Mayor Dicterow’s Bankruptcy

 Fact’s about Mayor Steve Dicterow –

  • Laguna Beach has a Bankrupt Mayor!  He says,”Everyone in Laguna knows. Did you?
  • Filed Chapter 11 Bankruptcy in 2014… less than two years into his 4th Council term.
  • Did not publicly disclose bankruptcy to voters/homeowners until exposed by resident  at the City Council Meeting on October 18, 2016.
  • Remained in Chapter 11 BK for several years.
  • Has refinanced his home 7 times since 1995.
  • In April 2015, 7 months after petitioning for Chapter 11 re-organization, BK Trustee makes a motion to force him into Chapter 7 (liquidation) due to failures in following through on many mandates issued by the court.
  • As of the April 2015 motion by the trustee to force Chapter 7; the Debtors have lived in their residence for at least 27 months without making a mortgage payment (22 months pre-petition and 5 months post-petition)
  • As of April 2015 motion by the trustee to force Chapter 7; Debtors have yet to propose a plan of reorganization or a disclosure statement in violation of a Court directive that they file a plan and disclosure statement no later than March 31, 2015.
  • Possible discrepancy found in BK filing and Form 700 Berkshire Hathaway stock pension plan filings. Current request for review by resident to BK Trustee. Pending.    
  • Formal complaint filed with the FPPC by resident regarding Form 700 filings. FPPC Investigation by FPPC is underway.
  • Owns rental property in Laguna Woods and did not disclose this on mandatory reporting Form 700 over last 4 years.  On Oct. 25, 2016 after FPPC notified him that sworn complaint was received, he amended only the 2016 Candidate Form 700 disclosure leaving the earlier disclosure forms in non-compliance.
  • Retained rental property rather than sell it to save his personal home from foreclosure and pay off debts. Appears that he chose to keep both properties under BK protection and stiff creditors. 
  • Uses family health issue as justification for filing bankruptcy to save his house. Again, he not only owns a valuable residence but he is also fortunate to own a valuable rental property nearby.  Question: why not sell the rental property to keep their home? 
  • Blames bad investments and poor choice of jobs for his irresponsible financial habits and instabilities. He admits to making poor finance decisions which confirms residents  concerns of his inability to responsibility oversee city finances. 
  • 38 percent of his campaign contributors are development interest and a good percentage of local business owners who may have benefitted from city contracts. Raises special interest concerns. 

Mayor Dicterow’s 2014 Bankruptcy Filing

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