Blog on the Run: Reloaded

Tuesday, December 1, 2015 7:58 am

Earl and Skip vs. the News & Record

Updated 12/1/2015; see below.

According to Courthouse News Service, the International Civil Rights Center and Museum in downtown Greensboro has filed a libel suit against Greensboro’s daily newspaper, the News & Record. Per that story, the museum accuses the paper of publishing false and damaging info about the museum’s finances.

Long story short: This suit will never see the inside of a courtroom.

Forget the question of whether the N&R knowingly or recklessly published something false and defamatory. Forget the question of whether the N&R published anything false at all. Here’s all you need to know:

For this suit to go forward, the museum’s books would have to be opened to the N&R’s attorneys — and probably a forensic accountant or two. And the museum’s founders, Earl Jones and Melvin “Skip” Alston, would have to be deposed — that is, answer questions under oath from N&R attorneys about the museum’s finances and their handling of those finances.

Three words: Nah. Guh. Happen.

Update, Dec. 1: Greensboro’s mayor, who sits on the museum’s board as an ex-officio member, says the suit will be withdrawn, and that’s not all. Thanks to Roch Smith Jr. for this follow-up:

Greensboro Mayor Nancy Vaughan, who sits on the ICRC&M board as an ex officio member, says the ICRC&M board did not vote on suing the News & Record at any of the board meetings she attended. She says she contacted the ICRC&M attorney Doug Harris to see if a vote was taken at any of the meetings she did not attend and Harris told her no vote had been taken to file the lawsuit.

Vaughan did say, however, that she was aware of dissatisfaction with the News & Record’s reporting at the ICRC&M. Vaughan said the concern was that the News & Record did not adequately explain the nature of the center’s debt in the Moffet article and that the misrepresentation of the size of the debt hampered ICRC&M’s fund raising efforts.

As Vaughan explained it, approximately $23 million of the center’s total debt is for tax credits which will be dismissed upon the completion of payments of a couple hundred thousand more dollars. Once the final payment is made in 2016, the balance of that debt will “evaporate,” Vaughan said. Vaughan explained that a recent grant by the City of Greensboro to the ICRC&M is set aside to cover those payments and that they are in an account that requires the signature of City Manager Jim Westmoreland for disbursements.

Vaughan says the ICRC&M had been discussing their concerns about the reporting of the debt with the N&R for “months” and attempting to get it to publish a correction or clarification. Vaughan says she did not know what prompted the suit to be filed without a vote by the board, but understands that after the suit is served on Tuesday, the ICRC&M intends to withdraw it without prejudice — meaning, they can file it again if they choose — and that they will return to negotiations with the News & Record.

As it was written (by me), so shall it apparently be: This suit is going No. Where.

And just as well. The museum’s whining notwithstanding, the News & Record explained the museum’s debt in a good bit of detail in an article that ran last January. It’s archived on the N&R website.

And if Skip and Earl are really worried about public trust and confidence in their institution, they might think hard about stunts like filing a lawsuit without the knowledge and approval of the governing board. I’m sorry, but, Jesus, as running a nonprofit goes, it really gets no stupider than that without embezzlement or sex crimes being involved. I sure as hell wouldn’t contribute a dime to a charitable nonprofit run that laxly.

And, finally, before we get sucked in by Skip and Earl’s bid for sympathy, let’s remember, as this July N&R article reminds us, what the museum’s own long-time auditor said in his 2014 audit report:

In their review [of auditor Oliver Bowie’s 2014 audit report], city auditors Len Lucas and Mickey Kerans noted several areas that point to the museum’s dire financial situation, which officials have sought to downplay in recent years.

According to Lucas and Kerans, museum officials:

• Drained in January its operating reserve, which is required to contain $1 million.

• Have zero working capital and zero contingency money.

• Owe Carolina Bank nearly $782,900 and the city as much as $1.25 million for the first installments of the forgivable loan — minus whatever money it raised toward the loan.

The city auditors also noted a warning about the museum’s future raised by Bowie, who has audited the museum since 1995. Bowie noted that the museum hasn’t paid $500,000 to one of the businesses it was required to set up as a condition of receiving millions in historic tax credits in 2010.

Bowie said “those conditions raise substantial doubt about the project’s ability to continue as a going concern.”

Again, that’s not the News & Record saying that. That’s the museum’s independent outside auditor. I’ll let those of you who are CPAs weigh in on what “substantial doubt about the project’s ability to continue as a going concern” means with respect to the museum. But when I was covering the PTL criminal case, civil lawsuit and bankruptcy case in the late 1980s, CPAs explained that language to me as meaning that auditors didn’t know whether the organization would still be in business in 12 months or not.

I don’t want to let the N&R off the hook completely, however. As of this writing, the paper and its website have published nothing about the lawsuit. I get not wanting to comment on the suit — particularly at this early stage, that’s only prudent. But failing to cover it is bush-league and strongly suggests that Publisher/Executive Editor Jeff Gauger is out of his depth.

