LIVING ON THE EDGE ****************** SIGNIFICANT STORIES AND COMPILATIONS from past issues Full text follows Tables of Contents and Summaries To get ALL the news from the Edge of the Frontier, subscribe to NORTHERN HERALD. Details on Home Page. ******************************************************************* For mostly complete text of issues on or after 02/24/97, access our LIBRARY from our home page: http://northernherald.com ******************************************************************* Copyright (c) 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005 by Northern Herald and Northern Herald Publications, Inc. MEDIA AND OTHER USERS: See Copyright Info and Limited Permission to Use - Revised 9/6/97 - at the end of this file. ****************************************************************** PAGE MAP - ALL OF THE FOLLOWING IS ON THIS ENORMOUS PAGE - TO GET TO IT, JUST SCROLL DOWN: -------- 1. PREFACE - THIS IS BEMIDJI 2. TABLE OF CONTENTS and anthology summaries 3. FULL TEXT OF FEATURED ARTICLES ********************************* PREFACE - THIS IS BEMIDJI ------------------------- (News Story Contents follow this preface, which contains editorial material) Bemidji is a town that has been, in recent past, known as the Crime Capitol of Minnesota. It is speculated that crime flourishes here because, although most places have a corrupt element, in Bemidji, it exceeds 50% of the populace and electorate. Over 1/2 of the electorate supports, or at least will tolerate, corruption, particularly if it benefits their friends and relatives, or enables them to hold office. For this reason, in Bemidji, crime is not limited to the shadows. In this remote community, it can be blatant, and perpetrated openly, by top officials and their friends, with impunity. Bemidji is a city where: 1. Our former police chief (Robert Tell) was subject to a BCA (Minnesota Bureau of Criminal Apprehension) recommendation of about 17 charges, mostly in the nature of Theft by Swindle, or similar counts, stemming from phoneyed-up travel vouchers. (See THE POLICE CHIEF ROBERT TELL ACCOUNTS, below) The case was not prosecuted for a year and a half, but following our report, charges were brought. A Beltrami County jury would not convict, however, despite the chief's admission at trial that he did it, and our City Manager (Phil Shealy) restored him to his position, which he held for several years until his eventual retirement. 2. Our present police chief (Bruce Preece) appears to have swindled over $1 million in fraudulent helicopter sales, leases and similar dealings. No criminal charges have yet been brought, although the fraudulent dealings are numerous and well corroborated (see stories in THE POLICE CHIEF BRUCE PREECE FILES, below). 3. Our former state senator (Skip Finn) did federal time for swindling over $100,000 from the Leech Lake Band of Ojibwe in an insurance scam. 4. Our former state representative (Bob Johnson) left office after three DWIs within a year, and other irregularities. He had been a multi-term favorite in many elections. 5. Our former County Attorney (Tom Keyes), Beltrami County's top law enforcement officer, died of an overdose of cocaine. His law partner (Tim Faver) is our current County Attorney; has been for many years and through many elections. 6. When NORTHERN HERALD began to make available the facts and secrets of Bemidji, the City tried to outlaw its distribution. By order of (still) City Attorney Alan Felix, as supported by certain members of Bemidji Police Dept., NORTHERN HERALD could not be distributed in Bemidji public places (i.e. on the street or sidewalk) under threat of jailing. In 2001, the United States Court of Appeals, in Northern Herald and Steele vs. City of Bemidji, et al., overturned two Bemidji city ordinances as unconstitutional, restoring access to the free press to persons in the City of Bemidji. (Verbatim court order is available from our main page.) Eventually, the City was ordered to pay $3,001. in damages, plus costs. (See BEMIDJI AND THE FREE PRESS, below.) Living in Bemidji ----------------- Bemidji government is pretty much oblivious to civil rights and property rights - you don't have a lot of them here. When they're violated, you can take the matter to the courts and maybe win, but that's mostly for people who like to live in courtrooms; most people have enough to do with work-a-day living that they don't need to be harassed, or spend time defending their rights, or to be paying attorneys to do it. Having a copy of the Bill of Rights won't do you much good when deputies are breaking your door down, with a warrant signed by one of our local judges because someone said you look funny (see Search Warrant Issued On Looks, post). That's why a lot of people live somewhere else, preferably someplace that considers itself part of America, and bound by its Constitution. Bemidji is a city where, among other things, you'll be told: How high the grass in your lawn can be; How to stack your firewood; What common things you may or may not have in your yard; Not to park after 10 pm in City Parks or by the waterfront - your car can be towed, even if you're in it watching the lake. (Don't even think about RV parking.) If boating, and you stay on the lake too late, when you get back to the dock, and your car, you may find the parking lot gate locked, with your car locked in. Not to park after 1 am on the vacant downtown streets (this includes people who live in downtown apartments and have no other place to park, and their guests); Not to feed the Canadian Geese, which the City now discourages on Lake Bemidji (it must be Homeland Security or something, the geese being foreign and all that; but people used to come here to see the large flocks of them). Even if you comply with these ordinances, the city may condemn your property if it wants something else, including other private property, there. You'll also be told where you may smoke (outside, even in the 20 below winters - not in bars, restaurants, your own store, office, or lodge; or most any other place open to others). How do we get these naziesque ordinances? Our roster of candidates for public office isn't that great; most people who run have ulterior motive, sometimes without even knowledge of the Constitution; and if a qualified, conscientious person did run, our inbred electorate, many with corrupt old-line ties, wouldn't elect them. This tends to explain our City Council and County Board. There might even be an attempt to run them out of town, which we do with people whose views or lifestyles are such that they get deemed undesirable. They may find themselves unable to get and keep a job, evicted and unable to rent an apartment, and unable to obtain needed medical services (such as in the Roy Martin matter); if this doesn't work, they may find themselves charged with crimes they didn't commit, and repeatedly being held in jail overnight (may include tasing or other roughing-up) until they can appear before a judge. Usually, eventually, they get the idea and leave, which was the point. Morality of Bemidji ------------------- You couldn't enforce adultery laws in Bemidji. It would be too hard on Bemidji men. Too many of their wives would be in jail too much of the time. Bemidji is a whore town. It has been since the early days of logging and remains so to this day. Whoredom is a driving force behind much of its corruption, and has been supported by the city's key sources of influence. The City's most notorious "bardello" (Hard Times Saloon) has, in recent times, also been the most popular police hangout. In 1997, Police Chief Tell issued a memo advising his officers to stop being there illegally, after closing time, when certain of the most desirable young ladies also seemed to be allowed to remain. Hard Times Saloon was then owned by Richard Morton, a relative of current Bemidji Republican leader Bill Batchelder, who is also the influential operator of Bemidji Woolen Mills, and former Chairman of the Bemidji Police Commission. Each year, the inventory of ladies of questionable repute is fortified by the new crop of freshman coeds coming to Bemidji State University, and who are susceptible to being assimilated into the Bemidji system. One man interviewed, a few years back, from another Northern Minnesota city, said that when he was in college (in his home town) he used to come to Bemidji to "socialize" because the girls were easier here. So it is with young girls immersed in an immoral environment. It is not uncommon, in Bemidji, for a woman (including married ones) to have more than one male consort. Again, this type of lifestyle is routine and accepted here. It may say something about the quality of Bemidji men. But this climate of immorality is also largely supported by the publicly-financed and misnamed Northwoods Coalition for Battered Women (NCBW), here, which takes action, including suborning perjury, to irretrievably break worthwhile marriages, homes and healthy lifestyles; encouraging, instead, single parenting, welfare dependence and whoredom. Why? Under state law, and county grants, NCBW, and other women's shelters and advocates, get paid well for this. So do their directors and employees, many of whom, due to their nature, would be unable to hold down a job elsewhere. By these means, these organizations and their staff, which claim to be pro-women, actually, exploit women in the worst way, for personal monetary gain. If one were to bring a good and faithful wife to Bemidji, it is not unlikely that after getting here, she would be assimilated and corrupted by the prevalent environment of immorality, which is unavoidable. The travesty of Divorce might soon follow. -------------------------------------------------------------- ------------------------------------------- TABLE OF CONTENTS - SIGNIFICANT STORIES AND COMPILATIONS from past issues ------------------------------------------- These Contents are not hypertext, you can't click on them. They are in the same order as are the full text articles, in the full text section of this page - just SCROLL DOWN to find what you want. This file is cumulative and voluminous - you may find it more expeditious to FIND (from your EDIT menu on Explorer and certain other browsers) for a unique keyword in the headline (as listed in these Contents) - that'll probably take you down to the full article; or to download this entire file and then search using your own word processer. BEMIDJI AND THE FREE PRESS This anthology chronicles the progress of the $600 Billion lawsuit brought by Northern Herald and Editor Adam Steele against the City of Bemidji and others, for attempting to suppress distribution of Northern Herald in Bemidji. The suit commenced 11/19/99, at which time the United States District Court (USDC), at Minneapolis, issued an order restraining the City of Bemidji from enforcing the unconstitutional ordinances while the suit for damages was pending. It concluded 06/16/03 when the USDC, by the Honourable Judge Rosenbaum, found for Editor Steele, and ordered the City to pay $3,001 in damages for violation of First Amendment rights (report in issue of 06/30/03). The suit had been initially dismissed by USDC Judge Kyle, but subsequently, on appeal, the federal court found two Bemidji ordinances unconstitutional, and remanded the case back to the USDC for trial. The complete opinion of the United States Court of Appeals, finding the Bemidji ordinances unconstitutional, is available at our main page (northernherald.com) USDC JUDGES ERICKSON, KYLE UPHOLD BEMIDJI PROHIBITION OF LITERATURE Appeal to Eighth Circuit Under Way From Vol. 6 No. 2 - 11/08/00 HERALD, EIGHTH CIRCUIT FEDERAL COURT, BRING BEMIDJI INTO UNITED STATES Ruling Finds Bemidji Statutes Unconstitutional; Court Recognizes Discriminatory Enforcement From Vol. 6 No. 11 - 09/01/01 The $600 Billion Lawsuit EIGHTH CIRCUIT DISMISSES BEMIDJI CITY APPEAL From Vol. 7 No. 9 - 07/27/02 The $600 Billion Lawsuit USDC FINDS FOR NORTHERN HERALD EDITOR, AGAINST FELIX, CITY OF BEMIDJI From Vol. 8 No. 3 - 02/10/03 The $600 Billion Lawsuit NH EDITOR, CITY OF BEMIDJI, GO TO TRIAL JUNE 9TH From Vol. 8 No. 5 - 05/12/03 NH EDITOR WINS $600 BILLION LAWSUIT Two Unconstitutional Bemidji Ordinances Overturned; Bemidji Ordered to