Mysterious School Financing Disclosed #VB8
August 15, 2005No Comments
Los Angeles, CA. In a ten minute video blog featured on the Full Disclosure Network™ website via streaming video starting Monday, August 15, 2005 Los Angeles Unified School District (LAUSD) Board member David Tokofsky disclosed the existence of an unknown school financing operation which has been concealed from the public eye apparently to avoid scrutiny.
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- In this video blog Tokofsky describes the process whereby LAUSD Board members, acting as the members of a public benefit corporation called “LAUSD Financing Corporation”, approved the execution, sale and delivery of untold millions of dollars in Certificates of Participation (COPs) bonds which are non-voter approved, long term public indebtedness. An exact number of these financing corporations controlled by the LAUSD is unknown by both Tokofsky and Full Disclosure™ at this time.
- Tokofsky describes the authority of the mysterious “Financing Corporation” and “Land Bank” which were set up by the LAUSD for the purpose of purchasing land for school sites and various other needs, including hundreds of millions for computer technology.
- Full Disclosure™ asked David Tokofsky why KLCS, the public television channel owned and operated by LAUSD, had turned off the television cameras and all coverage of a three-minute simultaneous meeting of the LAUSD Financing Corporation and a second public benefit organization known as the Administration Building Financing Corporation that was held on April 22, 2004 just after a Special Meeting of the Board was adjourned.
- Also featured in the video blog is a three-minute audio tape of a simultaneous meeting of the LAUSD Financing Corporationand Administration Building Financing Corporation which documents the casual attitude of the Board. In this brief meeting the Board quickly dispensed with perfunctory “no objection” votes, without discussion or debate authorizing “the execution, sale and delivery of $50 million in refunding Certificates of Participation (COPs)” in one resolution .
- A second resolution was quickly passed immediately following the first action authorizing an untold number of COP bonds identified only by the words “certain number” and “certain documents” and “certain actions”. When one Board member was missing a copy of the second resolution, it was revealed by an undisclosed voice, on the tape, that the matter was pertaining to“Beaudry from Taxable to Tax-exempt”. It would appear this action was authorizing the tax exempt status of Bonds for the $180 million Administration Building that was originally financed with taxable bonds. This transaction was the target of an investigation by LAUSD Inspector General Don Mullinax and was referred to District Attorney Steve Cooley for prosecution, which he once again declined as with the other referrals for prosecution on the Belmont Learning Complex.