http://www.breitbart.

com/california/2015/12/21/jerry-brown-another-energy-
conflict-interest/

JerryBrown:AnotherEnergyConflictof
Interest

DamianDovarganes/AssociatedPress

byError! Hyperlink reference not valid.21Dec2015NewportBeach,CAError!

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SIGNUPFOROURNEWSLETTER

Thewebofpotentialconflictsofinterestassociatedwith
JerryBrownwidenedwithnewsthattheCalifornia
governorssisterisapaidboardmemberofAmericasError!
Hyperlinkreferencenotvalid.whichisleaking500,000metric
tonsofCO2amonth.
SouthernCaliforniaGasCompanyhasbeenunderrelentlessattackbyenvironmentalistsandGovernorBrownsince
oneoftheirnaturalgasstoragewellsatPorterRanchleaked6,500tonsofmethaneequallingoveratonofCO2
emissions.

BloombergIntelligenceError!Hyperlinkreferencenotvalid.thatthecostoflostgasfromtheseepage8,700
feetbelowground,whichhascaused3,000peopletomoveintotemporaryhousing,couldequal$1billion.The
deepundergroundError!Hyperlinkreferencenotvalid.hashadadocumentedleakrateof132,000poundsof
storednaturalgasanhoursinceitsdiscoveryonOctober23.

ThedailyreleasefromthewellisequaltoaboutaquarterofCaliforniasdailystatewidemethaneemissionsfrom
agriculturalandindustrialreleases,ortheequivalentgreenhousegasdischargedfromhalfamillioncars,Error!
Hyperlinkreferencenotvalid.toBloomberg.

ResidentsinLosAngelesCountysPorterRanchhavebeencomplainingaboutallthesymptomsofmethane
poisoning,includingheadaches;heartpalpitations;cognitiveimpairment;dizziness;lossofmotorcoordinationand
flulikesymptoms.

ButCaliforniaStatepublichealthofficialshaveinexplicablynotdeclaredacrisis,despitetheU.S.Error!
Hyperlinkreferencenotvalid.demandingimmediateaction.BoththestateandEPAknowmethanehasother
risks,suchasbeingextremelyflammableandexplosive,andalsocancausedeathbyasphyxiationinhomesand
workplaces.

TheissueescalatedonDecember15,whentheLosAngelesCountyandtheCityandSchoolBoardsdeclareda
Error!Hyperlinkreferencenotvalid.thatcoversthemassiveAlisoCanyonnaturalgasstoragefacilitynear
PorterRanchneighborhoods.TheresolutionsalsodemandclosingatleasttwoschoolsinthePorterRanch
neighborhood.

TheAssociatedPressovertheweekendError!Hyperlinkreferencenotvalid.thatGovernorBrownssister,
KathleenL.Brown,alawyerandformerCaliforniaStateTreasurerandDemocraticcandidateforGovernorinthe
1990s,hasbeenservingsince2013asaDirectoronSempraEnergy,theparentand100percentstockholderofthe
GasCompany,Error!Hyperlinkreferencenotvalid.toSecurity&ExchangeCommissionfilings.

KathleenBrownownsover$400,000inSempraEnergysstockandisreceiving$188,380ayearinsalarytoserve
onSemprasError!Hyperlinkreferencenotvalid.andError!Hyperlinkreferencenotvalid.committees.That
meanstheGovernorssisterisatthecenterriskformanagingtheragingecologicalandhealthcaredisaster.

TheBrownfamilyhasbeendeeplyinvolvedintheenergybusinesseversinceformergovernorError!Hyperlink
referencenotvalid.thatheldexclusiverightstofeesonallIndonesianoilimportedintotheU.S.

JerryBrownreceivedhis27percentError!Hyperlinkreferencenotvalid.whenheleftofficeasGovernorin
1983,accordingtoSacramentoBeereporterDanWalters.
BreitbartNewsError! Hyperlink reference not valid.thatdespiteGovernorBrownstirades
againstfossilfuelsattherecentUNclimatechangeconferenceinParis,JerryBrownhasbeenverysupportiveofthe
CaliforniaoilindustrywhileGovernor.