Fortunately for him, the available evidence suggests Earl and Skip are even more out of theirs.

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Thursday, January 28, 2010 9:14 pm

Odds and ends for 1/28

The ultimate Miller Time: Earlier this month, Harriet Ames turned 100 and then scratched the last item, getting her college diploma, off her bucket list. The next day, that sheepskin in her hand, she died.

To the best of my ability, I will never again say a bad word about the Toronto Maple Leafs.

Conflict of interest?: The New York Times isn’t commenting on a report that the son of its Jerusalem bureau chief is serving in the Israeli military. I understand the problems that publication of this fact, if fact it be, is likely to create for the editor and the paper, as well as the possible security threat for the son and his unit if in fact this is the case. But this isn’t something the Times can ignore or stonewall.

Sen. Judd Gregg: PWNED!!111!!: Gregg, who has been pimping this idea of a bipartisan deficit-reduction commission to shield Congress from the political liability of making tough decisions, shows why he needs the shield when MSNBC’s Melissa Francis, whose work will never keep the Peabody Award people up nights, asks him to name something he’d cut from the budget and he refuses to answer. (To say nothing of the fact that he hems and haws around the question of cutting education spending when that has practically been Job 1 for the GOP since Reagan. Brother, please.)

But you don’t want to reward them, either: Nobel laureate Joseph Stiglitz says we not only need a lot more stimulus spending, we need it targeted where it will provide a decent rate of return if we’re going to be able to reduce our debt long-term. And where would that be? Technology, infrastructure, education — all the things the Republicans have been trying, by and large, not to fund. Even a ROI of 6% will help pay off long-term debt. But the ROI on spending on banks is 0%. You listening, Mr. President?

Conservative victimization: Obama calls out the Supreme Court for its wrongheaded, wrongly reached ruling in a wrongly accepted case, Citizens United v. Federal Election Commission, and the wingnuts accuse the president of trying to “intimidate” the conservative activist wing of the Court. Questions, for the wingnuts (which is most of ’em) who spent eighth-grade civics out back smoking dope: How, exactly, do you go about intimidating someone who already has been confirmed to a lifetime appointment? And how easily intimidated do you have to be to hold such a job and still be intimidated by … well, pretty much anything?

The cops lied, and fortunately, 12 of 14 jurors were willing to do something about it. I’ll say it again: I have too much respect for good cops to have any tolerance for bad ones.

George Stephanopoulos asks a good question. NewsBusters has a hissy fit, spouts objectively false claims. (“Liberal media” = “They won’t tell the lies we WANT them to tell.”)

In many important ways, the United States sucks compared to other countries, and it is important to remind ourselves of that. On the other hand, we — alone, I believe, among industrialized countries, and I’d be sad to be wrong about that but not for the reason you probably think — have given corporations more rights and fewer freedoms than people, so we’ve got that going for us.

Bigotry in Malawi: A gay couple in that country are being held “for their own safety” in jail. Where they’re being beaten up.

“I’ve never actually played FarmVille, but any game worth playing has to have Pork Knights”: How to Suck at Facebook.

The Great American Interrogation Disaster, from the man who may know more about interrogation than anyone else alive.

Memo to Andrew Breitbart from the Universe: Payback’s a bitch.

You may be a mansplainer if …: Consider me warned.

Freeloaders: In Moscow, stray dogs use the subway. For free. For real.

Britain’s libel laws are much stricter than America’s. There’s just one problem.

America loves Brett Favre: How much? More than anything that wasn’t a Super Bowl since the “Seinfeld” finale in May 1998.

Huge loss: Journalist Joe Galloway is hanging up his notepad. In recent years, Americans who have worn the uniform and those who wear it still have had no better friend.

Huger loss: J.D. Salinger, RIP.

I have just found the one college course even cooler than my employer’s “Ten Greatest Pop Songs of the Past 50 Years”: ZDI.001: Introduction to Zombie Defense. I forwarded this to several friends, one of whom said she also would post it and added, “I’m also going to read closely for practical purposes.”

And in that vein, I love people who think like this: Seated with Michelle Obama during the State of the Union was 18-year-old high-school senior Li Boynton, who’s researching ways to test water for purity. After reading Life of Pi, a novel about a guy stranded in the middle of the ocean, Boynton designed a solar-distillation device in case the same thing ever happened to her. She was in fifth grade.

