Only in Auburn
Tales of Coping in a SmallTown

The Auburn Journal:
A Winner in Business; a Loser in Journalism


June 1, 2007


By Gary Moffat


It is a wonderful thing to be recognized for excellence, especially by your peers in a small community, and the Auburn Chamber of Commerce’s annual “State of the Community” dinner is always highly anticipated because of the raft of awards lavished on deserving citizens, both in the private and public sectors. The most coveted award, though, is being honored as “Business of the Year.”

For 2007, the recipient at the April 27 gala was the Auburn Journal, the community’s daily newspaper that has served the region since 1872 when a predecessor title was launched. In his monthly column in the “Small Street Journal,” newsletter, Chamber CEO Bruce Cosgrove, lauded the winner: “The Auburn Journal received this distinctive recognition for their business success and significant contributions to the community of Auburn.” He added, “The newspaper is vital to the success of local business through marketing and advertising.”

Editor/General Manager Deric Rothe and Publisher Tony Hazarian, clutching a copy of the newspaper in front of a press, beamed in an accompanying photo. As the two key managers of the publication, they alone are ultimately responsible for the editorial direction, tone and content that appears six days per week. And from a business perspective, they have much of which to be proud. The newspaper is a local business booster, dutifully covering every Chamber event and supporting many civic programs with pro-bono advertising space. Every new spa or restaurant opening gets an initial pop in the business section of the paper, whose publisher is also a Chamber director.

Reading deeper into Cosgrove’s column, however, I parted ways with him when he gushed, “The Chamber acknowledged in presenting the award, that what makes the Auburn Journal stand out as the Business of the Year for 2007, ‘is their untiring commitment to telling the Auburn story.’”

Hardly. The Auburn Journal’s ongoing coverage of this community can be charitably described as abridged and myopic. A more direct criticism is the paper fails miserably in its role as a watchdog of local and county governments, abandoning a traditional adversarial, arms-length role in favor of that of a consummate cheerleader and team player. Day in and day out, the Auburn Journal covers this community only at its surface, taking on the easy stories, the ones that emerge reliably at the Auburn Police Department or the Placer County Courthouse or the fires and traffic accidents reported on emergency scanners. It can be counted on to cover the first day of summer, the Tevis Cup and City Council meetings. But when it comes to digging deep into the community to investigate alleged public abuses; or researching major stories in depth; or going off the beaten path to discover what is unique about Auburn; or presenting the Auburn Journal’s positions on serious issues facing this community and the nation, the paper consistently comes up woefully short. It’s management carefully avoids taking risks, and it is simply missing in action when it comes to legitimate analysis and commentary.

A Crisis in Content, Part I
To illustrate how the Auburn Journal has failed to accurately tell this community’s story, this report will show how the newspaper mismanaged coverage of four important news events over the past year. Here’s Part 1.

Ernest Shih: A Reputation and Career Destroyed in Print

On his way to work as IT Director of the City of Auburn on the morning of May 24, 2006, Ernest Shih was ambushed in the parking lot of City Hall by officers of the Placer County Sheriff along with a reporter and photographer from the Auburn Journal—tipped to the imminent arrest by an unconfirmed public official. The next morning, the story was splashed on page one: “City’s top computer expert busted.” And there was Ernest Shih, 42, in a front page photo, head bowed while a trio of undercover officers snapped on the bracelets.

Breaking this exclusive for the Auburn Journal was Jim Ruffalo, who writes two weekly Auburn “insider” columns for the newspaper. Reporter Penne Usher covers the Police Beat for the Journal, so it is unlikely that the tip came from any law enforcement agency. Ruffalo is firmly wired into City Hall, however, and although the City Council was aware of the impending arrest, it is more likely that the reporter was given a head’s up by his regular contact within the halls of the building. Auburn’s weekly newspaper, The Sentinel, was not invited to the party.

A veritable task force of law enforcement agencies cooperated in the criminal investigation, rivaling the resources one would expect to be marshaled against a mobster like John Gotti—the FBI, the Department of Justice and local organizations—the Placer County Sheriff, the Placer County District Attorney, and of course, the Auburn Police Department. Remarkably, in the midst all of this law-enforcement talent, Auburn Police Chief Valerie Harris was out of town at the time of Shih’s arrest, as was his direct supervisor, Director of Development, Will Wong.

Over the next month, the Auburn Journal embarked on a feeding frenzy with this juicy case, regularly updating court appearances and the potential implications of a city’s computer networks placed at risk by the criminal activities of an employee in a position of trust. Through reporter innuendo, constant recitation of the charges against Shih and repeatedly running his jailhouse photo, the Auburn Journal all but convicted this mild-mannered computer geek before he had his day in court.

