Eclipse Aviation

First posted
Sunday November 29, 2008 07:35
Updated
Monday August 3, 2009 09:54


Tuesday January 20, 2009 06:59

Far from galas, Richardson opens session comment.

LETTERMAN SPEAKS OF RICHARDSON

Richardson has the reputation of appointments of people because they are corrupt.

Look at Pro Se [for yourself] Fights for further evidence of the above assertion


http://www.prosefights.org/nmlegal/eclipse/eclipse.htm#dendahl





High-balling Governor Off Track

By John Dendahl
Freelance Columnist

In mid-2006, the Republican candidate for governor withdrew and the party's governing committee designated me as his successor on the ballot for the general election in November. I was decisively defeated by incumbent Gov. Bill Richardson.

Some would like to attribute my move to Colorado a few months later to that loss. But I had had no expectation of defeating a man who had been in public office for most of a quarter of a century and would spend at least 40 times what I did in 20-week campaign.

Richardson and I had first "met" via a phone call from him in 1979. I was a businessman. He was a recent carpet-bagger who picked the state as a good prospect to elect him to the U.S. House and was looking for support. When that 10-minute call ended, I thought: The man is a pandering liar. I met him personally at a friend's home a few weeks later. The first "promise" on the palm card he handed out was directly opposite to the main point he emphasized in our earlier conversation, thus affirming my first impression. I have never encountered another individual whose bad character was so obvious to me yet so apparently opaque to many others.

Richardson lost that 1980 race, but New Mexico gained a new congressional district one election later. Richardson won the new seat in 1982 During his 16 years in Congress, Richardson continued to vindicate regularly my first impression- a pandering liar. It wasn't until his taking office in 2003 as New Mexico's governor, however, that he revealed himself to be a dictator as well.

Illustrative of his hubris was his immediate move to replace his predecessor's appointees on boards (e.g.. university regents) to which they had been appointed to constitutionally set terms. He simply demanded their resignations, then replaced them with appointees who signed undated letters of resignation which could be "accepted" if, as, and when the dictator chose for any reason whatsoever.

An early embarrassment was administered by a student-regent, Felicia Ybarra. She refused to vote as instructed for chairman of her university's board of regents, then, alone in a face-to-face meeting with Richardson and some of his staff, refused to resign. Richardson quietly tucked his tail between his legs and let the matter pass. Pay-to-play

Organized Labor represents practically no one in the private sector in New Mexico, and lost its legal right to represent public employees when the relevant statute "sunsetted" during the term of Richardson's predecessor, Gary Johnson. The Legislature didn't have the votes to override Johnson's veto of its bill to extend.

With direct contributions and indirect expenditures, Labor lavishly supported Richardson's 2002 campaign for governor. One of its most aggressive bosses, Brian Condit, was soon the Richardson transition organization's apparent gatekeeper for appointive positions.

Labor got its big reward by immediate restoration of its collective bargaining statute without a sunset, then card-check recognition (that is, no secret ballot elections) of two unions for bargaining units spread around the state, then combination of the bargaining units into such large and ungainly wholes that employees have no chance whatsoever of mounting successful decertification campaigns.

It won again when the Richardson lackeys on the University of New Mexico board of regents put a provision in a $185 million hospital construction contract a "project labor agreement" - to eliminate any possible cost savings through awards to non-union contractors.

Among Richardson albatrosses around New Mexico's neck is a so-called commuter train, heavy rail no less, running about 100 miles in a corridor having fewer than a million people. A billion-dollar boondoggle. Richardson obliged the Burlington Northern Santa Fe by buying and taking over about 300 miles of BNSF track that was probably more liability than asset (the 100-mile "commuter" corridor plus another 200 miles into southern Colorado). BNSF got $75 million taxpayer dollars from Richardson; tens of thousands came from BNSF and affiliates to Richardson's campaign and to the Democratic Governors Association he headed.

A Sept. 24, 2006, Albuquerque Journal article told the eye-popping story of approval by the Richardson administration of access to a major East-West limited access artery in Albuquerque for a real estate development by the family of Pete Daskalos. Access by other developers had been denied, as had access for a fire station. Soon, $130,000 made its way into Richardson's campaign coffers from various Daskalos family interests. This fandango alone should have tipped White House vetters, if they cared, that Richardson was too hot to handle

PRI-style ruthlessness

The candidate I replaced on the ballot had been severely hampered in fundraising on account of potential donors' fear of retribution, reportedly including actual warnings to some. I was confident- overconfident - from my more than eight years' chairing the state Republican Party and raising a great deal of money that I could get past that.

Among my finance directors first calls was to ask a close friend, a Republican real estate developer, if he and his wife would host a fundraising event. He called back promptly the following day to report that he couldn't face the risk of. Richardson's retaliation. He also reported a conversation at a meeting of Albuquerque's Economic Forum during which other business leaders had expressed the same intention:

Let someone else support Dendahl and bear the consequences meted out by our ruthless governor.

Ditto Hobbs in Lea County, an oil and gas producing area in the Permian Basin. Nearly all local officeholders are Republicans, and George W. Bush twice won decisively there. However, I was told by a locally prominent close friend that I would be able to raise zilch. Reportedly, Richardson's local enforcer and the chairman of his State Transportation Commission had the word out that economically important local activities - a horse-racing track/ casino operation, a private prison, highway building and a budding uranium enrichment plant - could all be hurt by any showing of financial support for Richardson's opponent. That well was dry.

I went next door to Carlsbad, in Eddy County. When Richardson was in Congress, he was the single most effective opponent of a federal facility proposed in that county, the Waste Isolation Pilot Plant (WIPP), designed to dispose of transuranic (TRU) waste produced by the nation's nuclear weapons program. The project was popular in Eddy County, but opposed by anti-nuclear environmentalists in Richardson's district, even though the Los Alamos National Laboratory needed WIPP to get rid of locally-stored TRU waste. But Richardson pandered to the enviros and lied to the rest: "I'm for WIPP as long as it's 100-percent safe," he said, knowing that nothing, not even that lie, is 100-percent safe.

I had worked for years with the Carlsbad mayor and a couple of his predecessors, as well as the county's legislators to counter Richardson and his enviro allies. When I asked the mayor for support, he acknowledged that Carlsbad owed me big time for all the WIPP help, "but I can't put my city at risk," Nothing coming from there.

In a community 25 miles north of Santa Fe is a prominent businessman known for damn-the-torpedoes, full-speed-ahead courage. During a visit shortly after my nomination, he pledged $10,000 to my campaign. After several weeks a $10,000 check came in from a source entirely unknown to my campaign staff and me. I smelled a rat and called the pledgor to see if this were payment of the pledge and he said it was. I told him I had to return the check. Another day, another friend cowed by the specter of Richardson's wrath.

And so it went all over the state. To be sure, there were courageous people who provided generous support; however, the Richardson organization assured through brute intimidation that that would be a comparative trickle.

Since my wife and I moved to Colorado nearly two years ago, hardly a month has passed without news of some scandal among those ruling New Mexico, adding to the pile of vindication for our decision.

It might be pointed out that, like New Mexico's, Colorado's recent electoral results haven't favored my side, either. However, whether its governments trend left or right, I believe Colorado has the necessary critical mass of press and community leadership to squelch promptly the sort of corruption Richardson has made endemic throughout New Mexico.

Sadly for New Mexico, formation of a similarly corrective critical mass seems light years away.

Albuquerque Journal Sunday January 18, 2009



Sunday January 18, 2009 14:47

New Mexico attorney general Gary King should get involved in the $22,036 SLFCU CEO Christopher Jillson felony fraud theft which should net Jillson 9 years in prison. All the evidence of Jillson's guilt is in writing in court records.

Let's try to keep a good sense of humor.

