News Briefs
April 30
Ronan hears taskforce, library needs
RONAN — Among regular meeting business the Ronan City Council listened to the funding needs of the Ronan Public Library and the Lake County Spay/Neuter Taskforce on April 27.
Frank Delgado with the Ronan Library Board reported that its budget for next year was already completed, and includes increasing the library’s budget by 4.8 percent. The budget increase comes primarily from the board of director’s decision to hire certified Library Director Michelle Fenger on as a full-time employee.
Delgado brought the issue before the council before the city’s budget period, effective July 1, to give officials a heads up on their needs.
“I think the library is an important part of our community, and I’d hate to see it lose services,” Delgado added.
Fenger gave some statistics showing a recent rise in use at the library including: A 24 percent increase in circulation; weekly users are up 50 percent; computer users up 13 percent but wireless (wi-fi) signal laptop users are up 102 percent.
The library is also hosting special events on eight nights in May as it is Montana Authors Month. From 7-9 p.m. on May 2, the library will hold a wine and cheese reception during one of these author evenings. For a full list of the May author events log onto http://ronancitylibrary.googlepages.com or call 676-3682.
Karen Duty and Linda Crawford with Lake County Spay/Neuter Taskforce came before the council to ask for any possible funding help for the group’s Spay/Neuter Clinic coming up May 30-31, which is planned to be held at the Division of Fire building near the airport. According to Crawford, Polson Animal Control reported seeing numbers decreasing, proving the program’s effectiveness.
Mayor Kim Aipperspach said the city would look into finding some funds for the cause.
In other Ronan city news, the council approved the first reading of its city judge ordinance, with the major change of policy for the elected official to require them to maintain a residence within Lake County.
The council approved an open container permit for the Bowling Banquet from 5-10 p.m. on May 2 at Lucky Strike Lanes. Additionally, the council members accepted the resignation of Kevin Templer from the Board of Adjustments and approved Kevin Kirsch as his replacement for the term position as a contractor is needed to serve on the board.
Lastly, the council approved the police department appointment of recently trained reserve officers Kelly Dupuis and David Bennett II as well as Barbara Michaud who will be working as a computer tech while training as a reserve officer.
The council’s next meeting will be held at 6 p.m. on May 11.
- Reporter Ty Hampton
Invasive species bill passes
HELENA — A bill to develop and implement a statewide program to confront the threat of such invasive species has passed the Montana Legislature. Senate Bill 343, sponsored by Senator Verdell Jackson at the request of the Flathead Lakers and carried in the House by Representative Janna Taylor requires that the Department of Agriculture and the Department of Fish, Wildlife and Parks develop and adopt an invasive species strategic plan to include: implementing a public awareness and education campaign including signage at fishing accesses and media; preventing, detecting and eradicating invasive species; and restoring infested areas, if necessary. The program is coordinated by the Department of Agriculture which has an account to receive gifts, grants, donations, securities, or other assets, public or private to assist with this program. Meetings related specifically to Flathead Lake and the Clark Fork Basin are being planned for this summer by the Flathead Basin Commission. Legislators and representatives from the Departments of Agriculture and Fish, wildlife and Parks will be in attendance. Zebra and Quagga mussels from Europe were inadvertently introduced into the Great Lakes in 1988 and have spread throughout Eastern United States causing extensive damage to power plants, irrigation intakes and any structures in the water. Report potential sightings of mussels to the Department of Agriculture, 406-444-3144 or Fish, Wildlife and Parks, 406-444-2535 before you disturb them if possible.
- Courtesy of Rep. Verdell Jackson
Jarvis pleads guilty to theft
MISSOULA — Bill Mercer, United States Attorney for the District of Montana, announced today that during a federal court session in Missoula on April 24, before U.S. Magistrate Judge Jeremiah C. Lynch, John Samuel Jarvis, a 30-year-old resident of Polson, pled guilty to theft of federal government money. Sentencing is set for July 30. He is currently released on special conditions.
In an Offer of Proof filed by the United States, the government stated it would have proved at trial the following:
From January to July 2008, Jarvic was employed by Mission Valley Auto in Polson. During this time, Jarvis fraudulently used government credit cards that he obtained from government vehicles that had been dropped off at Mission Valley Auto for service.
When government vehicles were turned in to Mission Valley Auto for repairs, the government credit cards were left with the keys. Jarvis took the cards and used them to purchase gas while the vehicle was being repaired and returned the cards before the vehicles left the shop. In all, Jarvis used six credit cards for a total of 72 transactions, totaling $4,383.57.
On July 31, 2008, when interviewed, Jarvis admitted taking the cards and using them for personal gas purchases. At the conclusion of the interview, he retrieved the card he was currently using from his personal vehicle.
Jarvis faces possible penalties of 10 years in prison, a $250,000 fine and three years supervised release.
Assistant U.S. Attorney Timothy J. Racicot prosecuted the case for the United States.
