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Chip Hanlon , Obersturmbahnfuhrer at Red County, brags on his website that he is a member of American Mensa, that organization of really, really smart people.
He also boasts that he is a really, really successful big time investor.
Ruh-Roh. Not so much, apparently.
The U.S. Securities and Exchange Commission accused money manager Charles P. Hanlon and his Southern California investment advisory firm of fraud, alleging they claimed to manage more than $1 billion in assets when the real amount was as low as $9 million.
Hanlon, president of Delta Global Advisors Inc., was charged by the agency Thursday with inflating assets, making false statements and failing to disclose material information to existing and prospective investors.
Hanlon could not be reached for comment.
Further in the article, there are details about what Hanlon and his company said in filings to the SEC, and in actual amounts they managed.
From 2007 through 2008, Delta’s filings indicated that it was managing $656 million to $1.49 billion, according to the SEC. The actual amount rarely exceeded $25 million and was as low as $9 million, the agency said in a court filing.
Such a harsh word, fraud.
Yet so unsurprising.
Update: Details from the actual SEC complaint make compelling reading, and show why Hanlon really needed to make a bundle from Meg Whitman’s campaign. This is not some one-off violation of rules, but a compelling read.
RESPONDENTS FAILED TO MAKE REQUIRED DISCLOSURES ABOUT DELTA’S POOR FINANCIAL CONDITION AND HANLON’S DISCIPLINARY
HISTORY
13. In August 2009, Delta’s financial condition was seriously impaired because it had minimal liquid assets and several overdue bills. On November 13, 2009, Delta informed Commission examination staff by letter that it was “in the process of communicating with all clients on this matter and will have completed this process by December 9, 2009.” However, contrary to Delta’s representations, Hanlon never disclosed Delta’s financial condition to any clients.
14. On June 28, 2010, a default judgment was entered against Delta and Hanlon in a lawsuit filed by one of Delta’s clients relating to Delta’s advisory services. The lawsuit alleged breach of fiduciary duty, negligence, failure to supervise, negligent misrepresentation, and breach of contract, all relating to Hanlon and Delta’s activities as investment advisers. Among other things, the plaintiff claimed that Delta and Hanlon (i) did not follow plaintiff’s investment guidelines and objectives, and (ii) failed to disclose certain conflicts of interest. The judgment ordered Delta and Hanlon to pay $353,706 indamages. Neither Delta nor Hanlon has satisfied the judgment. In addition, Delta did not disclose the existence of this judgment to Delta’s clients or its precarious financial condition as a result of the unsatisfied judgment, even though it was required to do so.
15. In June 2010, a FINRA arbitration panel ordered Hanlon to pay compensatory damages of $272,290 and $5,500 in fees arising from a complaint against him alleging breach of contract, slander, and fraud. Hanlon failed to comply with this arbitration award and consequently on June 29, 2010 FINRA suspended Hanlon from acting in any registered capacity. Delta did not disclose this disciplinary action to its clients, even though it was required to do so.
And for the final little bit of ignominy from the SEC complaint, there is the firm who was served as Hanlon’s lawyer.
Sergio J. Siderman, Esq.
L.A. Bankruptcy Associates
707 Wilshire Blvd., Suite 5150
Los Angeles, CA 90017
(Counsel for Delta Global Advisors, Inc. and Charles P. Hanlon)
That’s kind of like running a “Boutique” PR Firm out of your house or A Political Public Rlations Firm specializing in “Social Media……” from Suite C………
These guys, Democrats and Repuglicans alike are all phony frauds.
Why they lie and pretend is beyond me, perhaps to feel important, maybe to get free tuition for thier kids, maybe so they can get thier picture taken with Hillarry Clinton, but I know of NOTHING that ny of these blowhards do to better thier own community.
Another LYING republican. Where is the Challenge on this one LOC???
kenlay….don’t you know Chimpanzeelewski referees youth soccer in MasterPlannedistan? That and he kisses the ass of that Donald Bren scam known as the Irvine Public Schools Foundation (IPSF).
Hanlon gets pinched and all you do is jump on the LibOC? You guys are botching that Dan doesn’t do anything for the community and then call out two things he does! What do you do for your communities assholes? Nada.
Getalife, I feel a little vindicated after reading this drivel from Martin Whiskol:
http://totalbuzz.ocregister.com/2011/04/08/gop-blog-publisher-responds-to-sec-fraud-suit/51323/
The same place Dan and Chip advertise. Read those soft questionand Chmelwinski’s horseshit response. And another thing fatso, whats with critizizing the attendees at the fund raiser as not being from Tustin. Thats a little hypocritical.
