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Calexico merchant has check done on developer

January 24, 2002|By AARON CLAVERIE, Staff Writer

CALEXICO — A downtown businessman here paid New Jersey-based Dunn & Bradstreet to check into the financial history of the Gabay family's Beverly Hills-based Charles Co.

Arman Gabay isn't worried about what the businessman found.

"We have nothing to hide," Gabay said.

The Calexico businessman said he ran the financial report because Gabay has asked the City Council for a $3 million low-interest loan. The businessman thinks it is important for the city to investigate the finances of companies with which it does business.

The businessman asked to remain anonymous because he is working on the campaign of a candidate for Calexico City Council. He said he didn't pay for the report for political reasons.

Under the umbrella of his limited liability corporation, M&A Gabaee, Gabay would use the $3 million to buy land near the New River. Once he had site control of the land, Gabay has said he would bring in retailers to build outlet stores right near the downtown Port of Entry.


If that first stage of the project is successful, Gabay has said he envisions a huge mall and industrial complex on adjoining land that has lay barren for years. He has vowed to repay the $3 million plus interest in 18 months.

Gabay bemoaned what he called a "political" move by the Calexico businessman.

Specific analysis in the $112 Dunn & Bradstreet report is copyrighted but some information is public record.

For instance, the report mentions past Internal Revenue Service liens against the Charles Co. Gabay said the liens have been taken care of.

While the Charles Co. is a separate entity from M&A Gabaee, the principle partners are the same, Mark and Arman Gabay.

Asked about other specific financial information turned up by D&B, Gabay explained or put each item in context.

One $200,000 lawsuit involved the Charles Co. and a mechanical contractor. Gabay said the Charles Co. takes on more risk than other companies because it deals directly with such contractors.

City Treasurer Rudolfo Moreno has seen a copy of the D&B report. His first reaction after looking over the document was, "Eh, it's not so good." However, he said he is not an expert at reading the detailed comparative analysis of a D&B report.

Mayor Victor Carrillo said information turned up on the report was most likely similar to the financial history of other firms.

Mayor Pro Tem Renison said he would consider any information brought before the council before it makes a decision on loaning Gabay city money.

>> Staff Writer Aaron Claverie can be reached at 337-3419 or

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