3abn Confirms Real Estate Transaction, & Hints of Piano Sale Besides Options

[Snoopy]

Thanks for the information, Snoopy,

There is a link on that page Illinois Attorney General's Registered Charities. When you click on that link, the next page has a link Charitable Database Information and Disclaimer. Read the disclaimer and it looks like if you click on "yes" that you agree and proceed, there looks like there is more information available from the State about a charity. This is not to file a complaint, just to get more inside information on the charity you want to learn more about.

I didn't go any further.

Is anyone going to file?

You are right, lurker. That link takes you to the 990s.

[lurker]

I guess you had more courage than I did, Snoopy. It would have taken me a little longer before I would have got up enough gumption to investigate more on that website as you did. I was sure thinking about it. Didn't it say there were other documents available too?

Also, when anyone files a complaint, that isn't the same as filing a lawsuit. It is just filing a complaint that needs to be investigated by the State.

And though IRS action toward 3ABN may be impossible in regard to that particular real estate deal because of the statute of limitations, would action by the State of Illinois be precluded by a statute of limitations? Could or would they do anything in regard to past worgdoing?

This post has been edited by lurker: Jun 19 2007, 04:13 AM

[Observer]

I guess you had more courage than I did, Snoopy. It would have taken me a little longer before I would have got up enough gumption to investigate more on that website as you did. I was sure thinking about it. Didn't it say there were other documents available too?

Also, when anyone files a complaint, that isn't the same as filing a lawsuit. It is just filing a complaint that needs to be investigated by the State.

And though IRS action toward 3ABN may be impossible in regard to that particular real estate deal because of the statute of limitations, would action by the State of Illinois be precluded by a statute of limitations? Could or would they do anything in regard to past worgdoing?

There is a ten (10) year rule that applies to some types of IRS issues. I cannot say whether or not that rule applies to the transactions in question. I do not imply that it does. Maybe it does. Maybe it does not. But, there is a ten (10) year rule that sometimes applies.

All of this discussion has been interesting. I thank SP for her part in getting it going. If she had not posted partial information, and made some of the comments that she made, some of us would not have been as informed as we are now.

Those who defend 3-ABN/Danny contribute to our learning. It is truth that we are after.

[Pickle]

Is anyone going to file?

If more had filed complaints about Tommy years ago, there would likely be fewer alleged victims today who think they can't do anything now because the statute of limitations has run out.

[Pickle]

You are right, lurker. That link takes you to the 990s.

Not just the 990's, but the financial statements and auditor's report as well.

One thing that caught my eye is that for 2003 to 2005, the airplane(s) cost between $858,000 and $989,000 a year. Statement 12 of the 990 for 2004 and 2005 lists payments received from disqualified persons. Was anyone on that list the one footing the $30,000 or $40,000 a month for the plane, and if so, are those amounts listed?

Another thing that caught my eye is the purchases from DLS Publishing and D&L Publishing. D&L Publishing is likely Danny and Linda, and must have been replaced by DLS Publishing in 2004. I am curious where its assets went after the divorce, and why neither publishing company is listed on Danny's 2006 financial affidavit.

Questions have previously been asked about inventory. Perhaps the additonal information in these statements will help to answer some of those questions.

Lastly, the 2000 990 Sched. A lists $610,000+ going to two contractors, and $69,000+ going to Gray Hunter Stenn for Auditing and something. Then the 2001 990 Sched. A lists Gray Hunter Stenn getting $125,000+ for Auditing and Accounting services. Anyone know if the same firm that does your auditing can also do your accounting?

I'm curious as to just how far one has to avoid conflicts of interest involving auditors. What if a firm prepared my personal tax return. Could they also audit my non-profit's books? Or would that constitute a prohibitive conflict of interest?

It seems the top leadership is preparing for their own retirement years with "off the map" real estate transactions?

That nothing of the sort is going on becomes extremely hard to verify since the auditor's statement says that 3ABN does not account for payments to its related entities in Russia, the Philippines, Brazil, and Peru.

[Pickle]

Why bring up 3 or 4 documents, ....

I'm not sure I understand what you mean, SP. The 5 documents on Gailon's site presumably cover all the transactions that year for the two properties in question. The ones pertaining to Lot 6, when combined with the 1998 990, unequivocally show that:

• Lot 6 was sold by 3ABN to DLS and LSS.
• As officers of 3ABN, DLS and LSS signed the deed in order to sell the property to themselves.
• 3ABN admitted on the 990 that the property was sold for a price far below fair market value.
• That sale resulted in about $129,000 profit to DLS & LSS in only 7 days.

