Hurwitz Fraud Trial Begins
Based on the manipulated data, Cotchett continued, Hurwitz’s plan was approved by the CDF. “And what Mr. Hurwitz does is he goes to the marketplace and says he has a plan that will allow him to cut $700 million worth of trees, and he borrows more money.” Cotchett said, which meant increased loan payments. “The mantra in the forest was ‘cut trees.’”
Hurwitz attorney Jim Bennett pointed out to the jury that the United States, co-purchaser of the Headwaters Forest, was not a party in the suit — a key fact, because it was the entity that was allegedly defrauded.
He also said that at no time did Hurwitz misrepresent or falsify the sustained yield plan or a habitat conservation plan, and furthermore, it was the plaintiff Wilson who signed off on the Sustained Yield Plan when he was director of CDF.
“Former employees of Pacific Lumber will testify under oath that they in no way tried to defraud the United States of America,” Bennett said. “And Mr. Hurwitz will testify to his moral certainty that at no time did he set out to defraud the United States of America.”
In fact, Bennett said Hurwitz was instrumental in creating the Headwaters Forest Reserve, now protected public lands. “Since the 1960s, there had been attempts to put that land into public ownership,” Bennett said. “To his credit, Mr. Hurwitz made that deal happen.”
Hurwitz’s 22-year reign over Pacific Lumber was characterized by controversy and protest over his aggressive clearcutting of ancient redwood forests in Humboldt County. Shortly after the hostile takeover in 1986, Hurwitz threw out the sustainable logging principles that the lumber company had lived by since the 1940s and more than doubled the number of trees that were being cut annually in order to pay off the huge debt he had taken on to buy the company.
In 2007, the crushing $714 million debt Hurwitz’s Maxxam Corp. had laden onto Pacific Lumber forced the 144-year-old company to file for bankruptcy. In 2008, the Fisher family of San Francisco — founders of The Gap and other chain stores and owners of the Mendocino Redwood Company — won a hard-fought battle in bankruptcy court, taking control of Pacific Lumber and renaming it the Humboldt Redwood Company.
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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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