Gary C. Schultz, interim Sr. VP for Finance and Business returned  following  previous retirement from PSU this past July.

His return to the PSU payroll  around the time that a grand jury was meeting about his possible complicity, FOLLOWING his own alleged perjurious testimony begs the question-As Schultz knew he was under investigation as well as Sandusky and Curley-

Did Schultz come out of retirement in anticipation of  incurring significant legal fees he did not want coming out of his own pocket?

-Record Scratch-

You read that correctly.

Mr. Schultz, who along with Tim Curley were bound over for trial at their preliminary hearing on perjury charges and a misdemeanor failure to report summons last month,  is being provided legal representation costs through Nittany Insurance Company, where he is a paid Director.  According to Acting President Erickson,  it will also be used to cover any civil settlements and judgements in the Sandusky debacle et al.

This would seem to be in violation of the Vermont Captive Insurance Regulations Section 12, or conflict of interest.

In a letter sent to Penn State Interim President Rodney Erickson,  Senator Michael Stack (D) Philadelphia,  expressed his concern that taxpayers and donors should not be footing the bill for the Universities necessary legal representation for the various civil and criminal issues  and potential settlements.

In a response to Senator Stack,  President Erickson assured him that such costs would be accommodated by it’s liability insurance.  Nittany Insurance Company  is listed as the professional liability insurance company of record on the PSU site as well as the provider for PSU students in programs including the Hershey Medical Center.

President Erickson did not reference Mr. Schultz’s directorship position within Nittany Insurance Company although www.blinkoncrime.com was able to confirm with the Vermont Secretary of State that as of this afternoon, there are no pending changes to its registration.

Gary Schultz’s co-director at Nittany Insurance Company, is Allan Anderson,  Former VP and Chief Executive Officer for Hershey Medical Center.

While the captive insurance firm is self-administered, as Director,  Schultz would be in a position to review,  award, accept, negotiate or reject settlements within the framework of their contract with PSU and appropriate regulatory requirements.   Captive insurance companies are often developed as part of a risk mitigation strategy and as an entree to the reinsurance market for payouts exceeding a fixed amount.  Registered in Vermont, Nittany Insurance Company was formed in 1993.

It would seem a good starting point for questions on the regulatory  and compliance matter might be how the bid is/was awarded for initial self-administered liability coverage directed by a potential party and what the premiums, which are deductible to PSU,  were and  are?

What adjustments to same have been made in relation to the known incidents and corresponding dates alleged against Sandusky, Curley and Schultz?

What else is Nittany Insurance funding it may have had ample heads up about?

Does Schultz have a poster of Ken Lay in the top of his humidor?  Bernie Madoff?

www.blinkoncrime.com poster erose contributed to the research of this article.

Both Braun and her husband, Farrell Kellener, were arrested on drug charges in October 2007 while Palm Beach Police were assisting the FBI on serving a warrant for suspicion on the very charges she is predicted to ultimately plead guilty. In a post on her defunked my space, Braun claimed to “know from day one” the Feds were investigating her.

Ellen S Garofolo represented her client in court yesterday and sources inside the investigation say is the driving force behind both her plea deal, and ability to stay out of jail. For now, at least. The judge will ultimately have the ability to reject the plea bargain on the table, which currently includes Z E R O jail time.

 U.S. Magistrate Judge Robert Block allowed Braun to remain free on $20,000 bond pending her next pretrial hearing before U.S. District Judge Cormac Carney on June 29. Braun is expected to change her plea to guilty on that day or at a later date.

Braun is married to Farrell Kellener, who has a resume that runs the gammut of radio host in Colorado to male stripper. Apparently his credentials also include a shot of his bum on Sex and the City, and being voted most likely to lick a floor tile for $1 in High School. The couple have 2 children and reside in Boca Raton, FL.

Michelle (aka Nici) Brauns own words about her arrest in 2007 here.

Jose Angel Baez, currently under investigation by the Florida Bar Association (FBA) in a minimum of 3 separate inquiries was denied admission to the Florida Bar following his initial application in 1999. This information is in stark contrast with an interview given by Baez below where he states (paraphrase) he made a monetary and travel decision to wait 8 years for FBA membership.

