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John Glen Anderson, 46, was taken into custody by Lake County Sheriff's deputies on felony charges of making criminal threats and elder abuse, according to Capt. James Bauman of the Lake County Sheriff's Office.
Bauman reported that sheriff’s deputies responded to a home on Shoreview Drive in Clearlake Oaks for a family disturbance on Wednesday at about 7:30 p.m.
There deputies learned from 38-year-old Lisa Resents that her husband, Anderson, had been drinking and causing problems with her and her 72-year-old father, Kenneth Resents. Bauman said Anderson was warned about his behavior and the deputies left the home.
About two hours later, deputies were dispatched back to the Shoreview Drive home for reoccurring problems with Anderson, said Bauman.
This time, deputies learned Anderson had gone into Kenneth Resents' bedroom with a lit candle in his hand and threatened to “burn the house down” and “blow the place up,” according to Bauman's report.
Resents apparently was wearing a “nasal cannula” and being administered oxygen from a compressed tank at the time of the threat.
Deputies subsequently arrested Anderson, who was booked at the Lake County Jail with bail set at $10,000 bail. Jail records on Friday indicate that he has since posted bail and been released.
The defendants – James Stanley Koenig, 57, of Redding; Gary T. Armitage, 59, of Healdsburg; and Jeffery A. Guidi, 54, of Santa Rosa – were arrested late Thursday and are now in custody. Bail has been set at $5 million each.
"These three men callously swindled thousands of individuals out of $200 million to bankroll their extravagant lifestyles," Brown said. "They took investors money and used it to pay for an 80-acre castle estate, a Lear jet, luxury homes and fancy cars. The Ponzi scheme ultimately collapsed under its own weight, causing hardship to thousands, many of whom were retirees who lost their life savings."
The charges, filed in Shasta County Superior Court, mark the culmination of a year-long investigation, which found that Koenig, Armitage and Guidi created a network of more than 55 business ventures over a period of 10 years to enrich themselves and keep their Ponzi scheme afloat.
Brown's investigation revealed that in 1997, the three men began peddling construction and real estate projects across California. This included: "Quail Hollow," a residential subdivision in Susanville; Lake College, a for-profit vocational school in Redding; Mountain House Golf Course near Tracy; a light industrial distribution center in Brentwood; and dozens of other so-called "investment opportunities." Victims were promised that these were safe, secure, low risk investments with double digit returns, averaging 12 percent.
In recruiting their victims, Armitage organized "investment planning seminars," many of which targeted retirees, in the Bay Area and throughout California. Based on advice from these seminars, Californians invested sums ranging from $50,000 to more than $1 million. Some turned over their entire retirement portfolios and savings accounts.
Many of the construction and real estate projects, however, were poorly managed and were not financially viable, resulting in huge losses. Some projects were left unfinished or ended up in foreclosure.
Rather than inform investors about the failures, Koenig, Armitage and Guidi sought to attract new investors, whose funds could be used to offset losses and pay returns to earlier investors. In doing so, the defendants withheld vital information that impacted investment decisions, including past business failures and Koenig's 1986 federal fraud conviction.
With double-digit returns and no knowledge of the investment failures, most investors kept their money in place and many invested in new projects. This Ponzi scheme continued for more than 10 years.
Beginning in 2001, Koenig, Armitage and Guidi redirected investors' millions into the purchase of more than 20 senior housing and residential care facilities. This included: Alterra Clare Ridge in Fresno; Sterling House in Bakersfield; Clare Bridge Cottage in Bakersfield; Seasons in Modesto, Northridge, and Vacaville; Oakdale Heights West in Redding; Oakdale Heights in Bakersfield, Fresno, San Leandro, Beverly Hills, Santa Clarita, Roseville, Laguna Beach, and La Mesa; Senior Oaks Senior Living in Redding; and other facilities in Pennsylvania, Oregon, Nevada, North Carolina, and Virginia.