Bill went to McDonald's at Tramway and Montgomery to get a $.99 bag of ice on Saturday January 17, 2008. He wore his pheasant hunting fleece sweatshirt while other were be laundered.

Mc employee who gave bill the bag of ice commented, "Nice jacket."

Bill responded, "I'm invisible."

Employee responded, "Maybe in a pumpkin patch."




Note digital US army issue hat.

http://www.prosefights.org/nmlegal/eclipse/eclipse.htm#richardsonwsj
New Mexico's Political Wild West

Lack of Contribution Limits, Ethics Laws and Lawmaker Pay Seems to Breed Scandal

By STEPHANIE SIMON

A cascade of recent corruption scandals in New Mexico has drawn fresh scrutiny to the state's unusual-and lightly regulated-political culture.

New Mexico is the only state in the nation that doesn't pay its state legislators. It is one of just a handful with no campaign-contribution limits, so politicians- among them Gov. Bill Richardson- have collected tens of thousands of dollars from individual donors.

Unlike most states, New Mexico lacks an independent ethics board. There is no statewide law governing ethical conduct for officeholders.

There is no way for citizens to watch their representatives at work, unless they trek to the state capitol in Santa Fe. New Mexico is one of only three states that doesn't broadcast or Web-cast its legislative proceedings.

During a kickback probe a few. years ago that ended with two state treasurers in prison, a witness was asked why he bribed the officials. "He said, 'My understanding is, that's how business is done in New Mexico,' "recalled Attorney General Gary King, a Democrat.

"Well," Mr. King said. "That's embarrassing."

The latest allegations swirling through the state involve the administration of Mr. Richardson, a Democrat. A federal grand jury is looking at how a California firm, CDR Financial Products, landed a lucrative state contract. The firm's top executive was a major donor to Mr. Richardson's political committees.

A similar pay-to-play accusation surfaced last week when a state court unsealed a lawsuit filed during the summer by the former chief investment officer of a state pension board. He alleged that people with ties to the current administration pressured state officials to invest $90 million with an Illinois financial concern, Vanderbilt Capital Advisors LLC and related entities. The firm's executives later donated to Mr. Richardson.

Mr. Richardson has said he did nothing wrong in either case. CDR also has denied wrongdoing. Vanderbilt declined to comment.

Both Democratic and Republican advocates of strengthening ethics rules hope to leverage pubic concern about the allegations to push for tighter state laws.

"Our system is drastically behind other states and the federal government in terms of regulating the flow of money through the political process," said Matt Brix, of the Center for Civic Policy, a government-watchdog group in Albuquerque.

Recent corruption cases include the federal fraud and corruption conviction of a state insurance regulator for coercing companies to fund his pet charities, and a state fine levied against a commissioner 01 public regulation for misuse of public money during his campaign.

And most startling to many in Santa Fe: The abrupt fall from power of longtime state Senate President Pro Tempore Manny Aragon, who pleaded guilty last year to felony conspiracy for bilking taxpayers.

"We've had one case after an-other," said state Sen. Sue Wilson Beffort, a Republican. "I think my colleagues are in the mood" for ethics overhaul, she said. "It's well past due." New Mexicans, though, have heard that before.

Messrs. Richardson and King have both pushed for an ethics overhaul for several years. It is a nearly perennial issue in the legislature. But it has proved tough to get anything but moderate overhauls enacted, as legislators tend to vote down or sideline more ambitious proposals.

"It's natural for legislators to be cautious and, quite frankly, skeptical [of new regulation), because it restricts what they do and puts more scrutiny on them," said Steven Robert Allen, who pushes for ethics overhaul as executive director of Common Cause New Mexico.

Mr. Allen has high hopes that the New Mexico legislature, which starts a new session next week, will limit campaign contributions to $5,000 for statewide candidates and $2,300 for legislative candidates. He also sees emerging support for a bipartisan, independent ethics commission with investigative powers. About 40 states have such a commission.

But New Mexico's budget crisis will take top priority in the 60-day legislative session, so any ethics overhaul that costs money- such as public financing of campaigns or paying legislators a salary-is likely off the table, analysts said.

Still, proponents of an overhaul don't expect the ethics issue to fade away.

A few years ago, the legislature authorized the attorney general to hire a special team of eight investigators to probe public corruption. Mr. King promises the state "will be seeing the fruits of that soon." Asked how many cases he expects to bring, he answered: "More than a handful."

Wall Street Journal Saturday/Sunday January 17-18 2009





Saturday January 17, 2008 17:48

New Mexico attorney general Gary King should get involved in the $22,036 SLFCU CEO Christopher Jillson felony fraud theft which should net Jillson 9 years in prison. All the evidence of Jillson's guilt is in writing in court records.

Let's try to keep a good sense of humor.

Bill went to McDonald's at Tramway and Montgomery to get a $.99 bag of ice.

Mc employee who gave bill the bag of ice commented, "Nice jacket."

Bill responded, "I'm invisible."

Employee responded, "Maybe in a pumpkin patch."




http://www.prosefights.org/nmlegal/eclipse/eclipse.htm#richardsonwsj
New Mexico's Political Wild West

Lack of Contribution Limits, Ethics Laws and Lawmaker Pay Seems to Breed Scandal

By STEPHANIE SIMON

A cascade of recent corruption scandals in New Mexico has drawn fresh scrutiny to the state's unusual-and lightly regulated-political culture.

New Mexico is the only state in the nation that doesn't pay its state legislators. It is one of just a handful with no campaign-contribution limits, so politicians- among them Gov. Bill Richardson- have collected tens of thousands of dollars from individual donors.

Unlike most states, New Mexico lacks an independent ethics board. There is no statewide law governing ethical conduct for officeholders.

There is no way for citizens to watch their representatives at work, unless they trek to the state capitol in Santa Fe. New Mexico is one of only three states that doesn't broadcast or Web-cast its legislative proceedings.

During a kickback probe a few. years ago that ended with two state treasurers in prison, a witness was asked why he bribed the officials. "He said, 'My understanding is, that's how business is done in New Mexico,' "recalled Attorney General Gary King, a Democrat.

"Well," Mr. King said. "That's embarrassing."

The latest allegations swirling through the state involve the administration of Mr. Richardson, a Democrat. A federal grand jury is looking at how a California firm, CDR Financial Products, landed a lucrative state contract. The firm's top executive was a major donor to Mr. Richardson's political committees.

A similar pay-to-play accusation surfaced last week when a state court unsealed a lawsuit filed during the summer by the former chief investment officer of a state pension board. He alleged that people with ties to the current administration pressured state officials to invest $90 million with an Illinois financial concern, Vanderbilt Capital Advisors LLC and related entities. The firm's executives later donated to Mr. Richardson.

Mr. Richardson has said he did nothing wrong in either case. CDR also has denied wrongdoing. Vanderbilt declined to comment.

Both Democratic and Republican advocates of strengthening ethics rules hope to leverage pubic concern about the allegations to push for tighter state laws.

"Our system is drastically behind other states and the federal government in terms of regulating the flow of money through the political process," said Matt Brix, of the Center for Civic Policy, a government-watchdog group in Albuquerque.

Recent corruption cases include the federal fraud and corruption conviction of a state insurance regulator for coercing companies to fund his pet charities, and a state fine levied against a commissioner 01 public regulation for misuse of public money during his campaign.

And most startling to many in Santa Fe: The abrupt fall from power of longtime state Senate President Pro Tempore Manny Aragon, who pleaded guilty last year to felony conspiracy for bilking taxpayers.

"We've had one case after an-other," said state Sen. Sue Wilson Beffort, a Republican. "I think my colleagues are in the mood" for ethics overhaul, she said. "It's well past due." New Mexicans, though, have heard that before.

Messrs. Richardson and King have both pushed for an ethics overhaul for several years. It is a nearly perennial issue in the legislature. But it has proved tough to get anything but moderate overhauls enacted, as legislators tend to vote down or sideline more ambitious proposals.

