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12/12/19 – For the first time in Banning’s 100-year history a recently bankrupt council member got appointed to the position of Mayor. Daniela Andrade had filed for bankruptcy just a little over a year ago (case number 6:2018-bk-14155).  Nevertheless, Andrade was appointed Mayor on December 10, 2019.

Personal bankruptcy regularly serves as clear evidence of a person’s inability to manage money. So how can Daniela Andrade be expected to successfully manage the City of Banning’s increasingly difficult financial condition? Short answer: she can’t.

Further troubling is the fact that Andrade is on record relentlessly promoting the deceptive HERO home improvement lending program. The Riverside District Attorney’s Office has since identified the program as a predatory loan sharking scheme, which victimized countless homeowners.

Among the victims were dozens of Banning citizens who had followed Andrade’s ill advice to participate in the program. Yet Andrade never reached out, let alone apologized to the victims she had driven into financial agony. Neither did former Mayor Debbie Franklin, who seemed literally obsessed with selling Banning residents on the loan sharking scheme, come hell or high water.

Finally, a few months ago, the Riverside DA caused the HERO operators to enter into a $4M settlement (see Press Enterprise report).

So much for Daniela Andrade’s lack of compassion, lack of good judgement and blatant financial illiteracy.

The above certainly explains why Andrade would end up filing for bankruptcy.

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JOINING THE TEAM

 

But bankrupt Daniela Andrade is not alone in her league. She is joined by another deadbeat official: Banning’s City manager Doug Schulze. Schulze filed for bankruptcy not once, but twice.

 

Schulze’s first bankruptcy filing occurred in April of 2001, (case # 9907762 – Western Seattle Federal Court). Schulze filed bankruptcy for the second time only 18 months later, in October of 2002, with the bankruptcy being discharged in June of 2004 (case # 0222952 – Western Seattle Federal Court).

 

Aside from two bankruptcy filings, Schulze also shows a pattern of repeatedly defaulting on his home loans. This resulted in a total of 3 foreclosures against him.

 

 

Foreclosures were filed against Doug Schulze on the following dates:

 

• January 8, 1998 – creditor: Susan J. Robinson / GE Capital Mortgage (view filing)

 

 

• April 7, 1999 – creditor: North Pacific Trustee / First Mortgage Corp. (view filing)

 

 

• July, 3, 2002 – creditor : First Mortgage Corp. (view filing)

Incidentally, Schulze’s third foreclosure in 2002 occurred only 5 months after the loan had originated, suggesting that he may never have bothered to make even a single loan payment.

 

Schulze also failed to pay his taxes, causing the IRS to file a  $ 11,000 lien against him.

 

Given so much financial incompetence, is it any wonder that Doug Schulze is the first City manager in Banning’s 100-year history to propose an unbalanced City budget? The 2019/20 budget is short by approximately $ 2M, with the shortfall to be funded out of the city’s emergency reserves. Does this seem like a sustainable financial concept to anyone?

Can an incompetent serial deadbeat like City manager Doug Schulze be trusted with running a multi million dollar City budget? Bankrupt Mayor Andrade and the majority of the City council seem to think so.

In the meantime, any reasonable observer will be shaking their head. (For more information on Doug Schulze see posts here and here)

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CONVICTED CRIMINAL COLLEEN WALLACE NAMED MAYOR PRO TEM

Banning’s freak show would not be complete without Colleen Wallace. Wallace is the only convicted criminal to ever “serve” on the City council during Banning’s 100 year history. In the same council meeting of December 10, 2019, Wallace was appointed Banning’s new Mayor Pro Tem (Vice Mayor).

Previously we had warned about Wallace’ shady background, which includes criminal misdemeanor convictions, probation violation, arrests, writing bad check to San Bernardino Superior Court, possible welfare fraud and, last but not least, felony charges for check forgery (for details, including full Police affidavits, click here).

What could possibly illustrate the complete decay of the City of Banning better than a common Banning criminal rising to Mayor Pro Tem? Is this really the best our city has to offer?

Could it be more clear that Banning has entered into a tailspin of corruption, a recovery from which now seems increasingly improbable? You decide.

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CITY LEADERS HAVE NO INVESTMENT IN BANNING

None of the individuals named above appear to believe in the City of Banning enough to put their money where their mouth is: neither Daniela Andrade, nor City manager Doug Schulze nor Colleen Wallace own any property in Banning. All of them are renters.

Why is this important? Because not owning property makes all of them immune to the consequences of their financial decisions. If things turn sour in Banning, they can just pick up and leave. None of them will ever have to worry about suffering a decline in their home value due to their actions.

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BANNING’S CREDIT RATING GOING DOWN THE DRAIN?

Having a freshly bankrupt Mayor at the helm of the City, along with a financially incompetent, twice bankrupt City manager, cannot bode well for Banning. Neither will a Mayor Pro Tem with a criminal record. Undoubtedly, such circumstances will be noted by credit rating agencies (Moody’s etc.)

Add to this incompetent cast of characters an unbalanced budget, and a downgrade of the City’s credit rating could be in the cards. Could debt issued by City of Banning soon find itself being rated in “junk bond” territory? We don’t know.

We do know, however, that Banning is spending substantially more than it is taking in. This fact alone could lead to a credit downgrade, causing the City’s borrowing costs to sharply rise.

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CONCLUSION

The latest appointments of a bankrupt Mayor and a criminal Mayor Pro Tem give a clear indication of the chaotic direction Banning has been taking.

With so much incompetence ruling the day, it appears Banning may soon be approaching a point of no return. By the way, if you’re waiting for the lying Record Gazette to tell you this story, you may be out of luck. So instead of waiting in vain, just remember where you read it first.

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