Brownpushedthroughandsignedprofrackinglegislationinlate2013,knownasError! Hyperlink
reference not valid..HehasalsoError!Hyperlinkreferencenotvalid.overthepastseveralyears
fromoilandnaturalgasintereststohisstatewidepoliticalcampaignsforattorneygeneralandgovernor,alongwith
hisProposition30ballotmeasurecampaignin2012.

TherevelationthatKathleenBrownisamajorplayerinthemanagingtheSempragasleaksetoffhowlsfrom
environmentalactiviststhatGovernorBrownhasamajorconflictofinterestandshouldrecusehimselffromall
decisionmakingontheissue.

TheAssociatedPressError!Hyperlinkreferencenotvalid.thatNewYorkbasedcitizensoversightgroup,
PublicAccountabilityInitiative,faultedtheGovernorfornotearlieradmittinghissisterscontrollingroleinthe
crisis.Itisaconflictofinterestanditsaconflictofinterestthatneedstobemanagedtransparentlyandopenly,
saidPAIdirectorKevinConnor.

TheGasCompanyisdrillingareliefwelltobypassthebrokensectionofpipecasing.Butitcouldtakeanother
threemonthstocompletedrillingandcutthegasflow.

Bythattime,theAlisoCanyonnaturalgasstoragefacilitycouldreleaseanother10,000tonsofmethaneandanother
1.5tonsofCO2emissions.

http://public-accountability.org/2015/12/jerry-browns-ties-to-the-oil-and-
gas-industry/

REPORT

JerryBrownsTiestotheOilandGas
Industry
December17,2015

CaliforniaGovernorJerryBrownhaspresentedhimselfasaclimateleaderandthemediahaslargelyportrayedhim
assuch,mostrecentlylaudinghistriptoParistoattendtheCOP21climatechangenegotiations.However,Browns
relationshipwiththeoilandgasindustrycomplicateshisimageasawarriorfortheenvironment.

Contents

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Error! Hyperlink reference not valid.

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Additionalsectionstobereleased

incomingweeks

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Authors:GinArmstrong,RobertGalbraith,AaronCant,andKevinConnor

Mediacontact:
KevinConnor

7168841275
Error! Hyperlink reference not valid.

Brownsoversightofoilandgasproductioninthestatehascomeunderscrutinyinrecentmonthsduetoallegations
ofsignificantimpropriety.InNovember,theAssociatedPressError! Hyperlink reference not
valid.thatBrownhadtakentheunusualstepofdirectingstateregulatorstoresearchthepotentialforfutureoil
andgasactivityonhisprivateland.ThestatestopoilandgasregulatorError! Hyperlink reference
not valid.amidtheensuingcontroversyoverthemisuseofstateresourcesonthegovernorsbehalf.

AndinAugust,alawsuitandpressreportsallegedthatBrownhadError! Hyperlink reference not

valid.underpressurefromOccidentalPetroleumduetotheirunwillingnesstoexpeditetheissuanceofdrilling
permits.

TheindustryhassecuredotherfavorablestancesfromBrown,includinghisresistancetopressurefrom
environmentalgroupstobanthepracticeoffrackingandotherdrillingtechniques.

Overall,thisrecordonoilandgasissurprisingforaleaderwhohasstakedsomuchonhisclimateand
environmentallegacy.

Brownsrelationshipswiththeoilandgasindustrylikelyplayaroleininfluencinghisstancesontheseissues.This
report,tobereleasedinsectionsinthecomingweeks,willdetailBrownsmanytiestotheindustry:throughhis
campaignsandpoliticalcauses,whichhavebenefitedfromsignificantindustryfunding;throughcloseassociates,
whoplayadvocacyandleadershiprolesintheindustry;andthroughappointmentstokeyregulatoryroles.

Therelationships,someofwhichhaveneverbeenreportedbefore,raisenewquestionsaboutBrownshandlingof
oilandgasmatters.