"It's natural for legislators to be cautious and, quite frankly, skeptical [of new regulation), because it restricts what they do and puts more scrutiny on them," said Steven Robert Allen, who pushes for ethics overhaul as executive director of Common Cause New Mexico.

Mr. Allen has high hopes that the New Mexico legislature, which starts a new session next week, will limit campaign contributions to $5,000 for statewide candidates and $2,300 for legislative candidates. He also sees emerging support for a bipartisan, independent ethics commission with investigative powers. About 40 states have such a commission.

But New Mexico's budget crisis will take top priority in the 60-day legislative session, so any ethics overhaul that costs money- such as public financing of campaigns or paying legislators a salary-is likely off the table, analysts said.

Still, proponents of an overhaul don't expect the ethics issue to fade away.

A few years ago, the legislature authorized the attorney general to hire a special team of eight investigators to probe public corruption. Mr. King promises the state "will be seeing the fruits of that soon." Asked how many cases he expects to bring, he answered: "More than a handful."

Wall Street Journal Saturday/Sunday January 17-18 2009


Saturday January 17, 2009 15:59

Richardson appears to have helped thwart settlement of these unfortunate matters both as

and as head of DOE.

http://www.prosefights.org/nmlegal/eclipse/eclipse.htm#richardsoncdr

The federal investigation that prompted Gov. Bill Richardson of New Mexico to withdraw his nomination as commerce secretary offers a rare glimpse into a long-simmering investigation of possible bid-rigging, tax evasion and other wrongdoing throughout the municipal bond business.







Copyright © 2009 Albuquerque Journal

By Jeff Jones
Journal Politics Writer

Gov. Bill Richardson's surprise weekend announcement to pull the plug on his nomination for U.S. commerce secretary stunned political observers nationwide and transformed New Mexico's political scene in the, blink of an eye, derailing Lt. Gov. Diane Denish's planned transition to the state's top job.

Richardson on Sunday made national news when he announced he was withdrawing his nomination for the Cabinet post in President-elect Barack Obama's administration, citing a federal investigation into how a big-money political contributor landed lucrative state contracts.

Richardson in a statement said that, while he has done nothing improper, the grand jury probe could have caused an unacceptable delay in his confirmation by the U.S. Senate, which was expected to take up his confirmation in the coming days.

"Let me say unequivocally that I and my administration have acted properly in all matters and that this investigation will bear out that fact," Richardson said in the statement. "But I have concluded that the ongoing investigation also would have forced an untenable delay in the confirmation process. Given the gravity of the economic situation the nation is facing, I could not in good conscience ask the President-elect and his administration to delay for one day the important work that needs to be done."

Later Sunday, ABC News -citing unidentified sources -said Obama transition team officials felt Richardson was not sufficiently forthcoming with them about the investigation before Obama offered him the job.

Richardson spokesman Gilbert Gallegos disputed that.

"The governor was forthcoming," Gallegos said.

Gallegos said the Obama administration did not pressure Richardson into the decision to withdraw, adding, "This was the governor's decision."

Obama in a written statement called Richardson an "outstanding public servant," adding that, "It is a measure of his willingness to put the nation first that he has removed himself as a candidate for the cabinet in order to avoid any delay in filling this important economic post at this critical time."

While both administrations signaled that Richardson could land a future job under Obama - "the governor considers this temporary," Gallegos said - Journal pollster and political analyst Brian Sander-off said the weekend news carries serious political impact.

"Today could be the biggest political setback in Bill Richardson's long and successful political career," Sanderoff said. "A man like Bill Richardson would not make the decision to withdraw his name lightly. He's a fighter."

Abrupt decision?

The news that Richardson wouldn't be heading back to Washington, D.C., after all - or at least not as soon as expected - appeared to come out of the blue: Just last week, meetings between staff members of Richardson and Denish were taking place nearly daily as Denish prepared to become New Mexico's first female governor.

Gallegos disputed the contention that the decision was abrupt, saying it was something Richardson, who was announced on Dec. 3 as Obama's choice for the Commerce job, had been pondering.

"This matter was not concluded as quickly as he hoped it would," Gallegos said, referring to the federal investigation.

Gallegos said Richardson informed Obama of his decision Saturday and told Denish and other top New Mexico political leaders Sunday.

Denish, who is in Washington, D.C., to attend swearing-in ceremonies for the state's congressional members, did not return Journal phone messages but issued a written statement about the news.

"The president-elect said he looks forward to Gov. Richardson joining the administration in the days ahead," Denish said. "In the meantime, Gov. Richardson and I will work together, as we have over the last six years, to tackle challenges at home, to craft a workable budget with the Legislature and to strengthen our economy.~~ However, Denish wasn't immediately nixing all of her transition plans. In a Sunday evening e-mail to her volunteer transition advisory team members, transition director Kathy Keith said, "The work of the transition advisory teams will continue along the same schedule." Keith describes herself in the e-mail as: "Transition Director, Incoming-Governor Diane Denish."

Bingaman support

Veteran Sen. Jeff Bingaman, D-N.M., said in a Journal interview that he was among those Richardson phoned Sunday morning. Bingaman said he had heard no rumblings in D.C. about a potential Senate showdown over Richardson's confirmation.

"I'm not on the Commerce Commitee, where the confirmation hearing would have been held, but I think I would have been hearing if there was any significant opposition to him being confirmed," Bingaman said.

"I, thought he would have strong support in his confirmation process, and obviously, I strongly support him," Bingaman said. "... I didn't try to talk him out of it. I just told him I was disappointed, and (that) he would do extremely well in that position."

New Mexico Republican Party Chairman Allen Weh said Richardson's announcement shouldn't come as a surprise.

"You've got a serious investigation taking place," Weh said.

He added that, while everyone is entitled to the presumption of innocence, "It's still not good business for an administration to take a Cabinet officer who has to deal with this - and that becomes the focus, as opposed to stepping into office and carrying out his duties."

Democratic and Republican state Senate leaders also got calls from Richardson on Sunday.

"It was a surprising call," said Senate Minority Leader Stuart Ingle, R-Portales. "I had certainly thought that, basically, the governor was going to be the new commerce secretary of the United States."

State Sen. Carlos Cisneros, D-Questa, who had not spoken with the governor, said he doesn't believe the news will weaken Richardson politically heading into the upcoming session of the state Legislature. The session will be dominated by budget concerns.

"It shouldn't hinder him any more so than any lame-duck governor," said Cisneros, the nominee for Senate president pro tern for the upcoming session. "Irrespective of who's the governor at the time, we all have to work in a unified manner in an effort to turn our economy around. Whether it's lame-duck Richardson or takeover Denish, we're all poised to do the best we can under the circumstances."

Official statements

Statements from President-elect Barack Obama and New Mexico Gov. Bill Richardson that were released Si. day by Obama's transition office upoi Richardson's decision to withdraw as Obama's nominee to be commerce secretary:

OBAMA:

"It is with deep regret that I accept Gov. Bill Richardson's decision to withdraw his name for nomination as the next secretary of commerce. Gov. Richardson is an outstanding public servant and would have brought to the job of commerce secretary and our economic team great insights accumulated through an extraordinary career in federal and state office. It is a measure of his willingness to put the nation first that he has removed himself as a candidate for the Cabinet in order to avoid any delay in filling this important economic post at this critical time. Although we must move quickly to4ill the void left by Gov. Richardson's decision, I look forward to his future service to our country and in my administration."

RICHARDSON:

"For nearly three decades, I have been honored to serve my state and our nation in Congress, at the U.N., as secretary of energy and as governor. So when the president-elect asked me to serve as secretary of commerce, I felt.a duty to answer the call. I felt that duty particularly because America is facing such extraordinary economic challenges. The Department of Commerce must play an important role in solving them by helping to grow the new jobs and businesses America so badly needs. it is also because ofthat sense of urgency about the work of the Commerce Department that I have asked the president-elect not to move forward with my nomination at this time. I do so with great sorrow. But a pending investigation of a company that has done busIness with New Mexico state government promises to extend for several weeks or, perhaps, even months.