Under this scheme, the defendants' company would purchase an assisted living facility and sell it to one of their affiliate companies. The affiliate would then sell ownership shares in the property as an "investment opportunity" at an even higher price to new investors. Meanwhile, an additional affiliated company would manage the property to maximize revenue.
Revenues, however, were not reinvested into the facilities, but were pooled and used to pay interest to investors and keep investors at bay.
In April 2007, the Ponzi scheme began to collapse under a mountain of debt, and the defendants were unable to pay interest to investors. Nevertheless, they continued to solicit new investors in the vain hope that they could keep the operation alive, raising $23 million from 91 new investors.
The defendant's businesses finally went closed their doors in June 2008.
During the course of its investigation, Brown's office identified more than 1,000 victims with losses totaling $200 million.
Over the 10 years, Koenig, Armitage and Guidi siphoned fees, revenues and profits from their business ventures for their personal benefit, using the funds to purchase an 80-acre castle estate, a Lear jet, luxury vehicles, lavish vacations and expensive wine and art.
On Thursday the defendants were charged with selling securities by means of false statements or material omissions in violation of Corporations Code Section 25401/25540 and residential burglary in violation of Section 459 of the Penal Code:
Koenig was charged with 40 counts of securities fraud and 37 counts of residential burglary.
Armitage was charged with 42 counts of securities fraud and 37 counts of residential burglary.
Guidi was charged with 39 counts of securities fraud and 33 counts of residential burglary.
If convicted on all counts, each could face more than 100 years in prison.
If you believe you have been a victim of this scheme, please contact the Attorney General's office at 1-800-952-5225.
“Memorial Day weekend can be a safe celebration for everyone,” said CHP Commissioner Joe Farrow. “It’s about making sound decisions and planning ahead before you head out on the highway, for example wearing your seat belt and designating a non-drinking driver beforehand.”
The three-day holiday is a Maximum Enforcement Period (MEP) for the CHP.
All available officers began patrolling the roadways during the MEP, which began at 6 p.m. Friday and extends until midnight on Monday, May 25.
The CHP’s maximum enforcement effort is also part of the state’s recently launched 2009 Memorial Day Next Generation Click It or Ticket mobilization.
The start-of-summer campaign is supported by $3 million in traffic safety grants awarded by the California Office of Traffic Safety through the National Highway Traffic Safety Administration.
The CHP’s primary mission is to prevent loss of life and injury to all motorists. That mission parallels the Strategic Highway Safety plan, a roadmap for improving safety on the state’s roadways that all state traffic safety organizations follow. An element of the plan is to improve the use of passenger restraints.
During the 2008 Memorial Day weekend, 38 people died on California’s roadways; 68 percent of those killed in CHP jurisdiction were not wearing a seatbelt at the time of the crash.
“Many of those deaths could have been easily avoided by taking just one second to buckle a seat belt,” stated Commissioner Farrow. “Unfortunately, too many motorists still need a reminder, which is why our officers will be on the lookout for those who are not buckled up.”
In addition to those who fail to fasten their seatbelt, speeders and motorists driving under the influence may find themselves on the wrong side of the law. Last year CHP officers statewide arrested 1,450 drivers for DUI during the Memorial Day weekend.
The Memorial Day MEP is also an Operation Combined Accident Reduction Effort (CARE) holiday. Operation CARE is a joint program of the nation’s highway patrols that places special safety emphasis on interstate highways during holiday periods. CARE highways in California include Interstates 80, 40, 15 and 5.
Rick William Robison, 55, was arrested by Mendocino County officials after he allegedly robbed the Savings Bank of Mendocino's Hopland branch.
The Mendocino County Sheriff's Office issued a statement Wednesday in which the agency said it was continuing to investigate Robison's connection to other incidents around the county.
Robison is a suspect in other bank robberies in Mendocino, Napa and Sonoma counties, according to statements to North Coast media on Thursday.
