Accused Felon Promoting Security

TRACY SEIPEL / San Jose Mercury News 25aug02

When it comes to sheer audacity, people who know him say San Jose businessman Peter Kent Davidson has enough to fill a convention center.

And that's exactly what he's attempting to do.

For almost a year, the 50-year-old former window contractor has been promoting an upcoming San Jose trade show focused on security and safety in the post-Sept.11 world.

From left: Gov. Gray Davis, Peter Davidson.

Davidson's challenge has been to persuade local and national law enforcement, private investigators and security professionals, among others, to rent booths, speak or give demonstrations at the event, the American Security Expo, scheduled for Sept. 15 to 18 at the San Jose McEnery Convention Center.

There's just one problem: Davidson is facing six felony counts of grand theft and six felony counts of diversion of construction funds in Santa Clara County Superior Court. If convicted, Davidson could go to prison.

Davidson's legal troubles have not stopped him from signing up significant support for the expo. For keynote speakers, he's landed two heavyweights from Ground Zero, Tom Von Essen and Bernard Kerik. The former is New York City's ex-fire commissioner, the latter its ex-police commissioner. And he has a wealthy South Bay home builder who says he fronted $170,000 of seed money for the event. Even the Mercury News is a sponsor.

The upcoming event may indeed prove to be a legitimate and profitable enterprise. Nevertheless, David Rios, the home builder who is the security expo's primary backer, is concerned about his investment and has recently distanced himself from Davidson.

`I'm a victim' • Fremont builder provided funding

``I feel I'm a victim like anybody else would feel as a victim, because everything he told me never came true,'' said the 59-year-old Rios, president of D.F. Rios Construction in Fremont. ``He's a hustling salesman, and I got hustled.''

Davidson's attorney, Jamie Harmon, advised her client earlier this week not to speak to the Mercury News. Asked to respond to Rios' allegation that he has been ``hustled,'' Harmon said she is not involved with Davidson's expo business. ``Everything he wants to do with the security expo comes from a really good place, and I think he is sincere,'' Harmon said.

Rios isn't the only one questioning Davidson's character.

Davidson stands accused of pocketing tens of thousands of dollars from unsuspecting South Bay homeowners who had paid him for windows and glass doors when he owned the now-defunct company Factory Direct: The Window Pros.

``He's good at talking people into parting with their money,'' Yen Dang, a Santa Clara County deputy district attorney, said of the window cases. Dang has been helping consolidate the criminal cases against Davidson.

According to state and local authorities, Davidson kept some of his customers' down payments and never ordered the products.

Harmon disputes the characterization of her client, the executive director of the American Security Expo, as a crook.

``I don't think Peter is a con,'' said Harmon. ``He does not set out to do things that will harm people.'' She called his conduct with homeowners ``negligent and unfortunate,'' but said they will all be repaid. ``His ability to manage money and other people is not his strong suit,'' said Harmon.

The Mercury News reached five customers satisfied with Davidson's work; four of them noted the process took longer than expected.

``When the windows were finally done, I was satisfied, but I was annoyed at how long it took to get done,'' said patent attorney Jim Riegel.

Those looking into Davidson's past business dealings say he is a highly skilled salesman.

``He's very articulate, very convincing. You can see why he can sell anything,'' said Rick Lopez, an investigator with the California Contractors State License Board, who first began documenting homeowner complaints against Davidson in 1999.

``He played the con man,'' said San Jose homeowner Tim Keys, who placed a $9,100 order for windows at Davidson's now-closed showroom on Camden Avenue in Campbell on Sept. 30.

Like others, the engineer was asked to put down half the total -- about $4,500 -- as a deposit. Under California law, contractors can only demand a 10 percent down payment or $1,000, whichever is less. But when the windows didn't arrive after eight weeks as promised, Keys got worried. He called Davidson, who apologized, telling Keys there had been a manufacturing slowdown after Sept. 11.

Keys asked if Davidson had actually ordered the windows; Davidson told him he had. But when Keys called the manufacturer himself, he was told the windows were never ordered.

Keys called Davidson back and was told that he wouldn't find the order by calling the manufacturer because Davidson had placed the order with a ``consortium'' of other contractors, and Keys' order was inside that.

