Post Number: 3241
Best of Black Box?
|Posted on Thursday, January 19, 2006 - 1:53 am: |
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New Jeff Dean info: Now moving some of the information developed in the private forums back to public. There will be more, it is still developing.
It is interesting that the vendors are leaning so heavily on the perimeter defense (people and procedures), because Jeffrey Dean is a voter's worst nightmare as an insider.
Black Box Voting has now reviewed over 2,000 pages of documents on Jeffrey Warren Dean and his wife, Deborah Marie (Pederson) Dean. What emerges is exactly what citizens don't want in their voting system personnel!
Jeff Dean was rebuked during sentencing in his embezzlement trial for showing no remorse and for lying, blaming the victim, and being unable to accept responsibility.
Cast of characters...
Dean Redman & Associates: The firm Jeff worked for when he embezzled nearly a half million dollars from a law firm from 1985-1988.
Spectrum Print & Mail - Printing firm set up by Jeff Dean's wife Deborah while he was in prison. This firm became the ballot printer for King County (WA) and parts of California, Georgia, Maryland, beginning in 1996.
Global Election Systems - Purchased Spectrum Print & Mail from the Deans in 2000, making Jeff Dean the major shareholder, putting him on the board of directors, making him Head of Research & Development for voting systems.
Diebold purchased Global Election Systems in 2002, at which time Jeff ceased to be a board member or employee, but continued as a paid consultant.
Deborah Dean - Jeff's wife and the keeper of the money (though she professes not to know how much there is because "Jeff does the books")
Tae Kim - An employee of Jeff Dean's at Spectrum who was lied to by Dean over the 2000 acquisition by Global. In 2004, Tae Kim recovered a judgment of $500,000 against the Deans.
A pattern of bad behavior
Dean's pattern of accounting irregularities and ethics problems goes back at least 25 years, with repeating problems that appear to be continuing to this day.
- He worked for Boeing from 1967 to the early 1970s. During his last few years with Boeing he launched his own company, which he says was called "Astec." "It was a design and manufacturing company for general aviation," he says. In a recent hearing seeking to discover his background and his assets, the following transpired:
Q. And what business was that, that you started?
A. It was a design and manufacturing company for general aviation.
Q. What was the name of that?
A. Astec, A-s-t-e-c.
Q. You started that in '71?
Q. And how long did you own Astec?
A. Nine years.
Q. So from '75 through '80 you did --
A. '71 through '80.
Q. and then from '75 forward you did that full time?
Q. What happened to Astec?
A. I sold it.
Q. In '80?
Q. Who did you sell it to?
A. Not relevant.
Q. You still need to answer the question.
A. Not relevant.
[Dean's lawyer advises him that he will have to answer the question]
Dean: This is quite a fishing expedition.
A. Raleigh-Durham Aviation.
Q. And where did you work next after Astec?
A. I worked in a consulting business.
Q. What was the name of that?
A. Dean, Redmond & Associates
[note: this is what the transcript says, however, the correct spelling is "Dean Redman & Associates"]
Q. And that was beginning in '80?
Now, he's referring to the computer consulting business under which he eventually embezzled over $400,000. The context of this hearing is a lawsuit against Dean by Tae Yon Kim, a former employee who was awarded a $500,000 judgement against Dean in 2004 on a matter unrelated to the embezzlement. However, let's go back to the court documents for the Dean Redman-based embezzlement situation. In those, Dean says that from 1980 he was running a contracting business, delivering specialty materials to home builders, at least six different materials.
Whether it was his aviation-related business called Astec or his contracting business delivering specialty materials, by 1984 Jeffrey Dean was in trouble. The embezzlement court papers refer to a "failed business" and reveal that Dean owed some $700,000 in back taxes as of 1984.
A pattern of hiding assets
There is evidence that by 1987, Jeffrey Dean was hiding assets by funneling proceeds from his work through his third wife, Deborah M. Pederson Dean. Divorce papers from his former wife, describe an entity called JAL Investments Inc., in which she held real estate. JAL was then acquired under Deborah's name. Apparently the construction of the house that was developed on this land was where nearly $200,000 of the embezzled funds went. Jeff and Deb lived in the house, but everything was in Deb's name. In a 2003 deposition, Dean says that for 20 years he's had all money go through Deborah, and all assets kept in her name, and although the answers were obstructive, belligerent and dodgy, it becomes clear that he was doing this to hide assets from his creditors.
Documents show that Dean has been transferring both cash and assets to family members, including his wife, his sons, and his in-laws, going back as far as at least 1987. There is another term for this: Fraudulent transfer.
Dean declared bankruptcy in 1984 (but this did not discharge his IRS debt). Deborah Dean took a stab at bankruptcy in the early 90s, allegedly to obstruct the victims of Dean's embezzlement from getting restitution. Jeff Dean declared bankruptcy again in 2004, Deborah Dean declared her own bankruptcy in 2005, and the two bankruptcies were merged into a single action in late 2005.
Refusal to take responsibility
In 1988, one of Jeffrey Dean's clients confronted him with evidence that he was embezzling. He admitted in front of several witnesses that he had been stealing checks and forging them, and that he used his access to cook the books to hide his thefts, which took place at least from 1985 through 1987 and amounted to nearly half a million dollars.