I:KathleenBrownstiestofrackingandarecordsetting
methaneleak
 CaliforniaGovernorJerryBrownssistermade$188,000,hasequitystakeinSempra,thecompany
responsibleforrecordgasleak

Gov.BrownssisterhasmilliondollarstakeinfrackingcompanyForestarGroup

Gov.Brownssisterispartneratlawfirmusedbystatesbiggestfrackinglobby

GovernorBrownssister,KathleenBrown,hasstrongtiestooilandgasandfrackingthathavelargelygone
unreported.Therelationshipsmaybeplayingaroleinshapingthegovernorshandlingofoilandgasmattersand
hismutedresponsetoarecordsettingmethaneleakinLosAngeles.

Error! Hyperlink reference not valid.

Highlycompensateddirectorinsafetyroleatcompanybehindmethaneleak

ThegasstoragewellcurrentlyreleasingrecordamountsofmethaneintheLosAngelescommunityofPorterRanch
isownedbyacompanywhereGovernorBrownssisterisahighlycompensatedboardmember.Shealsoplaysan
environmental,healthandsafetyoversightroleatthecompany.

Theleak,calledtheError! Hyperlink reference not valid.byTime,beganOctober23rdandis

currentlyreleasing36,000kilogramsofmethaneperhour.Ithasforcednearly2,000familiestoleavethearea,
causedthefederalgovernmenttoimplementanoflyzone,andledLosAngelesCountytodeclareaError!
Hyperlink reference not valid..IthasalsoresultedinError! Hyperlink reference
not valid.byLosAngelesCityAttorneyMikeFeuerallegingpublicnuisance.

Initsfirstmonth,thewellleakedError! Hyperlink reference not valid.ofgreenhousegases,

equivalenttoaquarteroftheentirestatesemissionsinthatperiod.

GovernorBrown,returningfromCOP21negotiationsinParisthatfocusedontheclimatedangersoffossilfuels,has
madenopublicstatementonthemethaneleak,despiteitsenvironmentalandpublichealthimpacts.His
administrationhasError! Hyperlink reference not valid.todeclareastateofemergency,saying
thatitdoesnotfitthenecessarycriteria.TheissueisnotexpectedtoberesolveduntilMarch.

PressreportsontheleakhavenotnotedGovernorBrownsfamilialtiestothecompany,butKathleenBrownsrole
atthecompanyissignificant:

Shemade$188,380inherpositionasaboardmemberinError! Hyperlink reference not

valid.,and$267,865inError! Hyperlink reference not valid..

Thecurrentvalueofherequitystakewas$390,851atthemarketscloseonDecember15,2015.Thestake
isintheformofError! Hyperlink reference not valid..Phantomsharesarepaidoutin
cashuponretirement.

Sheisamemberoftheboardsenvironmental,health,safety,andtechnologycommittee,whichhas
oversightresponsibilitiesdirectlyrelatedtoissuesliketheleak.

InoutliningherqualificationsforthedirectorshipinitsError! Hyperlink reference not valid.,

thecompanystatedthatMs.Brownhasextensiveexperienceinboththepublicandprivatefinancialsectors,as
wellasindepthknowledgeofCaliforniagovernmentprocesses.
LynnSchenk,aJerryBrownassociateandappointee,alsoservesontheSempraboardandsitsonthe
environmental,health,safety,andtechnologycommittee.Herstakeinthecompanywasworth$1,071,898atthe
marketscloseonDecember15,2015.

FrackingoperationbyJoshuaDoubek(CCBYSA3.0)

Milliondollarstakeinfrackingcompany

KathleenBrownisalsoahighlycompensateddirectorandmajorshareholderintheForestarGroup,arealestateand
oilandgascompanythatspecificallycitesincreasedregulationoffrackingasarisktoitsbusiness.

ForestarGroupsoilandgasbusinessisfocusedonexplorationandproductiononownedandleasedmineral
interestsinNebraska,Kansas,Oklahoma,Texas,andNorthDakota.Itbecameanexplorationandproduction
companyin2012,whenitacquiredCredoPetroleum.Oilandgasrevenueswere$84.3millionin2014,or
approximately27%ofthecompanystotalrevenuesof$306.7millionthatyear.