What is yet unknown that has already been discussed? From what I recall, no one has yet discussed the possibility that Danny and Linda already knew on Septmeber 25, 1998, that the property they as officers were signing over to themselves was going to be resold at a hefty profit in just 1 week. Seems like a reasonable assumption, but that is one detail we don't know, yet no one has suggested that, from what I recall.

[Pickle]

Another question regarding the 2003 to 2005 auditor's report: How much longer than two years will it take for the 3ABN board of directors to bring 3ABN into line by requiring the related entities in Russia, the Philippines, Peru, and Brazil to disclose the information the auditor's report specifies? Two years sounds long enough, but maybe it isn't.

I hope Caremelita Troy notices this possible problem. She wasn't around in 1998, but she's around now.

By the way, does the attorney general's office have documents for additional years that are not online? Does anyone live close enough to find out and get copies of everything but the 990's for 1998 through 2002, or even back to 1984 or 1985 through 2002, if they are available?

[Observer]

Not just the 990's, but the financial statements and auditor's report as well.

One thing that caught my eye is that for 2003 to 2005, the airplane(s) cost between $858,000 and $989,000 a year. Statement 12 of the 990 for 2004 and 2005 lists payments received from disqualified persons. Was anyone on that list the one footing the $30,000 or $40,000 a month for the plane, and if so, are those amounts listed?

Another thing that caught my eye is the purchases from DLS Publishing and D&L Publishing. D&L Publishing is likely Danny and Linda, and must have been replaced by DLS Publishing in 2004. I am curious where its assets went after the divorce, and why neither publishing company is listed on Danny's 2006 financial affidavit.

Questions have previously been asked about inventory. Perhaps the additonal information in these statements will help to answer some of those questions.

Lastly, the 2000 990 Sched. A lists $610,000+ going to two contractors, and $69,000+ going to Gray Hunter Stenn for Auditing and something. Then the 2001 990 Sched. A lists Gray Hunter Stenn getting $125,000+ for Auditing and Accounting services. Anyone know if the same firm that does your auditing can also do your accounting?

I'm curious as to just how far one has to avoid conflicts of interest involving auditors. What if a firm prepared my personal tax return. Could they also audit my non-profit's books? Or would that constitute a prohibitive conflict of interest?
That nothing of the sort is going on becomes extremely hard to verify since the auditor's statement says that 3ABN does not account for payments to its related entities in Russia, the Philippines, Brazil, and Peru.

Can the same firm/person do your accounting and auditing?

I am an officer in a local, non-SDA, non-profit (not cheritable) organization. A couple of years ago we retained a CPA to do an in-depth audit of our books over a three year period.

Following that audit, we decided to solicit bids for someone to do our accounting, as well as some other functions. The person who had recently done the audit bid for the accounting position. At the time that we interviewed him, he clearly stated in terms that we we could understand that any future audits would have to be done by others, if he got the a ccounting position, as it would be highly unethical for him to do both our accounting and future audits. We understood, had expected such, and agreed with him. He also told us that he could lose his CPA license if he were to attempt to do both our accounting and future audits.


Now, it is speculation as to what is meant in the quotation listed above in regard to Auditing and Accounting services.

I am going to assume that Mr. Stenn is a knowledgeable, ethical person who would never risk doing something that might result in censure, or other discipline. On this basis, I must assume one of the following is the explaination:

1) The person who prepared the 990 did not accurately describe the services performed by Mr. Stenn. In reality, Mr. Stenn does not do both auditing, and accounting. Perhaps (?) he may do some accounting, and peridicly write a report that someone who is not experienced in accounting has described as an audit.

2) Mr. Stenn either did an audit, or does the accounting, but not both. The comment in the 990 is inaccurate.

3) There is some other explaination that has escaped my thought at this point in time. Perhaps with the passage of time there will be some revelation of this matter.

[Snoopy]

It is annoying to find that partial information is disclosed in order to influence how we as members of bsda will view certain transactions. I certainly hope that this is not the case, but would appreciate some confirmation that there has been full disclosure regarding what is known about the Lot 6 transactions.

Thank you.

Just a hunch, but I'll bet Linda Shelton is also very annoyed at the release of partial information in order to influence...BTJM...

[Pickle]

Can the same firm/person do your accounting and auditing?

It is unquestionable that the firm (the Marion office in 2000) identified as doing accounting and auditing in 2001 is the same firm (Marion Office) that did the actual audit in 2003 through 2005.

