Critics charge ex-official uses influence to drive alternative energy policy [CA Bill Jones]

San Jose Mercury News ^ | 12/04/2007 01:34:30 AM PST | Kimberly Kindy

[ElkGroveDan]

SACRAMENTO - Pacific Ethanol was still a fledgling business in 2005 when its founder, former Secretary of State Bill Jones, persuaded state officials to give him the small but exclusive fuel deal that established his company as a player in California's burgeoning alternative fuel market.

Two years later, that company is an ethanol empire. And Jones is the fuel's most influential champion in the state, using his political connections and 21 years of Sacramento experience to shape policies that are dramatically boosting California's thirst for ethanol - stemming the state's dependence on gasoline, but at a cost of millions in taxpayer subsidies.

[ElkGroveDan]

Public service is such a noble calling. Let the moola flow.

[ElkGroveDan]

$ ping $

[Carry_Okie]

He earned it.
It's the payoff for keeping Boxer in office.

It's the ol' RINO swan dive.

[SierraWasp]

This kind of undue influence sure gives the Waspman mixed emotions.

I'm so danged nieve that it never occurred to me to even consider taking such advantages of a position the voters of my district honored me with by electing me!!!

I know there's a little larceny in every heart and that if you tempt the devil in anyone long enough and strong enough, they'll eventually weaken, but I was obsessed with turning back the environmental extremism my predecessor incumbent had foisted on EVERYONE through the county's GENERAL PLAN!!!

I stayed so focused on this goal I never had time to think of how to line my own pockets. Now I have absolutely nothing to show for my public service and it smarts just a little. After seeing what this selfish pig has done, I'm afraid I'd better never ever run for another office because now I'm totally cynical and jaded to say the least!!!

[calcowgirl]

The company never needs to make money. By the time these guys on the front end get done pumping and dumping their stock, the little shareholder (and mutual funds, etc) will take the fall. My post from October 2, 2007:

I just took a peek at how Bill Jones [California's ex-SecOfState and US Senate (non) candidate] is doing in his ethanol venture he entered with the ex-Enron dudes--Pacific Ethanol (PEIX).

So far, the stock went public (through a reverse acquisition) in the $10 dollar range, rising above $40 in May 2006, and currently trading under $9 dollars per share at a whopping P/E ratio of over 220. Since April 2006, insiders have cashed in 4.9 million shares of stock for income exceeding $1,200,000,000, with Jones and his son in law being on the receiving end of $530 million (Jones still holds 1.3 million shares). Insiders have now reduced their ownership to less than 20% (The DFA ownership % is also declining significantly). In 2006, after losing millions for three years, they were almost in a position to break even but issued $84 million in preferred stock dividends bringing them to a net loss of $87 million for the year (on sales of $226 million). That preferred stock is owned by none other than Cascade Investment, LLC (a Bill Gates investment arm) so all of the common shareholders now subordinated their interest to Gates.

I liked this paragraph from their 10K:

On January 18, 2007, California’s Governor signed an executive order directing the California Air Resource Board, or CARB, to implement a Low Carbon Fuels Standard for transportation fuels. The Governor’s office estimates that the standard will have the effect of increasing current renewable fuels use in California by three to five times by the year 2020.

The same game has been played with SunPower Corp (SPWR) and probably dozens of others.

[calcowgirl]

This kind of undue influence sure gives the Waspman mixed emotions.

Why the "mix"? I have nothing but utter and complete contempt for these guys (criminals, IMO).

[Carry_Okie]

Remember this from February 2004???

It was curious that Arnold chose to support Bill Jones instead of Rosario Marin, the candidate anointed by Eastern RINOs, especially because Jones had come out against the recall. So I asked an honest Democrat friend of mine (they exist) what she knew about Jones, hoping to get some insight into what kind of opposition he would face. She and her network are just as disgusted about government corruption in the environmental movement as I am (yes, even on their own side), so we have a few common interests. She immediately supplied me information about Jones' questionable connections in the ethanol business.

[SierraWasp]

Well, I guess I'm basically a sinner and as such, even I get a tiny twinge of envy when I think for a split second how much money he's gonna set himself up for life with. I'm still workin and strategizin to accumulate a little pile of "critical mass" so I can become a complete, full time capitalist!!!

When I come back to my senses a few seconds later, I immediately share you "utter and complete contempt" for the criminality involved. This proves that you are .01% morally stonger than I am, right? Right!!! (or than you've never been quite as tempted as I have, even in hindsight)

[calcowgirl]

LOL. Maybe .001%. ;-)

[SierraWasp]

Yes, I faintly remember seeing some discussion of that anomaly, but I strongly remember seeing Arnold and Bill Jones walking arm-in-arm with Huel Howser on Huel's PBS show over at UCD and drivin those dumb alternative fuels vehicles around the parking lot for the cameras!!!

This was a re-run of a show from around the February 2004 time frame if I RECALL correctly!!!

[tubebender]

insiders have cashed in 4.9 million shares of stock for income exceeding $1,200,000,00

Just damn! I need some new friends...

[Grampa Dave]

Turn green to make lots of Green$!

[calcowgirl]

Not too shabby for a company that has never turned a profit, huh?

I guess they are just genius “businessmen.”

[SierraWasp]

Ya but, I’ll just betcha that ol Bill Jones will “pump and dump” that corp and leave it a corpse consumed by GANG-GREEN!!!