"Let me say unequivocally that I and my administration have acted properly in all matters and that this investigation will bear out that fact. But I have concluded that the ongoing investigation also would have forced an untenable delay in the confirmation process. Given the gravity of the economic situation the nation Is facing, I could not in good conscience ask the president-elect and his administration to delay for one day the important work that needs to be done.

"So, for now, I will remain in the job I love, governor of New Mexico, and will continue to work every day, with Lt. Gov. Diane Denish, to make a positive difference in the lives of New Mexicans. I believe she will be a terrific governor in the future. I appreciate the confidence president-elect Obama has shown in rhe, and value our friendship and working partnership. I told him that I am eager to serve in the future in any way he deems useful. And like all Americans, I pray for his success and the success of our beloved country.

Albuquerque Journal Monday January 5, 2009

Pay To Play Inquiry Derails Cabinet Post

Copyright © 2009 Albuquerque Journal

By Mike Gallagher
Journal Investigative Reporter

It was a recipe for a typical New Mexico political stew: Start with two lucrative contracts worth $1.4 million, stir in at least $100,000 in political contributions, add a dash of questionable bid procedures and top it off with a heaping tablespoon of suspicious timing.

This is the concoction that boiled over into the federal investigation that has derailed, at least for now, Gov. Bill Richardson's ambitions for a seat in President-elect Barack Obama's cabinet.

The Journal first reported in August that the FBI was interested in how a small Beverly Hills financial firm got involved in the $1.6 billion GRIP trans portation bond issue.

That investigation has progressed to the grand jury stage, and some testimony has been presented. Several people prominent in Richardson's political circle have obtained attorneys, as have several former employees of the New Mexico Finance Authority.

Allegations of "pay to play" are noth ing new in politics, and 'there is no indication Richardson is a target at this stage. However, the investigation and underlying facts would serve up plenty of ingredients for a Senate confirmation grilling.

The big picture is fairly simple.

CDR Financial Products LLC of Beverly Hills was paid $1.4 million from work it did on behalf of the New Mexico Finance Authority, which issued GRIP transportation bonds.

David Rubin, the company's principal owner, made at least $100,000 in contributions, to Richardson-backed political committees about the time tile firm got the work with the finance authority.

Two substantial contributions were three months apart and generally coincided with the separate awards to CDR - one of them a no-bid, sole-source deal.

In August, FBI agents interviewing finance authority board members David Harris, a former authority executive director and Richardson adviser.

U.S. Attorney Greg Fouratt and FBI spokesmen have declined to comment on the investigation.

Richardson issued a statement that he expected all state employees to cooperate with federal investigators.

There is no hint as to when the investigation might be concluded, and things percolated quietly until December, when several national news organizations picked up on the story.

Still, there was no public indication as recently as last week that it posed a serious problem for Richardson's appointment.

In his statement announcing he was withdrawing his name from nomination, Richardson said he expected that the investigation would find that nothing wrong was done. CDR gets slice of deal

Federal investigators in a number of states have been investigating the activities of CDR Financial since 2006.

The company is a specialty firm that deals in complicated financial packages called SWAPS, which are essentially investment trades to offset interest rate risks.

CDR was one of six firms competing for work in 2004 when the finance authority was seeking a financial adviser on the GRIP bond package.

CDR Financial was not rated as the most qualified company~ and another firm was hired as the authority's financial adviser, according to state records.

But CDR was given a piece of the deal anyway because of its background in SWAPS. That led to questions because that particular expertise wasn't sought in the state's bid requests, and state officials have conceded that those procurement requests were not up to standards.

CDR was formally brought in to the deal in March 2004, based on the recommendation of the finance authority's staff and a full board vote - just in case the finance authority decided at some point to do SWAPS.

In fact, it did a SWAP the next month - the first and only one in state history. CDR was paid more than $950,000 from bond sale proceeds.

Three months later, in June, CDR received a no-bid deal from the authority to handle escrow accounts that were part of the GRIP bond sale. Again the staff recommended CDR get the work and the board, made up mostly of Richardson appointees and Cabinet members, approved.

GRIP is short for Governor Richardson Improvement Program and paid for a wide range of highway projects and the Rail Runner commuter train.

CDR's no-bid contract

Political donations are the next piece of the pie.

At the same time his company was seeking work from the New Mexico Finance Authority, CDR owner Rubin was making political contributions to Richardson political committees.

The timing of a $75,000 conribution from Rubin to Si Se Puede is of particular interest to investigators.

Si Se Puedew is the political committee formed to pay the expenses of Richardson and his staff at the 2004 Democratic National Convention in Boston.

The contribution was made five days before the finance authority staff recommended that CDR receive the no-bid cclntract to handle escrow accounts.

The no-bid deal was approved by the board 12 days after the contribution was made.

Rubin's spokesman denied any wrongdoing and said the contributions were publicly reported.

Rubin also made a $25,000 contribution to Moving America Forward, a Richardson PAC that registered Hispanics and Native Americans in the Southwest to vote.

State officials have praised CDR's work, and say the company was paid out of the sale proceeds for its work' on the GRIP bonds and from savings to the state in handling the escrow account.

Richardson also., received a $410,OQO contribution from Rubin in 2005 to his re-election campaign.


Albuquerque Journal Monday January 5, 2009


Sunday November 29, 2008 12:28

Let's examine New Mexico governor Bill Richardson's role in Eclipse Aviation.

Richardson June 9, 1994 letter.

New Mexico governor Bill Richardson profile.
Albuquerque mayor Marty Chavez and New Mexico governor Bill Richardson.
Will New Mexico governor Bill Richardson help fix the Judicial Standards Commission and supreme court problems?

Chapter 11 Eclipse Aviation legal actions
Commerical real estate Seeking Alpha comment.
Solar/Eclipse Seeking Alpha comment.


http://www.prosefights.org/nmlegal/eclipse/eclipse.htm#eclipse



Eclipse Owes Creditors $1 Billion

Jet Maker Reports Debt To More Than 5,000

Copyright © 2008 Albuquerque Journal

By Richard Metcalf
Journal Staff Writer

Eclipse Aviation, had built up more than $1 billion in debt owed to more than 5,000 creditors and shareholders during its 10 years of existence, triggering this week's filing for Chapter 11 bankruptcy protection, according to court documents.

The top three creditors are large investment funds that alone are owed a combined $230 million, which is more than the estimated $198 million offer on the table to buy Eclipse's assets as part of the bankruptcy process.

One of those top creditors, Cayman Islands-based HEK Master Fund, with an office in Dallas, is one of the top shareholders in Richmond, Va.-based Circuit City, which also filed a Chapter 11 bankruptcy.

The next three biggest creditors are key suppliers of parts for Eclipse's twin-engine very light

More problems

Starting next week, FAA order will begin to limit altitude at which Eclipse jets can fly

jet, including:

· Fuji Heavy Industries of Japan, which builds the complete wing assembly, is owed $31.8million.

· Hampson Aerospace of England, which makes parts for the tail end of the jet, is owed $31.3 million. In August, the company laid off 90 of 104 workers at a plant dedicated to making parts for Eclipse.

· Pratt & Whitney Canada, which makes the jet's small custom-designed turbofan engines, is owed $30.1 million. The company also makes engines for two other light jets, the Cessna Mustang and Embraer Phenom 100.

"It's disappointing," said Pratt & Whitney spokesman Jean-Daniel Hamelin in an e-mail to the Journal about Eclipse's filing. "We continue to work closely with Eclipse Aviation's management to adjust our production to meet their needs."

