• Story alerts
  • Letter to Editor
  • Pin it

This March 26, as in years past, San Diego mayor Jerry Sanders filed an annual Statement of Economic Interests, required under state law, listing something called Maxxum Equity Fund, which the statement identifies as a “hedge fund.” The mayor’s ownership stake was said to be in the form of a partnership share, with a fair market value of between $10,000 and $100,000. According to the statement, it was held at least through the end of 2009, the reporting period covered by the filing. But last year, Maxxum principal Jeffry Wetzel of Poway filed for Chapter 7 bankruptcy liquidation after 77-year-old investor James Meredith filed suit in superior court here, claiming he’d lost $90,000 in the fund.

As Don Bauder reported last December, Wetzel didn’t pay his defense lawyer or show up for hearings, and the court moved to award a default judgment against him. Wetzel “pleaded poverty from the get-go,” Eric Benink, Meredith’s first attorney, told Bauder. “The judge got fed up and allowed us to take default.” A disgruntled investor from North County who didn’t want to be identified said she’d lost $135,000: “I have been saying, ‘Jeff, I have nothing; show me where the money went. All I have is your telling me I have nothing.’ He provided no documentation.” Somehow, though, based on his recent filing Sanders seems to have kept his investment. He didn’t respond to phone calls regarding the matter.

On November 30, 2009, Meredith filed an action against Wetzel in bankruptcy court, alleging the fund was “nothing more than a classic Ponzi/Madoff scheme.” A response filed December 21 on behalf of Wetzel by San Diego attorney Deborah Garvin denied the charge and said Wetzel had “fully explained the type of investment which was being made and the risks involved, including providing plaintiff a Subscription Booklet for Maxxum Equity Fund, LLC, which explained the investment and risk involved and which plaintiff signed.” Last week Garvin declined comment regarding the matter. A pretrial status conference has been noticed for April 15, but could be delayed, according to Meredith’s attorney.

Meanwhile, the mayor’s disclosure report also reveals that his wife, Rana Sampson, an ex–New York cop and former director of public safety at the University of San Diego, received between $10,000 and $100,000 from the San Diego Center for Children, where the website identifies her as senior director of development and marketing. According to the San Diego Business Journal, donors to the center have included Sempra Energy, Cox Communications, and Wells Fargo bank. Many of the donors have had business before the City. State taxpayers also contribute to the center’s budget. In addition, Sanders reported that Sampson earned between $10,000 and $100,000 from her consulting outfit, Community Policing Associates, which was valued at between $10,000 and $100,000.

  • Story alerts
  • Letter to Editor
  • Pin it

More from SDReader

Comments

a2zresource April 7, 2010 @ 4:26 p.m.

LOL... Guess what shows up as the first link on a google of "Maxxum Equity Fund"?

Everything else on that page of search results seems to point to firms... in Canada?!?

You and Mr. Bauder should crack open a bottle of something with mind-altering alcohol content and re-read your old article for laughs.

0

SurfPuppy619 April 7, 2010 @ 8:29 p.m.

Deborah Garvin denied the charge and said Wetzel had “fully explained the type of investment which was being made and the risks involved, including providing plaintiff a Subscription Booklet for Maxxum Equity Fund, LLC, which explained the investment and risk involved and which plaintiff signed.”

Fraudulent acts/crimes cannot be discharged in/by a BK court.

Wetzel will have to provide an accounting of the money-including why KFC Sanders did not lose his shirt like everyone else appears to have.

In addition, if everyone else lost money, but KFC Sanders received his portion back-then KFC Sanders is at risk for a claim on the money he got back-money which could be used to satisfy restitution to all the investors-not just KFC Sanders.

Look for Meredith’s attorney to file a cross claim against KFC Sanders, or a motion to have KFC Sanders named as a (cross) defendant. That is what I would do anyway.

0

selfcntred June 5, 2010 @ 4:15 p.m.

I have been following the story on this scumbag Wetzel and Sanders. These guys are crooks and you are a fool if you think otherwise. Sanders got his money while others got stiffed. How much are you getting a2zr for, gee, the very first post? Tell Jer I said high, scum!

0

SurfPuppy619 June 5, 2010 @ 5:34 p.m.

I think we all pretty much said the guy was a crook selfcntrd......so how much did you lose? Did you sue Samders?

0

Sign in to comment

Join our
newsletter list

Enter to win $25 at Broken Yolk Cafe

Each newsletter subscription
means another chance to win!

Close