Baez appealed the decision of the FBA to the Florida Supreme Court, which governs the Florida Bar. In their decision, they agreed with the FBA, issuing an order in 2000 that cataloged unpaid bills, extravagant spending and other “financial irresponsibility” up to that time. Justices reserved their strongest condemnation for his failure to stay current on support payments for his only child.

His overall behavior, they wrote, showed “a total lack of respect for the rights of others and a total lack of respect for the legal system, which is absolutely inconsistent with the character and fitness qualities required of those seeking to be afforded the highest position of trust and confidence recognized by our system of law.”

The Supreme Court order refers to Jose Baez only by his initials, J.A.B as is procedure. The initial findings of the FBA whereby Baez is denied admission are private and not subject to public information requests. In a prepared statement to the Sentinel, Baez spokes woman reminded them that Jose Baez is a member in good standing with the FBA:

“Based on your questions and actions,” she wrote, “this profile you are writing has nothing to do with Jose Baez’s representation of Casey Anthony and appears to be a sensationalist persecution of a Hispanic lawyer who has been targeted by a newspaper lucky to find itself at the center of a national story.”

O NO SHE DI’ INT….

Yes, she did, she played the race card. What does this man’s DNA have to do with how many pancakes it takes to shingle a dog house?

Perhaps she does not realize that GilTod, Gil Cabot aka Tod Black, the un-hired, un-approved, un-seen former spokesperson for Baez is listed to be of Hispanic descent in his arrest records. Or, perhaps she might note that Baez client Casey Anthony is fighting a civil defamation suit and counter-suing Zenaida Gonzalez, a woman maligned by her and her family for nearly a year, is of Hispanic descent. Cindy Anthony stated in her “12 rounds with Morgan” deposition two weeks ago that PI Dominic Casey is still watching someone in Puerto Rico.

It would seem the writing on the wall as to Baez track for this case is no longer written in invisible ink.

Is Macaluso the Madoff of law?

He blazed the interview circuit in Orlando declaring Casey Anthony’s innocence and went so far as to say she should not be in jail awaiting trail and the defense was looking into seeking another bond hearing. 

Mr. Macaluso is currently undergoing disciplinary charges brought forth by the California Bar. The 10 page initiating document outlining the charges was filed January 23, 2009.

Through support of the local attorney of record, Jose Baez, Todd Macaluso filed his pro hac vice on March 12, 2009 prior to the motion hearing of his anticipated new client Casey Anthony. It was not until confronted about the California Bar Disciplinary Charges while leaving that proceeding did he apparently recover from  his memory lag and filed an amended petition to appear in the case after the court had already closed, 5:47PM by fax ,to be precise, therefore not time stamped until the 13th. 

The Florida Rules of Administration require the form submission for the filing CLEARLY asks the petitioner if there are any pending disciplinary actions against him. Macaluso and by way of sponsorship, Jose Baez, answered no to that question on the form filed earlier in the day.

In his amended “version” Mac claims “It has come to his attention” that there are pending disciplinary charges against him by the California Bar.

SAY WHAT?

Mr. Macaluso was originally scheduled for a status hearing, the first since responding to the disciplinary charges on March 3, 2009. The VERY DAY Jose Baez introduced him to Judge Strickland in open court and announced he would be filing his pro hac vice. Did this pre eminent litigator actually request a continuance in the discipline matter to attend Casey’s hearing, announce his participation, run the press junket out of an airplane hangar among other places and expect nobody would check him out?  That would apparently include Jose Baez who has an obligation to do so under the Florida Bar.

Additionally in the amendment, Mac specifically states that he was retained personally by Casey Anthony. If that’s true Baez has an even bigger problem than this latest black eye. Baez declared in open court on Wednesday that there are only two retainer agreements that exist with any counsel and Casey Anthony : his and Linda Kenney Badens. No mention of Mac. Somebody is making mistatements under oath as a sworn officer of the court, they can’t both be true.