Other creditors owed big money include well-known financial institutions like Morgan Stanley & Co., the Wall Street giant that had a meltdown in September, and UBS Securities, the Swiss bank that settled fraud claims with federal regulators last summer.

A federal judge accepted Eclipse's bankruptcy filing

Wednesday, thus launching the company through the Chapter 11 process.

An important feature of a Chapter 11 filing is the automatic stay, which stops creditors from taking legal steps to collect money owed them.

"The stay provides a breathing spell for the debtor, during which negotiations can take place to try to resolve the difficulties in the debtor's financial situation," says a U.S. Bankruptcy Court explanation of the basics of Chapter 11.

In its filing, auction of the company's assets is prosed in early January to an affiliate of ETIRC Aviation, although the bidding would be open to any potential buyers. ETIRC Aviation is the biggest current investor in Eclipse.

If ETIRC's estimated $l9 million bid is accepted, Eclipse officials said they believe the manufacturing operation employing 945 workers would remain planted in Albuquerque. If another buyer bought the company, it's anybody's guess what happens to the local operation.

"It would be very expenand time-consuming to move," Eclipse spokeswoman Alana McCarraher told the Journal.

Luxemburg-based ETIRC Aviation, which has close to a two-thirds ownership stake in Eclipse, heads the list of just over 300 shareholders in the bankruptcy filings.

Court documents do not give dollar amounts invested by the shareholders, which range from investment funds through businesses of various sorts to everyday people, many of whom live in the metro area and are current or former Eclipse employees.

Shareholders are likely to lose their investments.

The State Investment Council, which invested $19 million in Eclipse, is listed in the filing as having a total 2.7 percent stake in the jet maker. The percentage of ownership is big enough to rank New Mexico as the fourth biggest shareholder.

The investment council stands to lose about $13 million of that investment, while $5.6 million is reported to be secured debt and thus in line for at least some potential repayment.

Out of luck?

The top 20 creditors listed In Eclipse Aviation's bankruptcy filing

· Kings Road Investments Ltd. of New York City, bond holder, $92.3 million

· HBK Master Fund of Dallas, bond holder, $84.9 million

· Citadel Horizons of Chicago, bond holder, $53.4 million

· Fuji Heavy Industries of Japan, supplier, $31.8 million

· Hampson Aerospace of England, supplier, $31.3 million

· Pratt & Whitney Canada of Quebec, supplier, $30.1 million

· UBS Securities of New York City, bond holder, $30 million

· Silver Oak Capital of New York City, bond holder, $26.1 million

· PAR Investment Partners of Boston, bond holder, $25.6 'million

· Citadel Investment Group of Chicago, bond holder, $25.2 million

· Morgan Stanley & Co. of New York City, bondholder, $24.1 million

· Tempo Master Fund of Greenwich, Conn., bond holder, $21.2 million

· Sandelman Partners MultiStrategy Master Fund of New York City, bond holder, $16.2 million

· Seneca Capital International of New York City, bond holder, $14.7 million

· UT Finance Corp. of East Hartford, Conn., credit guarantee, $13.5 million

· DKR Capital Inc. of Stamford, Conn., bond holder, $11.2 million

· Investment Interlachen of Minneapolis, bond holder, $11.2 million

· Sandelman Partners of New York City, bond holder,. $8.4 million

· Seneca Capital L.P. of New York City, bond holder, $7.7 million

· Albany Engineered Composites Inc. of Albany, N.Y., supplier, $6.9 million

Albuquerque Journal Friday November 28, 2008



Sunday December 14, 2008 15:04

At Eclipse Aviation inception there was talk that company never really intended to produce a plane for sale.

Eclipse Aviation was a company formed to attract investors.

From that standpoint, Eclipse Aviation was a success. $100,000,000 per year taken from investors.

How Much did Pieper get out of Eclipse Aviation over the 10 years?


http://www.prosefights.org/nmlegal/eclipse/eclipse.htm#nonet


Investing Without A Net At Eclipse

Stockholders may lose all on struggling aviation company

Copyright © 2008
Albuquerque Journal
By Richard Metcalf
Journal Staff Writer

More than 100 New Mexico residents pumped millions of investment dollars into Eclipse Aviation during the past decade, betting on the cornpa ny's vision of a revolution in general aviation and the possibility of a huge jackpot.

Now shareholders who once hoped to get returns as high as $18 for every $1 invested a $900,000 payback on $50,000 -stand to lose every cent as the Albuquerque-based jetmaker proceeds through Chapter 11 bankruptcy in Delaware.

"Anytime you make an investment in a new technology that needs to be proven, there's risk," said Richard Draper, an Eclipse shareholder and businessman in Corrales. "But it's a lousy Christmas present."

New Mexico accounts for a quarter of the 403 shareholders listed in Eclipse's bankruptcy filing. In its 10 years of existence, the company attracted shareholders from 30 states and nine foreign countries. Court documents obtained by the Journal do not give the total amount of shareholder investment, but it is in the hundreds of millions of dollars.

The New Mexico investors range from the State Investment Council and the Peters Corp. in Santa Fe to local business people, bankers and even a former state treasurer. Company founder and former CEO Vern Raburn is among the more than 20 current and former Eclipse employees who are shareholders.

The list of shareholders does not include an unknown number of current and former Eclipse workers who exercised employee stock options offered exclusively to them.

Attracted by very high tech

These investors were typically attracted by a belief in the technology and innovations behind the Eclipse 500 very light jet and the potential to make a lot of money. Many also believed they were helping to boost the local economy.

"I totally believed in the product and still believe in it," said a former Eclipse engineer who retired two years ago and is likely to lose more than $50,000 in the bankruptcy proceedings.

Eclipse filed for Chapter 11, commonly called a business reorganization, on Nov. 25 in U.S. Bankruptcy Court in Delaware. The company, which was late paying its employees in November, is more than $1 billion in debt. It owes more than $700 million to lenders, suppliers and a handful of customers, according to court documents.

The exit-from-bankruptcy plan is for an affiliate of Luxembourg-based ETIRC Aviation to buy all Eclipse assets for an estimated $198 million at an auction in January. ETIRC Aviation is Eclipse's largest shareholder, with a 65 percent stake in the company.

Proceeds from the proposed $198 million purchase will be used to pay down some of Eclipse's debt. Secured creditors like lenders typically have the highest priority in getting repaid, while unsecured creditors, like suppliers, come next.

Shareholders come last. Since there's not a lot of money to go around, these investors appear doomed to lose their money.

Investing with a warning

Eclipse is not a publicly traded company whose Stock can be bought and sold. It attracted investors through what is known as the private placement of shares, which is another way for companies to attract investment capital.

Private placements are subject to government regulation regarding such things as disclosure of risk.

Early on, Eclipse required a minimum nvestment of $1 milllon.

The company was upfront about risk.

"An investment (in Eclipse) .. is specuative, involving a high degree of risk and hould be considered only by sophisticated nvestors who can bear the economic risks if their investments for an indefinite peroid," says a company prospectus on a stock offering in March 2001.

In December 2001, the minimum investment dropped to $250,000.

In response, New Mexico residents formed 12 limited liability companies to meet the minimum. Four or five local residents would typically pool their money in the LLC for a $250,000 investment.

"Everybody in my group invested as individuals, although we got together to meet he threshold," said Draper, who participated through a limited liability company.

The $250,000 minimum was later relaxed, allowing individuals to buy shares in smaller amounts directly.

The New Mexico shareholders listed in court documents appear to have each infested tens of thousands of dollars in the company. All but one shareholder - a former employee - interviewed by the Journal had put more than $50,000 into it.

Possibility of big returns

The incentive to invest, was Eclipse's calculation of the potential return on nvestment. For example, the company's series B stock offering in the middle of 2000 rojected a potential return of 18 times the nvestment amount. In other words, each $100 invested had a chance of returning $1,800.

