East Palo Alto, a city established in the mid-80's around the rallying cry for rent stabilization, is home to low-income residents, including many whose first language is not English. Not long after the company began buying up apartment buildings in that city in 2006, it announced rent increases that were in violation of the city's Rent Stabilization Ordinance. After repeated violations, the community rallied to form a tenants' organization. In August 2008, tenant Christopher Lund together with East Palo Alto city representatives, called on the public pension fund CalPERS, a major Page Mill investor, to help stop Page Mill Properties's predatory actions. Page Mill began a campaign to discredit Mr. Lund's reputation. With the assistance of the Palo Alto Police Department, the company attempted to entrap the tenant activist by tapping his phone.

Page Mill reported to police that Lund tried to extort $20,000 from them in exchange for agreeing to vacate his unit and solve the company's problems with tenant groups. The Palo Alto Police Department then worked with Page Mill to set up a tap on Lund's phone. In that secretly recorded conversation a director at Page Mill, Russell Schaadt, offered Lund $25,000 to get him out of the picture. Lund refused, adding during the recorded conversation, "That's not on the table, and it has never been about personal settlement."

Mr. Lund and other activists are also questioning the possible involvement of an active member of the Palo Alto Police Department, Lt. Tim Morgan. In an article in the San Jose Mercury News, Palo Alto Police Agent Dan Ryan said former police chief Lynne Johnson authorized Morgan to do contract work for Page Mill early last year, and he began working for the company this past summer. Lund says the lieutenant is easily recognized by activists as someone who showed up at a City of East Palo Alto Rent Board meeting, where he blocked an activist's car. Tenants and neighbors spotted him lurking with a concealed weapon near the home of Mr. Lund on January 29 and 30 and on one of those occasions he photographed Mr. Lund and his car. Renters rights supporters are now wondering if Lt. Morgan was involved in the wiretapping incident as well and the Police Department is looking into the matter.

In an interview with the Mercury News, the lieutenant said he has nothing to do with "the extortion in Palo Alto", and that he is merely working as an "emergency preparedness consultant" for the landlord. Page Mill has sent other employees to tear down Tenants' Rights notices posted on telephone poles in East Palo Alto. Photos provided to indybay by Mr. Lund show trashed yellow notices of renters' rights along with white flyers notifying tenants of a website they can visit for help, and the Page Mill employee's truck as he speeds away.

Photos and Reports: 2/9: E. Palo Alto Landlord Hits Rock Bottom with Extreme Tactics | 2/7: Questionable Police Practices Continue After Palo Alto Police Chief Forced to Retire | Mega-Landlord Offers Tenant Activist $20,000, then Twists Bribe into Extortion Charge | EPA-Tenants.org