ForestarGroupspecificallycitesincreasedregulationofhydraulicfracturingasariskfactorinits Error!
Hyperlink reference not valid.,notingHydraulicfracturingandothersubsurfaceinjectionshave
comeunderincreasedscrutinyandcouldbethesubjectoffurtherregulationthatcouldimpactthetimingandcostof
extractiveactivities.

HerstakeinfrackingthroughtheForestarGrouphasneverbeenreportedinthepress,butitissignificant.

Shemade$175,000inthepositionin2014,andhasbeenadirectorofthecompanysince2007.

Shehasamasseda$949,653stakeinForestarError! Hyperlink reference not valid.

(withanoptiontobuyafurther20,000shares)worth$10.78pershareatthemarketscloseonDecember
15,2015.

Instatingherqualificationsforthepositioninits2014Error! Hyperlink reference not valid.,

thecompanysaidthatshehasgovernmentandindustryrelationshipsrelevanttoourmarketsandbusiness
activities.

Inastrangecoincidence,ForestarsrealestatesegmentisplanningaError! Hyperlink reference not

valid.adjacenttoPorterRanch,thesiteofSouthernCaliforniaGasCosmethaneleak.

Theproject,HiddenCreeksEstates,hasprovokedsignificantoppositionfromavarietyoflocalandenvironmental
groups.Oneofthem,Error! Hyperlink reference not valid.,hasalsobeenactiveinopposing
frackingandotherdrillingactivitiesinthecommunityandsuedSoCalGasandSempraEnergyinearlyDecember
2015overthecompaniesleakinggasstoragewell.

TheHiddenCreeksprojectisstillinthepermittingprocess.Coincidentally,theprojectrequiresaneasementgranted
tothecitybySoCalGas,accordingtotheError! Hyperlink reference not valid..

Partialfocusonenergyatlawfirmemployedbystatesbiggestoillobby

KathleenBrownsprimaryemploymentisasapartneratManattPhelps,wheresheisinthegovernmentand
regulatorypractice.Herclientsandactivitiesinthispositionarenotdisclosed(sheisnotregisteredasalobbyistin
California).ThoughenergyisnotlistedonherError! Hyperlink reference not valid.asoneof
herpracticeareas,sheispartofaninfrastructuregroupthatfocusesinpartonenergy.
Additionally,theError! Hyperlink reference not valid.citedenergyasoneofindustriesshe
wasinterestedinwhenshejoinedthefirmin2013,becauseitisundergoingtransformationalchange.

ManattPhelpsaddedthestateslargestoilandgasindustrylobby,theWesternStatesPetroleumAssociation
(WSPA),asaclientin2013,theyearKathleenBrownjoinedthefirm.Itearned$461,008fromthecontractthat
year,accordingtothegroupsmostrecentError! Hyperlink reference not valid..However,
thereisnoevidencethatBrownworkedonthataccount,andthenatureofthecontractisnotspecifiedbeyondthe
description(legalconsulting)giveninWSPAstaxreturn.
GovernorJerryBrownin2014byCaliforniaAirResourcesBoard(CCBY2.0)

Significanceoffamilyties

Thoughthesignificanceoffamilytiescansometimesbedifficulttodiscern,itseemsclearthatKathleenBrown
maintainsacloserelationshiptoherbrother.

ShehascommentedonherbrotherinError! Hyperlink reference not valid.Error!

Hyperlink reference not valid.,andonreturningtoCalifornia,shespokeofError!
Hyperlink reference not valid.tobringherback,sayingafamilytieishardtobreak.Kathleen
wasalsoaError! Hyperlink reference not valid.toGovernorBrowns2014tradeand
investmentmissiontoMexico.HerbrotheralsorecentlyError! Hyperlink reference not valid.
herhusband,VanGordonSauter,totheCaliforniaStateAthleticCommission.

