WHERE THE VENTURE CASH CAME FROM
In Minnesota, John Rogers had a history of business failure, lawsuits and arrests. But in San Francisco, he managed to raise $340 million for his high-tech startup, Pay By Touch, from some of the city’s savviest investors. Here, from court records, are some investors and creditors:
The Gettys: Billionaire Gordon Getty invested as much as $50 million through trusts, a source said. Other investors included son Billy Getty, who had a contact with a Pay By Touch executive; retired appeals court Justice William Newsom, father of Mayor Gavin Newsom and Getty trust administrator, who served on Pay By Touch’s board; and Thomas E. Woodhouse, a Getty trust administrator and president of Falstaff Management Group, the mayor’s business corporation.
Ron Burkle: The Southern California supermarket magnate and Democratic Party mega-donor invested in 2005.
John Burton: The lawyer and retired San Francisco lawmaker in
vested in 2006. Stockbroker James Halligan, Burton’s longtime friend, also invested, as did San Francisco investment banker Gary Shemano.
NFL players: Investors solicited by UBS Securities included retired quarterbacks Drew Bledsoe (New England, Buffalo, Dallas), Rick Mirer (San Francisco, Oakland, three other teams), Kelly Holcomb (Cleveland and four other teams), Craig Nall (Green Bay) and Alex Van Pelt (Buffalo); Mark Campbell, New Orleans tight end; and retired center Jon Dorenbos (Buffalo). Former 49ers lineman Harris Barton’s venture capital firm, Eleven Rings LLC, is also a creditor.
Hedge funds: The OZ Master Fund of New York’s Och-Ziff Capital Management ($62 million); Connecticut-based Plainfield Asset Management ($67.5 million); Denarius Touch, a unit of Thomas Steyer’s San Francisco-based Farallon Capital Management, ($45.1 million).
Las Vegas interests: Investors included Mandalay Bay casino’s co-founder Clyde Turner; Bellaggio’s chief financial officer, Robert Baldwin; Sam Boyd, grandson and namesake of the founder of Boyd Gaming, owners of the Fremont Hotel and 15 other casinos in six states; and former Elvis Presley impersonator Tony Ciaglia.
Major creditors: Whorl LLC, a biometrics firm acquired by Pay By Touch, claims it is owed $67 million. Accenture LLP business consultants, where Pay By Touch was incubated, claims $7 million; the Saatchi & Saatchi ad agency, whose CEO, Kevin Roberts, was on Pay By Touch’s board, claims $2.93 million.
Other creditors: PKV Racing, now known as KV Racing, which operated an IndyCar racer Pay By Touch sponsored; heirs to the S&H Green Stamps fortune; 1960s pop trumpeter Herb Alpert; Chicago Cubs pitcher Ted Lilly; San Francisco sports-car dealership Cars Dawydiak; the Milken Institute, founded by 1980s junkbond financier Michael Milken; a golf tournament to benefit a hospital for crippled children in Brownsville, Texas; the IRS and tax collectors in California and 29 other states.
Retired Justice William Newsom (left), father of S.F. Mayor Gavin Newsom John Burton, former state senator
Drew Bledsoe, former NFL quarterback Ron Burkle, grocery store magnate
Billionaire Gordon Getty, with wife Ann Getty