The investigation was conducted by the Inspector General’s Office for the General Services Administration.
-Courtesy of the U.S. Attorney, District of Montana’s office
Passing train starts Arlee grassfires
ARLEE — A number of small grassfires under investigation that shot up along Highway 93 on April 22 are believed to have been sparked by a passing train, authorities say.
According to Arlee Fire Chief Jim Steele, grass along the railroad tracks caught fire in four separate areas within a two-mile radius near milemarkers 12 and 13, burning approximately two acres. Volunteer firefighters from Arlee responded to the scene of the fires around 1 p.m. and were there for several hours knocking down the flames as Steele said the fire burned “quite actively.”
“They had quite a deal of fire to deal with as it was spread out and in long, narrow patches,” Steele added.
The six local volunteers with three engines and a water tender were aided by the Confederated Salish and Kootenai Tribes Division of Fire that sent personnel and resources, as well as nearby highway construction units who lent firefighters their water tenders.
“Help came from just about everywhere and it came at the right time,” Steele said.
The chief added that wildfire risk levels are about average for this time of year with the only heightened risk this season being the possibility of drivers in backed up highway construction traffic flicking a cigarette on the roadside as traffic will be in the Jocko Valley for longer periods of time this summer.
Steele was optimistic though, adding that the grass is now getting greener — which will slow the fire’s heat and ability to spread — and noting the construction crews’ willingness to drop everything and help out local firefighters.
-Reporter Ty Hampton
Research vital to increased investor safety
POLSON — The millions of dollars potentially lost to the more than 100 investors caught in an alleged Ponzi scheme run by Polson business Cornerstone Financial Corporation has officials reminding investors to be weary of “too good to be true” offers.
Cornerstone owner/partners Keith Kovick and Robert Congdon were named in legal action documents filed by Montana State Auditor Monica Lindeen’s office on April 16. The action alleges the two men, operating Cornerstone and K and B Investments LLC, committed a securities fraud scheme that involved at least 100 investors totaling more than $14.4 million on 181 unregistered securities.
Front end investigation of investment companies and the offerings needed before investing money is vital, Auditor Monica Lindeen said in an interview two weeks ago. Any one interested in investing could and should call the Auditor’s office hotline to ensure their investments are going through legitimate companies that have registered with the Montana Securities Department, Lindeen said.
Her office could have immediately warned callers of possible problems because the Polson companies had never registered with the Montana Securities Department.
“(Low) investor confidence hurts our economy,” Lindeen said. “It’s a very stark reminder of why people doing their diligence, diversifying investments, ensuring these are legal investments, is important.”
The investors need to do their homework before any money is exchanged, and be weary of ultra- high return percentages from companies, such as was allegedly offered by Cornerstone. The Polson financial corporation allegedly offered rates near six times the average. Numbers like these especially need to be heeded as giant red flags, Lindeen said.
Wayne Sicz, branch manager and investment representative of LPL Financial Services in Polson, said most aspects of the investment world lay under strict rules, passed to ensure consumers are protected.
“We’re heavily regulated, my office is audited every single year . . . it’s just standard procedure,” Sicz said.
Sicz suggested that investors go with larger firms, that are at least regional in size to better protect their investments.
LPL, which is a branch of the largest independent brokerage in the nation, opened in Polson in 1993.
The ongoing state investigation alleges Kovick and Congdon ran a Ponzi scheme, which creates an unsustainable cycle of investors begin paid with fund given by subsequent investors, rather than by return on legitimate property and returns. The state action document lists seven Montana Securities Act fraud provision violations allegedly committed by the men, including failure to register with the state. More than 90 percent of the investors were found to be from northwestern Montana.
Cornerstone began operation in 2000. The alleged scheme may have began years ago as well, but an investigation into the scheme only began in September 2008 after an investor complained about a defaulted note through the Auditor’s office, the action states. The investigation has since opened a flood gate of more complaints from investors. The Auditor’s office said at this point it is highly possible more investors will come forward. The investigation into the alleged fraud is ongoing.
Every “legitimate” investment company must be registered through the state, Lindeen said.
The Auditor’s office does conduct “not for cause” investigations, but the Cornerstone investigation only began after an investor filed a complaint for a defaulted note.
Securities Commissioner Lynn Egan said the department’s investigations are about half not for cause and half based on consumer complaints.
A hearing date for the violations laid out in the April 16 action has not been set, Auditor’s office communication director Jessica Rhoades said. A hearing to pertaining to the assets restraining order issued to Kovick and Congdon in early March is set fro 9 a.m. on June 8 in Helena. This hearing will seek to turn the order in to an injunction, Rhoades said.
If you have questions about an investment opportunity or have been contacted about participating in a pyramid scheme, please contact the Security Department in the State Auditor’s Office at 1-800-332-6148 or 444-2040, or file a complaint on our Web site at www.sao.mt.gov.