However, he later changed his story several times. Court documents show that Jeff Dean and his wife Deborah were fighting restitution every possible way. At sentencing, he was admonished for:
- showing utter lack of remorse about anything
- Blaming the theft on the victims
- Trying to claim title to the money
He was sentenced to prison, but failed to show up for his incarceration in 1990. Bench warrants were issued. His own lawyer couldn't find him.
While Dean was in prison, Deborah started Spectrum Print & Mail, the firm that the Deans sold to Global Election Systems in 2000, which Diebold purchased in 2002. This entity is now the Diebold Election Systems ballot printing plant.
Although the Deans sold the business for $4 million, it seems they couldn't part with their booty to pay the court-ordered restitution to the victims of their embezzlement. Instead, they sponsored a lavish Christmas Party ("over $20,000"), purchased 750 acres in Idaho for $600,000, started building a home there, launched a new company called "Spectrum NW LLC," handed over $45,000 to Erica (Jacobsen) Cardas to form "Spectrum Digital" in British Columbia, embarked on luxury travel, dumped $500,000 into an RV park in Idaho for Jeff Dean's son, bought a $100,000 sailboat in the posh resort of Semiahmoo on the Canadian border, and bought a boat slip for it for $26,000.
They claim they "don't know" whether they own stock in Spectrum Digital, although the husband of Erica has used their business email (@spectrumnw.com) in his real estate business and court documents show that the computer system for Spectrum Digital networks into Spectrum NW and the Idaho ranch. They claim that they are leasing their sailboat to Gulf Islands Charters but report no income, contract, or payments for handing over their boat. They claim that they put $500,000 into son David Dean's RV park but didn't do it for stock and it wasn't a loan; muddily, Deborah says they hope to get 40% of the profits when there are any. David and his wife live on the property. Deborah claims she doesn't know how many bank accounts Spectrum NW has, or how much is in them, because "Jeff does the books" but no one seems to have deposed Jeff about these so-called books, and in the jury trial on the Tae Kim matter, even the jury was asking, "Where are the books?"
In his 2003 deposition on the Tae Kim matter, Jeff Dean denies guilt on the embezzlements and makes up a brand new story: It seems, according to his latest rendition, that "some" of the lawyers (but not the partners) wanted to do an investment scheme and they were pulling money out and investing it, taking the profits, then putting money back in but an investment went bad. And then the familiar refrain, it wasn't his fault and he was just a scapegoat.
Jeff and Deborah Dean were held in contempt of court in 2005 for refusing to provide the documents they were ordered to produce. Finally, the court threatened Deborah with jail if she did not comply.
Favorite Jeff Dean-isms
According to the court papers for Tae Kim, at one point the Dean's defense was that Tae Kim should have known they are liars, and therefore he should not have relied on their word when they made promises to him.
Another: Jeff Dean claims he "received the money, but did not steal the money."
A sense of entitlement
During Jeff Dean's deposition, he frequently refuses to answer. He seems to have great difficulty acceding to the authority of the deposition.
He says things like "I don't need this " and "I'll walk out of here!" and frequently decides things are "not relevant."
Interesting info from court documents re: Diebold voting systems
1. Jeff Dean claims to have worked closely with Peter Martin, called him as a witness at his Tae Kim trial. Peter Martin and Jeff Dean were working on the High Speed Central Count 2.0.12 voting system. This indicates that this system should be examined especially carefully, as it it one of the newest systems Diebold is coming out with.
2. Jeffrey Dean said in depositions that his contact at Global was always Pat Green. However -- Dean seems to be referring to a time before the Diebold acquisition, yet Pat Green first appears in the memos in Dec. 2001, as Diebold is taking over. Our sources tell us Pat Green is from the Diebold office in Canton. Why, then, would he have always been Dean's contact -- Dean started with Global in 2000 and stopped in Jan 2002?
3. The depositions say that Jeff Dean specifically worked for Diebold during May and June 2002. This is the time period when the rob-georgia files were being created.
4. Jeff Dean claims that he doesn't know C++ programming code. GEMS is written in C++, according to memos by Ken Clark. Jeff Dean has been documented doing programming customizations on GEMS in King County. Hmm.
5. According to depositions, Jeff Dean wrote the software that handles mail processing for absentee ballots
6. Also according to depositions, Jeff Dean developed the Vote Remote signature comparison and mail handling software, and also, with Tae Kim, developed "VoterView" (a voter registration software).
How likely is it that Diebold will leave a financially stressed loose cannon out there to twist in the wind? Or is Diebold likely to find incentives to induce Jeff Dean to keep his mouth shut? They only have to hold out for another year or so, while they extricate themselves from the elections business and ditch the stockholder lawsuit.
Okay, that's all for now. My brain is fried from reading 2,000 pages and scanning another 1,000 microfiche files. There's more to go, looks like tomorrow will be another watery-eye day. Great job, John Howard and Linda Franz and Kathleen Wynne, for your assistance in helping to fill in the story in person and in the private research forums.
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TRIPLE PROTECTION FOR ELECTION 2006 - STARTING NOW:
(1) Use Freedom of Information, public records requests ("All American Paper Chase")
(2) Try Dumpster Diving for Democracy
(3) Candid America Project - Don't leave home without your camcorder
HOW TO DO IT: http://www.bbvforums.org/forums/messages/6/6.html