Also, take a look at the last page of the 1999 Form 990. The request for an extension is signed by Alan Lovejoy, CPA. Now look at the last page of the 2000 Form 990. Notice that the request for an extension is because the audit is delayed until August, and that is because they had to fire their Financial Director. Would that have been Alan Lovejoy, CPA?

Now look at http://www.zoominfo.com/people/Lovejoy_Alan_1005480.aspx. Alan Lovejoy, CPA, is a partner at Gray Hunter Stenn.

Was he a partner there when he signed the extension request for the 1999 990 on 5/8/2000? It appears that he was.

One of the allegations out there is that someone was the 3ABN CFO while at the same time affiliated with the auditing firm. There's more to the story, but I don't know all the details.

At any rate, we are left with the question of whether Alan Lovejoy was signing that extension request as an accountant for 3ABN or as an auditor for Gray Hunter Stenn.

Would the auditor sign the extension request? Or would the 3ABN CFO or some other officer do that? According to the instructions for that form:

Signature. The person who signs this form may be:

• A distributee, or an authorized representative of a distributee, filing Form 706-GS(D).
• A trustee filing Form 706-GS(T) or 3520-A.
• A fiduciary, trustee, or an officer representing the fiduciary or trustee of an exempt trust filing Form 990, 990-EZ, 990-BL, 990-PF, or 990-T.
• A principal officer of a corporate organization filing Form 990, 990-EZ, 990-PF, 4720, 6069, 8612, or 8613.
• A foundation manager, trustee, or disqualified person filing Form 990-BL, 1120-ND, or 4720 for their own liability.
• A fiduciary, trustee, executor, administrator, or an officer representing the fiduciary or trustee filing Form 1041, 1041-A, 4720, or 5227.
• A withholding agent filing Form 1042.
• A person filing Form 8725 or 8831.
• A general partner or limited liability company member of a partnership filing Form 8804.
• An attorney or certified public accountant qualified to practice before the IRS.
• A person enrolled to practice before the IRS.
• A person holding a power of attorney.
• An individual filing Form 6069.

If Lovejoy was qualified to practice before the IRS, maybe he could sign the form even if he didn't work for 3ABN. What do you think? If that was the case, would there have still been a conflict of interest? Or would he have signed the form because he was the one who was supposed to be preparing the 990?

This post has been edited by Pickle: Jun 19 2007, 01:16 PM

[Fran]

It is unquestionable that the firm (the Marion office in 2000) identified as doing accounting and auditing in 2001 is the same firm (Marion Office) that did the actual audit in 2003 through 2005.

Also, take a look at the last page of the 1999 Form 990. The request for an extension is signed by Alan Lovejoy, CPA. Now look at the last page of the 2000 Form 990. Notice that the request for an extension is because the audit is delayed until August, and that is because they had to fire their Financial Director. Would that have been Alan Lovejoy, CPA?

Now look at http://www.zoominfo.com/people/Lovejoy_Alan_1005480.aspx. Alan Lovejoy, CPA, is a partner at Gray Hunter Stenn.

Was he a partner there when he signed the extension request for the 1999 990 on 5/8/2000? It appears that he was.

One of the allegations out there is that someone was the 3ABN CFO while at the same time affiliated with the auditing firm. There's more to the story, but I don't know all the details.

At any rate, we are left with the question of whether Alan Lovejoy was signing that extension request as an accountant for 3ABN or as an auditor for Gray Hunter Stenn.

Would the auditor sign the extension request? Or would the 3ABN CFO or some other officer do that? According to the instructions for that form:
If Lovejoy was qualified to practice before the IRS, maybe he could sign the form even if he didn't work for 3ABN. What do you think? If that was the case, would there have still been a conflict of interest? Or would he have signed the form because he was the one who was supposed to be preparing the 990?

Thank you, Bob! I was asking myself the very same questions.

[calvin]

Folks I am pretty much here in the 3abn threads for the entertainment value. All this talk of property tax and accounting is boring. Need some new topics here.

[Clay]

Folks I am pretty much here in the 3abn threads for the entertainment value. All this talk of property tax and accounting is boring. Need some new topics here.

[SoulEspresso]

Folks I am pretty much here in the 3abn threads for the entertainment value. All this talk of property tax and accounting is boring. Need some new topics here.

Some people find Sudoku to be entertainment, so why not this?

[Richard Sherwin]

Now now, it just so happens that us Sudoku players are easily entertained. We don't need the TV or movies we can just sit and work on our own little puzzle. And then we can do the next one, and then the next one and then the next one.....And if there were two alike we'd not know the difference

Richard

Some people find Sudoku to be entertainment, so why not this?