Pay $3,001 Plus Costs From Vol. 8 No. 6 - 06/30/03 BEMIDJI AND YOUR RIGHTS TO PRIVACY AND THE 4TH AMENDMENT Leading Edge Journalism SEARCH WARRANT ISSUED ON LOOKS From Vol. 9 No. 4 - 03/08/04 SCHIEFERDECKER WOULD HAVE SPENT $THOUSANDS OF YOUR MONEY TO TRY TO KEEP $668 But Semons Insist on Hearing; Money Ordered Returned From Vol. 9 No. 6 - 06/21/04 THIS IS BEMIDJI - THE BEMIDJI POST OFFICE The Bemidji Post Office MOVING . . . TOWARD A LOWER STANDARD OF SERVICE From Vol. 6 No. 2 - 11/08/00 WHY? From Vol. 6 No. 9 - 06/30/01 BEMIDJI'S MANN FOR THE JOB IS A MANN ON THE MOVE! Postmaster Charles Mann Improves Bemidji Postal Service, Now Moves On To Solway. From Vol. 10 No. 3 - 03/07/05 ABOUT OUR COURT-SUPPORTED MENTAL HEALTH AGENCY: UPPER MISSISSIPPI MENTAL HEALTH CENTER (UMMHC) HOMOSEXUAL ASSAULT CHARGED IN UMMHC SUIT From Vol. 1 No. 20 - 05/03/96 LAST UMMHC HOMOSEXUAL ASSAULT CASE TO SETTLE From Vol. 4 No. 4 - 11/25/98 (See also PR MAN FOUND NOT GUILTY IN UMMHC, WOMEN'S ADVOCATE-BACKED ASSAULT CASE, post) PEOPLE WHO REQUIRE OCCASIONAL OR PERIODIC HEALTH CARE, AND ARE CONSIDERING A MOVE TO BEMIDJI, MAY WANT TO READ THIS: THE MERITCARE MONOPOLY AT BEMIDJI Part 2 of a multi-part series resulting from our continuing investigation of health service practices in Northern Minnesota From Vol. 6 No. 10 - 07/28/01 MERITCARE REFUSES TO TREAT ANTHRAX-LIKE SYMPTOMS Part 3 of a multi-part series resulting from our continuing investigation of health service practices in Northern Minnesota From Vol. 7 No. 2 - 11/03/01 THE POLICE CHIEF BRUCE PREECE FILES Bruce Preece, present Police Chief of Bemidji, and son of long-time Bemidji Judge James Preece, has been accused, with good corroboration, of swindling over $1 million in helicopter scams. As of this release, he has still not been prosecuted. For recent developments, also our check recent issues which have not yet been archived to The Library (the ones still posted in .pdf) Leading Edge Journalism At Bemidji - High Corruption Marches On! BEMIDJI POLICE CHIEF PREECE IMPLICATED IN ALLEGED HELICOPTER PONZI Purchaser Says $295,000 Missing; Manufacturer Pulls Preece's Franchise From Vol. 7 No. 7 - 05/04/02 Leading Edge Journalism-Follow Up NEW HELICOPTER FRAUD ALLEGATIONS SURFACE AGAINST BEMIDJI POLICE CHIEF PREECE Hennepin County Attorney's Office Takes Interest Bemidji Police Commission Claims "Didn't Know" From Vol. 7 No. 9 - 07/27/02 Leading Edge Journalism - Follow Up PREECE NOT YET CHARGED From Vol. 8 No. 2 - 12/30/02 Leading Edge Journalism ----------------------- Bemidji Crooks EVIDENCE MOUNTS IN BEMIDJI POLICE CHIEF PREECE ALLEGED HELICOPTER SCAMS But No Criminal Charges Are Landed Yet From Vol. 8 No. 3 - 02/10/03 Leading Edge Journalism BEMIDJI POLICE CHIEF BRUCE PREECE'S WIFE GUILTY OF DWI WITH .20 Car Goes Off Roadway From Vol. 8 No. 3 - 02/10/03 Leading Edge Journalism ----------------------- The Inevitable Happens BEMIDJI POLICE CHIEF PREECE GOES BANKO New Judgement Likely Prompted Filing; Leaves Trail of Scammed Helicopter Debt From Vol. 8 No. 7 - 08/11/03 Leading Edge Journalism - Follow-Up ----------------------------------- This Is Bemidji SWINDLE VICTIM, TRUSTEE, WON'T LET PREECE GET AWAY WITH IT Victim Files Claims of Embezzlement, Larceny Against Bemidji Police Chief, Bankruptcy Trustee Files Objection to Preece's Claim of Exempt Property From Vol. 9 No. 1 - 09/29/03 ANOTHER SWINDLE VICTIM FILES CLAIM IN POLICE CHIEF PREECE BANKRUPTCY Unchallenged Debts of Bemidji Police Chief Preece Discharged 10/15/03 From Vol. 9 No. 2 - 11/17/03 Leading Edge Journalism - Follow-Up PREECE SWINDLE TRIALS RESET FOR SEPT. 28TH From Vol. 9 No. 5 - 04/26/04 THE POLICE CHIEF ROBERT TELL ACCOUNTS Bemidji Police Chief admits wrongfully taking money from city over several years - testimony indicates he lies to Bureau of Criminal Apprehension Investigators - a Beltrai County jury finds it's "just a mistake" - City Manager restores Chief to office. Tell remained Chief of Police of the City of Bemidji until his retirement in 2001. From Vol. 1 Nos. 8, 18 & 19 - 11/24/95 - 4/22/96 THIS IS BEMIDJI - MORE ON GOOD 'OL BOY LAW ENFORCEMENT, EMPLOYERS, AND GENERAL CORRUPTION IN ONE OF THE MOST CROOKED, INBRED, PO-DUNK TOWNS TO BLIGHT THE FACE OF AMERICA: BEMIDJI, MINNESOTA Leading Edge Journalism - Bemidji Police Corruption Continues BPD COWBOY CHARBONEAU ARRESTS RYAN NEWMAN FOR NONEXISTANT NO-DRINK ORDER. Newman Files $8 Billion Federal Lawsuit; Northern Herald Calls for National Guard; Martial Law From Vol. 9 No. 6 - 06/21/04 NORTHERN NATURE - AND UNNATURAL ACTS Leading Edge Journalism BEMIDJI DEPUTY UNNATURAL ACT CASE REMANDED TO STATE COURT Suit Alleges Deputy Asked Minor Male for Unnatural Favour. From Vol. 8 No. 1 - 10/28/02 Leading Edge Journalism - Follow Up BELTRAMI DEPUTY UNNATURAL ACT CASE SETTLED From Vol. 8 No. 5 - 05/12/03 EMPLOYERS, FRAMES AND GOOD 'OL BOY COPS - THE RANDY JOHNSON/CRAIG LITTLEGHOST ANTHOLOGY Leading Edge Journalism This Is Bemidji ------------------------- HAVOLINE XPRESS LUBE TRIES TO FRAME NATIVE EMPLOYEE Owner Randy Johnson makes racial statements; threatens to file charge if employee won't resign. From Vol. 10 No. 2 - 12/20/04 Leading Edge Journalism-Follow Up --------------------------------- Northern Herald - Fighting Northland Corruption - And we're winning! This is Bemidji - There's lots of open space and lots of opportunity, but DISCRIMINATION HAS NO PLACE IN BEMIDJI. From Vol. 10 No. 3 - 03/07/05 Leading Edge Journalism ------------------------ The Craig Littleghost trial - Littleghost Acquitted This is Bemidji --------------- FORMER XPRESS LUBE OWNER RANDY JOHNSON: "I'LL MAKE SURE THAT YOU'LL END UP IN JAIL, AND I CAN DO IT BECAUSE DEBBIE IS AN OFFICER." From the testimony of former Havoline Xpress Lube employee Scott Brein From Vol. 10 No. 5 - 07/04/05 AND NOW A WORD ABOUT BEMIDJI'S CHURCHS AND ORGANIZATIONS TO HELP THE TRULY NEEDY SLAUGHTERS FIND NO HELP IN NORTHERN CHURCHES, BLIND AGENCIES From Vol. 9 No. 6 - 06/21/04 THE SHERIFF PAT MEDURE FILES Pat Medure is Sheriff of Itasca County, at Grand Rapids, Minn. Leading Edge Journalism ITASCA COUNTY SHERIFF'S PENSION POLICY QUESTIONED Allegedly Disbands Posse to Put Office Staff on PERA Police Pensions; The Law From Vol. 8 No. 2 - 12/30/02 THE RICHARD LORY STORIES As of May 3, 1997, Richard Lory is serving a 12 1/2 year sentence at the Minnesota State Prison, Stillwater, Minnesota for the fatal shooting of Bruce Bradach Jr. in late 1993. Lory has maintained throughout that he was trying to defend his family, including his daughter who, hours earlier, had been gang raped by Bradach and others. His appeal to the Minnesota Appellate Court failed, and the Minnesota Supreme Court denied review. He began serving his sentence in late September, 1995 and will be eligible for parole after serving eight years. From Vol. 1 Nos. 2, 3 & 5 - 09/22/95 - 10/16/95, Vol. 2 No. 14 - 04/28/97 POLICE "OK" GANG-FIGHTING AT BEMIDJI HIGH SCHOOL From Vol. 1 No. 10 - 12/22/95 NORTHERN EDITOR ORDERED TO JAIL From Vol 1 No. 11 - 01/05/96 Business Among Friends FORMER PAUL BUNYAN TELEPHONE MANAGER ISSUES CAVEAT From Vol. 1 No. 17 - 03/22/96 SNOW NOT JUST OUTSIDE - THE EARLY 90s COCAINE TRAIL THROUGH CENTRAL MINNESOTA, ALLEGED TO HAVE INVOLVED KEY BUSINESSMEN AND OFFICIALS AND THE DEATH OF AT LEAST ONE KEY INFORMANT SNOW NOT JUST OUTSIDE Former Crow Wing County Attorney John Remington Graham's findings re: the trail of cocaine through North Central Minnesota from information procured from his now-dead informant From Vol 1 No. 7 - 11/10/95 Guest Column GRAHAM CHALLENGES REINVESTIGATION OF GAST DEATH by John Remington Graham, Contributing Legal Writer From Vol 1 No. 15 - 04/05/96 Letters to the Editor VISITOR GETS A TASTE OF BEMIDJI HOSPITALITY From Vol. 3 No. 11 05/13/98 THE AUTO DEALERS AND GETTING YOUR CAR FIXED - CONTENTS Excerpts from our AUTO SERVICE FORUM that make the movie "Fargo" look tame: DEER RIVER ALLIANCE OWNER DISSATISFIED WITH CLUSIAU'S (Chrysler) From Vol. 1 No. 23 06/14/96 CLUSIAU'S SUED FOR "GROSS MISREPRESENTATION" Allegedly "fixed" engine warning...By removing indicator bulb. From Vol. 1 No. 24 06/28/96 NEWMAN PREVAILS IN AUTO REPAIR NEGLIGENCE SUIT From Vol. 2 No. 13 04/07/97 HOUSTON FORD CUSTOMER BLOWN AWAY BY "PRICE SHOOTOUT" Bena Man Claims Attempted Overcharge, Misrepresentation of Warranty - From Vol. 3 No. 8 03/11/98 Consumer Corner - Follow-Up HOUSTON FORD RENEGES ON OFFERED REFUND From Vol. 3 No. 11 05/13/98 PUBLIC RADIO IN NORTHERN MINNESOTA EDITORIALS - OPINION - Guest Column: KAXE RADIO HAS LOST ITS COMPASS From Vol. 2 No. 5 11/18/96 THE WOMEN'S SHELTERS AND THE LAW (a contradiction in terms) I. THE KAREN JANOV MATTERS JANOV TRIAL CONTINUED - WOMEN'S SHELTER MAY HAVE HARBORED FUGITIVE From Vol. 1 No. 4 - 10/06/95 JANOV TRIAL TAKEN OFF-CALENDAR From Vol. 1 No. 7 - 11/24/95 FELIX CUTS JANOV SWEETHEART DEAL From Vol. 1 No. 17 - 03/22/96 II. BONITA JONES - OFP PERJURY BY SHELTER RESIDENT Also: ANNOTATION RE: KIDNAPPING BY MILLE LACS SHELTER WOMEN'S SHELTER RESIDENT CHARGED IN FALSE OFP Also annotation: Mille Lacs Kidnapping by women's shelter From Vol. 1 No. 20 - 05/03/96 FORMER WOMEN'S SHELTER FUGITIVE FAILS TO APPEAR From Vol. 2 No. 8 - 01/08/97 FUGITIVE WARRANT ORDERED FOR FORMER WOMEN'S SHELTER RESIDENT From Vol. 2 No. 9 - 01/20/97 BONITA JONES, WOMEN'S SHELTER RESIDENT, PERJURY SET FOR TRIAL From Vol. 2 No. 16 - 06/09/97 WOMEN'S SHELTER RESIDENT FAILS TO APPEAR ON PERJURY From Vol. 2 No. 17 - 06/30/97 III. ANOTHER KIDNAPPING ANOTHER KIDNAPPING BY SHELTER CLAIMED From Vol. 2 No. 16 - 06/09/97 (delayed to 06/11) RUBY HARRASSMENT CONTINUES From Vol. 2 No. 17 - 06/30/97 (delayed to 7/2) IV. Where Your Money Goes WOMEN'S SHELTER RECEIVES, SPENDS OVER $1/2 MILLION IN YEAR From Vol. 2 No. 17 - 06/30/97 (delayed to 7/2) V. NEVIS MAN WAS ARRESTED FOR DOMESTIC ASSAULT . . . ON HIM From Vol. 1 No. 19 - 04/19/96 VI. Leading Edge Journalism PR MAN FOUND NOT GUILTY IN UMMHC, WOMEN'S ADVOCATE-BACKED ASSAULT CASE But Pays Over $12,000 in Legal Costs Due to Accusation From Vol. 8 No. 2 - 12/30/02 (See also HOMOSEXUAL ASSAULT CHARGED IN UMMHC SUIT, ante) VII. Leading Edge Journalism ANOTHER ITASCA CO. MAN CHARGED IN LIKELY FALSE ACCUSATION BY STEP-DAUGHTER Incurs $25,000 in Legal Costs; Charge Assisted by Women's Advocate From Vol. 8 No. 6 - 06/30/03 VIII. MEN LOBBY AT CAPITOL From Vol. 8 No. 6 - 06/30/03 IX. AUDITOR'S REPORT DISCLOSES MAJOR MISSPENDING BY WOMEN'S SHELTER From Vol. 9 No. 1 - 09/29/03 BANKS AND BUSINESS - MINNESOTA STYLE Some people say that big business here does what it does because the authorities let it get away with it. You can judge for yourself. Letters to the Editor BLACKDUCK MAN, FORECLOSED, TELLS OF MISREPRESENTATION BY BEMIDJI FIRST FED. Commerce Dept. Concurs; but Local Courts, Federal Regulators Offer No Relief From Vol. 2 No. 11 - 02/24/97 FIRST FEDERAL BANKING AND SAVINGS INSURER ORDERED TO SHOW CAUSE From Vol. 2 No. 12 3/17/97 NEWS COVER-UP ATTEMPTED IN FIRST FEDERAL BANKING AND SAVINGS MARKETS HEARINGS SET MAY 5TH, 21ST From Vol. 2 No. 14 04/28/97 FIRST FEDERAL - USLIFE CASE CONTINUED From Vol. 2 No. 15 05/19/97 MONDRY ISSUES SUMMARY JUDGEMENT FOR FIRST FEDERAL From Vol. 2 No. 16 06/09/97 DIRKES/DOC-FIRST FED/US LIFE CASE "EVAPORATES" From Vol. 2 No. 17 06/30/97 Where We Get Our Candidates and Who We Vote For ----------------------------------------------- AAKHUS SENTENCED From Vol. 2 No. 1 09/23/96 In Sept. 1996, Robert Aakhus, 18-year old son of Jeff Aakhus, Republican legislative candidate, was sentenced for setting fire to the house of neighbors Sherry and Joseph Day, while ransacking their garage. Robert's blood alcohol was said to have been .27 at the time. His father Jeff polled about 49% of the vote two months later in November. He lost by less than 500 votes. Consumer Corner LATE-NIGHT SECURITIES HUSTLING From Vol. 1 No. 19 - 04/22/96 LACK OF WILLING WORKERS CITED FOR SHORTENED BEMIDJI GROCERY HOURS From Vol. 6 No. 2 - 11/08/00 HIGH CORRUPTION ERUPTS AT NEVIS - AN ANTHOLOGY A compilation of the many reports, from various issues of Volume 7, as this saga evolved at the small town of Nevis, Minnesota; where the corrupt council of this near bankrupt city, with many accounting irregularities, tried to unlawfully depose their Mayor. From Vol. 7 No. 2 11/03/01 ---------------------------- Leading Edge Journalism City Council Deposes Lawfully Elected Mayor HIGH CORRUPTION ERUPTS AT NEVIS From Vol. 7 No. 3 12/08/01 ---------------------------- NEVIS COUNCIL REFUSES TO FOLLOW LAWFUL PROCEDURE CIRKS IDENTIFIED AS THIEF But Nevis City Attorney John Masog Refuses to Prosecute Theft MASOG RESIGNS From Vol. 7 No. 4 01/15/02 ---------------------------- CORRUPTION TO RULE NEVIS 'TIL 2003 Rural Hubbard Co. City May Surpass Bemidji as State's Laughingstock NEVIS MAYOR TO PRESENT STATE OF THE CITY NEVIS RETAILERS HALT HERALD From Vol. 7 No. 5 02/16/02 ---------------------------- NEVIS: ATTORNEY GENERAL ACTS NEVIS MAYOR RECEIVES SPHERES GETTING BACK TO NORMAL AT NEVIS From Vol. 7 No. 6 03/23/02 ---------------------------- STATE AUDITOR CITES IRREGULARITIES AT NEVIS HOW HIGH SHOULD PHILLIP HARRIS HANG? From Vol. 7 No. 7 05/04/02 ---------------------------- NEVIS COUNCIL CALLS SPECIAL MEETING TO INSULT MAYOR From Vol. 7 No. 8 06/01/02 ---------------------------- MISCONDUCT CHARGE AGAINST NEVIS MAYOR DISMISSED From Vol. 7 No. 9 07/27/02 ---------------------------- NEVIS ADMINISTRATOR MAUREEN CIRKS RESIGNS From Vol. 8 No. 5 05/12/03 ---------------------------- 2002 Steele Spheres Awarded GRAHAM HAS SPHERES Attorney awarded for work in Nevis matter Consumer Corner THE OFFICE MAX REBATE SCAM - INVESTIGATION RESULTS From Vol. 7 No. 7 - 05/04/02 ****************** END OF CONTENTS - TEXT BEGINS *********** ============================================================= From Vol. 6 No. 2 - 11/08/00 ----------------------------- USDC JUDGES ERICKSON, KYLE UPHOLD BEMIDJI PROHIBITION OF LITERATURE Appeal to Eighth Circuit Under Way ST. PAUL -- In a sweeping decision, United States District Court (USDC) Judge Richard Kyle, on August 29th, 2000, and following recommendations of federal Magistrate Raymond Erickson, sitting at Duluth, ordered all claims dismissed in the action (USDC Case No. 99-1862) by Adam Steele and Northern Herald Publications, Inc. against the City of Bemidji and 29 other defendants against whom allegations of suppression of free speech were brought. A notice of appeal to the Eighth Circuit Court of Appeals has been filed (Appellate Case No. 00-3348). The suit seeks damages of $600 billion against the various defendants for denial of constitutional rights. Of particular note in the ruling was Judge Kyle's order dissolving a temporary restraining order (TRO), issued November 19, 1999, by USDC Judge Rosenbaum, at Minneapolis, which allowed the Northern Herald newspaper to be distributed on the public streets of Bemidji. Prior to the TRO, persons selling the Northern Herald, or even giving away complimentary copies, had been threatened with jailing. At one time, Bemidji police Sgt. Michael Porter told a vendor, giving away copies of the Northern Herald on the sidewalk in front of the Bemidji Post Office, that if the activity continued he was going to "Take you to jail, today." Per Al Felix, City Attorney, Bemidji has reasoned that a person giving away literature constitutes an "obstruction" and is thusly prohibited by Bemidji's "obstructing" ordinance. Bemidji has maintained this throughout the action, notwithstanding that it has never been demonstrated that any bona fide obstruction of pedestrian or vehicle traffic, or substantial obstruction of view, was ever caused by the activity. The ruling by Judge Kyle, of course, operates such as to prevent the question of fact from being tried. The effect of the ruling is that, for now, Bemidji police may stop any person from disseminating any literature with which they don't agree on the streets, sidewalks, boulevards and other public places of Bemidji. As far as the First Amendment is concerned, Bemidji is dark. Curiously, last summer, there was a more substantial "obstruction" on Bemidji's Paul Bunyan Drive NW. Some people were advertising a car wash by holding large signs on the sidewalk. The multiple car wash signs were far more obstructing than the body sign that Northern Herald vendors wore when distributing the paper. In order to test the uniformity of application of the "obstructing" ordinance, a complaint of the car wash signs, on the public sidewalk, was made to Bemidji police Sgt. Daryle Russell, but Sgt. Russell stated that he would not act on the matter - that he would neither cite the car wash workers for the obstruction, nor ask them to cease. POST-PUBLICATION NOTE: The ruling cited herein was later reversed by the United States Court of Appeals for the Eighth Circuit. Full text of that ruling, which held two City of Bemidji statutes unconstitutional, is available from our main page: northernherald.com From Vol. 6 No. 11 - 09/01/01 ------------------------------ HERALD, EIGHTH CIRCUIT FEDERAL COURT, BRING BEMIDJI INTO UNITED STATES Ruling Finds Bemidji Statutes Unconstitutional; Court Recognizes Discriminatory Enforcement ST. LOUIS -- The Eighth Circuit Federal Court of Appeals, on July 30, 2001, issued a landmark ruling in Northern Herald's, and Editor Adam Steele's $600 billion lawsuit against the City of Bemidji, its officers and several local retailers and others for denial of First Amendment rights to print and circulate the Northern Herald (Appellate case no. 00-3348MN). In it's filed opinion, reversing the summary judgement previously issued by the District Court in favor of the Bemidji City defendants, and remanding the case back to the Federal District Court for trial and determination of damages, the Court stated the Bemidji "soliciting" (ord. no. 6.39) and "obstructing" (no. 10.31) ordinances to be unconstitutional; and further recognized that Bemidji City officials including City Attorney Alan Felix and former Bemidji police Sgt. Michael Porter attempted to apply the ordinances to Steele's activity in distributing the Northern Herald even though nothing that the ordinances proscribe was being done. In the opinion, written by Circuit Judge Richard S. Arnold for the three-judge panel, the Court said, regarding the ordinances under which Bemidji can require discretionary permits and bonds, "... several salient features of the permit schemes run afoul of the First Amendment." The case results, in part, from an incident in 1998 where Editor Steele was distributing copies, wearing a sign that said "FREE - TODAY ONLY," on a downtown Bemidji sidewalk. Police Sgt. Porter threatened to take Steele, "to jail today" if he continued. Steele contacted City Attorney Felix, who concurred with Porter's action, ceasing curbside distribution of the paper in Bemidji. Although Judge Rosenbaum, of the Federal District Court at Minneapolis, in November, 1999, issued a temporary order restraining the City of Bemidji from enforcing the ordinances against Steele, that restraining order was subsequently dissolved by U.S. District Judge Kyle (St. Paul), to whom the case was ultimately assigned. In its opinion, the Appellate Court noted, "Neither ordinance on its face proscribes giving away newspapers that the donor is holding while standing on a City sidewalk. Nevertheless, the City has applied, and apparently wants to continue to apply, the ordinances to Steele, whether or not he attempts to sell his newspapers and whether or not he places them on City property." The opinion further looks at the ordinances themselves, holding them unconstitutional because 1) they vest the City Council and Police Chief with too much discretion to deny the permits; 2) the solicitation permit, if issued, is valid for only sixty days and then must be reapplied for; 3) the bond and insurance requirements of the ordinances "cannot be imposed as a prior restraint on protected speech"; and 4) "neither ordinance imposes a time limit on the City Council's decision to grant or deny a permit. ..." Precedential value. Under this ruling, the Bemidji soliciting and obstructing ordinances are, legally, unenforceable. The final word in determining the constitutionality of an ordinance is vested in the United States Supreme Court. Opinions of the Circuit Appellate Courts, however, are published in legal references such as Northwest Reporter, and, unless reversed by the Supreme Court, are generally followed by the District Courts within that multi-state circuit. This opinion may thusly be cited as authority by attorneys and others, should another corrupt little town try to ban it's free press by similar means. In its opinion, the Appellate Court noted a letter sent to Steele by Felix shortly prior to the incident involving Sgt. Porter, in which letter Felix cited the soliciting and obstructing ordinances, and stated that continued distribution of the Northern Herald at curbside without a permit was a violation punishable as a misdemeanor. Felix stated that the permit was conditioned on provision of insurance and bond. FELIX: IF YOU DON'T THINK LIKE ME, GET OUT OF TOWN. The Appellate opinion notes, "Felix warned Steele that the City would require, 'at a minimum, public liability coverage with policy limits equal to those required of the City,' ... [and that] 'a substantial bond would be mandatory.' ... Finally, Felix ... suggested that Steele find 'willing local, private outlets' to distribute his paper, commenting that 'in light of this community's apparent unwillingness to embrace your ideas, another option may be your consideration of relocation to another community ... more willing to embrace your way of thinking'" Further litigation. The case against the City now, on remand, goes back to the Federal District Court for trial and determination of damages. The City is represented by Minneapolis attorney Jon Iverson, who has indicated that the City intends to try to weasel out of paying damages on a theory of qualified immunity. That is, to say the municipal employees were just doing their jobs. At Nuremberg, the court held that jobs and orders or not, the World War II defendants should have known that it was wrong to gas and burn Jews. The Federal District Court will now have to determine whether a trained and licensed City Attorney should have known that it is wrong, in America, for a City to try to ban a newspaper from public distribution. Non-City Defendants. The Appellate Court let stand the District Court's ruling dismissing the suit against private retailers who banned the Northern Herald from their stores. That part of the ruling is expected to be further appealed, by Steele, to the U.S. Supreme Court. Note: The complete opinion of the United States Court of Appeals for the Eighth Circuit may now be accessed from the main page of the Northern Herald website. From Vol. 7 No. 9 - 07/27/02 ----------------------------- The $600 Billion Lawsuit EIGHTH CIRCUIT DISMISSES BEMIDJI CITY APPEAL ST. LOUIS -- The United States Court of Appeals for the Eighth District, on June 28th, 2002, dismissed an appeal, by Defendants, The City of Bemidji, two of it's officers and 3 police officers; in the suit brought by Northern Herald editor Adam Steele for encroachment of First Amendment rights. The filed complaint states that, in 1998, when Steele was distributing the Northern Herald on a public boulevard in Bemidji, Bemidji Police Dept. Sgt. Michael Porter, ordered Steele to stop, or Porter would, "Take you to jail, today." Porter's action was ratified by City Attorney Alan Felix, and, until the federal District Court issued a restraining order in late 1999, Northern Herald could not be sold or given away on Bemidji public streets or sidewalks, under threat of jailing. In 2001, the federal Appellate Court found the conduct and two ordinances of the City of Bemidji (the City) to be unconstitutional, and remanded the matter back to the U.S. District Court for trial. Accordingly, the District Court dismissed the City's motion for summary judgement, earlier made. But although its actions were found unconstitutional, the City tried to escape paying damages by advancing a claim of qualified immunity, that is, that the City employees, including City Attorney Alan Felix and the police officers, didn't know that they were breaking the law, and were just doing their jobs. On this they asserted an appeal, back to the Eighth Circuit Appellate Court, of the dismissal of their motion for summary judgement. Generally, non-dispositve action on a motion is not appealable, until