As for my contributions to the community, I have spent hundreds of hours and thousands of dollars last year working at schools and fields in Santa ana, Orange and anaheim. I don’t rent a desk, cheat on taxes and then claim to be acontributing member of society.. Go back to Long beach.
As for my contributions to the community, I have cured cancer, fed thousands of hungry children, changed hundreds of adult diapers, given millions of dollars to poor Vietnamese children, called Vern Nelson a communist to his face, fathered nine children, and won the Miss Santa Ana beauty and talent contest. And I just got back from seven weeks in Christchurch, NewZealand where I cleared earthquake rubble with my xxx. But a pox on Jerbal, Chimipanzeeski, Hanlon, Spin and Marty Wiskol for not doing nearly snuff for the community or as much as Ken does. Suuuurrreeee you do so much for the community Ken. Deposits at the sxxxxx bank don’t count.
Delusions,
Good job smearing the enemies. Now back on the crazy train.
Ouch! There are to agencys you don’t want after you..The IRS and the SEC.
Lie to the SEC and they give you real jail time. Look for Chip to be doing a Perp walk real soon. You can be sure OC WEEKLY will have photos!
To see the all knowing, “”We are smarter and know what is right” attitude of Red County while
Just beneath the thin veneer of clean cut GOP pomposity lies a nefarious, greedy gang of crooks.
Like an earlier generation of southern California Nixon folks that went to jail, a new generation of southern California Republican crooks from Duke Cunningham to Mike Carona to Chip Hanlon continue to show their true criminal colors.
“Blue Horseshoe loves Anacott Steel.”
#winning
Here is the meat of the complaint:
As a result of the conduct described above, Delta willfully violated, and Hanlon willfully aided, abetted, and caused Delta’s violations of, Section 206(4) of the Advisers Act and Rules 206(4)-1(a)(5) and 206(4)-4(a)(1) and (2) thereunder by engaging in the following acts, practices or courses of business which were fraudulent, deceptive or manipulative: (a) publishing, circulating or distributing advertisements that contained untrue statements of material facts, or that were otherwise false or misleading; (b) failing to disclose to clients or prospective clients all material facts regarding the financial condition of the adviser that are reasonably likely to impair the adviser’s ability to meet its contractual commitments to clients; and (c) failing to disclose a legal or disciplinary event that is material to an evaluation of the adviser’s integrity or ability to meet contractual commitments to clients.
Whoa! Ya gotta think Hanlon is praying for a government shutdown now!
He will make an excellent candidate for the next Huntington Beach City Council. He now meets all the qualifications including being endorsed by the Republican Party of the OC, endorsed by the Republican Party of HB; and dh Don Hansen. Fiscal Responsibly will be his campaign motto.
Milt Dardis, a Barry Goldwater Republican
Again and again Orange County shows up as the epicenter for white collar fraud. Hanlon appears to be a good example of why outspoken political zealots and so-called high visibility political activists from this county should be kept at arms length. As for Whitman, I previiouisly stated that I thought she had been ripped off by the many advisors and consultants who were all to eager to suck up her millions while knowing that a Republican did not stand a chance to win the race given the makeup of the electorate in California.
Is anyone really suprised?
The original OC BLOG was built on a foundation of Lies and Deciect, by a guy used a alter ego to promote himself. he went on to promote the defender of Child Rape in John Urell. Eventually releasing the names of child rape victims, never owningup to the crime.
Other contributors worked for with and alongside convicted felon EX-Sherriff Mike Corona.
Mike Duvall, a darling of Red County eventually resigned when he was caught bragging of his extra-marital affair with a lobbyist.
County GOP Chairman and US Representitive Dana Rorhaobacher, both contributors remain silent as an aide Jeffery Ray Neilsen is convicted of 10 counts of MAN BOY SEX crimes.
Recently, Blogger Cunningham (now having shaken the moniker JUBAL) is outed as having collected hundreds of thousand dollars from ultra left wing liberal Rob Riener’s Prop 10 commission. Nary a word from Red County.
And now after all that fraud and dishonesty, we are to be surprised about Chip stealing peoples money. Not Me.
Don’t drop the soap Chip!
On a serious note, to echo what Milt posts, Don Hansen was getting pretty close to Chip and Red County. Don loves red light cameras and Red County. Two strikes so far. Don’t plan on that Assembly seat or Supervisor seat anytime soon.
This would have never happened if Chris Cox was still head of the SEC! They have to make examples of guys like Chip and send them to do hard time or else lots of companies would cheat on their reports. If the SEC allows crimes like this then the whole stock market is a sham and we can’t afford a dirty system.