It’s hard to imagine a more unlikely candidate to be accused of so many crimes. Shih, quiet, hardworking and a family man, was a two-year employee of the city which quickly recognized his contribution to the staff by naming him “Employee of the Year.” He was also a reserve member of the Auburn Police Department. Not the kind of professional you would expect to see wearing an orange jump suit.

Ruffalo’s piece reported that Shih was “charged with suspicion of embezzlement,” and bond was set at a staggering $250,000. On May 26th, Penne Usher took over the story, reporting in “City’s Theft Probe Widens,” that Shih was suspected of bugging City offices to monitor conversations and planting wireless cameras in the building. Her report also raised concerns that Shih may have had access to computers that control the city’s wastewater systems and the airport.
On May 28th, Shih walked out of jail when his bail was suddenly slashed to only $10,000 by Judge Larry Gadis. Usher’s report failed to mention any reasons why such a precipitous reduction had been order by the court. She did put her own spin on Shih by selectively quoting one of Shih’s neighbors: “I talked to him one day and he seemed really nice. Seems like everybody has something in their past. I’d still talk to him, though.” So much for the notion of an objective news organization.

Reporter Michelle Miller picked up the thread on May 31st with this headline: “City’s systems secure? Officials test network after Ernest Shih’s arrest.” Although the headline is provocative, the story reports all is well, though no dollar amount is ever placed on the City’s actual losses due to Shih’s alleged malfeasance. Councilman Keith Nesbitt, however, noted in the story: "It appears the losses are minimal, but we'll have to see how it all plays out," he said. "City staff are back at work and we're moving ahead. The public is understandably curious, but from what I've seen, they trust us to handle this."

Not so fast, Keith.

On June 1, the full menu of charges against Shih were outlined in court and in the Auburn Journal: “grand theft, grand theft false pretense and possession of a weapon in a public building.” The story does not elaborate on what was stolen—computers, money or paper clips. It pointed out that while his status as a reserve police office enabled Shih to carry a weapon, it did so only while he was on duty.

“New evidence prompts more charges for Shih,” admonished a headline on June 27. The Usher-penned piece dutifully reported that an additional charge of embezzlement had been placed by the DA, but there was not a word written about any specific evidence. Usher repeated all of the charges and Shih’s mug shot ran with the piece.

And then the Auburn Journal fell silent.

Exactly eight months later, on February 27, 2007, the Journal ran an Usher piece titled, “City pays employees not to work,” a headline with a truly mangled interpretation of the facts. The story began with a report about Georgiana Lohman, a 20-year City employee who worked as an animal control officer. Lohman, who would typically try to find the owners of wayward pets rather than take them directly to the pound—a violation of policy—had been on paid administrative leave for 10 months while her case was under investigation. She was ultimately returned to work in another capacity.

Buried 22 paragraphs into the piece, “master-criminal” Ernest Shih is mentioned in the Auburn Journal for the first time in eight months. Turns out he has been on paid leave since the day he was arrested, a fact never previously revealed by the Auburn Journal. (Go to the story with a ton of reader comment at: www.auburnjournal.com/articles/2007/02/28/news/top_stories/02city28.txt?pg=1.)

Five paragraphs in the piece touch on the case of Shih, whom the Auburn Journal has reported earns in the realm of $80,000 annually, plus benefits.

Remarkably, Usher puts her own spin on the story with this comment: “Although some may believe it’s great to get paid and not work, others in town aren’t so sure.” Then she quotes a random person saying: “"That just doesn't make sense to me. Why bother to pay someone who isn't working? If they did do something wrong - let them go."

In March Shih made two court appearances and his case was continued both times.

Then, on April 3, the headline: “Charges against Shih dropped,” with an Usher piece accompanied by a portrait of Ernest Shih, this time dressed in his reserve police officer’s uniform. Placer County Prosecutor Jim Wilson was quoted in the Journal saying, “It’s not in the interest of justice to pursue (the weapons charge); it would be in the best interest to dismiss the three remaining counts. (Go to the story at: www.auburnjournal.com/articles/2007/04/03/news/top_stories/01shih3.txt.)

What might happen next in this saga is decidedly unclear because the reportage was unintelligible in this final installment in the Auburn Journal. Apparently, Shih has the option to take action against his employer—the City—but the potential charges were never illuminated in the piece. On the flip side, the city may take future “personnel action” against Shih now that the criminal charges have been dropped.

Criminal charges against Shih were dropped two months ago, and not a single line has been printed in the Auburn Journal in follow up. Based on the significant lapses in the newspaper’s coverage of this story, don’t expect a news flash any time soon.