a final disposition of the case. When ordered, by the Appellate Court, to show cause why their appeal should not be dismissed for want of jurisdiction, the City cited certain authorities to the effect that where the case turns on a question of qualified immunity, there may be jurisdiction to hear the appeal. But the Eighth Circuit, in its ruling, said that the City had filed no intervening motion based on qualified immunity, and the order of the District Court did not mention same. The matter, thusly, remains pending trial before the United States District Court. From Vol. 8 No. 3 - 02/10/03 ----------------------------- The $600 Billion Lawsuit USDC FINDS FOR NORTHERN HERALD EDITOR, AGAINST FELIX, CITY OF BEMIDJI MINNEAPOLIS -- The City of Bemidji, and its City Attorney, Alan Felix, will have to stand trial in an action brought by Northern Herald editor Adam Steele for violation of First Amendment rights, per a ruling of the Honorable James M. Rosenbaum, Judge of the United States District Court, sitting at Minneapolis. In 1998, and pursuant to the direction of Felix, Steele had been told by Bemidji Police Dept. (BPD) Sgt. Michael Porter that if he continued distributing the Northern Herald at curbside, Porter would, "Take you to jail, today." The United States Court of Appeals for the Eighth Circuit earlier ruled the Bemidji ordinances, under which Porter purported to act, unconstitutional; but five individual City defendants, including Felix, had requested qualified immunity. In it's January 2nd, 2003 ruling, the District Court granted immunity from suit for City Manager Phil Shealy, (former) Police Chief Robert Tell, and BPD officers Porter, and Jon Hunt; on the grounds that as officers and administrators, they were merely acting pursuant to Felix's legal advice and direction that the ordinances be enforced. But the Court held that Felix, as City Attorney, could be culpable for directing the improper enforcement of the unconstitutional ordinances, saying in it's order, "... The court finds that the contours of the First Amendment are such that a reasonable city attorney would recognize this constitutional infirmity;" clearing the way for the case to now proceed to trial against Felix and The City of Bemidji. The suit seeks total damages of $600 billion. Steele has offered to discuss settlement with the City, but, to date, the City has not yet placed the matter on the City Council agenda. From Vol. 8 No. 5 - 05/12/03 ----------------------------- The $600 Billion Lawsuit NH EDITOR, CITY OF BEMIDJI, GO TO TRIAL JUNE 9TH MINNEAPOLIS -- Trial in the matter of Steele vs. City of Bemidji and Alan Felix has been set for June 9th, 2003, at the federal Courthouse at Fergus Falls, per a scheduling order of the United States District Court. The case (no. 99-1862) claims damages arising from First Amendment infringement by the City of Bemidji and Alan Felix, its City Attorney. The complaint cites instances where Steele, Editor of Northern Herald, was stopped, by BPD officer Hunt, from selling the paper on a public MNDOT right of way near the Paul Bunyan Mall; and from giving away complimentary copies of the paper on a public boulevard, by then-BPD Sgt. Michael Porter, who told Steele that if he continued distributing the paper on Bemidji public property, Porter would "take you to jail, today." If you don't think right, just get out of town! Porter's actions were ratified by Felix, who wrote to Steele, in a letter, "... [an] option may be your consideration of relocation to another community ... more willing to embrace your way of thinking." In reviewing the actions of the City, and holding two Bemidji ordinances unconstitutional, the United States Court of Appeals earlier said, in it's opinion, "... the City has applied, and apparently wants to continue to apply, the ordinances to Steele, whether or not he [does the things prohibited by the ordinances]." (The entire Opinion of the Appellate Court is available at northernherald.com) On April 11th, a pre-trial settlement conference was convened in Duluth. In the sprit of the settlement conference, Steele presented a compromise settlement proposal to the Bemidji City Council April 7th, and also at the conference. The proposal, designed to come at minimal cost to Bemidji taxpayers, included 1) all of the miscellaneous parcels of idle real property currently stockpiled by the City of Bemidji and not being used for any public purpose (thus returning same to the tax rolls, as should be); 2) monetary damages equal to the limit of Bemidji's liability insurance; 3) monetary damages equal to $50 per taxable residential property, for each year that Alan Felix remains in the employ of the City; this representing the public cost of keeping on a City Attorney who is oblivious to, and acts in wanton disregard of the U.S. Constitution; and 4) the City's agreement to be enjoined from further First Amendment violations. At conference, the City presented a counteroffer of $2,500; no settlement was reached. Jon Iverson, attorney for the City of Bemidji, has indicated that they intend to base their case on credibility. In other words, the City will have its police officers lie on the stand, and is banking on the jury believing them, over the testimony of the Plaintiff. In this, Bemidji Police Officers Porter and Hunt have already filed sworn affidavits before the Court; Porter's saying that he never threatened to immediately jail Steele for distributing the Northern Herald; and Hunt's saying that he merely contacted Steele to advise him that the Mall was "concerned that he was posing a[n alleged] traffic hazard"; that Steele "did not disagree ... and agreed to leave the median." Hunt's sworn affidavit continues, " ... I did not threaten to remove Mr. Steele. ... Adam Steele left voluntarily. ... Not only did he leave the median, but he left the area altogether." Finally, Hunt's sworn statement continues, "I did not prepare a report regarding this incident because no action was taken." But he did. Immediately after the incident (02/09/98). And the official police (CFS) record (#98002344) noted as "Remove Adam Steele," contains Hunt's report, which recites, "This officer was advised by Adam [Steele] that he did not feel he had to leave as he was not a traffic problem ... Adam also advised that [the median area where he was standing] was public property. ... This officer advised Adam that unless Adam had permission from the mall ... he would have to leave the area." That CFS report is expected to be introduced, at trial, to impeach Officer Hunt's testimony. The area where Steele was standing was identifiable by right-of-way markers, and has also been identified by maps as public MNDOT, and not mall, property. The filed complaint seeks, and at trial, the jury will be asked to award, damages against Felix, and the City of Bemidji, totalling $600 billion, for unlawfully and unconstitutionally attempting to stop the free press by attempting to stop the distribution of Northern Herald in the City of Bemidji. Post-publication note: NH Editor Adam Steele won, at the trial held June 2003, and the City of Bemidji was ordered to pay damages. Details in NH of 06/30/03. From Vol. 8 No. 6 - 06/30/03 ----------------------------- NH EDITOR WINS $600 BILLION LAWSUIT Two Unconstitutional Bemidji Ordinances Overturned; Bemidji Ordered to Pay $3,001 Plus Costs MINNEAPOLIS -- Following a one-day court trial, June 10, 2003, with jury waived by both sides, the Honourable Judge James M. Rosenbaum, Judge of the United States District Court at Minneapolis, found for Northern Herald Editor Adam Steele, and, in an amended order issued June 16th, ordered the City of Bemidji and City Attorney Alan Felix to pay a total of $3,001 in compensatory and punitive damages, plus costs. The judgement came following trial of a First Amendment action brought for the City's attempted prohibition of the sale of Northern Herald by curbside vendors in Bemidji (case no. 99-CV-1862 JMR/RLE). In August, 1998, following Felix's having sent Editor Steele a letter threatening charges under two Bemidji ordinances if he continued to sell the Northern Herald at curbside, (then) Bemidji Police (BPD) Sgt. Michael Porter approached Steele, who was giving away complimentary copies on Irvine Ave. near the post office, and told Steele that if he continued to distribute the paper at curbside, Porter would "take you to jail today." The trial, to determine damages, followed a holding, in this case, by the United States Court of Appeals for the Eighth Circuit which determined that the Bemidji "soliciting" and "obstructing" ordinances, which Felix had cited in his letter, were unconstitutional. The Court had, in November 1999, when the action was first filed, issued a restraining order against the City, restraining Bemidji from enforcing the ordinances. Northern Herald Publications, Inc. was not allowed to proceed as a party Plaintiff because the corporation could not, in the 3 1/2 years the case was pending, find a suitable attorney willing to take the First Amendment case for a contingency fee. Corporations, unlike individuals, cannot bring suit without an attorney; so Editor Steele brought the action on his own behalf. The City of Bemidji was represented by League of Minnesota Cities attorney Jon Iverson, of Minneapolis. BPD officers (former) Porter and Jon Hunt testified for the City. Importantly, the ruling establishes that First Amendment rights have quantifiable worth, and sets a monetary value on the value of loss of those rights, for 2.2 years, over an area the size of Bemidji. Felix's letter to Steele, dated August 5, 1998, cited the soliciting and obstructing ordinances (which require a permit for same) and required, for issuance of a permit to sell the Northern Herald, that Steele obtain liability insurance "with policy limits equal to those required of the City," and that "a substantial bond is mandatory." The costs of these would reasonably exceed what a news vendor would earn. If you don't think my way, get out of town. The letter concluded, "Of course, in light of this community's apparent unwillingness to embrace your ideas, another option may be your consideration of relocation to another community within this State or elsewhere which may be less concerned about the safety of it's citizens and more willing to embrace your way of thinking." In issuing the Judgement, Judge Rosenbaum said of Felix's letter, "His letter can fairly be referred to as a remarkable document.... That last sentence says more than I can comment on. ... This was a clear effort to restrain and bar him [Steele] from exercising his rights." In it's earlier ruling, the Appeals Court had noted that "... the City has applied, and apparently wants to continue to apply, the ordinances to Steele, whether or not he [does the things prohibited by the ordinances]." (The entire Opinion of the Appellate Court is available at northernherald.com) Editor's Note: At trial, in addition to denying that he threatened to immediately arrest Steele, (former) Sgt. Porter also testified that Steele stood in traffic, in front of the post office, "5 feet" into the street, from the curb. The many readers who have seen me vending the Northern Herald there will know that this is a blatant lie. City Attorney Felix tried to weasel out of the suit by claiming, on the stand, that the yellow curb in front of the Post Office was not just no parking, but also a no-stopping or standing zone. His Honour, however, saw through this ruse and said that the signs make it clear that it's just no parking - cars can lawfully stop to buy a paper. We forgive Felix, however, for his ignorance of what a yellow curb and a "no parking" sign mean. He's just the City's Attorney, after all. -- Ed. ================================================================== From Vol. 9 No. 4 - 03/08/04 ----------------------------- BEMIDJI AND YOUR RIGHTS TO PRIVACY AND THE 4TH AMENDMENT Leading Edge Journalism SEARCH WARRANT ISSUED ON LOOKS Money Seized, Though No Connection to Drug Trade; Couple Faces Eviction "The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized." -- Fourth Amendment to the United States Constitution TENSTRIKE -- On January 30, 2004, acting on a search warrant based primarily