Was the beard meant to hide that crater size dimple of his? Perhaps some reader knows, is he better off with or without a beard in jail? Where is Howard Kieffer when we need him?
http://www.abajournal.com/magazine/article/catch_me_if_you_can/
“Where is Howard Kieffer when we need him?”………. Hmmmm
Right here: http://www.denverpost.com/news/ci_9660361
Please notice that I was only one in OC cabal who was smart enough to checked with State Bar to found out that Kieffer is not an attorney. I have posted it in my 2002 “Santa Ana Graffiti blog and SantaAnaCitizens and Pedroza was begging me to remove it.
It was at the time when I ran for the SA City council prior the OJ when I assumed pseudonym ED Gonzalo…. a retard, with Tourette Syndrome who must post fuck, fuck, fuck after each sentence. It worked with the leftist socialists for couple days……. Ha, Ha, Ha, Ha.
“Ruh-roh” and “red faced at red county” Nice to see Art Pedroza hasn’t left this blog after all. Fraud is such a harsh word
LOL! Mayor Quimby, you are Pedroza!!! They done figured you out. Too much…
Chip off the old Block, I LOVE the Howard Kieffer reference!!
But, it can also be said that trouble follows Jubal around like a lost dog, taken from onother Website:
Former Sistonia spokesman Matt Cunningham, who resigned, said he hasn’t seen his former boss and doesn’t know where she is. Cunningham said he and most other employees, who were initially reluctant to cooperate with police, now believe the cI charges have merit.
This was after Matt worked for another fraudelent OC executive, at SISTONIA.
there must be no money in Wordsmithing for honest folk………..wait a minute, maybe people telling the truth don’t need a “wordsmith”!
Thanks DKMFAN. I guess the Chipster can contact Mr. Kieffer in one of the two states where he will be serving his time during the next 8 years. Heck they might be cell mates and able to start a new prison blog!
http://www.denverpost.com/news/ci_15800214
For me personally, this is vindication. We all know that Matt Cunningham is a slimeball – but seeing Chip get caught for trying to be something he isn’t is irony.
I also note that people using the Red County Blog to assail me and others are eeirly silent lately… God is indeed alive and well.
What comes around goes around Chip. I forgave you long ago, but enjoy the consqeuences of your arrogance.
Another OC Republican caught ripping people off. His Red County bio says he affiliates with the Tea Party. They must be proud.
Real Payback comes when Alex Cmelwinski joins the Tea Party movement!
DKMFAN said:
“The original OC BLOG was built on a foundation of Lies and Deciect, by a guy used a alter ego to promote himself. he went on to promote the defender of Child Rape in John Urell. Eventually releasing the names of child rape victims, never owningup to the crime. ”
Do you believe Chipers association with Jubal and that blog will have an impact on his life in prison? If so how?
http://abcnews.go.com/US/story?id=90004
Well said Aaron.
Kenlaysnotdead and DKMFan are freaking cowards. They’re like hyenas who feed off someone else’s kill. They’re keyboard bravehearts who would never have the nerve to say what they say here to someone’s face. They puke out a millions excuses for the way they act, but normal, decent people see them for what they are.
I’ve called Matt a pussy to his face!
I will to you to and Dan and or Chris.
My only interaction with Fat Dan is when he was a total asshole to my wife and daughter at a drinking liberally event. So quit the the coward stuff. I don’t sue people for naming a website.
I’ve been in Mexico for six weeks, it’s easy to see little has changed around here.
Did you call Matt a pxxxxx at church? Why don’t you come to Drinking Liberally and show them all how brave you are
Yes. It was a St. Norberts Church festival. Standing in front of the Carne Asada booth. He was talking shit (political shit) and I told him to basically stuff it.
I think Bob Linnert was with there along with someone I won’t indict.
As for drinking liberally, I used to go semi regularly, but the crowd has shifted and since I have been working in Mexico, I am seldom around. Besides, It’s not like I want to fight them, just point out what hypocrites they are. In my book, being an asshole doesn’t need to be an asskicking offense, if it was there would be a lot of bloody bloggers.
Oh so now you didn’t call him a pussy and you only told him to stuff it. Want to see a hypocrite, look in the mirror. Let me spell it out for you. You rail on Matt for outing sex abuse victims but defend Pedroza for NAMBLA linking. You rail on Dan for being a tax cheat when theOJ blog never paid taxes until they were busted by the LOC for it. You say you do all this community service And I call bullshit on it.
I agree with Sentry. You talk tough but you’re a spineless worm. You are the biggest hypocrite here.
I think the good people at st. Norbert’s would say you excel at bearing false witness about yourself and against others. You define the term blog troll
Matt,
Let me spell it out for you.
You and I both know EXACTLY what I said to you.
I think what you did was horrible and inexcuseable. You did real harm to real people, for what? personal gain, to sit at the big kids table?
I never defended Art, but I will say the two issues are night and day, there were no victims to his actions.