The Series C offering, which lasted from March 2001 to February 2002, projected a return of 16 times the investment amount, according to company documents. The Series D offering in the middle of 2002 projected a return of seven times the investment amount.

"Over the years, it kept dropping," Draper observed.

The years leading up to Federal Aviation Administration certification of the Eclipse 500 jet in September 2006 were exciting but intense. Workers put in 60-plus-hour work weeks, fueled by Red Bull energy drinks the company had provided for free, said ex-Eclipse employee Christopher van Lone.

"Sixteen-hour days were the norm for every FAA audit in 2006-07," he said. "On the flip side, it was thrilling to be a part of something like this."

But van Lone said he "never seriously considered exercising my employee stock options."

Lacking a lean culture

The hitch for van Lone was in the ways he saw money wasted, such as catered lunches and dinners for 600-plus employees. He said, "seeing Eclipse scrap $8,000 windows all the time made it clear to me they didn't have a real culture of lean production."

The wife of another ex-employee said, "It was almost like they had money to burn, but then the cracks began to appear."

While burning through hundreds of millions in loans and investor dollars, Eclipse was never able to achieve its basic goal of delivering a high volume of jets priced well below the competition. Achievement of the goal was necessary for the company to begin making money instead of losing it.

"Doggone, if it isn't one of those things," said an Albuquerque investor about the likely loss of his $50,000 investment. "If anybody complains about losing money on Eclipse, they shouldn't have been there."


Biggest Losses Come With a Silver Lining

Copyright © 2008
Albuquerque Journal
By Richard Metcalf
Journal Staff Writer

Eclipse Aviation board chairman and CEO Roel Pieper stands to be the biggest loser as well as one of the winners in the Albuquerque-based jet maker's pending bankruptcy.

Pieper's Luxembourg-based ETIRC Aviation is the biggest stake-holder in Eclipse, with 65 percent of the company's outstanding shares, or an investment of more than $175 million. Like other shareholders in New Mexico and around the world, be will likely lose every cent of that.

But Pieper and fellow Eclipse board member Alfred E. Mann of Valencia, Calif., are lined up to buy the company at a fire-sale price of an estimated $198 million. The sale isn't locked in, since the proposed January auction of the company's assets is open to competitive bids.

An early and consistent Investor in Eclipse, Mann is the second-biggest stakeholder with just more than 14 percent of the outstanding shares, according to court documents.

Peiper disputes the notion that the Chapter 11 bankruptcy reorganization "is a plan by Al Mann and myself to do something on the cheap." "We're the largest losers," he said, "but we're he only ones continuing."

Eclipse's filing in U.S. bankruptcy Court in Delaware as an "insider" deal by bankruptcy experts, since it calls for a pre-arranged sale to company officers and major shareholders. The buyers will get the company with its slate of more than $1 billion in debt wiped clean.

ETIRC Aviation first invested in Eclipse one year ago and Pieper acknowledged that his and Mann's investments have kept the company going since that time. Pieper said he inherited the company's heavy debt load when he took over as CEO in July, replacing company founder Vern Raburn.

But filing for bankruptcy court protection wasn't on the table when he took over, Pieper said.

"In normal, more healthy financial market conditions, we would've been OK - not great -but in a negative market like we have today, we have no choice but to restructure."

He said one of the problems was "many of the early shareholders gave up on supporting the company in the past 1 1/2 -2 years."

Concerning the decision by Mann and himself to take their investment loss but proceed with a $198 million bid, Pieper said, "This is an important decision and an opportunity for us to demonstrate our belief in the product and the people working here."

Pieper's biography on the ETIRO Web site describes him as an early investor in emerging companies that were either sold or went public. There is always a great deal of risk in investing in emerging companies, but Pieper told the Journal that he has never lost money on the scale he has with Eclipse. "This situation is unique," he said.

Albuquerque Journal Sunday December 14, 2008


Sunday November 30, 2008 08:58

Eclipse Aviation From Wikipedia.
Eclipse Aviation files for Chapter 11
By Kevin Done, Aerospace Correspondent
Published: November 26 2008 00:09 | Last updated: November 26 2008 00:09

Eclipse Aviation, the troubled US pioneer maker of very light, 3-4 passenger corporate jets, collapsed into court-administered chapter 11 bankruptcy on Tuesday.

Customer problems requires a legal stragegy that will work.

Customers who have paid any deposit including the 60% deposit: Those customers who have paid a deposit for an Eclipse 500 are unsecured creditors of Eclipse Aviation. If there is a way to offer consideration to those affected depositors, it will be reviewed for consideration but it is not known at this time if it will be assumed by the new company. TRANSLATION = You're in bottom corner

Customer who have asked for a refund: Customers who have asked for a refund are now an unsecured creditor of Eclipse Aviation. TRANSLATION = You're toast




Wednesday December 3, 2008 09:12






Albuquerque Journal Sunday November 30, 2008



Thursday December 11, 2008 10:11






BUSINESS OUTLOOK Albuquerque Journal Thursday December 11, 2008


Saturday December 20, 2008 10:59

Cramer on MADoff comment.


http://www.prosefights.org/nmlegal/eclipse/eclipse.htm#madoff


Albuquerque Journal Saturday December 20, 2008


Wednesday June 10, 2009 08:20

Solar Cluster next?


http://www.prosefights.org/nmlegal/eclipse/eclipse.htm#auctionblock

Eclipse Assets Headed For Auction Block

· Value estimates come in far below $1 billion in debt

Copyright © 2009 Albuquerque Journal

By Richard Metcalf
Journal Staff Writer

What's left of now-defunct Eclipse Aviation amounts to a paltry sum compared to the more than $1 billion in debt reported by the company when it entered U.S. Bankruptcy Court last November.

All the tools, equipment, computers, office supplies and furniture - even three old pickup trucks - add up to $63.l million, according to a list of assets submitted by the company to bankruptcy court earlier this year. The list is posted on the Web site www.bankruptcysales.com for potential buyers to check out.

The assets could be offered for sale at auction as early as this summer.

What's not included in the list of assets are values for the Albuquerque-based jet maker's intellectual property, including all that went into the design of its Eclipse 500 very light jet. The intellectual property also includes patents on stir-friction welding and the fire-suppression system used in the jet.

After certification by the Federal Aviation Administration In October 2006, the company delivered 259 aircraft before filing for bankruptcy court protection in Delaware.

Only a handful of secured creditors are expected to benefit much from the asset sale. The state of New Mexico is expected to lose most if not all of its direct investment of $19 million in the company. The value of Eclipse's intellectual property is questionable.

"Intellectual property is always depreciating in value," veteran bankruptcy attorney Bill Davis of Albuquerque told the Journal in an interview.

One reason is that, without an owner, the intellectual property has no one to defend it from pilfering and patent infringements. In addition, new technologies and design innovations are constantly in development to render Eclipse's intellectual property gradually more dated, he said.

Eclipse's original bankruptcy filing for a Chapter 11 business reorganization was converted in February to a Chapter 7 liquidation after an unsuccessful attempt to sell the privately held company to a European buyer. All but a handful of its last 800 employees were furloughed earlier that month.

No date has been set for an auction to sell Eclipse's assets, according to Adam Singer of the Cooch and Taylor law firm in Wilmington, Del., which is legal counsel to the trustee handling Eclipse's bankruptcy case.

But there's widespread speculation that an auction will be held this summer, although Davis said it's not unusual for a Chapter 7 business liquidation to take up to two years to complete.

"The trustee usually needs a significant, amount of time to determine what assets would be available to sell and how those assets are encumbered," he said. "Remember, much of Eclipse's assets are probably over-encumbered and not available to be sold at a Chapter 7 auction."

The Albuquerque Economic Development Department has been promoting the city to potential buyers of Eclipse's assets in an effort to keep the business here.