His booking sheet, released Thursday, shows that at 5 feet 9 inches and 170 pounds, with graying hair, he matches the physical description of the suspect in those cases.
Officials had reported on a series of bank robberies in the three-county area, including the robbery of the Windsor Bank of America on March 17, the Ukiah Bank of America on March 24, the US Bank on Jefferson Street in Napa on March 26 and the Chase Bank in Willits on March 31.
The suspect in those incidents handed a note across the counter to the bank teller; in the Napa County case, the demand note was written in crayon. He was spotted leaving the Napa robbery in a white four-door Cadillac sedan. No weapons were seen in the robberies and no one was hurt.
Surveillance photos of the suspect in those cases also shows a figure who looks like Robison.
The Federal Bureau of Investigation has been working with the Ukiah Police Department and the sheriff's office of Sonoma, Mendocino and Napa counties in investigating the case.
Robison was being held on $75,000 bail for charges of robbery and using fear as an element on Thursday.
E-mail Elizabeth Larson at
Next Tuesday, several hundred signatures will be submitted to City Clerk Janel Chapman in an effort to get an initiative before voters this fall.
The effort is being spearheaded by four local nonprofit groups that have been allowed by city ordinance to sell safe and sane – or state-approved – fireworks in the city for many years. They include the Miss Lake County Scholarships Organization, the Clear Lake High School Booster Club, Terrace School Parent Teacher Organization and the Lake County Channel Cats.
Citing concerns over fire danger, on April 21 the council turned down the applications of the four groups to set up booths and sell fireworks from July 1 through July 4, as Lake County News has reported.
The council vote wasn't unanimous – council members Jim Irwin and Suzanne Lyons fought what they said was an attack both on tradition and personal freedoms.
For the groups, losing a major source of annual revenue – as much as $15,000 per group per year – prompted them to ask the council on May 5 to rescind their April 21 actions and approve the applications, otherwise an initiative would move forward
But on May 5 the council gave initial approval to a proposed ordinance that would permanently ban safe and sane fireworks in the city, the last place locally where they're still allowed. A second reading and final approval are expected June 2, with the ordinance going into effect on July 3.
Dennis Revell of Revell Communications, who represents American Promotional Events, TNT Fireworks and the nonprofits, said the groups had two courses of action – do a referendum once the second vote is taken on the ordinance in June or pursue an initiative.
Revell said the groups didn't believe council members Roy Parmentier, Bob Rumfelt and Ron Bertsch would change their minds. A referendum would have required a legal process to order the council to approve the applications of the groups, which had met the requirements of the current fireworks ordinance, Revell said.
That was a costly option that wasn't guaranteed to work. So they chose instead to take the initiative route, Revell said.
Ultimately, Revell said, they decided it was best to put it out to the voters.
He said the groups previously had suggested the city improve its fireworks ordinance and include some very specific enforcement provisions for fines and additional restrictions on sales.
The language of the proposed initiative includes a 5-percent assessment fee on gross fireworks sales, which would be paid to the city by Aug. 15 of each year. That assessment is intended to cover increased police and fire protection, permit processing, sales booth inspections and cleanup.
City Attorney Steve Brookes confirmed that the groups submitted the initiative to him to prepare the ballot titlee and summary, and that the city is waiting for the Tuesday signatures submission.
In his 25 years with the city, Brookes said he doesn't remember another such initiative going to voters.
Revell said the public's response to the initiative has been “extremely strong.” They've gathered signatures both from people connected to the nonprofits as well as in front of local stores.
He said the groups have been collecting signatures since Saturday, and by the time they submit the initiative to Chapman on Tuesday they will have about 550 signatures – well in excess of the 15 percent of the city's 2,600 registered voters that could compel a special election.
Brookes anticipates that the initiative could go on the November general election ballot. However, even then, the city's new fireworks ban ordinance would already be in force, canceling out much of the time for sales opportunities this year. As well, the city hasn't granted the groups permits, so they'll likely be unable to sell fireworks either way.