``At that point, I realized he's a fraud,'' said Keys, who hired an attorney the next day.

``The bottom line is he simply takes the money and then does not order the windows,'' Keys said with disgust. ``You'll find my story is the same as everybody's.''

That pattern was played out with other alleged victims. Govind Tatachari, Margaret Kinney, Joyce Gonzalez and Rimma Brisker said when their orders failed to arrive Davidson gave them the runaround, eventually saying he had financial problems.

To quell customers' ire, Davidson said he would guarantee immediate delivery if they would pay the balance due on their order. Most refused.

Some repaid • Other customers have lost hope

Davidson also offered to repay his incensed customers in installments over a long period of time. Some were finally repaid, but many have lost hope of ever recovering their money.

The District Attorney's Office says it may never know how many customers had similar experiences with Davidson. ``People who never received their orders feel embarrassed that they've lost the money, and don't think it's worth their time to get it back,'' said deputy district attorney Dang of cases such as Davidson's. ``There are people who never filed a complaint but are victims.''

In December, the window company ceased operations. The following month, Davidson's contractor's license was revoked, primarily because of customers' complaints. By then, he had met Rios and begun his next venture -- the security expo.

``He was kind of desperate, but I kind of liked him. He's a salesman,'' said Rios. The home builder liked Davidson enough to lend him $40,000 to, as Rios recalled, ``get out of a jam with this window company.'' Said Rios: ``I guess he was just in arrears on some payments.''

Before long, Davidson began pitching the security expo concept to Rios, saying he had organized such a show in the mid-1980s.

``It was supposed to be a security expo as far as educating people about things like disasters and health and security and all these grandiose things,'' Rios recalled Davidson telling him of the proposed show, originally slated for May at the Santa Clara Convention Center.

``He said there should not be any problem selling it out.''

Rios agreed to back him, helping to rent the convention center, and reserve the keynote speakers for an initial $30,000, with another $30,000 due after the show. He paid Davidson a salary of $5,000 a month. Rios also put up tens of thousands of dollars for a sales staff, printed materials, brochures, advertising, a Web site, phones, rent for a Los Gatos office and a trip to Las Vegas to scout another security expo.

But by late April, when Davidson failed to sign up enough exhibitors for the May event, Rios was dismayed and told Davidson to ``just drop it.'' Rios lost the deposit on the convention center, and anything invested in promoting the May event. But Davidson pushed, saying he could pull it off in September at a different location. Rios stopped bankrolling the show. ``I probably have put in $170,000,'' said Rios.

But the expo is expected to go on. Rios said the last time he checked, Davidson had rented space to 100 exhibitors. Rios believes hundreds of additional spaces remain empty.

At this point, Rios said, he just wants the show over with. ``I'm trying to keep peace with my inner self,'' said Rios.

Law enforcement • Sheriff, S.J. chief asked to appear

At various times, Davidson asked at least two top local law enforcement officials, Santa Clara County Sheriff Laurie Smith and San Jose Police Chief Bill Lansdowne, to appear at security events. Both declined.

Lansdowne said Davidson contacted him two years ago, long before Davidson began work on the current event, asking if he would speak at a security show. ``I said, `Send me something.' He gave me all these assurances that he had promoted several large events like this one before,'' said Lansdowne, who never received any more information.

Three weeks ago, Lansdowne learned that Davidson, while selling booth space to a potential exhibitor, allegedly claimed the police chief was due to speak at the current expo. Lansdowne called Davidson to correct him. Lansdowne said Davidson denied the story.

``I think he is no more than a self-promoting person using the Sept. 11 tragedy for his financial benefit,'' said Lansdowne.

Keith Barna, a local private investigator, was also solicited by Davidson to rent a booth. But after the sales presentation, Barna said he felt uncomfortable and declined the offer. ``It didn't feel right,'' he said.

At the San Jose Mercury News, President and Publisher Joe Natoli said: ``At the time we agreed to sponsor the event, we were not aware of the allegations against Mr. Davidson. We took his representations at face value -- that this would be a high-profile event, on a timely subject, with prominent speakers. Our continued hope is that the event will be a success for all involved.''

Davidson's next court appearance, at which he is scheduled to enter a plea, is Sept. 12 -- three days before the security expo is scheduled to begin.