Santa Ana mayoral candidate Alfredo Amezcua has been complaining endlessly about job creation and the state of the economy here in Santa Ana. But how did Amezcua fare when he became accountable for millions of investor dollars, when he started the Santa Ana Business Bank?
Take a look at the chart above. It would appear that Amezcua’s shareholders lost close to half of their investment. Grandpointe Capital paid them $5.96 in cash per share, according to a press release dated June 18. Their shares were initially valued at $9.75 when the Santa Ana Business Bank first opened for business.
The same hubris that led Amezcua to believe that he and a Board of Directors with ZERO experience in banking could succeed in that industry now applies to his mayoral race. He says he can do the job, but can he? Will he run the City of Santa Ana the way he ran his bank?
I criticized Amezcua and his bank when they opened. I said it was bad timing and I was right. Here is what I wrote:
What gives? Are these people really that confident that they can pull the wool over everyone’s eyes? Or are they prototypical dumb criminals who will eventually get caught red-handed? Who knows? But we do know this – right now is a bad time to be in the banking business.
Amezcua approached me after I wrote that and said that I was welcome to write about him and his family, but I should never write about his bank. I later got a letter from his lawyer.
But I was right. And now Amezcua and his shareholders have apparently lost a ton of cash.
Think back to who he selected to serve on his board. Carlos Bustamante and his twin brother. Mike Metzler. Victoria Betancourt. What made Amezcua think that bunch would succeed in operating a bank? Ironically I hear that these same former board members are now very peeved with Amezcua. Apparently they blame him for the bank’s fortunes.
One politician who wanted nothing to do with Amezcua’s bank was Santa Ana Mayor Miguel Pulido. He didn’t stand in Amezcua’s way, but he said no thanks. Pulido serves on the board of the Fullerton Community Bank – a very successful bank. They even made money last year, during the recession.
When you compare how Pulido and his bank have fared over the years to what Amezcua and his pals did to the Santa Ana Business Bank, the contrast is stunning.
Pulido is working hard with our City Council to pull our city out of the current economic doldrums. They have been able to attract a lot of new development, which means jobs and investment in our city. Amezcua? He is opposed to most of that development and is in league with the same Usual Suspects who are suing the City of Santa Ana because one of those projects includes affordable housing.
Go ahead and vote for Amezcua if you want to, but his record in business isn’t good. Why anyone expects that to change if he becomes our next Mayor is a real mystery.
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You know what, after the stories on the Voice of OC regarding Mayor Pulido double dipping (and this is only the tip of the ice berg I am sure) both his health care benefits and his car allowance, I would rather have an inexperienced person serving the city than a rip off artist. Pulido has already served 25 years for Santa Ana. With his time on other boards and commissions, I am sure his retirement is already in the medium six digits per year. Lets get the bum out now before he costs the tax payers more than Bell residents. I happily await Mayor Pulido's response to the Voice's article.
Anyone who has invested in a business in the past three years who has gotten part of their money back, should not call it a loss. Business owners, investors or anyone who understands the behavior of the economy understands that you have to expect a loss at some point when you invest. For a new business to be sold within 5 years of opening, an investor would call this a GOOD BUSINESS.
mrs. carter,
Let me get this straight - Amezcua's bank was sold at a huge loss but that is good business?
Again, compare his bank to Pulido's. Fullerton Community Bank made money last year. The Santa Ana Business Bank saw its shares fall all the way down to about $3.50. No bueno...
Mr. Pedroza, How is it possible to compare a NEW BANK to a bank that has been around for decades? I am sure you know the history of Fullerton Community Bank. Now, these banks are NOT Pulido's or Amezcua's. That those two are members of the board or whatever their participation is, does not make them 100% responsible for the failure or success of the everyday finances. You have a BS degree, and are very smart. Take your heart out of this equation and see things from a practical point of view. A business (banks are businesses) that pays for its own expenses is a good business.
mrs carter,
Again, go back and look at what I wrote when this bank opened. I am no banking expert but I called it. This was a HORRIBLE time to open a new bank.
The SABB most certainly was Amezcua's bank. Ask any of the board members. Amezcua was the driving force behind this bank. From what I hear, he is being blamed by the other board members for this debacle.
The bottom line? A lot of investors lost a ton of money because of Amezcua and his vanity bank.
I attended a meeting at the SSAMA when Amezcua was presenting this idea and the Bustamante kids were there along with many others. Investors make their own choices when they want to be part of something big(or not so big). It did not turn out to be the greatest economy(as you predicted) and to be able to get some of that money back instead of filing BK is what makes this situation not a bad business after all. Of course it could have been better, but it did not. It is the same situation when you buy shares with your 401K. Even worse, you have a LIMITED portfolio to win or lose your money. Live and learn, I guess.
mrs carter,
I too attended those meetings. Don't forget that Amezcua threatened me, via his lawyer. He didn't want the truth to get out. Now his investors have been left holding the bag...
Mr. Pedroza,
I read some of the articles you have posted here and I am very curious to know why you defend/protect Pulido at all cost. I don't know him personally, but his reputation carries some weight. I would like to see why you think he is worth your fight. Of course he has done endless projects in the city but because it is his job. And he might be a good person(whatever that means), but as a politician all the dirt has to come from somewhere. I just find you passionate defending what alot trash about Pulido. Care to share?
mrs carter,
I am, for the most part, happy with our current Council. No one has gone after Pulido more than I have, but now he is part of a Council majority that is getting the job done. And he has joined them in tossing the Usual Suspects out of City Hall. Good enough for me.
Don't forget that Amezcua was right there with Pulido for twenty years. He did not turn on Pulido until 2008, but even then he showed up to Pulido's election night party, in a limo no less.
While Amezcua was going along to get along, I was leading the fight against the past Council regime. Now we have change and I have direct access to City Hall.
Ask yourself this, what will change for the better if Amezcua wins? He will be our first Eunuch Mayor. Only Benavides and maybe Bustamante will go along with him. He will have to sit at the little kids' table with the B-boys. And two years later Claudia Alvarez will beat him and he will be gone...
Claudia Alvarez, that is a very scary woman-she is the council meetings' code enforcement!!. But a woman as a mayor? We live in a highly macho society in santa ana, I'm sorry but I think it is hard for her to make it with no personality and that attitud. David Benavides is a man who loves to help his people, but no way he would like to have the pressure of being Mayor. I think he is not at that level in his career yet. Michelle Martinez got close enough last time, but she is too young to have the maturity to roll with the punches. Remember the cat fight with Alvarez? Michelle got to learn more diplomacy and Alvarez needs to respect others.Now Sarmiento is someone I think could do a better job as Mayor. My personal opinion on all the above of course, I am no expert.