PAIhasreportedonfamilytiestosignificanteffectinthepast.In2014,PAIsresearch(throughitsrelatedwebsite,
LittleSis.org)Error! Hyperlink reference not valid.theroleofSenatorCharlesSchumers
brotherintheComcastTimeWarnerCablemerger,promptingtherecusaloftheSenatorfromoversightofthedeal
asamemberoftheSenateJudiciaryCommittee.

KathleenBrownsoilandgasindustrytiesraisenewquestionsaboutGovernorBrownshandlingofoilandgas
matters.

ArefamilytieshelpingshapeGovernorBrownsstancesontheissueofoilandgasproduction?Arethey
influencinghisresponsetooilandgasrelatedcriseslikethePorterRanchmethaneleak?Anddotheycreatethe
appearanceofaconflictofinterestthatwillunderminepublicconfidenceinGovernorBrownsleadershiponoiland
gasmatters?

AboutthePublicAccountabilityInitiative
ThePublicAccountabilityInitiative(PAI)isanonprofit,nonpartisanresearchandeducationalorganization
focusedoncorporateandgovernmentaccountability.Inadditiontopublishingresearchoncriticalpublic
accountabilityissues,PAImaintainsError!Hyperlinkreferencenotvalid.,aninvoluntaryfacebookofpowerful
peopleandtoolforpowerresearchthatwasusedtocompiledateforthisreport.Error!Hyperlinkreferencenot
valid..PAIsresearchontheoilandgasindustryandfrackingisfundedbythe11thHourProjectoftheSchmidt
FamilyFoundationandtheParkFoundation.

United States Code Annotated Currentness

Title 18. Crimes and Criminal Procedure (Refs & Annos)
Part I. Crimes (Refs & Annos)
Chapter 63. Mail Fraud and Other Fraud Offenses (Refs & Annos)
 1346. Definition of scheme or artifice to defraud

For the purposes of this chapter, the term scheme or artifice to defraud includes a scheme or artifice to deprive
another of the intangible right of honest services.

United States Code Annotated Currentness

Title 18. Crimes and Criminal Procedure (Refs & Annos)
Part I. Crimes (Refs & Annos)
Chapter 63. Mail Fraud and Other Fraud Offenses (Refs & Annos)
1341. Frauds and swindles

Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or
property by means of false or fraudulent pretenses, representations, or promises, or to sell, dispose of, loan,
exchange, alter, give away, distribute, supply, or furnish or procure for unlawful use any counterfeit or spurious coin,
obligation, security, or other article, or anything represented to be or intimated or held out to be such counterfeit or
spurious article, for the purpose of executing such scheme or artifice or attempting so to do, places in any post office
or authorized depository for mail matter, any matter or thing whatever to be sent or delivered by the Postal Service,
or deposits or causes to be deposited any matter or thing whatever to be sent or delivered by any private or
commercial interstate carrier, or takes or receives therefrom, any such matter or thing, or knowingly causes to be
delivered by mail or such carrier according to the direction thereon, or at the place at which it is directed to be
delivered by the person to whom it is addressed, any such matter or thing, shall be fined under this title or
imprisoned not more than 20 years, or both. If the violation occurs in relation to, or involving any benefit authorized,
transported, transmitted, transferred, disbursed, or paid in connection with, a presidentially declared major disaster
or emergency (as those terms are defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5122)), or affects a financial institution, such person shall be fined not more than
$1,000,000 or imprisoned not more than 30 years, or both.

United States Code Annotated Currentness

Title 18. Crimes and Criminal Procedure (Refs & Annos)
Part I. Crimes (Refs & Annos)
Chapter 63. Mail Fraud and Other Fraud Offenses (Refs & Annos)
1343. Fraud by wire, radio, or television

Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or
property by means of false or fraudulent pretenses, representations, or promises, transmits or causes to be
transmitted by means of wire, radio, or television communication in interstate or foreign commerce, any writings,
signs, signals, pictures, or sounds for the purpose of executing such scheme or artifice, shall be fined under this title
or imprisoned not more than 20 years, or both. If the violation occurs in relation to, or involving any benefit
authorized, transported, transmitted, transferred, disbursed, or paid in connection with, a presidentially declared
major disaster or emergency (as those terms are defined in section 102 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5122)), or affects a financial institution, such person shall be fined not more
than $1,000,000 or imprisoned not more than 30 years, or both.

