Fraud?!

[cwo_ghwebb]

The membership of the American Legion Post 82 used to have approximately thirty-four acres of land that had two baseball fields located on the property. The membership couldn't agree whether to build a new Post on that location or sell the property and use the proceeds to remodel/repair the existing building. The debate lasted several years.

Eventually the membership decided to sell the property and went through the process of getting permission from the American Legion Department of Maryland (which was finally approved in 2004). As a side note, all American Legions are legally owned by the Department (State level) American Legion. There was an offer from a developer for the property for approximately $32,000 per acre (nice little chunk of change).

Just before the annual officer elections, a new sheriff came into town. Actually this person was a retired police officer who had purchased a home in town a couple years earlier. This officer's property adjoined the Post property. He decided to join the Post when the property became available. He ran for a position on the Corporate Board of Directors and was elected. Two officer positions within the Post went unfilled.

The Board of Directors approved sale of 1.5 acres of property to this fellow Board of Directors member for $24,000. The sale closed on 24 July 2004.

The remainder of the property was sold to the developer for over $1.1 million (approximately 32 acres). You do the math. Roughly $24,000 lost to the membership.

Now this person wants nothing to do with the American Legion.

Would you term this action taken by the Board of Directors a poor business decision by the President of the Board of Directors (who owns a tile company, so supposedly a competent businessman), or outright fraud?

 

[Thankful]

smells funny

Do you have any names of the board members in question? Are they related to the approving officials at the state level? Was the LaPlata property purchased by the board memeber re-sold to the developer for a profit? Who was the board member that was charged with theft about a year ago now banned from the legion? More details are needed to run verifications.

 

[cwo_ghwebb]

Do you have any names of the board members in question? Are they related to the approving officials at the state level? Was the LaPlata property purchased by the board memeber re-sold to the developer for a profit? Who was the board member that was charged with theft about a year ago now banned from the legion? More details are needed to run verifications.

I have all the names, will not post. All sales are matter of public record, although the 1.5 acre land sale is not online as the land was NOT resold back to the developer (it was just added to the current property). The date is accurate however as I went to the County Clerk and received the information. There is no relationship between any of the Board members and approving authorities at any higher level of which I am aware. The property was on Hawthorne Road and sold to some developer with Hawthorne in the name. Online land sales can be searched at http://sdatcert3.resiusa.org/

Folks are banned from the Post on a regular basis, without a hearing, which is against National Post By-laws. Too much gossip comes out of that Post regarding folks, (especially regarding theft). I'll only post that which can be verified. But the basic question remains, is this fraud?

 

[clevalley]

I knew someone who was affliated with that Post for some time, after transferring in he quickly transferred out. I thought this was odd but his comment was too much going on there at the officer level; I just let it be because I do not know too muich about the Legion.

The deal does sound a bit 'smelly' - not sure of fraud but I would consult a Real Estate lawyer... maybe one can do it pro-bono for the Legion??

I would package this up and send a copy to the American Legion at the state / district / national level... notify the press (newspaper, local DC news) is a good way to light some fires. Write a letter to the Editor - that normally starts a firestorm.

 

[cwo_ghwebb]

I knew someone who was affliated with that Post for some time, after transferring in he quickly transferred out. I thought this was odd but his comment was too much going on there at the officer level; I just let it be because I do not know too muich about the Legion.

The deal does sound a bit 'smelly' - not sure of fraud but I would consult a Real Estate lawyer... maybe one can do it pro-bono for the Legion??

I would package this up and send a copy to the American Legion at the state / district / national level... notify the press (newspaper, local DC news) is a good way to light some fires. Write a letter to the Editor - that normally starts a firestorm.

How does the membership of a Post sue an unchartered Post Corporate Board of Directors?

This Post ignores District and Department directives and both those entities are well aware of the improprieties that have occurred there in the past and have refused to take action. Don't want to take it to the papers just yet until I'm sure this is a crime. I also have to testify shortly at a DLLR legal hearing against the Post CPA (three other cases with that one, so I'm not the only one with a complaint). Once that CPA loses his license I can proceed with a little more confidence. Any additional information would be appreciated.

