Quantcast
4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs

Trump’s Bahamas ambassador-designate escapes judgement

Manchester and his proto-bank dodge bad debt

Manchester and Barrack. Austin hotel project ultimately backed by fellow California Trump supporter Thomas Barrack, Jr.
Manchester and Barrack. Austin hotel project ultimately backed by fellow California Trump supporter Thomas Barrack, Jr.

Awaiting Senate confirmation as the nation's next ambassador to the Bahamas, known for its tax-sheltering proclivities, Doug Manchester, ex-publisher of the Union-Tribune and million-dollar donor to president Donald Trump's January inaugural festivities, can boast a victory in San Diego federal court.

Manchester Financial in La Jolla. Judge ruled that the developer's Manchester Financial Group, Inc. can't be held liable for the $466,310-plus judgement.

Chief United States District Judge Barry Ted Moskowitz — nominated to the federal bench here by president Bill Clinton in 1995 and elevated to chief judge five years ago — has ruled that the developer's Manchester Financial Group, Inc. can't be held liable for the $466,310-plus judgement, along with costs and interest, awarded in 2013 against never-opened Manchester Financial Bank.

As reported here in July 2014, the deep-pocketed former U-T owner began dodging 21st Century Financial Services, a provider of data processing to his ill-fated banking start-up, following a ruling against the proto-bank by a federal court in Texas, later upheld by the Fifth Circuit Court of Appeals.

Manchester's eponymous financial institution began as a gleam in the developer's eye in February 2008, just months before Wall Street's legendary meltdown.

"Rick Mandelbaum, a longtime bank executive who is helping launch the new venture, said 95 percent of the $20 million to capitalize the bank will come from Manchester himself." the Union-Tribune, then owned by fellow La Jollan David Copley, reported that month.

"Officers and directors are expected to put up the remaining $1 million — thus eliminating the need to raise money from investors."

As with many of the developer's deals, the would-be bank involved a byzantine mesh of partnerships and corporations.

"A group of individuals, including Doug Manchester, Richard Gibbons, and Steve Strauss, sought to charter a bank to be called Manchester Financial Bank," recounts Moskowitz's June 7 order denying 21st Century's motion to name Manchester Financial Group, Inc., the developer's holding company, as an additional judgement debtor in the case.

During the crash, Manchester pulled out of the deal, "based on 'current economic turmoil',” leaving 21st Century holding the bag, court records show.

Complicating the cast of characters is the relationship between Manchester Financial Group, Inc.— referred to in the order as Manchester, Inc. — and a related but separate entity, Manchester Financial Group, L.P., which during the bank's start-up process "issued two deposit checks to 21st Century," the order notes

After the deal fell apart, 21st Century "issued invoices for amounts it claimed were due under the Agreement. In email exchanges between Mandelbaum, Gibbons, and Doug Manchester, Mandelbaum recommended that payment be issued to 21st Century on behalf of the Bank." When the money failed to materialize, the creditor undertook its thus-far futile legal slog.

"21st Century bears the burden to prove by a preponderance of the evidence that Manchester, Inc. was an alter ego of the Bank," writes Manchester's home town judge, adding, "Imposition of alter ego liability is 'an extreme remedy, [to be] sparingly used' and 'approached with caution.'”

"Although 21st Century contends Gibbons and Manchester were both owners of Manchester, Inc., there is no evidence of this in the record. Nor does the Court find any evidence in the record submitted by 21st Century identifying any of the shareholders of Manchester, Inc."

As a result, says the ruling, “the Court agrees with Manchester, Inc. that adding it to the judgment would violate its due process rights.”

Whether the creditor’s case figures into Manchester's yet-to-be scheduled ambassadorial confirmation proceedings remains to be seen.

The more pressing issue of who is going to finance his controversial downtown Navy Broadway complex is likely to come up, including Manchester's solicitation of Chinese investors for an Austin hotel project ultimately backed by fellow California Trump supporter Thomas Barrack, Jr.

Here's something you might be interested in.
Submit a free classified
or view all

Previous article

One or two puffs for the Population Assessment of Tobacco and Health

And so starts the procession of questions.
Next Article

Antebellum: Janelle Monáe’s Moment

If one must remake a movie, make sure it’s a bad one.
Manchester and Barrack. Austin hotel project ultimately backed by fellow California Trump supporter Thomas Barrack, Jr.
Manchester and Barrack. Austin hotel project ultimately backed by fellow California Trump supporter Thomas Barrack, Jr.

Awaiting Senate confirmation as the nation's next ambassador to the Bahamas, known for its tax-sheltering proclivities, Doug Manchester, ex-publisher of the Union-Tribune and million-dollar donor to president Donald Trump's January inaugural festivities, can boast a victory in San Diego federal court.

Manchester Financial in La Jolla. Judge ruled that the developer's Manchester Financial Group, Inc. can't be held liable for the $466,310-plus judgement.

Chief United States District Judge Barry Ted Moskowitz — nominated to the federal bench here by president Bill Clinton in 1995 and elevated to chief judge five years ago — has ruled that the developer's Manchester Financial Group, Inc. can't be held liable for the $466,310-plus judgement, along with costs and interest, awarded in 2013 against never-opened Manchester Financial Bank.

