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Untold Life and Death of Charles
Haley, Jr.
By Rod Sanborn, Community News Reporter
When former San
Pedro energy entrepreneur and midnight land developer Charles Joseph [“Chuck”]
Haley, Jr. died in the bathroom of the L.A. Federal Courthouse last year,
his cause of death was listed as “undetermined,” after autopsy and
toxicology tests were performed. Only later did lab tests results show 12
micrograms per milliliter of cyanide in his blood.
According to Dr. Cyrus
Rangan, of the Los Angeles Public Health Department’s Toxics
Epidemiology Program, “12 micrograms [of cyanide] per milliliter is very
high. Potentially four times the lethal dose.” What was odd was
that no one noticed that this might be Haley’s cause of death until this
reporter asked for a copy of the LA County Coroner’s report.
Haley was facing 22 counts
of wire, securities, tax, and mail fraud. Had he lived and been convicted
of all 22 counts, he might now be serving up to 189 years in federal
prison. It is unclear whether other people might have been implicated in
the proceedings.
According to Lieutenant Ed
Winter, of the L.A. Coroner’s Department of Operations Investigation
Bureau, Haley’s cause of death is still “undetermined,” but “the
investigation is [now] continuing due to the circumstances of the case.”
Haley’s death has
apparently ended PowerCom’s bankruptcy case, and millions of dollars
have vanished into thin air, leaving PowerCom’s former employees and
shareholders high and dry.
Haley’s grandiose plans
to build PowerCom into a “national provider of wholesale and retail
renewable-only electricity, natural gas and communications with thousands
of billing customers” unwound rapidly “like the circles that you find
in the windmills of your mind.” Haley lived a luxurious lifestyle, like
the millionaire playboy in the Thomas Crown Affair, using the $1 million
he had obtained from more than 50 individuals in Southern California and
elsewhere. At one time, according to former employee Rick Mledek, Haley’s
various operations were bringing in $250,000 per week, and money was
funneled through CleanGen, a power company in Nevada that Mledek says, “never
seemed to do anything.” PowerCom appeared to be generating so much cash
that, at one point, Haley even offered to pay $1 billion for Enron’s “green”
division.
But Haley’s assurances of
huge profits from windmills in the Mojave Desert and Central Valley turned
out to be empty promises.
Haley’s motivation for
his activities is not known; what is clear is that the indictment charges
Haley with creating a Nevada corporation, 1Network.com (now out of
business), to reduce his tax liability, and using another Nevada-based
dummy corporation, CleanGen, to siphon money out of PowerCom and into his
own bank accounts.
While his telemarketers
were selling investors on the PowerCom’s profitability, the company had
fallen behind in its debts, reporting a loss of $6.6 million to the IRS.
The German firm P & T Technology had not yet signed the contracts
which investors were being told would bring $200 million, but which were
only for $1.6 million.
The pain and anger of huge
financial losses still remain for former shareholders and employees of
PowerCom Energy, as shown by their comments at www.powercomenergy.com/powercom/default.asp.
Perhaps no one felt the
pain of Haley’s activities more than Rick Mledek, who was hired in
February of 2001 as PowerCom’s Vice President of Capital and Finance.
Mledek, who is blind, moved to Los Angeles from Atlanta because Haley
promised him high pay and full benefits in Haley’s impressive PowerCom
building, then located on West Seventh Street in downtown Los Angeles.
Mledek says that, when he first visited Haley’s offices, Haley knew he
was coming and even had his business cards ready—printed in black and
white instead of color.
Within weeks, Mledek became
suspicious of the “boiler room” operations upstairs, and stopped all
funding from his institutional investors. Haley and his attorneys were
furious, and threatened to sue Mledek. On March 15, Mledek was fired,
along with nearly two-thirds of PowerCom’s workforce, as Haley “cleaned
house.” According to Mledek, PowerCom was within 60 days of receiving up
to $100 million in funding from three major New York Financial
Institutions, one of which, Mledek states, was “the world’s largest.”
Individuals in the Paseo
del Mar area close to Haley’s former residence have stated, under
conditions of anonymity, that the FBI recently contacted them concerning
the case. However, the Assistant U.S. Attorney who handled the case claims
that the FBI is not pursuing the case and has turned it over to local
authorities. This, however, has been a repeated theme with this
investigation, as authorities have repeatedly denied or avoided admitting
anything about this case up until the date the indictment was served and
Haley was arrested.
Because of the quantity of
cyanide in Haley’s body, only two possibilities exist: he either
committed suicide or he was murdered. Suicide might save him the
embarrassment of facing his victims; murder would keep his case from ever
going to trial and protect anyone who might have benefited financially
from Haley’s activities.
It is not apparent that the ongoing
investigation will reveal the truth. The case of the strange life and
death of Charles Haley remains like a circle in a spiral, like a wheel
within a wheel, leaving his former neighbors and investors only guessing
what he was really up to.
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