The Leslie Brodie Report

CaliforniaALL, a Section 501(c)(3) charitable entity, came about as a result of a San Francisco restaurant meeting between Ruthe Ashley (a Diversity Officer at CalPERS and Vice President of the State Bar of California) and Peter Arth, Jr., Chief of Staff to CPUC President Michael Peevey. Also present at that meeting was Professor Sarah E. Redfield.

Ms. Ruthe Ashley. Despite exiting CaliforniaALL in September 2009, Ms. Ashley continued to claim that she was the CEO of CaliforniaALL, as shown in the above picture taken in November 2009.

CaliforniaALL’s alleged purpose was to award grants to entities that would increase minority participation in the "pipelines" that feed into various industries, such as finance, technology, and law.

Donations to CaliforniaALL came primarily from utility companies (including AT&T, Sempra Energy, and PG&E). In its brief existence from 2008 to 2010, CaliforniaALL collected close to $2 million, including an unusually large sub rosa contribution of $780,000 from the State Bar of California Foundation in 2008.

CaliforniaALL was abruptly dissolved in July 2010.

According to confidential sources, an ongoing multi-prong inquiry is continuing. A source maintains that one aspect of the inquiry involves a close and focused examination of Pete Arth and Geoffrey Brown and surrounding circumstances the sources describe as "alarming."

Morrison & Foerster's Susan Mac Cormac and Dian Grueneich

Serving as CaliforniaALL legal counsel were two partners from Morrison & Foerster, Ms. Susan Mac Cormac and Eric Tate. See below:

On March 21, 2011, Morrison & Foerster announced the hiring of former CPUC Commissioner Dian Grueneich. See below:

Upon the hiring of CPUC Commissioner Grueneich, Mac Cormac stated: “Energy policy is a strategic concern for every industry as companies closely monitor regulatory changes both to capitalize on opportunities for growth, and to address potential risks to their business models. Dian’s command of these essential issues will be a strategic asset to both new and existing clients. Her policymaking experience and prior activities, not only in California but nationally and internationally, add a vital element to our existing energy, environmental and Cleantech capabilities. She will work closely with attorneys advising on patent and intellectual property, corporate transactions, project finance, development, and litigation matters. Her arrival is a clear signal of our strength as one of the preeminent Cleantech practices.”

Ms. Susan Mac Cormac, partner in the Corporate Group and co-chair of the Cleantech Group of Morrison & Foerster’s San Francisco office. Ms. Mac Cormac is a member of the State Bars of California and New York.

Ms. Dian Grueneich, former CPUC commissioner. On March 21, 2011, Ms. Grueneich joined MOFO as a partner in the Environment and Energy Practice in its San Francisco office. According to MOFO,"Ms. Grueneich’s arrival is an important addition to Morrison & Foerster’s Environment and Energy and Cleantech Practices." Also joining MOFO was Ms. Grueneich’s longtime colleague and former Chief of Staff, Theresa Cho. Ms. Cho joined MOFO as Of Counsel in the firm’s San Francisco office. Ms. Grueneich and Ms. Cho specialize in energy regulation with specific expertise in transmission, energy efficiency, smart grid, and renewable energy. (Photo:courtesy)

According to confidential sources close to the investigations of CaliforniaALL/CCPF, recent revelations concerning MOFO serve as an "important piece of the puzzle, especially if we examine circumstances surrounding James Brosnahan, Joe Dunn, Thomas Girardi, and Erwin Chemerinsky."

* The Leslie Brodie Report urges the readers to exercise caution and not jump to conclusions regarding misconduct by anyone. None have been convicted and all are presumed innocent unless or until proven guilty in a court of law.

**Written by a staff-member. Leslie Brodie will be back on Monday, April 25 2011.

The Leslie Brodie Report (TLR) is carefully following a major developing story out of California. We will provide around-the-clock coverage and post updates as they become available.

According to confidential sources, as part of the multi-prong inquiry into CaliforniaALL, one "major breakthrough" was the discovery of and circumstances surrounding the California Consumer Protection Foundation ("CCPF").

CCPF was established in the 1990s to protect and benefit consumer interests in various areas, including health care, auto sales, consumer fraud, privacy, finance, insurance, energy, and telecommunications.

Since 1991, CCPF has distributed more than $30 million, the source of which is cy pres funds resulting from class action lawsuits and regulatory proceedings before the CPUC.

Shockingly, Ms. Judy Johnson was and is the President and Chair of CCPF.
Ms. Cassandra Malry serves as CCPC's Executive Director.

