'Whistleblower' suit against Palco Fraud moves ahead
James Faulk, The Eureka Times-Standard
EUREKA --A suit accusing Pacific Lumber Co. of defrauding the state and federal governments out of hundreds of million of dollars in the deal to preserve the Headwaters Forest is moving ahead in San Francisco County Superior Court.
According to a press release issued by attorneys for the individuals who file the suit, Judge David Ballati ruled Monday that the case could go forward after the
The case alleges that the company used false computer model data to allow it to harvest more wood under its sustained yield plan than should have been allowed, in order to enable the company to service its debt.
According to a press release, “Pacific Lumber's sustained yield plan computer simulation was manipulated by basing the model on the inclusion of hardwood measures when in fact the written plan and actual on the ground implementation was based on conifer measures only.”
But Pacific Lumber Co. spokeswoman Andrea Arnot said it's telling that the state attorney general's office chose not to join in the suit.
”The important thing is that the attorney general's office rejected the plaintiff's request to intervene on their behalf,” she said. “The allegations are erroneous and we believe we will prevail -- this suit is an attempt to undermine the historic Headwaters agreement.”
To read more, see http://www.times-standard.com/local/ci_5712541