United States Code Annotated Currentness

Title 18. Crimes and Criminal Procedure (Refs & Annos)
Part I. Crimes (Refs & Annos)
Chapter 96. Racketeer Influenced and Corrupt Organizations (Refs & Annos)
1962. Prohibited activities

(a) It shall be unlawful for any person who has received any income derived, directly or indirectly, from a pattern of
racketeering activity or through collection of an unlawful debt in which such person has participated as a principal
within the meaning of section 2, title 18, United States Code, to use or invest, directly or indirectly, any part of such
income, or the proceeds of such income, in acquisition of any interest in, or the establishment or operation of, any
enterprise which is engaged in, or the activities of which affect, interstate or foreign commerce. A purchase of
securities on the open market for purposes of investment, and without the intention of controlling or participating in
the control of the issuer, or of assisting another to do so, shall not be unlawful under this subsection if the securities
of the issuer held by the purchaser, the members of his immediate family, and his or their accomplices in any pattern
or racketeering activity or the collection of an unlawful debt after such purchase do not amount in the aggregate to
one percent of the outstanding securities of any one class, and do not confer, either in law or in fact, the power to
elect one or more directors of the issuer.

(b) It shall be unlawful for any person through a pattern of racketeering activity or through collection of an unlawful
debt to acquire or maintain, directly or indirectly, any interest in or control of any enterprise which is engaged in, or
the activities of which affect, interstate or foreign commerce.

(c) It shall be unlawful for any person employed by or associated with any enterprise engaged in, or the activities of
which affect, interstate or foreign commerce, to conduct or participate, directly or indirectly, in the conduct of such
enterprise's affairs through a pattern of racketeering activity or collection of unlawful debt.

(d) It shall be unlawful for any person to conspire to violate any of the provisions of subsection (a), (b), or (c) of this
section.

or receiving; punishment
Penal Code Section 68. Bribes; executive or ministerial officers, employees, or appointees; asking or receiving;
punishment

(a) Every executive or ministerial officer, employee, or appointee of the State of California, a county or city therein,
or a political subdivision thereof, who asks, receives, or agrees to receive, any bribe, upon any agreement or
understanding that his or her vote, opinion, or action upon any matter then pending, or that may be brought before
him or her in his or her official capacity, shall be influenced thereby, is punishable by imprisonment in the state
prison for two, three, or four years and, in cases in which no bribe has been actually received, by a restitution fine of
not less than two thousand dollars ($2,000) or not more than ten thousand dollars ($10,000) or, in cases in which a
bribe was actually received, by a restitution fine of at least the actual amount of the bribe received or two thousand
dollars ($2,000), whichever is greater, or any larger amount of not more than double the amount of any bribe
received or ten thousand dollars ($10,000), whichever is greater, and, in addition thereto, forfeits his or her office,
employment, or appointment, and is forever disqualified from holding any office, employment, or appointment, in
this state.

In U.S. v. DeMizio, (2014) 741 F.3d 373, 381, the court stated,

A kickback scheme typically involves an employees steering business of his employer to a third party in exchange
for a share of the third partys profits on that business. See, e.g., Blacks Law Dictionary 948 (9th ed.2009) (defining
kickback as the return of a portion of a monetary sum received, esp. as a result of coercion or a secret
agreement). We reject at the outset DeMizios suggestion that, in determining whether the evidence against him
was sufficient under 1346, we should ignore cases involving public officials (see DeMizio brief on appeal at 32).
The Skilling Court noted that although honest-services cases most often involved bribery of public officials, private
sector honest-services fraud had been recognized at least as early as 1942. See 130 S.Ct. at 292627. The Court
analyzed cases involving public officials as well as cases involving employees in the private sector in deciding the
appeal brought by Skilling himself, a private-sector employee; and it noted that while the principal federal bribery
statute, 18 U.S.C. 201, generally applies only to federal public officials, ... 1346s application to ... private-
sector fraud reaches misconduct that might otherwise go unpunished. 130 S.Ct. at 2934 n. 45.