 

[ImnoMensa]

Not so sure there is a vast difference between taking this to the papers and posting it on the internet in this forum.

I have heard rumors of improprieties at this Post ,[its not my Post so I am only getting rumors.] I believe some of these improprieties are already in the court system, I also know that Department is not for one minute ignoring the situation.

 

[cwo_ghwebb]

Not so sure there is a vast difference between taking this to the papers and posting it on the internet in this forum.

I have heard rumors of improprieties at this Post ,[its not my Post so I am only getting rumors.] I believe some of these improprieties are already in the court system, I also know that Department is not for one minute ignoring the situation.

The Maryland Independent didn't think it was too big a story. At least here I can get some feedback as I'm not sure how to proceed at this point. This particular impropriety has never been addressed as has numerous others. The sign issue is being addressed by the Town Council. The disregard of the Town Ordinance banning smoking was finally enforced by the police but took numerous complaints. This is just the tip of the iceberg.

I hope Department is not ignoring the situation but I didn't receive any support in the past. Got lots of suggestions from District, implemented the suggestions and the Board of Directors promptly reversed them. They don't even follow the advice of their Corporate Attorney. It's a difficult situation trying to hold these folks accountable. Legally, they are not accountable to the membership in any way, shape or form, other than during the elections when the Board members are elected.

 

[ImnoMensa]

I have heard that you have a personal axe to grind here. Were you not Post Commander there for a while after a transfer from Post 259 ? Sorry if I have the wrong guy. Please inform. I want to be sure I have the right person.

I am also told that the 1.1 million dollars has been invested and that remodeling of the Post will begin soon.

Are you still a member of that Post and if you attend meetings regularly why havent you brought this up at those meetings. Any MEMBER is privileged to bring up such things.

 

[cwo_ghwebb]

I have heard that you have a personal axe to grind here. Were you not Post Commander there for a while after a transfer from Post 259 ? Sorry if I have the wrong guy. Please inform. I want to be sure I have the right person.

I am also told that the 1.1 million dollars has been invested and that remodeling of the Post will begin soon.

Are you still a member of that Post and if you attend meetings regularly why havent you brought this up at those meetings. Any MEMBER is privileged to bring up such things.

I was Post Commander there, but have never belonged to Post 259. A former Finance Officer transferred to Post 82 after being expelled from Post 259. I don't know of any other members personally who have transferred. I know another Past Commander, who such as myself, transferred out of Post 82.

As a matter of fact, members cannot bring up any item the Board of Directors deems "Corporate". That includes running the canteen, etc. I knew the remodelling of the Post has begun. I happen to live in the same ward as the Post.

It's not a personal axe to grind, I was simply asking originally, is this type of transaction fraud? I'm not an attorney (or I'd know the answer). It seems fishy to me but I've been wrong in the past (and I'm sure wrong again sometime in the future).

 

[Thankful]

Wheelchair Fraud?

As I hear it, recently a former member and his wife was rental housing shopping. The wife was using a wheelchair. Later that same couple was seen drinking in a local bar and ran out the back door (leaving drinks and keno cards) when they spied someone who knew them. Seems the wife didn’t need the wheelchair to run out of that bar. Maybe there is some kind of fraud. You think?

 

[cwo_ghwebb]

As I hear it, recently a former member and his wife was rental housing shopping. The wife was using a wheelchair. Later that same couple was seen drinking in a local bar and ran out the back door (leaving drinks and keno cards) when they spied someone who knew them. Seems the wife didn’t need the wheelchair to run out of that bar. Maybe there is some kind of fraud. You think?

LOL! Heard the same thing. But I heard they were current members. He drives a big Ford Pickup, she has long gray stringy hair. That would be quite a jump into the pickup from a wheelchair!

I don't hide from anyone. I'll be on Charles Street, La Plata in uniform (Navy) during the Veterans Day Parade. Come look me up and we'll talk if you desire.



I was looking for some input into the land sales, don't shoot the messenger, the facts are public record and stand for themselves.

 

[cwo_ghwebb]

I don't want or need a flame war. If you have heartburn with the topic or poster, email me.

 

[Thankful]

So you agree it's fraud?