As reported here in July 2014, the deep-pocketed former U-T owner began dodging 21st Century Financial Services, a provider of data processing to his ill-fated banking start-up, following a ruling against the proto-bank by a federal court in Texas, later upheld by the Fifth Circuit Court of Appeals.

Manchester's eponymous financial institution began as a gleam in the developer's eye in February 2008, just months before Wall Street's legendary meltdown.

"Rick Mandelbaum, a longtime bank executive who is helping launch the new venture, said 95 percent of the $20 million to capitalize the bank will come from Manchester himself." the Union-Tribune, then owned by fellow La Jollan David Copley, reported that month.

"Officers and directors are expected to put up the remaining $1 million — thus eliminating the need to raise money from investors."

As with many of the developer's deals, the would-be bank involved a byzantine mesh of partnerships and corporations.

"A group of individuals, including Doug Manchester, Richard Gibbons, and Steve Strauss, sought to charter a bank to be called Manchester Financial Bank," recounts Moskowitz's June 7 order denying 21st Century's motion to name Manchester Financial Group, Inc., the developer's holding company, as an additional judgement debtor in the case.

During the crash, Manchester pulled out of the deal, "based on 'current economic turmoil',” leaving 21st Century holding the bag, court records show.

Complicating the cast of characters is the relationship between Manchester Financial Group, Inc.— referred to in the order as Manchester, Inc. — and a related but separate entity, Manchester Financial Group, L.P., which during the bank's start-up process "issued two deposit checks to 21st Century," the order notes

After the deal fell apart, 21st Century "issued invoices for amounts it claimed were due under the Agreement. In email exchanges between Mandelbaum, Gibbons, and Doug Manchester, Mandelbaum recommended that payment be issued to 21st Century on behalf of the Bank." When the money failed to materialize, the creditor undertook its thus-far futile legal slog.

"21st Century bears the burden to prove by a preponderance of the evidence that Manchester, Inc. was an alter ego of the Bank," writes Manchester's home town judge, adding, "Imposition of alter ego liability is 'an extreme remedy, [to be] sparingly used' and 'approached with caution.'”

"Although 21st Century contends Gibbons and Manchester were both owners of Manchester, Inc., there is no evidence of this in the record. Nor does the Court find any evidence in the record submitted by 21st Century identifying any of the shareholders of Manchester, Inc."

As a result, says the ruling, “the Court agrees with Manchester, Inc. that adding it to the judgment would violate its due process rights.”

Whether the creditor’s case figures into Manchester's yet-to-be scheduled ambassadorial confirmation proceedings remains to be seen.

The more pressing issue of who is going to finance his controversial downtown Navy Broadway complex is likely to come up, including Manchester's solicitation of Chinese investors for an Austin hotel project ultimately backed by fellow California Trump supporter Thomas Barrack, Jr.

Sponsored
Here's something you might be interested in.
Submit a free classified
or view all
Previous article

Jackslacks releases Billy Bacon tribute EP When Pigs Fly

Bacon passed away in August 2019
Next Article

Finding a different world inside Samarkand Uzbek Café

Don’t miss this overachieving tent restaurant tucked away in a City Heights parking lot
Comments
0

Be the first to leave a comment.

Sign in to comment

Sign in

Art Reviews — W.S. Di Piero's eye on exhibits Ask a Hipster — Advice you didn't know you needed Best Buys — San Diego shopping Big Screen — Movie commentary Blurt — Music's inside track Booze News — San Diego spirits City Lights — News and politics Classical Music — Immortal beauty Classifieds — Free and easy Cover Stories — Front-page features Excerpts — Literary and spiritual excerpts Famous Former Neighbors — Next-door celebs Feast! — Food & drink reviews Feature Stories — Local news & stories From the Archives — Spotlight on the past Golden Dreams — Talk of the town Here's the Deal — Chad Deal's watering holes Just Announced — The scoop on shows Letters — Our inbox [email protected] — Local movie buffs share favorites Movie Reviews — Our critics' picks and pans Musician Interviews — Up close with local artists Neighborhood News from Stringers — Hyperlocal news News Ticker — News & politics Obermeyer — San Diego politics illustrated Of Note — Concert picks Out & About — What's Happening Overheard in San Diego — Eavesdropping illustrated Poetry — The old and the new Pour Over — Grab a cup Reader Travel — Travel section built by travelers Reading — The hunt for intellectuals Roam-O-Rama — SoCal's best hiking/biking trails San Diego Beer — Inside San Diego suds SD on the QT — Almost factual news Set 'em Up Joe — Bartenders' drink recipes Sheep and Goats — Places of worship Special Issues — The best of Sports — Athletics without gush Street Style — San Diego streets have style Suit Up — Fashion tips for dudes Theater Reviews — Local productions Theater antireviews — Narrow your search Tin Fork — Silver spoon alternative Under the Radar — Matt Potter's undercover work Unforgettable — Long-ago San Diego Unreal Estate — San Diego's priciest pads Waterfront — All things ocean Your Week — Daily event picks
4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
Close