Now as for as being a hypocrite, how? what have I ever said and done that goes against what I stand for? NOTHING. Thats why we argued!
Keep trying to diminish your critics but where are you on this whole Hanlon thing? Did you know? Did Laura, what about Congressman Royce, was he aware of Chips financial troubles?
“You and I both know EXACTLY what I said to you.”
But do you have the courage to show up at Drinking Liberally and say it to all our faces. I doubt it. You don’t want to face the likes of me, Chris or any of our other intimidating bloggers. As you can see we have big balls as we sit behind our keyboards and attack anonymously via our multiple names. Though it just might be that my balls appear bigger now that I am not a fat slob thanks to my surgery.
Now I am off to Suite C, Chip wants some face time.
It’s ok you can say Pussy here!
But not “sperm bank.” He is right to pre-censor that.
“Why don’t you come to Drinking Liberally and show them all how brave you are”
You tell’em Delusions! We’re a tough bunch, they don’t want to mess with us.
I mean look at how brave you are issuing threats anonymously from behind a keyboard. That takes some real balls. If you weren’t so effin crazy I’d invite you over to suite C for cocktails with me and Lawna.
I’m so glad your wife forgave you for that extra martial affair you had six years ago. she is a good woman with a forgiving heart. hope you didn’;t give her any social diseases. If you did, I won’t call you an infected piece of shit
Bet you couldn’t stay away from the putas in Mexico
Hey Sentry, Would those normal decent people you mention include people who advocate for the defense of the protection of child molestors? Or maybe those decent moral folks who list the names of crime victims (sex crimes) or is it that decency and morality crowd who promote hate and bigotry?
just wondering dude.
Looks like old Chip has got some real trouble brewing. He might need some of that Obomacare he hates so much, at least when the lawyers are done with him.
In the meantime, he can send out the defenders like Sentry (Matt) and getalife but it doesn’t change the fact that this is another glaring example of the counties dysfunctional GOP.
No matter what, these guys look like a bunch of crooks.
I’d like to hope that justice will be served buy I’m afraid that Chip, Matt, and company have scratched A LOT of backs and will be able to use political connections to get the SEC/FBI to back off. I don’t doubt that Chris Cox still has folks he can call on to help.
Monk,
Don’t give the Red County ilk that much credit. Plus, the charges are civil not criminal at this point. No FBI.
That doesn’t change the fact that it appears from the complaint that Chip stole a lot of money and was scheming to cover his tracks perhaps get more to catch up.
A couple of posters here called me an asshole and a coward, but I have to say, it takes a REAL kind of asshole to steal. I never stole or cheated anyone. If I am merely a “keyboard braveheart” (tell me thats not wordsmithing), so be it. I NEVER stole, the SEC is not suing me. I am not the one in trouble here.
When someone tries to divert the message using his daughters laptop, that guy has a lot more to hide than me (who is NOT Sean Mill).
I hate liars and theives, so go ahead and bash. I will keep calling out these frauds.
The kieffer comments r offbase. Apples to oranges. Kieffer was small potatoes compared to this. He’s bush league.
DKMFan: you are a coward.
Kenlaysnotdead: you’re a coward.
You’re both full of crapola, a couple of gutless blowhards. Since we don’t know who either of you are, there’s no way to trust what you say. I don’t think either of you has the nads to say the things you do to someone’s face. What are you afraid of?
Okay, tough guy. Who the Hell are you?
Decid to use your own name this time Tony? Not Joe Sipowitz or Grover Cleveland.
Haha! I wish I were as smart as either of those guys!
Matt,
Your daughter wants her laptop back!
Sean
Nicole catlett wants to know if your ED Medicatin is working Sean. How is mommy’s hangover this morning?
So can Chip hire a decent attorney, or will he go with Phil Greer, who is now available since he is no longer representing the Public Administrator’s office.
The comments by Sentry and Delusions are straight out of Cunninghams playbook.
When your in a defenseless position, change the story, divert the attention. Certainly DKMFAN provides a big target, but a little too convienently.
I haven’t looked, but I would guess Matt and Red County have been silent on this and anything else contraversial for the past few days (knowing what was coming). So to complete the cycle, look for a post on the Fountain Valley City Councils view on the CRA election or something else equally unimportant.
Did I ever have a busy weekend!
Between coaching little girls and defending pedo priests I almost didn’t have much time to orchestrate my sock puppet parade diverting attention from my pal Chip’s problems.
But being the man’s man that I am, I hunkered down in Suite C and took care of business. If I had done this much spinning to deal with my being a fat slob I wouldn’t have had to lop off part of my stomach.
Now back to Blue County! Or is it Red County? Oh I am so confused. Does it really matter? Isn’t it the same place? Either way it’s pricks on parade.