on the physical appearance of lupus patient Denise Semon, Beltrami County deputies and agents of the Paul Bunyan Drug Task Force, apparently looking for a meth lab which was never found, raided and searched the home of Richard and Denise Semon, near Tenstrike. Items seized and taken into evidence included a small packet of a substance believed to be methamphetamine and found on the person of Richard Semon, a small amount of killer weed (marijuana) and some purported killer weed smoking devices found in the home; and $668 in cash, mostly taken from Semon's wallet on his person. In interview Semon did not deny that he has used the poison known as meth, sometimes also called "speed" or "crank." His wife, Denise, who suffers from lupus, as well as fibromyalgia and a herniated disc, said that marijuana can relieve some of the pain of those conditions. "It's not legal in Minnesota to prescribe, but otherwise ... my doctor ... said that she'd have it prescribed for me in a heartbeat," she said, adding that she'd been medically advised that use of the killer weed, if it were legal, would also help with her hereditary, unusually low weight condition by stimulating the appetite. Semon said, however, that he does not deal in drugs, had no meth lab, and the money seized was not drug related. The couple has, to date, been unsuccessful in procuring return of the money, which has little evidentiary value (should there be a trial, it would be easy to establish that the money was there, without having the actual cash in the County's possession) and the efforts of the County to retain the money appear to simply be for the purposes of depriving the Semons of it. Semon has said that his lot rent is in arrears, and the couple has received an eviction notice, and will be evicted if the rent isn't paid. The Semons have also had to apply for emergency assistance because, due to the cash seizure, they were without money to pay the electric bill and their electric company sent them a shutoff notice. Although, from the evidence, it appears that the Semons had users' quantities of various poisons in their home, the circumstances of the warrant are subject to question. There are, in Beltrami County, many homes, some likely belonging to top government officials, in which, were authorities allowed to simply go in and search without probable cause, they would probably find evidence (our past County Attorney died of cocaine overdose in 1989). But this cannot legally be done. In the instant case, the affidavit for the search warrant, issued by the Honourable Judge Benshoof, was wholly based on hearsay by an unidentified "concerned citizen," who did not attest to having seen any drugs or drug paraphernalia, but largely suspected the Semons owing to the physical appearance of Denise, which appearance actually resulted from the lupus. The affidavit also mentioned a bowl containing syringes (but without hypodermic needles, per Semon) and "a reddish crystal like substance", which the affidavit speculates could have been iodine, used in manufacturing of methamphetamine poison. The affidavit was not executed by the "concerned citizen", or by anyone else who claimed to have seen, or have had personal knowledge of, drugs or drug equipment in the residence; but was actually signed, and warrant procured, by Beltrami Deputy Jeff Anderson; the affidavit recites what the "concerned citizen" allegedly told the deputy. In interview, Richard Semon said that the "reddish" substance was actually plant bedding (it's a clear light pink gel that holds water), and the large syringes without needles were used for adding water to ivy cuttings and other house plants that they had in narrow neck bottles. Having needleless syringes, which are not used in conjunction with illegal drugs, is not a crime. No charges have, as yet, been filed. If this search warrant passes muster for probable cause, then anyone's house could be raided, based upon some third-party telling a deputy (but not under oath) that they saw what might be drug equipment; and the deputy swearing to it before the issuing Court. Probable cause? The affidavit. The affidavit convincingly recites that the "concerned citizen" told Anderson that Semon's wife "had what appeared to be burn marks on her face", and "rotting" teeth. It continues, "Your affiant [Dpty. Anderson] knows that methamphetamine manufacturing is highly explosive .... [and] long-term methamphetamine use causes users' teeth to decay. The concerned citizen also described the female [Semon's wife] as skinny and gaunt, typical of chronic methamphetamine users." The affidavit continues, "The concerned citizen stated that he/she could smell a strong, undistinguishable odor inside of the residence coming from the back room .... There was also a fan in that room. The concerned citizen also stated that inside of the residence ... there was a brown dish containing a reddish crystal like substance and syringes on it. ..." It concludes, "From the aforementioned facts and observations your Affiant [Anderson] believes that the Manufacturing of methamphetamine is conducted at the above-described residence." No drugs seen. The affidavit contains no mention of any observation of any thing, which was, with reasonable certainty, known, to either Anderson, or the "concerned citizen", to be drugs or drug-related. In interview, Semon said that the "strong undistinguishable odor" was a wood-burning stove. The fan was used to circulate the heat. Further, Semon stated that the marks on his wife's face were not burns but were symptomatic of her lupus. "Lupus is an auto-immune disorder ... where my immune system is attacking healthy cells in my skin," Denise said, adding that her slight build is hereditary, "It runs in my father's side." Semon said that he believes that the "concerned citizen" is one Charles "Chuck" Compton, because that was the only person who was in the residence recently who was unaware of Denise's illness, and the symptoms thereof. Compton has failed to return our calls for comment. Semons and his wife said that the violation of their privacy has caused severe emotional distress, "Don't sleep - don't feel like our house no more," he said. Denise, who has been receiving counseling for a chronic social anxiety disorder and agoraphobia (these types of neuropsychiatric problems occur in a majority of lupus patients --WebMD), is attending psychiatric treatment for the emotional distress caused by the raid. She is subject to panic attacks, refuses to go in public alone, and viewed her home as her "safe spot". She no longer feels secure there, "I don't feel comfortable sitting at home. ... I'm afraid to talk on my phone. ...I've been in therapy most of my adult life for agoraphobia and social anxiety ... they've [the raid has] taken 15 years of counseling and thrown it down the toilet," she said. Now, after the raid, "My husband doesn't get out of my sight," she said, adding, "I haven't had an anxiety attack like this [as was recently experienced since the raid] in three years." Denise described physiological symptoms that the anxiety of the raid has precipitated. The raid occurred less than 3 weeks after the death of Denise's father. Additionally, the raid has caused social repercussions in their close-knit community. Denise said, "When we go to friends' houses, they look at us funny; ... we carry a copy of our [search receipt] papers with us to show everybody" that there was no meth lab in their home. But Denise said that people still get "paranoid" around them. Rumours abound, and "I've got a couple friends left, but most of 'em ... they've heard the rumours and they ... look at me differently." Clearly, it appears that the Semons may be users of various mind-destroying poisons. Methamphetamine usually kills very slowly. The drug first attacks the front of the brain. The user becomes very talkative, babbling on almost constantly, speaking quickly and repetitively and making little sense - he begins to sound like a politician. The brain rots away, a little at a time, until only the stem (necessary to maintain vital functions) is left intact. Tapping on the head may produce a hollow sound. At this point the person has become very stupid (this may not be distinguishable, though, in Northern Minnesotans; or for that matter, anyone who decided to take drugs to begin with). When the rot continues, affecting, finally, the brain stem and vital functions, the person dies. This cures the drug use. During the rotting, the person may become psychotic (again, like our elected officials); in advanced stages, the user may become vegetative like a spinach or cabbage, although not (generally) green. If they do, in fact, use these things, in time their brains will rot away and that will be the end of them. But the larger issue here is not the welfare of the Semons, it is the welfare of the Constitution and the guaranteed security of Americans under it. Ultimately, it is the courts that are the guardians of the Constitution. (That is why, if Bush gets a second term, and packs the Supreme Court, then civil rights, including Roe vs. Wade, are likely to become history.) Lots of law enforcement officers would like warrants to search lots of places in hopes that they find something. It is incumbent (pardon the bad word) upon the courts to ensure that searches are conducted only where there is attested probable cause that a crime has, in fact, been committed. Legally, if what was seized in the search does turn out to be the mind-numbing poison - methamphetamine, and killer weed, then the Semons may be chargeable with possession; except that the evidence may have to be suppressed due to the illegality of the search. In this case, yes, they did, purportedly, find a small quantity of users' drugs; but they went in without probable cause. That endangers us all much more. ---------------------------------------------------------------- SCHIEFERDECKER WOULD HAVE SPENT $THOUSANDS OF YOUR MONEY TO TRY TO KEEP $668 But Semons Insist on Hearing; Money Ordered Returned From Vol. 9 No. 6 - 06/21/04 (LEADING EDGE JOURNALISM - FOLLOW-UP - For detailed original reporting, see Search Warrant Issued on Looks, NH of 03/08/04, ante, on this page) BEMIDJI -- On January 30, 2004, Beltrami deputies and agents of the Paul Bunyan Drug Task Force served a search warrant on the residence of Rick and Denise Semon near Tenstrike. Trouble was, the warrant was badly flawed. It was clearly directed to a supposed manufacturing operation of the poison: methamphetamine. Denise Semon suffers from lupus, and the informant mistook her symptomatic facial scars for burns, which were speculated to be from a meth lab fire. What was speculated to be drug paraphernalia turned out to be only supplies for feeding plants. Rick Semon did not deny that he has used meth, sometimes called "speed" or "crank", but categorically denied making it. So, when the deputies asked him if he had any drugs, he gave them a small packet of the poison from his pocket. They continued with the search, which didn't turn up any other substantial results. But they did take all of Semon's money - $668 - from his wallet. Although Semon could state its source as being elsewise, deputies confiscated the money under the pretense of it's having been drug trade related. There was no evidence whatsoever supporting this contention. Without the money, the Semons were threatened with eviction, and had to apply for emergency assistance because they received an electricity shutoff notice. Several months elapsed since the search, with no formal action taken. Semon could have been charged with simple possession, but the warrant had been issued without apparent probable cause (no one saw drugs or drug equipment on the premises) and would likely be subject to a motion to suppress, making the possession evidence inadmissible. But the county still had the Semon's illegally-seized $668, and wasn't about to return it. Eric Shieferdecker is a hot shot in Beltrami Co. Atty. Tim Faver's office where he's an assistant county attorney. He has been known to spend thousands trying to avoid returning a $500 (max. est. value) hunting bow, which, it was eventually ruled, the County had no right to keep. (See Schieferdecker Loses Beltrami Bow Case, NH