Serious Questions Need to be Answered

Ernest Shih might be guilty as hell of something, but we’ll never know because his case was mismanaged from the beginning. If Shih did pad his expense report or commit some equally stupid but insignificant act, the true financial impact on the City of Auburn couldn’t be more than a few thousand dollars. If you accept that, you have to wonder why city officials just didn’t handle the problem administratively, rather than grandstand with such a public and ultimately expensive display.

A reasonable person must look at Ernest Shih as an innocent man because he has been proven guilty of absolutely nothing. . .no matter what the truth may reveal. What’s certain, however, thanks to the humiliating treatment by the Auburn Journal and the classic bungling by the City, is his reputation is tainted irreparably, and his career opportunities and the security of his family are damaged for all time.

What is most significant in this melodrama is two institutions a community trusts implicitly both failed miserably. Officials of the City of Auburn squandered precious resources of time, talent and public dollars; the Auburn Journal failed to maintain objectivity and diligence in its ongoing coverage of this story. Perhaps it was laziness or lack of skill, but at the end of the day, the Journal failed to ask the right questions at the right times. It was far too cozy with its sources, and no one in management kept their eye on the ball of this story.

In the final analysis many tough questions linger, and the people of this community should demand answers. . .answers that the Auburn Journal—fulfilling its most basic obligation as a news-gathering organization--should seek to uncover:

--First and foremost, what happened to Ernest Shih?
Does he plan to sue the City of Auburn or has he already settled out of court? What are his damages? Is he still on paid administrative leave? If not, when were payments terminated, and what was the total amount paid to him from the City? Has he been reemployed elsewhere? After living in the hell of a legal limbo for more than a year, what has been the toll on him personally?

--From a legal perspective, of what actual crimes was Shih accused? No details about alleged criminal acts were ever revealed. What was the total potential dollar impact on the city? What evidence was developed, and why wasn’t it enough to support the charges brought against Shih?

--How much did all of this nonsense cost the taxpayers of Auburn?
This was an expensive exercise if you consider the cost of continuing to pay Shih and any staff who may have replaced him; the cost of the investigation; legal and court costs; costs of consultants and staff to analyze all of the City’s computer systems for security breaches; and the lost time and lost productivity of all involved. . .not to mention the ultimate cost to the City of settling with Shih or prosecuting (or should we say persecuting) him in the future. The full loss could easily amount to a quarter of a million dollars, the precise level of the City of Auburn’s expected budget shortfall for 2008 (according to a recent comment by a City Council published in the Auburn Journal).

--A man’s reputation has been smeared, his life ruined. Who should pay? This is a serious issue, and one that simply should not be ignored. Someone in City Hall initiated and drove the charges against Shih. That person failed, and there are attendant consequences to be satisfied. All too often, City officials hide behind the veil of “privacy” in personnel matters, in the way the Federal government uses “national security” as a convenient shield. The Auburn Journal should get its lawyers to file actions under the Freedom of Information Act to dig into what is happening in the former grammar school on Lincoln Way.

--Who leaked the story to the press, enabling Auburn Journal reporters to be on hand for the arrest?
Such grandstanding behavior is unacceptable and violates the public trust and the rights of the accused.

--Who is accountable at the Auburn Journal? The story of Ernest Shih was horrifically mismanaged by the Auburn Journal from the moment Jim Ruffalo got an instant rush from recognizing that he had been handed a blockbuster exclusive. It is clear, based on the frequency of repeating the charges against Shih and the frequency of his jailhouse photo appearing in the paper that there was a presumption of his guilt. This was compounded by the bias exhibited in the coverage through publishing opinions from people who had no specific knowledge of the issues or the case. Finally the eight-month lapse in reportage, coupled with absolutely no effort invested in follow-up on this story are reprehensible.

Someone is responsible for this shoddy journalism, someone must pay, and I’m convinced it is the two gentlemen who so eagerly accepted the “Business of the Year” accolades from the Auburn Chamber of Commerce. What’s good for business, unfortunately, can be lousy for journalism, and Messrs. Rothe and Hazarian have demonstrated this fact all too clearly.

Ernest Shih may have committed crimes against the City of Auburn, I don’t know. But he is entitled to due process, and thank God that came to pass. . .even without the aid of Auburn’s Fourth Estate.

Look for Part 2 of this report next week, examining three other stories covered in the Auburn Journal.

The last word is yours.
Write to me with the knowledge that I may run your letter in a future column, but I never identify any of my correspondents. Email me at gamoffat@pacbell.net. All nice, polite notes (no profanity) get answers.

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