Creamgate
“They were looking for some financing for growth,” Cleary said. “If they could get that, and provide a good return to local people, and keep the money in town, then it was a win-win-win.” Cleary said that he was not paid anything for his services — that he was merely helping out “a very important company” in the community.
Last Tuesday, three days before he resigned, Ghilarducci and Mayer presented the offering to the board of directors of the Headwaters Fund, the county-run investment fund for local economic development. (See “Spending Headwaters,” Jan. 15, for background.) The company presented the outlines of the capital development campaign to the board in the hope that it might be persuaded to buy some of the stock. [Cleary, who is also a member of the Headwaters Board, recused himself from the discussion.]
Kathy Moxon, a member of the Headwaters Fund board and Director of Community Strategies for the Humboldt Area Foundation, said Tuesday that the board generally saw potential in the investment, but needed much more detail before it could make a decision.
“This was the kind of way that our board could do double duty by helping local businesses as well [as getting a return on investment],” Moxon said. “What we said at the time, though, was that we need to do due diligence.”
But until the Creamery’s investigation into the matter is complete, investors who did take the plunge must now be wondering how much of those record 2008 revenues are fact and how much fiction. If it does turn out that the company’s true balance sheet leans toward the latter, there would likely be a securities fraud case in the making. And though everyone agrees that the Creamery, at base, is a solid business, a mountain of litigation is never helpful.
At least one person seems to be taking the legal possibilities seriously. Soon after the Headwaters Board presentation, Ghilarducci left on a business trip. His resignation letter, sent via his new attorneys, arrived back home before he did. He is being represented by the San Francisco firm of Keker & Van Nest, which maintains, among other specialties, a high-profile practice defending white-collar crime cases. Former clients include Enron principal Andrew Fastow, fallen tobacco trial lawyer Richard Scruggs and Hmong warlord Vang Pao.
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on the cover
Railroad!
Proposed lines ‘set rich blood a-tingling’ in early 1900s
Some Other Proposed North Coast Railroads
Choo-choo Fantasies
Exposing this east-west rail nonsense
seven-o-heaven
Undeterred Will
Will chides Andrew for lack of attention to detail and makes plans for his inevitable victory.
Recent short stories
June 11, 2009
Eye of the Beholder
June 11, 2009
Double Down
May 21, 2009
Pearls and Swine
Hank Sims
Today
44th Annual Kinetic Grand Championship Race
STAFF PICK / events, art, outdoors, sports, for kids, free / 9 a.m.-6 p.m. A 3-day, 42-mile kinetic sculpture race over land, sand, mud and water! LeMans start at the Noon Whistle on the Arcata Plaza. Follow the race through Manila, Eureka and into Ferndale on Memorial Day for the Glorious Finish. kineticgrandchampionship.com. 889-3024.
Flow 2012 Fashion Show
STAFF PICK / events / 8 p.m. Arcata Theatre Lounge, 1036 G St. Student designed and produced clothing. Fundraiser for Arcata Arts Institute. $35/$25 students. artsinstitute.net. 822-1220.
Woodside Preschool's Rummage/Bake Sale
events / 8 a.m.-noon. Woodside Preschool, 900 Hodgson St, Eureka. www.woodsidepreschool.com. 445-9132.
Lanphere Dunes Restoration
STAFF PICK / outdoors / 9:30 a.m.-12:30 p.m. Meet at Pacific Union School. Help remove non-native invasives at the Lanphere Dunes Unit of the Humboldt Bay National Wildlife Refuge. Tools and gloves provided, wear work clothes and bring water. Carpool to the protected site. 444-1397.
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