of 01/15/02 in The Library, v.7, at northernherald.com) Court records are littered with other cases Shieferdecker has tried, appealed and lost. Still, he's married to Rebecca Signe Anderson, daughter of Minn. Supreme Court Justice Russell Anderson, so he can pretty much do what he wants. His job in the Co. Atty.'s office is pretty much secure; after all, it's just the taxpayers' money, and in Beltrami County, which has returned Faver to office many times, that's like so many sheep waiting to be shorn. So, when, in May, Rick Semon appeared before the Honourable Judge Hawkinson (case no. C7-04-457) to obtain return of the $668 unlawfully seized, Shieferdecker launched into a series of legal shenanigans to delay, and prevent that from happening. Firstly, the prosecutor claimed that, even by May, he was not ready to proceed. The matter was continued to be heard June 9th at 2 pm. Then, to establish an (expensive) subterfuge to continue holding the money, five days before the June 9th hearing, Shieferdecker filed a 5th degree controlled substance (simple possession) charge against Rick, for the small amount of meth he had. He sent Semon a letter encouraging him to seek assistance from the public defender's office (at further public expense) and another to the Honourable Judge Benshoof, requesting that the June 9th hearing be continued (postponed) until August, presumably for the benefit of Semon and, "to save Mr. Semon from driving down from Tenstrike on Wednesday." In his arrogant letter to Semon, Shieferdecker wrote, "I think you will also find in due course that there was sufficient probable cause for the warrant to be issued. ... Ultimately I believe it will come to pass that the $668.00 will be forfeited." The hearing was rescheduled - but the Semons didn't want the postponement - they wanted their money back. They contacted the Court Administrator the morning of June 9th, notifying her that they did not agree to the postponement requested by Schieferdecker. The matter was put back on calendar for that afternoon. At the hearing, not Schieferdecker, but Mr. Faver, appeared and told the Court, "I'm satisfied that the State could not meet it's burden of proof" of showing that the money was, in any way, drug-related. Accordingly, Judge Benshoof immediately ordered return of the $668 to the Semons. The 5th degree possession charge, and the Semons's challenge to the legality of the search warrant, remains pending as the Semons wait for a public defender to be appointed. Post publication note, as of 08/01/05: Ultimately, the search warrant was held, by the Court at Bemidji, to be valid; notwithstanding that neither the affiant, nor his informant, had seen drugs at the Semons' home, nor otherwise had personal knowledge of same. Richard Semon was found guilty of simple possession of methamphetamine. The case is now being appealed, based on the legality (or lack of same) of the search warrant. ========================================================= From Vol. 6 No. 2 11/08/00 ---------------------------- The Bemidji Post Office MOVING . . . TOWARD A LOWER STANDARD OF SERVICE BEMIDJI -- The Bemidji Post Office boasts one of the most up-to-date facilities around. While in many cities of roughly comparable size, employees keep the post office, sometimes housed in a much older building, open on a round-the clock basis, postal employees at Bemidji enjoy a newer modern and spacious building, and recently, one of the few automatic sorting machines in the state. Yet customer service has steadily deteriorated. In the early 90's, the Bemidji Post Office was open (for box customers, postage machine and letter drop) 'til 10 p.m. weekdays. There was also a service window with a buzzer, so if someone had an oversize package or something that had to be postmarked that day, they could give it to an employee. Last mail pickup was 7:30 and 8:00 p.m., depending on whether it was local or out of town. Now the last pickup is at 6:00 p.m., and the buzzer at the service window has been disconnected. If customers have something after 6 that needs to be postmarked that day, they're just SOL (Simply Out of Luck). The change in last pickup was very controversial. It was implemented while Dallas Radel was the postmaster as part of a scheme to have the mail automatically sorted at St. Cloud. Some people objected to the change because it meant that local mail not in by 6 wouldn't be delivered the next day. Nonetheless, Radel found it necessary so the mail could make the truck to St. Cloud. But the St. Cloud sorting plan wasn't implemented. Instead, the Bemidji post office got new automated sorting machines, enabling faster and easier sorting of the mail, locally. It is not known precisely why the last pickup, then, stayed at 6 p.m. It was no longer necessary to make the St. Cloud run. Under postmaster Radel, the Bemidji Post Office achieved a loss rate, measured in an independent survey by Northern Herald, of about 5.7% - over one piece in twenty. Confronted, during his term as Bemidji postmaster, with the survey results, Radel simply denied them. During his administration, closing of the lobby was cut from 10 to 8 p.m., although Saturday window hours were expanded to 1:45 p.m. (they have now, however, been cut to ending at 11:15 a.m.). In 1999, following the failure of his St. Cloud sorting scheme, Radel left the Bemidji Post Office. The "official" reason given was medical leave. In actuality, many hoped he would be transferred to some post office urgently in need of greater efficiency, like in American Samoa or something. Postal officials tend to be tight lipped on personnel matters, and you can't always believe what is said anyway, but latest word is that he is, indeed, being transferred - he has not returned to his former post at the Bemidji office. To supervise the implementation of the new mail sorting machines, Pine River postmaster Steve Stephan was brought in as a temporary post office Acting Manager. He has since been replaced by Warren McQuary, also temporarily while a new postmaster is being found. Per Pat Rankin, postal supervisor at Bemidji, it is not known when the position will be filled, the application deadline was October 25th. Despite the change in postmasters, reinstatement of previous hours and service levels, however, is probably not in the offing. Regarding the shortened last pickup time, and why it didn't go back to 8 p.m. following the scrapping of the St. Cloud plan and installation of the new machines, Rankin said that now the additional time was needed, "to process it [the mail]. . . the volume has changed over the years." Still, this did not explain why other high volume offices are open 24 hours. --------------------------- From Vol. 6 No. 9 - 06/30/01 ----------------------------- WHY? The Bemidji Post Office recently, with the addition of expensive equipment, became a mail sorting center. Bemidji did not deserve this distinction, and efficiency-oriented post offices will send their mail elsewhere for sorting. Postal rates will again go up on July 1st, partially to pay for this kind of waste of money on a nationwide basis. But as long as the expenditure has been made here and the Bemidji Post Office upgraded, we have to ask, ---- WHY ---- 1) Is the Post Office closed at 8 pm (for box pickup)? 2) Is the last mail pickup still no later than 6 pm? 3) Does it often take EXPRESS MAIL 2 days to go to/from Bemidji? -------------------------- From Vol. 10 No. 3 - 03/07/05 ------------------------------ BEMIDJI'S MANN FOR THE JOB IS A MANN ON THE MOVE! Postmaster Charles Mann Improves Bemidji Postal Service, Now Moves On To Solway. BEMIDJI -- After 4 years of improving Bemidji Postal Service, Postmaster Charles Mann went to the Solway Post Office February 1st. "I guess I find that I miss dealing with the customers directly and waiting on the customer, and this provides an opportunity to do more of that . . . so, when the opportunity came, I requested a transfer," he said. Mann's tenure at Bemidji has seen many positive changes. Unlike Dallas Radel, the postmaster before him, who efficientized by cutting customer service, shortening the lobby hours, and making the last mail pickup earlier in the day - an inconvenience for businesses mailing after work; Mann's focus was on giving the customer more service and convenience for the money. He recently returned the lobby closing to 10 p.m. weekdays; and implemented an automated postal center, allowing people (using a credit/debit card) to send parcels, including those weighing over a pound, anytime the lobby is open. Mann's term saw the implementation of the new 911-emergency services street names, and he said that helping the customers and the postmen deal with that and make the conversion was one of his biggest challenges; the new addresses, he said, will prevent confusion due to reassignment of route numbers as the community expands. "Once you get an address, it's the same and we don't have to change it, even if you end up on a different route," he said. Mann is excited about recent innovations in the postal system which now allow customers to use the Internet more, such as to place a mail vacation hold, arrange a mail pickup, or even print their own postage; as well as the newer sorting equipment, which they're "using to hold our costs down, to help the customers," he said. Mann's term also saw the 9/11 period with it's anthrax scare, and addressed the required beefing up of security, "Internally, we've made a lot of changes since then - how we handle the mail, on plans to react if there is an emergency, on aviation security, that sort of thing," so they'll be "as ready as we possibly can," should another emergency occur. In closing, Mann added that they've received some calls and there has been some concern about the possibility of postal rates increasing, but said that this is not in the immediate future, and probably wouldn't happen until toward the end of 2005. He could not speculate on what the new first-class letter rate might be. Mann's departure leaves some pretty big shoes for the new Bemidji Postmaster to fill. Mann said that the job would be routinely advertised, and likely filled within about three months. ================================================================ From Vol. 1 No. 20 - 05/03/96 ------------------------------ HOMOSEXUAL ASSAULT CHARGED IN UMMHC SUIT BEMIDJI --Upper Mississippi Mental Health Center (UMMHC), a major provider of court-ordered mental health and rehabilitative services in Bemidji, has been sued, along with a former employee, in an action that charges nonconsenting homosexual conduct between the employee and three men, two of them vulnerable adults, receiving treatment at the center under court order or referral. The incidents cited allegedly occurred between 1989 and 1992. The complaint alleges that UMMHC was made aware, early on, of some of the employee's unusual conduct, but failed to take action until other, and more serious incidents occurred. The lawsuit asks damages in excess of $50,000 on each of 14 grounds, and also certain other damages, as proven. The complaint, filed May 1, 1996 before the Ninth Judicial District Court at Bemidji, alleges that the former employee, Larry Coen, 2925 Ridgeway Avenue, Bemidji, had contact with the men, in the course of their court-ordered therapy at UMMHC by "rubbing his body" and "pressing his body in a sexual manner" against theirs, and persisting in requests to meet the men off of UMMHC premises, accompanied by threats to one of the men that if he did not meet Coen in that manner "Coen would see to it that [the patient] would not complete the court-ordered program." Per the complaint, one of the men did not complete the program, due to Coen's action, and, as a result was eventually incarcerated, losing his successful businesses and his home. The complaint states that the behaviour of Coen was brought, in about 1990 or 1991, by one of the plaintiffs, to the attention of therapist John Yingling, who disclosed it to UMMHC. UMMHC's response was that the patient "should deal with the problem with Coen himself." The complaint alleges several other incidents, including that, subsequently, Coen fondled another patient (the 2nd plaintiff in the suit), without his consent, and