Name/Title
NewspaperEntry/Object ID
2020.099.0030Scope and Content
Newspaper Article - Benicia Herald - May 19, 1966
(cut out and covered in plastic)
Developer is Charged With Fraud
Benicia's floundering multi-million dollar development project which has been beset by financial woes now appears torn by internal dissension as charges of fraud were leveled last week against H.R. Watchie of Seattle, a major principal of Benicia Associates which set out to develop the project.
The fraud charge was filed in Superior Court under an amended complaint prepared for three limited partners of Benicia Associates: Donald L. MacFarlane, of Oakland, Dr. Anthony S. Felsovanyi, and Ralph J. Spiegl, of Palo Alto who also seek damages amounting to more than $480,000.
In their original complaints, filed in April, the three plaintiffs sought an injunction to prevent Watchie from assessing them and also demanded a full accounting of Benicia Associates transactions involving 1,100 acres comprising the firm's holding in the Benicia area.
The plaintiffs contend that a reported $403,000 in commissions paid to Watchie were "illegal and void and a fraud upon Benicia Associates of California and Benicia Associates Washington."
The commissions allegedly were paid H.R. Watchie and Associates, a corporation wholly owned by Watchie, for the sale of the same 1,100 acres in the vicinity of Cordelia Road three times.
The amended complaint further contends that while Watchie has received $403,200 in commssions, Benicia Associates not only have yet to recover their cost but still are obligated to pay the balance of the purchase price of the 1,100 acres.Collection
Benicia Historical Museum Collection