April 7, 2016
Financial Documents and Information Prepared for Tom Mesa
The documents and background information presented in this paper are intended as snapshots which are representative of transactions in which Jonathan Vernick engages. While I advocate for his removal as the executive director of Baker Places, every attempt is given to be accurate in statements and to be fair in the presentation of arguments. Since my goal is to arrive at the truth, I invite corrections and/or clarifications of any claim or observation. Please contact me at 415-865-0734 or email me at safeway7354@gmail.com. Visit www.defundbakerplaces.blogspot.com for additional information.
1. The beginning of our look at Baker Places’ finances begins with the IRS 990 Forms. Enclosed is the first page of these form for the years 2004-2013 (Part I “Summary”). The reader is invited to go to www.citizenaudit.org and type in Baker Places, Inc. to retrieve copies of the originals. In addition, I have used www.guidestar.org as a resource.
2. Using the latest tax return, 2013, which is for the fiscal year 2013-2014 and was completed on February 12, 2015, we have on the first page, a summary. Here we see: Line 12, total revenue for the current year end of the year ($13,242,755) compared to the total expenses on line 18 ($13,975,472) to be a loss of $732,717 (subtract line 18 from line 12).
3. It was this loss of over $732,000 which apparently caused Vernick to sell the building at 54-56 Francis Street. So the loss was made up by selling a property.
4. A quick survey of previous 990 forms reveal the following losses (Revenue-Expenses= Loss):
2013: Loss: - $732,717.
2012: Loss: -$270,935.
2011: Loss: -$331,983.
2010: Missing from records but a loss of $284,403 was recorded for the year on the 2011 form (see line 19).
2009: Loss: -$227, 567.
2008: Loss: -158,489.
2007: Loss: -$214,518.
2006: Loss: -$346,211.
2005: Loss: -273,936
2004: Loss: -564,851.
5. The 10 years for which I have provided records finds that in all years Baker Places, Inc. spent more money than it took in. Adding up the total we have: $3,405,610 for an average loss of about $340,000 per year over the ten-year period.
6. How does Vernick handle these losses year after year? This is a question investigators might want to answer. My hypotheses are: a) The selling of Baker Places owned-properties, b) Obtaining short-term loans and pay the previous years’ loss with taxpayer’s money (starting July 1 each year).
7. A second question (two-part): a) Exactly how does Vernick lose money each year? b) Are the losses of Baker Places, Inc. or of Jonathan Vernick?
8. I enclose a document which might shed light on the question in 7: There is reference to a lawsuit brought by “Jonathan LJV Holding LLC (see ‘Plainsite’ sheet which is enclosed) against Mynette Boykin”. The concern here is a possible mixing of funds between Baker Places and the Jonathan LJV Holding LLC.
9. A second document which might be of interest is the “Department of Public Health: The Nonprofit Organization Baker Places, Inc. and DPH Need to Improve Contract Invoicing Practices” completed on June 30, 2008. On page 2 we have the following analysis:
“Nevertheless, in 2005, according to Baker Places, director of business and operations, Baker Places had to sell a parcel of property to alleviate some of the cash flow problems it was experiencing.”
Please note that this selling of a building to deal with losses was reported in 2005 also occurred in 2015, as noted above. It appears as though we have a pattern: Baker Places, Inc. has property (where does it get them?) which it sells year after year to make up for losses. In other words: The real estate transactions and the taxpayer’s funds are intermingled. I leave this up to investigators to interpret this, but if there is a comingling of funds between Vernick’s holding company and Baker Places, then clearly something is amiss.
10) One player who might be able to provide insight into the finances at Baker Places is: Judith E. Stevenson, former CFO. She was the CFO for about 20 years and left in 2014. Please find her linkedin page enclosed. From public information, we have her telephone numbers: 415-586-2843; 415-928-7905. Her email is listed in the contact page which is enclosed.
11) Another player is the former project director, Lisa Perry, at 120 Page Street. Allegedly, she insisted that the selling of the property at 54-56 Francis Street be done in accordance with state law: All tenants were entitled to written statements explaining their rights and offered relocation money under the Ellis Act (about $10,000 per tenant). But Vernick only had a few weeks to sell the building and was not about to follow the law. So he fired Ms. Perry (who was under a 1-year contract and had no legal recourse). Moreover, Vernick had case managers lie to tenants about the building needing to be repaired and this is the reason the tenants had to vacate. Investigators will need to ask the case managers (see contact list provided) about her whereabouts; I can provide some links which will probably connect you with her (please email me).
12) The above point, point 11, illustrates a common theme in Vernick’s toolkit: Manipulate others to do unethical/unlawful things; punish those who refuse to do his bidding; reward those who comply. In my view, what appears to be financial mismanagement will usually intersect with human rights abuses. This would make logical sense since to pull off various ploys he would need others to implement them.