In a May 15 posting on the Cooch and Taylor Web site, which has information on Eclipse's bankruptcy, the city department outlines the economic incentives available to an aircraft manufacturer. The state incentives, include various tax credits and partial funding of employee wages through the Job Incentive Training Program. The main city incentive is industrial revenue bonds.

"We wanted bidders to factor these into their cost to operate," said Deirdre Firth, senior economic developer with the city department. "They would still have to qualify like anyone else."

While Firth is optimistic a buyer eventually will resurrect Eclipse as a jet manufacturer, two aviation analysts who followed Eclipse aren't so sure.

"I'd give a production restart a 1 percent chance," said Richard Aboulafia of Fairfax, Va.-based Teal Group Corp. "The cash requirement would be huge, with a highly uncertain payoff."

Doug Royce of Newtown, Conn.-based Forecast International Inc. expressed an identical view.

"I see it as highly unlikely in the current climate," he said. "Restarting production would be a very risky venture at a time when investors don't have a big appetite for risk."

Both the Teal Group and Forecast International have released bleak near-term forecasts as~ tight financial markets, reduced corporate profits and the stigma currently associated with business jet use will put a damper on sales.

Albuquerque Journal Tuesday June 9, 2009


Thursday June 25, 2009 06:41

1kWh = 3412.14163 BTU.

HEAT OUT = HEAT IN - HEAT LOSS
Solar may be headed for trouble if Fast Neutron is correct.

Predicting Oil and Gas Prices: 2009-2016 NCUA comment.

Utility Solar Power Grew 25 Percent in 2008 comment.

Some Renewable Energy Calculations comment.



China's Solar Market Heats Up comment.




http://www.prosefights.org/nmlegal/eclipse/eclipse.htm#collateral


COLLATERAL DAMAGE

When jet maker Eclipse Aviation crashed and burned, shock waves rippled through dozens of local suppliers

Copyright © 2009
Albuquerque Journal

By Richard Metcalf
Journal Staff Writer

Eclipse Aviation may be closed but its legacy lives on in the bleeding balance sheets of its local suppliers.

Almost all of the locally owned or locally operated suppliers are still in business today, filling out claim forms for unpaid invoices to submit to U.S. Bankruptcy Court in Delaware. There's little hope that they will see any money when Eclipse's assets are sold off in a Chapter 7 business liquidation.

Sun Country Industries is believed to have taken the biggest hit among local suppliers when Eclipse folded Founded in Albuquerque in 1950 and now a division of Wisconsin-based McNally Industries, Sun Country is owed about $500,000 in back bills, plus is sitting on an additional $750,000 in parts and material that were slated to go to Eclipse.

While Eclipse is off the hook with its bankruptcy, Sun Country is still liable for the cost of the unpaid inventory, said Ken Hodges, senior vice president and general manager.

"We're still having to pay off our suppliers," he said. "That will go on for another six to seven months because we have payment plans with them."

The largest contract manufacturer for the aerospace industry in New Mexico, Sun Country made mechanical components and assemblies for the flight control systems on the Eclipse 500 very light jet. Eclipse accounted for about 20 percent of its business, Hodges said.

Locally owned Kaehr Corp, a metal finishing shop that has been in Albuquerque since 1954, had only limited direct exposure to Eclipse - about $16,000 in unpaid invoices - but it did indirect work applying primers and high-tech coatings on parts made by other local suppliers to Eclipse.

"Some of our customers were doing quite a bit of work for them," said president Ron Kaehr. "Now they're out anywhere from $100,000 to as much as $500,000."

Some suppliers, such as Kendal Precision Machining came out virtually. unscathed.

Writing on the wall

Stored in Eclipse Aviation's half-dozen or so buildings in Albuquerque is $76.1 million worth of tools, equipment and parts that were never paid for, according to bankruptcy court documents. Fifteen of the 14 companies that supplied all that material are based in New Mexico.

Only one of the 15 New Mexico companies, Maloy Diversified, has closed. The company was formed to make specialized parts for the Eclipse 500 jet, said T.J. Maloy of Wateriet Cutting, whose brother ran Maloy Diversified.

"He saw the writing on the wall two years ago - payments coming late, partial payments, nonpayments - so he closed down," T.J. Maloy said.

Eclipse was never an easy company to work with, according to suppliers interviewed by the Journal. Specifications on tools and parts were subject to constant changes, as were delivery schedules. Payments on deliveries to Eclipse gradually came later and later, eventually reaching 90 days in the second half of 2008.

Kendal Billau of Kendal Precision Machining said his first doubts about Eclipse date back to February 2002, when he first started doing business with the jet maker.

"Just the way it was run," he said. "I kept thinking, 'They're gonna get their act together. They're gonna get their act together."'

Other suppliers said the same thing. In late August 2008, just days after laying off 650 employees and announcing a slowdown in production, Eclipse hosted a meeting with representatives from 90 suppliers.

Eclipse officials basically tried to rally support from suppliers to help it stay in business, said David Smith of Taycar Enterprises, a precision sheet-metal fabrication shop that made assorted' brackets for the Eclipse 500 jet.

"I remember thinking, 'There wouldn't be any problems if you just paid us,"' he said.

The production slowdown was "kind of a shock," Hodges said. The slowdown wasn't mentioned as a possibility when he'd met with Eclipse managers a month earlier, he said.

Most local suppliers had put Eclipse on a credit freeze by August 2008, but continued to make tools, equipment and parts for the company and deliver them on a cash-only basis.

"It was a gamble, but all of us wanted them to succeed," Kaehr said. "There's this whole sub-tier of suppliers that really kept the whole thing going.~~

Some local suppliers were later offended when Eclipse founder Vein Raburn, who was ousted as CEO in July 2008, blamed the company's demise primarily on problems with suppliers, Smith noted.

Broken promises

After setting up shop in Albuquerque in 2000, Eclipse developed a twin-engined jet capable of seating up to six occupants, including the pilot. After gaining federal certification of the jet in October 2006, the company ramped up production.

The company's initial goal of building one jet a day was never achieved. Eclipse would build and deliver 260 jets between November 2006 and November 2008, or about one jet every three days.

"We had concerns," Hodges said. "We weren't seeing the aircraft come off the line the way it should have:"

Eclipse filed for bankruptcy court protection on Nov. 25. Eclipse closed down once and for all in mid-February, laying off all but a few of its remaining 800 workers.

The company's demise coincided with the credit freeze in September 2008 and subsequent slowdown in the broader economy. As a result, for many suppliers, it's hard to separate the impact of Eclipse's failure from the impact of the economic recession.

Sun Country, for example, has seen its employment drop from 124 in July 2008 to 63 in earlier this month. Only about 12 of the laid-off workers can be attributed directly to Eclipse, Hodges said.

Eclipse was not the only factor in the layoff of three employees and a temporary reduction in work hours for the remaining 40-plus workers at Bogue Machine Co., which supplied about 40 different mechanical parts to the jet maker, said Mark Bogue. "If it was Eclipse alone, no change," he said. "Other customers were slowing down orders. Ultimately, it was the economy.

Eclipse's local suppliers were almost all established businesses busy serving existing customers when Eclipse came to town, said Smith. When the jet maker looked for local sources of tools and parts, he said, "Everybody told Eclipse, 'We'll do what we can."'

As a result, most of the local suppliers stayed diversified and had a limited financial exposure to Eclipse when it filed bankruptcy. Although suppliers made a profit off Eclipse over the years, most lost money in the end. Unpaid invoices are just one reason. Most suppliers invested in now-idle machinery and material to make parts specifically for Eclipse.

BUSINESS OUTLOOK Albuquerque Journal Monday June 22, 2009


Wednesday July 1, 2009 08:29

1 KilowattHour = 3,412 Btu

Natural Gas Conversion Calculator

PNM wrote that HEAT RATE [BTU/kWh] does not apply [N/A] to solar- and wind-generated electricity.