that Coen intimidated the third patient in the suit, a learning disabled vulnerable adult, into repeatedly going to Coen's home, where Coen compelled him to perform various unnatural acts. The complaint alleges that Coen told the patient that if he did not comply, Coen "would make it rough for [him] in the program and that [he] would be in the program two more years. The complaint further alleges "That [UMMHC] is vicariously liable for the conduct of its employee as they knew or should have known of Coen's conduct and in addition for negligently employing and retention of Coen as a counsellor [sic], for placing him with his known propensities in a position to manipulate those in the program. For failing to properly supervise Coen...." Both Rob Cole, Executive Director of UMMHC, and Larry Coen, declined to comment on the suit. Attorney for the plaintiffs is Darrell Carter, Esq. of Bemidji, who said that other persons, not presently included as plaintiffs in the suit, may have been damaged by Coen. "There is at least one other victim, and there may be others." he said. Beltrami County Attorney Tim Faver has brought no charges against Coen or UMMHC as a result of the cited incidents. Upper Mississippi Mental Health was criticized in 1994 for refusing treatment to Heather Lory, traumatized by a gang-rape. Collusion, by UMMHC, with the County Attorney's office, which had brought charges against Heather's father for shooting one of the rapists, was speculated. Per Lory, she was told by UMMHC that she couldn't speak of that incident (the rape) in counseling. Heather finally publicized the incident on national television in early 1994. From Vol. 4 No. 4 - 11/25/98 ----------------------------- LAST UMMHC HOMOSEXUAL ASSAULT CASE TO SETTLE BEMIDJI -- Darrell Carter, attorney for three men who claim they were sexually abused while undergoing court-ordered sexual rehabilitation at Upper Mississippi Mental Health Center, (UMMHC) has announced that a settlement agreement has been reached with the last of three clients to have brought suits against UMMHC. Two of the three cases settled in June, 1998, for an undisclosed amount, and Carter would not divulge the damages that UMMHC will pay for this last case. The original complaint, filed May 1, 1996, alleged that Larry Coen, a former UMMHC employee, had contact with the men, in the course of their court-ordered therapy at UMMHC, by "rubbing his body" and "pressing his body in a sexual manner" against theirs, and persisting in requests to meet the men off of the UMMHC premises. The complaint further alleges that UMMHC was made aware of the incidents, which allegedly occurred between 1989 and 1992, but took no action. The complaint further alleged that Coen threatened the men that if they didn't comply with his requests to meet him off-premises, "Coen would see to it that [the patient] would not complete the court-ordered program." The complaint alleges that, due to Coen's action, one off the men did not complete the program and was incarcerated. The complaint further alleged that another of the men, a learning disabled vulnerable adult was intimidated into going to Coen's home, where various unnatural acts were performed. UMMHC and Coen declined to comment on the matter when originally interviewed. Carter said that he and the Plaintiffs were satisfied with the settlements, and said that the action had resulted in a policy change that there be no contact between employees and patients off of the UMMHC grounds. But Carter expressed concern about continuing abuses of patients, and UMMHC's treating them without dignity. UMMHC gets all of the court-ordered referrals of sex offenders in a multi-county region, including Beltrami. He was particularly critical of the therapy policy which requires that individuals "confess" to things that they may not have done. "I know of recent cases where individuals have been told that they think or act in a certain manner, which they haven't - and if they don't [admit to it], they're reported to be in violation of cooperating with the program," Carter said. ============================================================== From Vol. 6 No. 10 - 07/28/01 ------------------------------ Leading Edge Journalism ----------------------- Health Care In Northern Minnesota THE MERITCARE MONOPOLY AT BEMIDJI Part 2 of a multi-part series resulting from our continuing investigation of health service practices in Northern Minnesota BEMIDJI -- It's Friday. Troubled by chronic insomnia, you've taken a retirement medicine that your doctor has, for years, prescribed. Now you notice that you don't have enough left for the weekend. Like almost all Bemidji physicians, your doctor does not have a private office of his own - he offices at the sprawling Bemidji MeritCare Clinic, a branch of MeritCare (formerly the Fargo Clinic) of Fargo, North Dakota. So you call your doctor at the clinic. You never get to speak with him directly, though; the call is intercepted by a MeritCare medical secretary - mostly a specialized clerk. You tell her you need your prescription refilled - she says that she'll check with the doctor and get back to you if there's any problem. Otherwise you can just pick up the Rx, to be called in, at the pharmacy. Not hearing back, you go to the pharmacy Saturday morning; but nothing has been called in. And you can't reach your doctor. Unlike most private physicians' offices, MeritCare has no physicians' exchange - a usual service where doctors receive important patient messages after hours. MeritCare's answer is if it's that important, you should go to the Emergency Room (of North Country Regional Hospital on the same campus as Bemidji's MeritCare Clinic) and pay the associated charges. After a sleepless weekend, you again, on Monday, call the pharmacy. They check with the clinic and find out that your doctor signed the prescription on Friday, MeritCare staff just forgot or didn't bother to call it in. This is Bemidji, and this is MeritCare Clinic - a sad excuse for what medical service, in most places, is and should be. The incident recited, as it concerns MeritCare, is documented. Similar errors concerning the mismanagement of patients' medical needs by MeritCare have been observed and are not infrequent - more the rule rather than the exception. Over the years, in Bemidji, MeritCare has induced doctors to forego private offices in favor of practicing at the MeritCare Clinic. There, instead of the usual doctor-patient relationship, Bemidji patients receive assembly-line style managed health care. One can make an appointment with his own doctor there, but often exigencies, which are less than what would usually be considered "emergencies" arise, and a patient needs to see his doctor on a day or two's notice. At most private medical practices, the patient would be worked in to the schedule. Not at MeritCare though - MeritCare's answer is what they call "urgent care" - a patient can come in that day, but, he'll be assigned to a doctor, usually not his own regular physician, on a random basis. The doctor who sees him will usually be wholly unfamiliar with his case, history, allergies, etc. If the patient has to return for follow up, he'll be seen by yet a different doctor. This is so even if the patient's regular doctor, who is familiar with his case, is in that day. The doctors are managed by MeritCare staff, and the patient's usual doctor, who knows his case history, may not even be informed that the patient is in. MeritCare management does not understand that, unlike auto parts, doctors are not interchangeable; or perhaps the clinic's management just doesn't care as long as the cash flow is okay. In Bemidji, due to MeritCare's monopoly, and the lack of private physicians' offices, a person seeking medical services has few options. There are as many doctors, both general and specialized, as one would expect for a city the size of Bemidji. But their offices are all associated in that, mostly, they all practice at the same behemoth clinic. This has taken its toll for reasons other than just medical. Some people have been refused service at MeritCare for political reasons. A case in point was when, in 1995, Roy and Patricia Martin, chronic arthritics who required frequent medical treatment, were refused service by their MeritCare physician. It seems that Roy had been falsely accused (and acquitted by a jury) of molesting Ida Stein Hightshoe, who happened to be a MeritCare employee. Shortly after Roy was exonerated and released from jail, his doctor told him he'd have to go elsewhere for medical service. But, in Bemidji, there's practically nowhere else to go but MeritCare. When the Martins left Bemidji, they cited inability to get needed medical care as a primary reason. Waive confidentiality? Bemidji is a talking town. There's a lot of talk here. When a patient first registers at MeritCare, he's given a purple form and told to sign it. It waives the right of confidentiality as regards diagnosis and other medical data. A patient cannot be compelled to sign the form, or may strike out certain paragraphs before signing, but most don't know this, and simply give MeritCare permission to discuss their case with others. Doctor's pay to see a nurse? In Urgent Care, there are sometimes waits exceeding two hours, even if the patient had an appointment. MeritCare also routinely asks Urgent Care patients to agree to be seen by a nurse-practitioner, instead of a doctor, at the same fee. Technology vs. the traditional doctor-patient relationship. A leading professional in a medical-related field summed up the problem by explaining that modern day health care management often just doesn't allow for the physician to spend enough time with the patient to arrive at a proper diagnosis and treatment. At the core of the alleged inadequacies of MeritCare seems to be the erosion of the traditional doctor-patient relationship. When doctors join the MeritCare system, in many ways, they give that up in favour of convenience (for the doctor), such as centralized accounts management and easier accessibility (again, for the doctor) of technology and medical-related services, such as lab work and X-ray. Still, in the old days, a doctor would come to your home, if necessary. He would have only his black bag with, but somehow managed to treat what ailed you. The doctor knew each one of his patients and cared for them individually to the best of his ability. Patients respected this, and besides, you didn't request a house call if you didn't have to, because it cost $6. Interviewed, regarding the standard of service, MeritCare's Administrator at Bemidji, Randy Beck, said, "We see 700 people a day.... the cost of medicine is very, very high ... it is almost impossible to meet all of [patients'] expectations ... we can't afford it. ... You're talking about what health care was like [in past times]. [There were illnesses that] back then, nobody knew how to treat - now, they know how to treat. There's been a cost to this technology." And Beck alluded that part of that cost has taken its toll in the ability of the patient to contact his own physician, when needed. "You try to balance how you provide the service to [the patients] with the amount of demands that all these people have, ... it's like any industry - we've gotta learn from these things and keep moving forward. ... Here, you contact your physician via the nurse," he added. In many places, physicians, due to the nature of their work, have seen fit to be on-call, if needed by their patients, even in off- duty hours. It's something that, historically, has gone with the turf of the well-paid medical profession. Addressing the MeritCare system, Beck replied that, usually, a doctor's workload may include 2,500 patients. He said a doctor should have time off, whether golfing or fishing or for family, when, even in an emergency, he should not have to be available. Another doctor can cover for him, without ever having consulted with that [i.e. the patients' usual] doctor about the case history, allergies and reactions, previously tried treatments, etc. "You have to have a system," said Beck, "... that manages it to the best of the ability. ... You have to have [interchangeability of] the physicians ... it's called 