The election code provides for and encourages initiative supporters to engage in good faith negotiations in order to come to an alternative result, said Revell.
Brookes said he's not received council direction to enter into good faith negotiations with the groups to find a middle ground.
That appears unlikely to happen. Revell said he contacted Parmentier and Bertsch on Wednesday, and both indicated they were not interested in the discussion. He said Rumfelt didn't return a message.
Bertsch, the city's mayor, confirmed to Lake County News that he spoke to Revell on Wednesday.
“I told him my decision didn't change,” Bertsch said.
He explained that his decision was based on the concerns of Lakeport Fire Protection District Chief Ken Wells, who had approached the council in April.
If the groups want to go to a special election, “then so be it,” said Bertsch, noting he doesn't plan to change his opinion because an outside company that stands to lose a large amount of money pressures him and the council.
Bertsch said if the community turns out to want safe and sane fireworks then he's OK with it, but he said many of the people who have contacted him indicate that they no longer want those fireworks to be legal.
He added that he doesn't believe the initiative will pass or that the council will change its mind.
According to an initiative qualification calendar, the council must act no later than Aug. 4 to place the measure on the Nov. 3 ballot, otherwise it will necessitate a special election on Dec. 3, the costs of which the city would need to absorb.
The Lake County Registrar of Voters Office couldn't give an exact figure on how much a special election might cost. However, the special mail-in ballot election the city held in April of 2005 to fill an open seat that resulted from the death of Councilman Dick Lamkin cost approximately $7,674.82, the agency reported.
Revell said when the groups submit the signatures for the initiative, “it sets the whole process in motion and there's no turning back.”
Once the signatures are filed with the clerk, “the ball's in the City Council's court,” Brookes said.
E-mail Elizabeth Larson at
LUCERNE – Two drivers were transported to regional hospitals Thursday after being involved in a head-on crash on Highway 20 in Lucerne, with one of the drivers arrested for driving under the influence.
Sue Ellen Sannes, 62, of Clearlake Oaks and Bryan Voyles, 39, of Herald were injured in the crash, which occurred near the intersection of 13th Avenue and Highway 20 just after 1 p.m.
The California Highway Patrol said Sannes was arrested for felony DUI – in this case, driving under the influence of prescription medication.
The CHP reported that Sannes, traveling westbound in a small 1986 Honda, failed to negotiate a slight curve and went into the eastbound lane, where she collided head-on with Voyles' 2003 Chevrolet minivan.
California Highway Patrol Sgt. Bill Holcomb said Sannes was driving in the highway's center turn lane before going into Voyles' lane. A witness claimed she had been in the center lane for about a quarter of a mile before her car crossed over into the eastbound lane.
Traffic for several blocks around the crash scene was reduced to one lane as Northshore Fire took care of the crash victims and CHP investigated the scene.
Sannes was trapped in her vehicle, with her ankles crushed under the engine firewall, and had to be extricated by Northshore Fire personnel. Holcomb said she suffered major injuries to her legs, including broken ankles.
Voyles suffered moderate injuries to his legs and complained of abdominal pain and was transported to medical care on precaution. Holcomb said that injury may have been caused by the seatbelt, as there were no intrusions in the inside of the vehicle.
A landing zone was set up for air ambulances at the end of 13th Avenue at Highway 20, a short way from where the crash occurred.
There, a REACH helicopter landed to transport Sannes to Santa Rosa Memorial Hospital's trauma center. A short time later, a CalStar helicopter landed and took Voyles to UC Davis Medical Center.
Voyles' wife and four children – the children ranging in age from 4 to 13 – were transported to Sutter Lakeside Hospital via Northshore Fire Protection District's ambulance due to complaints of pain, Holcomb said.
Due to her injuries, Sannes could not be booked into the Lake County Jail.
CHP Officer Brendan Bach is leading the crash investigation.
E-mail Elizabeth Larson at