From left, Judy Johnson, Cassandra Malry, and Gwen Moore. According to the sources, the FBI has been informed of large contributions from CCPF to an entity controlled by one Eric Moore. These sources maintain CCPF's website falsely lists only 2 pages for contribution made to entities controlled by Mr. Moore in 2008 and 2009. (photo:courtesy)

Mr. Eric Moore of the Institute,a self-proclaimed "Entrepreneurial Philanthropist." From EducateLA to EducateCA and beyond, CCPF actively concealed contributions made to entities controlled by Moore prior to 2008.

Ms. Karen Bass, she had served as a member of the California State Assembly representing the 47th district since 2004. From 2008 to 2010, she served as Speaker of the California State Assembly. In 2009, Karen Bass appointed Gwen Moore to serve as Public Member of the State Bar of California Board of Governors.

Mr. George Davis of Davis Broadband Group in Los Angeles. Mr. Davis has been serving as Public Member of the State Bar of California Board of Governors as of May of 2007. According to sources, an inquiry is underway as to the relationship between Mr. Davis and one Jennifer Brown of Bresee as well as connection between Davis, Brown and Towercom. Moreover, and according to the sources, CCFP fraudulently assigned Bresee multiple names in order to conceal large transfer of funds from CCPF to Bresee where Jennifer Brown serve as president. (Photo: Courtesy CalBar Journal)

TO BE CONTINUED.

TLR has learned an ethics complaint alleging multiple acts of misconduct has been filed with the State Bar of California against attorneys from the firms of Skadden, Arps, Slate, Meagher & Flom LLP and Girardi & Keese.

Knowledgeable sources, speaking on condition of anonymity, maintain the complaint alleges that ethical breaches took place as a result of Skadden Arps' representation of Girardi & Keese in the matter of In Re Girardi because, at the same time, Girardi & Keese and Skadden Arps were on opposing sides in the case of Fogel v. Farmers Group, Inc.

According to the sources, the parties named in the complaint are Raoul Kennedy, Thomas Nolan, and Richard Zurmoski of Skadden Arps as well as Graham LippSmith and Thomas Girardi of Girardi & Keese.

The complaint alleges that in August 2003, Walter Lack (of Engstrom, Lipscomb & Lack) and Thomas Girardi and Graham LippSmith (of Girardi & Keese) filed a class action suit on behalf of plaintiffs Benjamin Fogel against Farmers Group, Inc. in Los Angeles County Superior Court. The suit -- which is still pending and is anticipated to settle in September 2011 -- was defended by attorneys from Skadden Arps (Raoul Kennedy and Richard Zurmoski).

Despite their respective roles as plaintiffs' counsel and defendants' counsel in Fogel v. Farmers, Girardi & Keese and Skadden Arps entered into an agreement by which Skadden Arps and partner Thomas Nolan would represent Girardi & Keese and Thomas Girardi before the Ninth Circuit in the matter of In re Girardi following the Ninth Circuit's issuance of an order to show cause why Girardi & Keese, Engstrom Lipscomb & Lack, Thomas Girardi, and Walter Lack should not be suspended, disbarred, or otherwise sanctioned as a result of the massive fraud which took place in litigation pursued by them against Dole Food Company.

On July 13, 2010, the Ninth Circuit issued an order suspending Walter Lack for a period of six months and reprimanding Girardi; the order also imposed almost $500,000 in monetary sanctions against the two attorneys.

On July 14 2010, in an attempt to conceal their attorney-client relationship, Skadden Arps and Thomas Nolan filed a motion with the Ninth Circuit asking for their names to be redacted from the published opinion.

According to sources, including TLR's legal correspondent -- known as State Bar Insider ("SBI") -- the arrangement described above is disfavored and unethical; moreover, for such a reltionship to be authorized, Thomas Girardi was required to notify each member of the class he represents about his status as a client of Skadden Arps, and seek a waiver and obtain approval from his clients.

According to SBI, "on its face and based of my reading of "Freivogel on Conflicts," it appears that Tom Girardi violated his duty of loyalty and zealousness as well as the duty of candor to his clients -- the class that he allegedly represents."

Moreover, according to sources, Skadden Arps has also violated multiple ethical rules and statutes by agreeing to undertake the representation of Girardi & Keese and Thomas Girardi.

A separate source stated: "Assume for the sake of argument that Skadden Arps feels a motion for sanction is warranted against Mr. Girardi in Fogel v. Farmers. Taking such action would require Skadden to be directly adverse to its client (Thomas Girardi) in the matter of In Re Girardi."

Moreover, according to SBI, he never heard of a practice by which counsel is asking a court to redact her or his name from a published opinion. "They obviously were attempting to conceal the relationship, and now I am fairly certain as to why it was done," SBI concluded.

Knowledgeable sources maintain that the ethics complaint seeks the removal of Thomas Girardi's name from the roll of members of the State Bar of California, and asks that multiple years of actual suspension be imposed on Graham LippSmith, Raoul Kennedy, Thomas Nolan, and Richard Zurmoski.