Fraud was the question - right? My search of the land sales all appear to have the proper clearance. You don't have to worry about hiding from me and I don't have a flame thrower! Just trying to clear up what fraud exist. Where I stand now - I won't help you grind your ax. A spade is a spade in my book.

LOL! Heard the same thing. But I heard they were current members. He drives a big Ford Pickup, she has long gray stringy hair. That would be quite a jump into the pickup from a wheelchair!

I don't hide from anyone. I'll be on Charles Street, La Plata in uniform (Navy) during the Veterans Day Parade. Come look me up and we'll talk if you desire.



I was looking for some input into the land sales, don't shoot the messenger, the facts are public record and stand for themselves.

 

[cwo_ghwebb]

Fraud was the question - right? My search of the land sales all appear to have the proper clearance. You don't have to worry about hiding from me and I don't have a flame thrower! Just trying to clear up what fraud exist. Where I stand now - I won't help you grind your ax. A spade is a spade in my book.

The original land sale of 1.5 acres isn't online, you have to go to the Courthouse to get the information. (It was closed when I went to and from work today). So just how did you ascertain the original land sale had proper clearance? I'm not sure this is a legitimate sale. Could be it is, could be it isn't. I would think a Board of Directors would have a fiduciary responsibility to the members to make the best deal possible. If an offer for the same amount was tendered for that 1.5 acres from someone other than a fellow member of the Board of Directors, would they have taken the same action? Especially since there was a standing offer for the property at a much higher price? At best it was a poor business decision, at worst fraud. Either way the Post membership lost. I don't know who you are and really don't care, but it appears you're defending an ethically challenged Post Board of Directors.

 

[ImnoMensa]

I also heard a former Commander and his wife were taken to court for theft and only returning the money kept them from jail.

Perhaps the problems at this Post have been solved. The offender banned .

 

[Thankful]

Some issues and justice take time

I also heard a former Commander and his wife were taken to court for theft and only returning the money kept them from jail.

Perhaps the problems at this Post have been solved. The offender banned .

That post is getting better. It just takes time for recovery and for justice to prevail.

 

[cwo_ghwebb]

I heard this and I heard that. Rumors versus fact. Nice attempt at trying to hijack the thread. Stick to the topic please, we're talking about the unchartered Post Board of Directors and their decisions.

BTW, the Commander's wife was never charged with theft. I know this for a fact. Easily checked. The court case isn't yet finished against the Commander from what I can glean from court records, with another hearing coming up in November. The Post can't be getting too much better as they broke the law again with the whole shenanigans with their changeable sign. That's going to come back and bite them. The La Plata police had to enforce the smoking ban there also. Too many instances where the Board thinks they are above Legion By-laws, Town Ordinances and the law in general.

Still looking for input into the ethics question of selling property to a fellow Board of Director for $24,000 under the standing offer from another firm.

 

[cwo_ghwebb]

Actually, the best response I received on this question came from Bay Net from sailor_mom:

"Usually the fiduciary responsibility of the board of directors is to operate the organization and implement the organizations goals. Since the organization is technically not for profit then it is hard to see that the goal should be making money on the sale. The membership really only can act upon the decision if it so written in their by-laws that they have to agree (by some vote) to the decision, transfer of land, sale of property. Otherwise the board of directors are elected to act on behalf of the membership. The sale would be legitimate if the BOD acted on behalf of the membership (as elected representatives) and there was no provision in the by-laws to prohibit it. This is an ethics issue...was the sale ethically right...maybe not but you would be hard pressed to prove it and gain anything without a provision in the by-laws that states the BOD will act ethically for the organization. It is a sticky matter but requires a thorough review of the membership by-laws and governing rules for the BOD."

I responded:
I've put this on several forums and I think this the best response. I've always felt the sale unethical. If another individual had made the same offer, I don't believe the BoD would have accepted. I was really interested in the legalities. The BoD is unchartered. The Legion attorney has recommended getting the charter since at least 2001. I pushed for it also. The National American Legion recommends getting a charter but I don't believe it's mandatory. Unfortunately, the BoD is NOT responsible to the membership, had that checked with the attorney also. As members, we lost $24,000 which we could have used for this building which we're remodeling. Thank you very much for you input. I didn't necessarily like the results but I believe you're accurate.