13 ) In my case, I was a tenant at 56 Francis Street in an illegal unit (“in-law” unit). According to a letter which was signed by Jonathan Vernick and dated April 9, 2015, there had been a real estate exchange between 56 Francis Street and my new studio apartment at 337 Fulton Street, Apartment 31. By law, real estate exchanges are required to have an attorney draw up a contract; if a written contact is not drawn up, then the transaction is considered fraudulent by “Statue of Fraud” laws. This set of facts is what motivated Fancher Larson, clients’ rights advocate (1663 Mission Street, #310; contact: 415-552-8100; also, see linkedin page enclosed) to recommend filing fraud charges against Baker Places on April 10, 2015. Please note that I refused to file charges because I was given legal advice that this could mean Baker Places would be defunded and I was unwilling to have this outcome.
14) Investigators might want to contact a former tenant at 54 Francis Street, James H. Smithson. He vacated his apartment under the ruse that the building was being refurbished when in fact it was being sold. Mr. Smithson indicated at the time that he would sue Baker Places if he ever found out he was being lied to. He is an employee of the Department of Public Health at 1380 Howard Street. According to public information, his telephone number and address are: 415-452-9980, 303 Seneca Avenue, San Francisco.
15) The case managers and employees at 120 Page Street are the victims of the ploys Vernick plays. Probably, the one used the most in the episode being outlined is Masami Endo (415-255-6544, ext. 257). She lied to about 10 tenants about why they were being forced to vacate; she assisted in my seeing 4 different apartments (following Vernick’s orders); she even followed his commands and refuse to acknowledge my existence on August 11, 2015 when I attempted to speak with her (by this time Vernick finally hired an attorney [something he should have done a year previously], Mike Lee (telephone 415-788-9000; email: mgwlaw@aol.com) ) who apparently advised employees at 120 Page Street to refuse to acknowledge my existence.
16) Two other contacts at 120 Page Street will be helpful for investigators: a) Jesse Ponce (Telephone 415-255-6544), a case manager for about 20 years who has cross swords with Vernick several times before and b) Lusia Francisco (telephone 415-255-6544), financial manager in charge of receiving checks and paying bills. She has been there for about 20 years.
17 ) In this ongoing saga, the Baker Board of Directors plays an important role by not following the “Sunshine Ordinance” and holding public meetings twice a year (required of nonprofits receiving more than $250,000 from the taxpayers of San Francisco per year). It was the inability to meet with the Board of Directors which has caused this mess to become public. In particular, I contacted the Chair of the Board, Nick Lederer, via registered mail and was ignored on both occasions. His contact information: Telephone: 415-752-6444; email: nick@ggsenior.org .
Please note that one of the reasons I have called for Jonathan Vernick’s dismissal is his violation of fulfilling the requirement of holding public meetings. In passing I note that records indicate that a Debra Benedick filed whistleblower complaints against Baker Places for this violation about 10 years ago; apparently, nothing has changed since public meetings are still not being held.
18 ) For the record, I will note that 3 employees have complained to me about Jonathan Vernick’s alleged memory losses. This usually involves being told to perform a certain act by a certain day, say Friday, and then he calls Thursday and ask why it has not been done already as it was due by Wednesday. This memory loss or apparent dementia has been ongoing for the past several years. Please note that I personally observed this memory loss and confusion in my numerous dealings with him from January 27, 2015 to February 24, 2015.
19) Summary: Baker Places, Incorporated has been in existence for nearly fifty years. Over twenty-five years ago, a case manager, Jonathan Vernick, was promoted to be the executive director of Baker Places. During his tenure Baker Places has recorded losses (revenue-expenses=gain/loss) for the past 10 years for an average loss of $340,000 per year.
In this paper, I have provided investigators with contacts and possible leads. One important question is: How is Baker Places losing money year after year? It appears as though losses for each year is paid by selling properties. This invites additional questions: 1) How did Baker Places acquire these properties? 2) How is the $13 million the taxpayers of San Francisco gives Baker Places each year connected to Vernick’s holding company, “Jonathan Ljv Holding Llc”?
From the records and from the background information I have acquired, it appears as though Jonathan Vernick has a standard operating procedure or modus operandi which involves mismanagement of funds and manipulating others to engage in unlawful and/or unethical conduct. I believe that the information provided in this paper supports the recommendation that the taxpayers of San Francisco should not be supporting him. Because there appears to be no way to separate Baker Places, Inc. from Jonathan Vernick, I will reluctantly recommend Baker Places be defunded if he refuses to step down.
Contact List:
The following is a list of names of contacts mention in this paper in the order in which they are mentioned. All information given such as telephone numbers and emails are public information.
3. Fancher Larson—Telephone: 415-552-8100; Address: 1663 Mission Street, suite 310.
4. James H. Smithson—Telephone: 415-452-9980; Address: 303 Seneca Avenue.
5. Masami Endo—Telephone: 415-255-6544, ext. 257. Address: 120 Page Street.
7. Lusia Francisco—Telephone: 415-255-6544; Address: 120 Page Street.
8. Jesse Ponce—Telephone: 415-255-6544; Address: 120 Page Street.
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