Glaring Discrepencies

There are glaring discrepencies in Macaluso’s amendment and his statement to the Florida Bar. Notably, the Initiation Document from the California Bar is not included, only his response to it filed February 13, 2009. I am told this more than meets the legal burden of “bringing it to one’s attention.”

To quote a well respected legal-eagle friend of mine, forgetting you have pending Bar charges:

..”It’s the equivalent of forgetting your severed leg is near the Alien ship parked in the foyer..”

Mr. Macaluso’s statement to Judge Strickland identifying the pending discipliary action is weaker than Casey’s Nanny story. Let’s Review:

Mac states that the issue rises from 2 checks that had an accounting error: a) Untrue. There are 3 seperate checks, 3 seperate checks from 3 seperate cases in 3 seperate Attorney Client Trust Accounts, on three seperate dates.  b) That responsibility is nondelgable and sacrisant as the Trust Attorney no one else but him can have access to those accounts.  

He states that the Clients were immediately repaid and that they did not file complaints with the bar. a) Yes but how, from what accounts? Co-mingling trust accounts is in violation of several Federal laws. How much were they paid? Did they get a bump for the trouble?

He gives the case number as 06–0–14552. That is correct, but he neglects to identify that case number is due to a consolidation of 3 seperate case numbers of actions brought before the bar, yielding multiple counts.

He OMITS ENTIRELY that one of the charges is that he spent funds out of a Client trust account for personal expenses. Specifically, $50K for the plane you see him pictured in above. The check for the plane, however, did not bounce. 

The member in good standing Bar Certification dated May 7, 2008 he refers to as “forthwith” preceeds these charges. Apparently it is inappropriate to ask for an updated one when you are claiming temporary amnesia.

He states that as a result of his brothers death, he was “away” from the office for 15 months. Not only is that in direct conflict with his response to the California bar, but it is a lie. His own site discussed his wins in court and settlements during this timeframe. I have a personal friend that has been in court with him during this time frame. A simple check of court docket appearances by Mr. Macaluso belie that entirely. 

There’s More

On May 27, 2008, a civil suit was filed against Macaluso’s Law Firm on behalf of Ernest and Mike and Patricia Bechler, parents and brother of Orioles pitcher Steve Bechler in Oregon District Court for 5.1 Million Dollars.

 Macaluso along with other lawyers, brought a class action suit against Cytodyne Technologies, a New Jersey supplement manufacturer and won an $18 Million dollar settlement on behalf of Kylie Bechler, Bechler’s widow.

 Interestingly, the expert hired by the defendants in that case is the husband of fellow defense counsel Linda Kenney Baden, Dr. Michael Baden. 

There was a discovery extension in that case extended until January 23, 2009; the same day that the California Bar filed notice of disciplinary charges against Macaluso. Within that pending suit, there is again an allegation of a bounced check from the Clients trust fund for a whopping $299,520.78 on January 23, 2007. This check is not included in the current bar complaint against him, perhaps due to some sort of fee dispute. In essence, the Bechler’s are alleging that Macaluso et al negotiated their settlement and requested that the check for same included his name as well so he could take his “cut” off the top, which they objected to. The check was for $824,000. Mac witheld $525,000 for himself and sent a check to Bechler’s ,which bounced to boot, when presented. 

It does state that on February 22, 2007 upon notification from the parties that the check could not be processed, Defendant Macaluso wired the funds to the parties:   

“In response to paragraph 38 of the Amended Complaint, defendants admit that on or about February 12, 2007, a check in the amount of $299,520.78 was issued and mailed to plaintiffs. Defendants are without sufficient information or belief to admit or deny what actions plaintiffs took in response and, therefore, deny allegations relating to the same. Defendants state that shortly after defendants learned the check was not processed, they arranged to have that money wired to plaintiffs on February 22, 2007.”

Mr. Macaluso is scheduled to appear at a Alternative Discipline Program  (ADP) Conference on April 8, 2009, following a status hearing that occurred on March 24, 2009 where through his attorney, Mac motioned for referral to the ADP. As of yesterday, March 26^th, Todd Macaluso and the California Bar have a trial date and order pending persuant to the March 24^th status conference on these charges.