And, finally, this is genius: Dante’s Internet:

Wednesday, October 21, 2009 10:46 pm

More odds and ends

  • The Galleon insider-trading case, in which billionaire Raj Rajaratnam was charged and the securities-rating firm Moody’s was implicated? Has been assigned to Judge Jed Rakoff. Yeah, this Jed Rakoff. (I hope the judge is taking extremely good care of his health, if you know what I mean, because he is making life intolerable for some very, very wealthy and powerful people.)
  • Former Fed Chairman Paul Volcker, who got us both into and out of the ’81-’82 recession, thinks we need to kind of restore the Glass-Steagall Act, which kept commercial banks from doing investments (and being dragged under when those investments went south) before its 1999 repeal. But he’s having trouble selling that idea to all the Goldman Sachs alumni on Team Obama.
  • If this hearing in fact happens tomorrow — I read or heard somewhere it could get delayed — it could get real ugly real fast for Fed Chairman Ben Bernanke and former Treasury Secretary Hank Paulson. Hell, it might even get ugly for current Treasury Secretary Tim Geithner. I’d be OK with any and/or all suffering some consequences, because you don’t have to be a Harvard MBA to know Bank of America shareholders got screwed.
  • Speaking of Hank Paulson, turns out that while he was still secretary, he met in Moscow with the board of Goldman Sachs. But nothing improper happened. Really. Move along; nothing to see here. These are not the droids banksters you’re looking for.
  • Dana Perino, concern troll. Memo: advice on how to conduct yourself from a PR standpoint from someone who used to take money to call people traitors and supporters of terrorists is probably not worth what you’re paying for it.
  • Shorter Congressman Jeb Hanserling (R-Texas): I’m here to protect banks; screw the consumers.
  • Another Republican, this time John McCain, thinks another earmark, this one $325,000 for earthquake study in Memphis, is a waste of money, and once again is wrong. Three words: New Madrid Fault.
  • Shorter Timothy Noah: Whatever happened to, you know, reporting?; or, The public option was always popular, you morons — you just pretended otherwise or weren’t paying attention.
  • More Noah, because this is just so good and so true: “Political reporters are momentum junkies, forever plotting out momentary trends to infinity. If they were meteorologists, they’d interpret 90-degree temperatures in July to predict 160-degree temperatures in December.”
  • John Cole righteously dopeslaps neocon pinhead Pete Wehner.
  • Sure, Sarah Palin’s $29 book can become a bestseller — when you sell it for $9 or give it away with a magazine subscription.
  • The Bush and Obama administrations actually threatened not to share intelligence with the U.K. if it released evidence of our torture of a guy named Binyam Mohammed. (Yeah, let’s stop sharing info with our oldest and most trusted ally. Genius.) Fortunately, Britain’s highest court is calling their bluff.
  • The maker of Tasers, which has long claimed that Tasers aren’t lethal, now concedes that they might be, potentially, well, a little bit, um, lethal. I’m guessing someone finally talked to their lawyer and figured that just maybe they might want to do a little butt-covering.
  • Socialism … and its potential benefits.
  • OTOH, let’s foster competition and innovation, not hinder it.

Finally, a bit of a health-care roundup:

  • The House Judiciary Committee voted 20-9 today to strip the health-insurance industry of its federal antitrust exemption. This is such a good idea that three Republicans even went along with it. I dearly hope my own representative, Howard Coble, was one of them. (thomas.loc.gov hasn’t been updated yet so I don’t know.)
  • You can too get a hip replacement under the Canadian health-care system even if you’re of retirement age. Ignore the urban legends/propaganda.
  • Sen. Richard Burr’s health-care reform plan: fail. Not epic fail, not actual sabotage of what the bill purports to support, but also not enough recognition of certain economic and financial realities.
  • Expand Medicare to include — well, anyone who wants in? That’s a public option even some Blue Dogs can believe in.
  • And even if we choose a real public option, the Congressional Budget Office says it won’t cost as much as opponents have been claiming.
  • Apparently, U.S. Sen. Arlen Specter had no idea that some people were unable to start their own businesses, or stuck in jobs they hate or aren’t suited for, because they can’t afford the health insurance costs they’d have to pay if they made those moves. I mean, c’mon, how imaginative do you have to be before that possibility occurs to you?
  • Last but not least, Al Franken humbles a Hudson Institute hack on health-care finance:


Senator Al Franken: I think we disagree on whether or not the healthcare reform we’re talking about now in Congress should pass. And you said that, kind of the way we’re going will increase bankruptcies. I want to ask you, how many bankruptcies because of medical crises were there last year in Switzerland?

Diana Furchtgott-Roth: I don’t have that number in front of me but I could find out and get back to you.

Franken: I can tell you how many it was. It’s zero. Do you know how many medical bankruptcies there were last year in France?

Furchtgott-Roth: I don’t have that number but I can get back to you if you like.

Franken: The number is zero.
…

Wednesday, May 20, 2009 8:16 pm

“Where are the damn cops?”

Filed under: Subpoenamania! — Lex @ 8:16 pm
Tags: , ,

Insider trading in Bank of America stock? Karl Denninger thinks so.

(h/t: baum)

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