See FOIL 7.

Most of the other questions in this list can be tied up into this one question: does the invention defy the Laws of Thermodynamics? If the answer is yes, then something is wrong.

HEAT OUT = HEAT IN - HEAT LOSS.

Eclipse Aviation.
There are many cases of con men with engines that only appear to run on alternative energy.

New Mexico budding solar industries.

Concern about solar and wind electricity generations has been raised by

fast neutron
Santa Fe, NM
January 12, 2009

From actual experience, wind farms produce 1.2 watts per square meter. Solar Thermal and Photovoltaic methods capture 5 to 6 watts per square meter. There is no economy of size in either technology. Dividing the watts you need by those values gives the land area in square meters needed to produce the juice. The numbers are astronomical

http://www.topix.net/forum/source/santa-fe-new-mexican/T0QVJ5UD3R25C8HRL

and Keith O. Rattie said on April 2, 2009

Why did my generation fail to develop wind and solar? Because our energy choices are ruthlessly ruled, not by political judgments, but by the immutable laws of thermodynamics. In engineer-speak, turning diffused sources of energy such as photons in sunlight or the kinetic energy in wind requires massive investment to concentrate that energy into a form that's usable on any meaningful scale.



http://www.prosefights.org/nmlegal/eclipse/eclipse.htm#statelosses



State Expects Eclipse Losses

Journal Staff Report

SANTA FE - The State Investment Council doesn't expect to get much out of the eventual auction of the assets of Eclipse Aviation.

The council had invested $19 million with the Albuquerque-based small jet manufacturer from the state's Severance Tax Fund - $5 million of that in senior secured debt.

Under state statute, the, agency is required to invest 9 percent of the fund in New Mexico companies.

"The biggest loss to the state is in the jobs and business lost," council spokesman Charles Wollmann, told the Journal following the group's regular meeting in Santa Fe on Tuesday.

The closing of Eclipse in December by itself reduced the rate of return to the SIC from state investments by 4 percent for the first part of the year, according to the council.

Overall, the council has invested $280 million in private state companies with another $60 million that has' been committed.

Brian Birk, of Sun Mountain Capital which runs the program, said there is a freeze on any new investments because most of the money available to the program is committed.

State Investment Officer Gary Bland said that this might be a good time to increase the amount of money available for the program but there is little support for that in the Legislature.

There are 55 companies that have received state investments, most over the last four years, Birk said. "Thirty-nine of the companies are still active," he said. "Eleven have been liquidated and five have exited (by buyout or stock offering)."

Albuquerque Journal Wednesday July 1, 2009



Friday July 3, 2009 05:55
"The blog worked,"

New Mexico may be embarked on its next sting?

http://www.prosefights.org/nmlegal/eclipse/eclipse.htm#blog

Anti-Eclipse Site Posts Its Final Blog

Copyright © 2009
Albuquerque Journal

By Richard Metcalf
Journal Staff Writer

The Internet blog site known for its relentless criticism of now-defunct Eclipse Aviation Corp. has seen its last posting.

"The blog worked," writes Irish businessman Shane Price, who has maintained the Eclipse Aviation Critic NG Web site since early 2008, in his final comments on Tuesday. "We, working together, exposed the scam that EAC had become."

Over the years, postings on the site included insider information on the goings-on at the Albuquerque-based jet maker.

Other comments ranged from thoughtful analysis to basic ranting and raving. In the end, much of the blog's criticism proved justified when Eclipse filed for bankruptcy court protection in Delaware late last year.

The blog site, which traces its roots back to 2006, was an apparent thorn in the side of Eclipse founder and former CEO Vern Raburn. In an April 2008 filing in a California Superior Court, Raburn tried to force Mountain View, Calif-based Google Inc. to disclose the identity of 29 anonymous contributors to the site.

"We're not trying to suppress dissension or criticism," Raburn told the Journal at the time. "We're just trying to find out where it's coming from."

The court case attracted national attention. Within a week of Raburn's ouster as CEO in late July2008, however, Eclipse dropped the court case against the blog. A spokeswoman called the case "not one of our top priorities."

Eight months later, the blog's criticism still appeared to grate on Raburn. In a March interview with Aero-News Network, Raburn referred to the bloggers as "all those cockroaches on the Web."

After Eclipse ceased operations in February and entered the Chapter 7 business liquidation process, the Eclipse Aviation Critic NG Web site saw the gradual disappearance of its reason to exist.

Albuquerque Journal Thursday July 2, 2009



Monday August 3, 2009 09:53

Eclipse Aviation may have been a successful scam from the beginning.

Corruption is a serious problem in New Mexico.

Let's hope attorney general Gary King does more to correct corruption problems.

http://www.prosefights.org/nmlegal/king/king.htm#corruption

We have prima facie case of $22,036.00 stolen from our Sandia Laboratories Federal Credit Union retirement-protected saving accounts we will present to Mr King at the right time.



http://www.prosefights.org/nmlegal/eclipse/eclipse.htm#buyeclipse

$40M Offer Made To Buy Eclipse Move

Would Allow Aircraft Production To Resume in N.M.

Copyright © 2009 Albuquerque Journal

By Winthrop Quigley
Journal Staff Writer

An investor group on Friday submitted a $40 million plan to a federal bankruptcy court in Delaware to purchase what is left of Eclipse Aviation and resume aircraft production and maintenance in Albuquerque.

Mayor Martin Chavez said the group has formed a new company called Eclipse Aerospace and expects its purchase offer to close Aug. 24. The mayor would not disclose how much Eclipse Aerospace intends to bid for the assets, but court documents show the group has offered $20 million in cash and $20 million in notes secured by assets of the business.

The court will hear the Eclipse Aerospace motion to purchase the assets Aug. 10. Chavez said during a news conference that he knows of no other potential bidders. At onetime, at least four groups were considering offers.

"We're about 98 percent certain that Eclipse Aviation has been saved," Chavez said.

The mayor said he expects the revived Eclipse to employ hundreds of people when operations resume in a few months but probably not the 800 to 1,000 people who worked there before the company entered bankruptcy proceedings last November.

In addition to manufacturing the old Eclipse Aviation's very light jet, Eclipse Aerospace intends to provide training and service for the aircraft in Albuquerque, Chavez said. Servicing will resume immediately after the court approves the investor group's offer, he said.

The city has agreed to lease for $1.2 million a year the same city-owned buildings at the Sunport and Double Eagle airport to Eclipse Aerospace that it leased to Eclipse Aviation.

The investor group includes Mason R. Holland Jr., chairman of insurance benefits software company Benefitfocus of Charleston, S.C., Mike Press, president and CEO of Single-Pilot Jet Management in Chesterfield, Mo., Raul Segredo, president and CEO of Miami-based Avionic a, a provider of aircraft data communications products and services, and John Cracken, a managing director of Cracken, Harkey & Co., a Dallas-based private equity firm.

Chavez acknowledged that other proposals to purchase Eclipse have fallen through, including a purchase plan by a ETIRC Aviation, a Luxembourg-based company that sold and serviced Eclipse jets' in Europe and was an investor in Eclipse Aviation. That proposal collapsed when ETIRC itself entered bankruptcy proceedings.

The Eclipse Aerospace plan appears to be solid because after the failure of other proposals the bankruptcy court ruled it would accept only unconditional proposals that were fully funded, requirements Eclipse Aerospace has met, Chavez said.

At the time it filed for bankruptcy court protection, Eclipse Aviation owed creditors $1 billion. The state of New Mexico had invested

$19 million in the company, including $5 million in secured senior debt.

Eclipse moved to Albuquerque 11 years ago with plans to build inexpensive light jets that would revolutionize the aircraft industry, but it couldn't build and sell its jets fast enough for enough money to cover expenses and sustain its debt load.

Albuquerque Journal Saturday August 1, 20009