Above is a letter Charles Collings sent to one of Charles Nordby's son's. In fact, it was this letter that helped show the fraud he committed against Nordby. Notice above where it shows CLC:ebh? Ebh stands for Edith Beverly Hardesty. Click on her name to the left and visit her page.
In quoting Collings: "It's well known that Raley's had financial difficulties in the mid 1960's because of involvement in three hotels and two large discount stores. It's equally well known that the sale of the hotels and discount stores in 1968 marked the turnaround."
What is interesting about this statement from Collings is the fact there doesn't seem to be anything publicized in the newspapers around this time period about Raley's poor performance by these investments. In fact, a newspaper clipping showing one of the hotels had actually been sold in the early 1970s. If Raley sold the hotels in the 1960s, why is he selling a hotel in the early 1970s? Plus, it was only in Raley's history book, published in 1989, does Raley's revealed that Raley lost over $2 million dollars in the first year alone in the Miracle Mart stores. It may have been well known but only well known to Raley, Jim Teel and Collings.
Plus, Collings says 1968 marked the turnaround. The problem with that statement is the fact Raley's own history book stated Tom Raley made a big gamble by going out and buying the Eagle Thrifty chain of Reno, Nevada in 1973. And it was this gamble that changed the image of Raley's, turned the company around, and made Tom Raley a millionaire several times over. Now if it cost $3.5 million in cash for Raley to buy Eagle Thrifty in 1973, that in itself would indicate Tom Raley was already a millionaire before he purchased these stores-but Raley's history book made the statement that buying Eagle Thrifty made him a millionaire afterwards.
If 1968 was the turnaround, why are 80% of Raley's suppliers stealing from them in 1973 before Nordby arrives on the scene.
Now, a very important question to ask: If Raley was so well off in 1973, how did buying a chain of poorly performing stores (Eagle Thrifty) that were losing money, change the image of Raley's, turn the company around, and make Raley a millionaire several times over? If Raley's own history book indicated it took three (3) years to pay off the purchase of these stores, what did Raley put up as collateral?
Around June of 1973, Raley's filed some stock issuing papers with the California Department of Corporations. Was it Raley's company stock that Raley's used as collateral?
The most important question to ask about this possible company stock Raley's may have used as collateral to purchase the Eagle Thrifty stores is the fact that if Raley's of California was pretty much a bankrupt company back in 1973, did Charles Collings and Jim Teel offer worthless stock as collateral to obtain these worthless stores in Nevada? Stores that Collings and Teel could easily pull out some quick cash from. Plus these two (2) goofballs immediately set up the Eagle Thrifty Corporation of Nevada (completely separate from Raley's) to make it easier for them to make off quickly with the cash assets and then let these stores go bankrupt. These stores were going to go bankrupt had not Charles Nordby been hired right about the same time as Raley's purchase of the Eagle Thrifty stores.
The biggest mistake that Collings made in this letter was his statement about the Eagle Thrifty chain of stores Raley's purchased in June of 1973 (Reno Nevada). Quoting Mr. Collings "We purchased a chain of stores in Reno for approximately 4 million dollars. An expansion of this magnitude for a relatively small company would not indicate that we were broke when your dad came on the scene." There is only one problem with Mr. Collings' statement: Raley's own history book indicated that it took Raley's three (3) years to pay off the purchase of the Eagle Thrifty Chain.
Then, in his letter above, Collings tries to explain away why Nordby quit Raley's. Collings states "Your dad left our company because we wouldn't put him on a bonus program. Since we didn't bonus several other department heads, we were not going to do it for him." Well, if you go back to Collings' third paragraph in his letter he states "Your dad came to work for us initially as a consultant and then in July 1975 was placed on our payroll as Director of Security."
Do you notice that Collings doesn't indicate Nordby was hired in "1973" as a consultant? In fact, when two (2) of Nordby's son's went to discuss this problem with Collings in 1991 (at Raley's new office building), Collings was ready to pull out papers from his desk showing Nordby wasn't even hired by Raley's until 1975. Take notice, Collings knows 1973 was the turnaround year for Raley's. He needs to keep Nordby's employment further away than 1973...and place him there at 1975.
What Collings didn't know at the time was that one of Nordby's son's had a newspaper article written about Nordby in October of 1973 placing Nordby at Raley's in 1973. So, would anybody really believe Mr. Collings story about not bonusing Mr. Nordby's "Director of Security" department in July of 1975? Charles Nordby is responsible for establishing Raley's security in 1973. So the big question concerning Mr. Collings' defense is this: Why would Nordby want to be in charge of department that wasn't receiving bonuses. Why would he give up his private company to work for a chain of stores that were so mismanaged? Plus, Nordby's "department" was the only competent department in all of Raley's. It was the only department that changed the image of Raley's, turned the Raley company around and made Tom Raley a millionaire several time over.
For two years, 1973 and 1974, Nordby is making Raley's successful as a full time consultant under the promises of receiving bonuses for those two years and then Mr. Collings has the audacity to indicate that the department of security (a department that Mr. Nordby established) isn't a department that receives a bonus. Did Collings intentionally offer Nordby in 1975, after Mr. Nordby had already been on Raley's payroll as a consultant for two (2) years with promises of a bonus, a department Collings knew wasn't going to be bonused and kept that fact away from Nordby? Of course he did...that is why he is a fraud.
Ok, to make Collings happy with his defense, he cheated Nordby out of bonuses for two years Nordby was employed as a consultant to Raley's, and cheated Nordby out of one (1) year of bonuses for when Nordby accepted Raley's position as Director of Security. No matter how you look at it, it still adds up to three (3) years of Nordby being cheated out of promised bonuses.
Collings really looked like a fool in his letter when he states in the last paragraph: "I am telling you that the story you are trying to spread about Raley's is inaccurate and could be damaging. Now that you know, if you choose to continue to spread falsehoods, I suggest that you get an attorney, you will need one."
The above statement by Collings is the real "Raley's" Chuck Collings. Collings has his signature on so many lawsuits filed at the Sacramento County Courthouse, he thought he could bluff one of Nordby's sons with a "legal" threat. Read the article further below that The Bee published about "Collings and Religion." I get sick to my stomach just looking at it.
