J. David Tidbits
Investigators for the Securities and Exchange Commission were in town late last month looking into the fraud-ridden and bankrupt J. David & Co. investment firm.
The SEC has a “keen interest” in a law firm’s work with J. David, according to a source familiar with the case. The commission reportedly is considering a “2E” proceeding, a controversial examination that could bar or suspend professionals from practicing before the SEC if they are found, among other things, to have violated federal securities laws.
Specifically, the SEC is reportedly examining the role of the Rogers & Wells law firm and one of its attorneys, Norman Nouskajian, who was the lead lawyer for J. David.
Nouskajian, who had been on a leave of absence from Rogers & Wells since early 1984, resigned from the firm July 8, less than three weeks after he gave a sworn deposition about his role at J. David to lawyers who are suing the law firm for fraud and negligence.
Meanwhile, in another J. David development, bankruptcy trustee Louis Metzger has sued George Munger and his firm, The Perfect Pan, seeking repayment of a $150,000 loan and $62,792 in interest that J. David (Jerry) Dominelli lent to Munger in 1982. Munger, in turn, advanced the money to his firm to ease cash-flow problems and to assist in the expansion of Piret’s, the chain of fashionable eateries operating under The Perfect Pan corporate name.
Last year, The Perfect Pan was purchased by Denver-based Vicorp Restaurants, which has repaid Munger the money he advanced to the firm, according to Stan Erickson, Vicorp’s legal counsel.
Munger on Monday said that he expects to settle the litigation soon. “It’s just a process of metting getting (them) the money,” he said.
Bell Dings Partners
San Vicente Medical Partnership, the former American Principals Holding partnership that is building a $20-million medical office building in Los Angeles, could be a victim of last month’s seizure by federal regulators of Bell Savings & Loan.
San Mateo-based Bell was the construction lender for the 90-partner San Vicente partnership, and San Vicente attorney Chris Laquer acknowledged that he’s “not quite sure” what the federal takeover of Bell means to his clients.
“As long as they’re getting paid they can’t foreclose on their security,” he said, adding that he plans to meet soon with Bell’s receivers “so they feel comfortable.”
A hearing is scheduled for Aug. 26 in federal court on a request by American Principals receiver Ashley Orr to assess all 60 or so of the fraud-ridden firm’s limited partnerships a share of the $1.5 million chalked up in general administrative expenses in the last year.
Koll Readies Plans
The Koll Cos.’ bid to develop three blocks in the lower Broadway area of downtown San Diego is inching closer to reality.
The company’s agreement with the Centre City Development Corp. is now in its “final form,” according to a source close to the negotiations. The development contract now moves to the CCDC board, then to the City Planning Department and, finally to the San Diego City Council for approval.
The project--two Broadway blocks between Union and Columbia, and a third block between Union and State and between B and C streets--currently calls for two high-rise towers and a parking garage. But that’s not set in concrete, according to one Koll Cos. official.
“We’re re-looking at some aspects of the project,” he admitted, “and some alternatives.”
Just what those alternatives are, however, remains under wraps.
Barrio Industrial Park?
A Los Angeles consulting firm is asking dozens of San Diego companies if they’re planning to expand and, if so, would they consider moving into the Barrio Logan area.
The inquiries are for an update of a 1982 study of the feasibility of an industrial park in Barrio Logan and the eastern part of downtown.
The goal is to provide jobs for low- and moderate-income residents of Barrio Logan and Southeast San Diego, according to Robert Kruger, project administrator of the city’s economic development division.
The update, which will be completed next month, was needed, said Kruger, because the original study includef neither what is now the convention center site nor the expanded San Diego Trolley line.
Rent-A-Jet Woes
PSA has been leasing two MD-9 Super 80 jetliners from Hawaiian Airlines for two months to compensate for delivery delays of its new BAe 146 planes. But pilots and crew aren’t happy about it.
The Hawaiian planes vary from the Super 80s in the PSA fleet because they have different interior configurations and the maintenance standards “don’t meet ours,” said one PSA official.
Indeed, the Hawaiian jetliners have but one usable restroom, meaning that the planes have been used primarily for short hops between San Diego and Los Angeles. Passengers continuing to other PSA destinations often must change planes in Los Angeles.
But there is an up side to the situation, quipped one PSA wag: The planes will be returned in September.