We also reject DeMizios argument that kickbacks (a) do not include payments made to entities other than the
employee who steers his employers business to a third party in exchange for those payments, and (b) do not include
payments of large sums of money to those recipients so long as they perform some minimal amount of work.
Although the kickback amount frequently is paid directly to the employee who steered the contract, the scheme is no
less a kickback scheme when the employee directs the third party to share its profits with an entity designated by the
employee in which the employee has an interest. For example, as noted in Skilling, see 130 S.Ct. at 293334, a
statute prohibiting kickbacks with respect to federal contracts defined kickback, in part, to include any money, ...
thing of value, or compensation of any kind which is provided, directly or indirectly, to a prime *382 contractor or
its employee for the purpose of ... rewarding favorable treatment in connection with ... a subcontract relating to a
prime contract, 41 U.S.C. 52(2) (2006). Although that section was amended (and recodified as 8701(2)) in 2011
and omitted the phrase directly or indirectly, see 41 U.S.C.A. 8701(2) (2012), the legislative history explained
that no substantive change was intended, see H.R.Rep. No. 11142, at 23 (2009), and that the words directly or
indirectly [we]re omitted as unnecessary, id. at 84.

In this vein, payoff schemes have been viewed as involving kickbacks when the defendant has directed that the
contracting partys profit be shared with family, friends, or others loyal to the defendant. See, e.g., United States v.
McDonough, 56 F.3d 381, 391 (2d Cir.1995) (kickback scheme involved payments to corporation owned by
defendants wife); United States v. Hausmann, 345 F.3d 952, 954 (7th Cir.2003) (kickback arrangement required
payments to, inter alios, individuals who had provided miscellaneous personal services to Hausmann or his
relatives ... and ... charities that Hausmann supported (emphases added)); United States v. Margiotta, 688 F.2d
108, 113 (2d Cir.1982) (involving kickbacks to brokers selected by political leaders of local election districts in
the Town who were loyal to Margiotta); id. (Margiotta contrived the appointment of a certain insurance agency to
be the municipalitys broker, and the agency agreed to set aside 50% of the insurance commissions and other
compensation it received, to be distributed to licensed insurance brokers and others designated by Margiotta);
United States v. LaSpina, 299 F.3d 165, 171 (2d Cir.2002) (IBM employee defendant steered business to a company
that paid the kickbacks in the form of commissions to Schultz, the defendants paramour who had been handed
her job as a sales representative with the companywithout discussion or a resumand who then split those
commissions with the defendant). See generally Skilling, 130 S.Ct. at 2932 (citing as a classic kickback scheme
one in which a state official, in exchange for routing the states business through a middleman company, arranged
for that company to share its commissions with entities in which the official had an interest (emphasis added)).

On behalf of the People Of The United States that support the

U.S. Constitution, the Right To Life, Liberty, and the Pursuit of
Happiness.

Based on the admissible evidence of the public record, and the

foregoing authorities, you have and Kathleen Brown have engaged
in and have violated the following criminal offenses. 18 U.S.C.
1341 mail fraud; 18 U.S.C. 1343 wire fraud; 18 U.S.C. 1346 honest
services fraud; 18 U.S.C. 1962 based on the predicates of 18
U.S.C. 1341; 18 U.S.C. 1343; 18 U.S.C. 1346 And as a result
this makes you and Kathleen Brown nothing more than common
criminals.

I state that you have committed serial crimes against the People
Of The United States Of America, and of the State of California,
resulting in harm to the People Of The United States, and the
People of the State of California, as a result of these criminal
offenses and your concomittent exhibition of criminal sociopathic
character, you have committed the felony offenses detailed above:

You are unfit and unqualified to serve the People Of The United
States and the People of the State of California and because of
these crimes and and on behalf of the law-abiding Citizens who
have authorized the office of a governor through the
Constitution. I demand that you resign.