Former "Mr. Ventura" faces real estate fraud charges

James “Jimmy” Mesa's glory days, when he could orchestrate a massive real estate deal seemingly at the snap of his fingers, loom almost like ghost images.

Mesa, the once-flamboyant and controversial developer labeled “Mr. Ventura” for his downtown revitalization efforts, paced the hallway outside Superior Courtroom 12 in the Ventura County Courthouse on Sept. 1. He was acting as if it was, in fact, his place of business, as he was heard referencing large sums of money in overseas accounts. But it wasn’t business as usual; Mesa was due in court to defend himself against a real estate fraud case filed by the district attorney.

Then and now
At the peak of his success when he had the proverbial cup that repeatedly “runneth over,” Mesa conducted business and made phone calls from his office in the classic Erle Stanley Gardner Building on the corner of Main and California streets. From his then-lofty vantage point, "Mr. Ventura" could step out of his office and see his legacy: 71 and 73 Palm, the Bank of Italy building, the Livery Theater, the Tutti’s courtyard, Capriccio, Oasis Garden and Patio, Taqueria Vallarta, Café Fiore, Palermo, Westside Cellar. . .. 

But that was then, this is now.

Today, Mesa’s name is no longer attached to any of these properties that he once owned and/or played a critical role in renovating. His contractor’s license has expired. He no longer lives in Ventura, the city whose downtown landscape he singlehandedly helped change. As Mesa put it, “this has been a rough three years.”

He is also steeped in a mountain of legal troubles.

On July 8, Mesa was arrested and released on a $40,000 bond, charged with felony grand theft in excess of $150,000 after the District Attorney’s Office investigated a real estate fraud complaint filed April 20, 2009, by Skyler Ditchfield. If convicted, he faces a maximum of five years in state prison

“This (case) is no real reflection on the work I have done or am doing now,” said Mesa.

Nothing unusual here
Although the setting has changed, Mesa seemingly hasn't. At the courthouse on Sept. 1, the curious phone calls and boisterous behavior displayed by Mesa doesn’t surprise a number of his acquaintances that were interviewed by the VCReporter, especially when it comes to finances.

Kelly Briglio, owner of Paradise Pantry, who partnered with Mesa to open Westside Cellar in 2003, confirmed that Mesa was often overheard in the restaurant speaking loudly over patrons about big oil deals and offshore transactions.

Yet inside Courtroom 12, where Mesa’s case was continued for an early disposition conference set for Nov. 4, Mesa was represented by a public defender, which typically means the defendant is insolvent.

“Jimmy has no money right now,” said longtime friend and former business partner J.K. Mondol.

And so goes the Mesa myth.

Will the real Jimmy Mesa please stand up?
There are two truths to the rise and fall of Mesa. Real estate investors made millions of dollars as well as lost millions due to business deals with Mesa during the 15 years he was actively working in the area. He represented a conduit of money. His renovations and developments, though they drew the ire of many Venturans, brought the appearance of economic vitality to Downtown Ventura.

“In the revitalization of any downtown, you’re going to attract some entrepreneurs who are going to be messy and contrarian,” said City Manager Rick Cole. “But if it weren’t for these risk takers, nobody would have given a look to Downtown Ventura.”

Between commercial and housing real estate, Mondol remembers Mesa working on nearly 20 deals at a time, which resulted in a lot of lending and a lot of promises.

But Mesa didn’t have a crystal ball, nor did those lending him scores of money, banking on Mesa’s word that their money would be returned with interest. The worst stock market decline since the Great Depression of 1929 was looming on the horizon. On Oct. 9, 2007, the stock market closed at 14,164 (Dow Jones Industrial Average). By March 5, 2009, the market had declined 53 percent and closed at 6,500. So as the economy tanked, Mesa did, too.

“When properties go down, the person developing goes down,” said Mesa.

In January 2008, Mesa, along with Mondol, traveled to Dubai in a last ditch effort to search for investors to share the costs of the Lloyd Ranch project, a 3,800 acre site to build homes on the hillsides above Ventura. According to Mondol, he and Mesa held meetings in Dubai with royal families, sultans and princes from Iran, Kuwait and Saudi Arabia.

“It was an amazing trip to see if the Arab market could help us with what we were doing,” recalled Mesa. “But it didn’t work out.”

Though Mesa was successful with various real estate endeavors, his trip to Dubai left Mesa and Mondol empty handed.

Several of his business interactions with members of the community also left them at a loss.

“When it got bad, you’d expect him to tuck it under and brace for the fall. But this guy started one Ponzi scheme after another. He started borrowing money on properties, taking it out of one LLC and putting it on another,” recalled Dan McHugh, a retired real estate broker and CPA. McHugh said he is still trying to track down a $165,000 loan he gave to Mesa for a now-abandoned development project at 1625 Thompson Blvd in Ventura.

“In the beginning, he was really legit. He worked his way from the ground up. He was a great boss and a great friend,” said Briglio. But by 2004, Briglio quit her partnership with Mesa at Westside Cellar. Mesa, she said, became increasingly erratic and difficult to work with, and she felt forced out of her partnership by Mesa and his other business partners. Yet, in 2007, she was hit with a $13,000 lawsuit by U.S. Foods, a food distributor for Westside Cellar, for bills not paid during the time she was no longer with the restaurant. A contract irregularity with Mesa still held her accountable for the food orders.

“It looked like she kept buying for two years after she was gone,” said Dave Lynn, a district sales manager for U.S. Foods. “She was out of the picture and Mesa stuck her with the bill. But when you quit doing business, you have to close your accounts.”

Briglio admits to her naiveté as a first-time business owner, but is appalled that Mesa would ring up such debt in her name.

“I saw an old friend of mine (Mesa) go completely mad right in front of my eyes,” said Briglio.

Mondol said he believes, though, that those seeking retribution against Mesa are “coyotes crying wolf.” Mondol said he lost approximately $3.5 million and $15 million in equity because of a defective loan Mesa had on Mondol’s property. But it was Mondol’s decision to allow Mesa’s loan, so he could only blame himself.

“People have to pay attention to who they are before they get mad at Jimmy,” said Mondol. “They probably made a lot of money off Jimmy before. These people are not innocent. They are real estate investors.”

“I know people are unhappy with him, but he is a great guy with a huge heart, who only wanted to make people happy,” insisted Cheri Goeppner Iadevaia, who worked for Mesa as his assistant for five years. “The American economy doesn’t need to be thrown on the back of Jimmy Mesa.”

Neither Ditchfield nor his father, Bruce, who had worked on a number of projects with Mesa in the past, commented about the court case against Mesa for fear of jeopardizing the DA’s investigation. Many others involved with Mesa declined to comment because of the large sums of money they tied up with Mesa, which they hope one day to see returned.

Mesa, who currently works as a financial consultant, said pointing fingers in his direction does nothing to solve financial woes.

“The way to fix the problem is to be proactive in the community,” said Mesa. “I have no ill intent or animosity at anybody at what they’re going through. I wish them all the best success. I think it will work out good for everybody.”
Dominic Kardum is the lead prosecutor for the district attorney on the case involving Ditchfield and Mesa. Though the investigation is ongoing for the time being, he is focused on finding justice.

“One of our goals is to hold the defendant accountable and seek restitution for the victim,” Kardum said.   

Mesa will appear in court regarding the real estate fraud case on Nov. 4.