor commitments to DC Solar was over $2.7 billion. The SEC’s lawsuit alleges the

See BASEBALL & SOFTBALL on page A6

couple committed securities fraud and seeks disgorgement of illegal profits and payment of civil penalties. The Carpoffs are scheduled to be sentenced May 19. Department of Justice press release Top Executives Plead Guilty to Participating in a Billion Dollar Ponzi Scheme—the Biggest Criminal Fraud Scheme in the History of the Eastern District of California

EDITORIAL & OPINION

I was thinking about my brother recently. Lewis passed away four years ago last month and I miss him from time to time. Author Terry Pratchett once wrote, “Do you not know that...

See AT HOME on page B7

SACRAMENTO, Calif. — The owners of DC Solar, a Beniciabased company, pleaded guilty today to charges related to a billion dollar Ponzi scheme— the biggest criminal fraud scheme in the history of the Eastern District of California. The government’s investigation has resulted in the largest criminal forfeiture in the history of the District with over $120 million in assets forfeited that will go to victims, and has returned $500 million to the United States Treasury, with more to come, U.S. Attorney McGregor W. Scott announced. Jeff Carpoff, 49, of Martinez, pleaded guilty today to conspiracy

This past weekend, I was fortunate to visit the Town Hall Theater in Lafayette to attend the second week of Anton Chekhov’s last play and masterpiece, The Cherry Orchard...

See DC SOLAR on page B11

See THE CHERRY ORCHARD on page B8

“Yazmin made our new home dream a reality. When two other lenders declined us, she got us into the beautiful home!!! Yazmin is the most persistent and dedicated professional. Thank you Yazmin!!” “As a first time home buyer, I needed quite a bit of support throughout the entire mortgage process, Yazmin was available by phone/text/email whenever I had questions. With her expertise, I truly feel she was helping me make the best decisions each step of the way. Her knowledge of the Bay Area market was an absolute asset. You’d be lucky to work with someone as hard working, experienced, and kind as Yazmin!”

Mostly Cloudy 74o - 49o ENE 7 mph - 54% Hum.

Bulldogs play ball on the diamond. Alhambra High baseball team is 3-3 on the young season. Alhambra High softball team dropped their 2020 season opener to Antioch High 6-1...

www.martinezgazette.com

ENTERTAINMENT

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Martinez News-Gazette March 13, 2020 by Martinez News-Gazette - Issuu