'medicine'. Medicine is the documentation of what goes on. And with that documentation, other providers [can provide the service.]" Beck said that it was not possible to "go back" to the doctor-patient relationship of days past, "in some ways it would be nice to take the best part of that system and the best part of this system and put it together. The only thing I can tell you is we're working at it," Beck said. Regarding the lack of competition, Beck said, "Physicians see an advantage of being part of a larger group ...." "We're ... interested in trying to solve problems," said Beck, "I would appreciate it if [patients with complaints] would just give us [in administration] a call. ... I have no problem with dealing with every patient who has an issue in our system ... we don't blow it off ... we treat every patient complaint as an opportunity to learn." Patients experiencing difficulties at MeritCare may contact Administration personally at the clinic, or are encouraged to call Mr. Beck, Mr. Warren Larson, administrator and MeritCare Administration at 218-333-5484. ================================================================ From Vol. 7 No. 2 - 11/03/01 ------------------------------ MERITCARE REFUSES TO TREAT ANTHRAX-LIKE SYMPTOMS Part 3 of a multi-part series resulting from our continuing investigation of health service practices in Northern Minnesota BEMIDJI -- Despite much publicized warnings that persons having cold or flu-like symptoms, the same initial symptoms of Anthrax, are well advised to take precautions against possible Anthrax, such as by use of antibiotics; physicians at Bemidji's MeritCare clinic are refusing to prescribe the Anthrax remedy, Cipro®, even when insisted upon by the patient having such symptoms, and where said patient has no known allergies to antibiotics. In the documented case reported here, the physician gave, as his reason for refusing to prescribe the antibiotic, that Bemidji is not known as an at-risk area; notwithstanding that anyone who has contact with mail that may have passed through a tainted postal processing center is potentially at-risk, and the illness has turned up, sporadically, throughout the country. Interviewed, MeritCare Administrator Warren Larson indicated that MeritCare did not have a specific policy on the prescribing of antibiotics during the Anthrax threat, and that the decision was left up to the individual doctors. Editorial Note: Hopefully, when the first actual Bemidji Anthrax case occurs, which MeritCare and its physicians may have refused to treat in the early stages, they'll get sued for enough to put this poor excuse for a medical service provider out of business, opening the door for additional, qualified, doctors to start to locate, independently, in Bemidji. At present, Bemidji's MeritCare is one of the few places where the doctor-patient relationship takes the form of an adversarial one. A patient, new to the area, commented that MeritCare was unusual, and the worst service she'd received from doctors anywhere. ============================================================== Leading Edge Journalism ----------------------- At Bemidji - High Corruption Marches On! BEMIDJI POLICE CHIEF PREECE IMPLICATED IN ALLEGED HELICOPTER PONZI Purchaser Says $295,000 Missing; Manufacturer Pulls Preece's Franchise From Vol. 7 No. 7 - 05/04/02 BEMIDJI -- The City of Bemidji has not exactly cornered the market on corruption. It exists, in a limited sense, in the dark nooks and crannies of many urban centers, municipalities and rural governments across the nation. What makes Bemidji special is its demography. Whereas, in most places, those tending toward corruption tend to be an elite, popping up to work their malevolence on a catch-as-catch-can basis, and mostly confined to the shadows of the government halls; in Bemidji, with its huge welfare population that will take whatever they can get so long as they don't have to work for it, and also it's large government-based (Bemidji's largest employer) population, including many liberal educators at BSU, for whom any politics are OK as long as the money faucet keeps running; Bemidji is unique in that it seems to possess an electorate, a majority of which either favors, or at least is tolerant of, corruption. Corruption doesn't have to stay in the shadows here - we put it in the highest seats of local government and we send it to the state legislature at St. Paul. Corruption can be blatant in this remote municipality. Forget about the Constitution and laws - they don't apply here. That may be why, with local property taxes as high as they could go, residents got hit with a $60 "storm sewer fee" this year, which was passed at a "public hearing" that those residents never knew about and was unattended, except by the Council, last spring. And in this quagmire of openly corrupt dealings, it would be natural and proper that such a City should have a Police Chief who is a liar and crook. It's consistent. Fits right in. The Chief. When Police Chief Tell (a BCA investigation produced about 17 allegations of theft by swindle, but a Beltrami County jury, in 1996, wouldn't convict Tell - accepting his explanation that it was mistake) finally retired last year, the City Council and management could have gotten some fresh blood. Someone from outside the corrupt circle here. But, of course, they didn't. They hired Bruce Preece, son of long-time Bemidji Judge James Preece, famous, or infamous, depending on how you look at it, for some of his rulings protecting the good ol' boys of Beltrami County. Helicopter shenanigans. Now, faced with allegations of misdealings in high-priced helicopters, including that Preece took full payments for (over $300,000) airships, which payments were never turned over to the manufacturer, a contact close to the situation has said that Preece is acting as if nothing is wrong. Preece's initial statement to Northern Herald is right in line with this as he told us that there's no substantive problem. That the Torrance, California firm of Robinson Helicopter Company failed to renew his franchise only because Preece is selling his helicopter business, known as Helicopter Flight, Inc., operating at the Crystal airport near Minneapolis. Frank Robinson, of Robinson Helicopter, though, told a different story. Although he could not disclose the details of any specific allegedly fraudulent transactions, after a description of customer allegations against Preece, charging that Preece took full payment (about $320,000) for at least one helicopter, tendering only $25,000 to Robinson, Frank Robinson confirmed that the franchise was pulled, because, "The situation that you have described has been a recent problem with Mr. Preece, and that's why he is no longer our dealer. However, any orders that he has placed ... before his dealership was cancelled, we would go ahead and complete the aircraft and complete these transactions, once we have received the payment for it." Robinson is a conscientious firm that won't tolerate the appearance of impropriety among it's dealers. Said Robinson, "Our whole concern here is that anyone who has paid for their aircraft, simply, should get it. ... A dealer is not to hold any of the funds, either deposits or final payments; they are to be immediately transferred to the factory (Robinson) to complete the sale, so that the customer can get their aircraft on time." A customer, Jim Bult, owner of a trucking firm near Chicago, said that, in January, 2002, he had ordered a Robinson R-44. Bult said that Preece told him it could be delivered by February 15th, if Bult tendered payment in full (about $320,000) to Preece with the order. Bult said that, to expedite that order, he paid Preece in full by wire. Robinson, though, only requires that a $25,000 deposit be paid to begin manufacture of the craft. Apparently that was all that Preece turned over to Robinson, for Bult's order. Bult said that February came & went - no helicopter. Upon inquiry with Robinson, he was told "it wasn't even made, and [not] scheduled to be released until April 5th." Then it would be delivered upon their receipt of the remaining amount - about $295,000 - that Bult had already paid to Preece. April came and went and as of May 2nd, Bult said that Robinson was still holding his helicopter for payment. There is no certainty as to what Preece may have done with the other $295,000. It has been speculated that he may have been waiting for another sale, to use the proceeds to pay for the back order. With the franchise pulled, though, there may not be future sales. And Mr. Bult is still waiting for the helicopter he paid for in January. "To date, customer has paid for the product, helicopter has been ready for shipment, customer is still waiting for the product," Bult said. The time value (i.e. interest) on $295,000, at 5%, is about $1,229. per month. Bult said that if he'd known that the airship wouldn't even be completed until April, he might have bought it anyway, but he wouldn't have tendered payment in full in January. He said that, in the interim, Preece has promised several times to "make it right" claiming various technical reasons for the delay. Investigation by Northern Herald has disclosed indications that up to 2 other customers may also have faced delays or irregularities in delivery of their product (i.e. helicopters), but their statements are not yet available. Preece's statement. Contacted again, with this new information, Preece's calm explanation was straightforward. He explained that Bult's $320,000+ payment wasn't actually for his (Bult's) helicopter. That it was an investment in another helicopter, in which Bult was to have had a half-interest, that would then be sold at a profit, which would be used to give Bult a discount on his helicopter, that could then be paid for and delivered to Bult. Perfect sense. Preece said that the market went soft, making it hard to sell the "investment" helicopter early in the year, but he expected to have it sold, and Bult's helicopter delivered, this week. Preece said, "He invested in another aircraft, with his funds, with the idea that that aircraft would be resold for a profit, profit being shared both by the company and by him. And then, that would allow him a greater discount on the purchase of his aircraft; and he agreed to do that. But, we also agreed that that transaction would be done by February. Well, as it turns out, the market was slow, and the aircraft did not sell right away. It has, actually, or is in the process of being, sold now, so the funds now have become available, and we'll be taking delivery on his [Bult's] aircraft this week ... I'll have to check with the staff, but I believe that's correct...." Trouble is, that Mr. Bult didn't know anything about his "investment" in any other helicopter. If he supposedly had a half- interest in anything, it was news to him. Bult told Northern Herald that there was no agreement regarding any other aircraft. He ordered only one helicopter, for himself. He had paid Preece the money in January, for his helicopter, and for promised delivery of that bird by February 15th. Plain and simple. "I sent the money in January for a helicopter for February ... what he [Preece] did with the money, he has since told me that he purchased another aircraft and was going to do a quick turn on it, make money and blah, blah, blah, [but] ... I had no involvement or agreement [regarding any other aircraft] ... I sent my money for one purpose; that was to purchase my helicopter. If I own part of [another] helicopter, I don't know about it," said Bult. As to the promise of delivery this week, Bult said, "[Have] I told you how many times I've heard that? ... I hope it is ... Right now, I'm out 300 grand and I'm hoping that he can make it right." Leading Edge Journalism-Follow Up --------------------------------- NEW HELICOPTER FRAUD ALLEGATIONS SURFACE AGAINST BEMIDJI POLICE CHIEF PREECE Hennepin County Attorney's Office Takes Interest Bemidji Police Commission Claims "Didn't Know" From Vol. 7 No. 9 - 07/27/02 BEMIDJI -- New accusations have arisen, from several sources, including those who had direct dealings with Bemidji Police Chief Bruce Preece's Helicopter Flight Inc., operating at the Crystal, Minn., and Moorhead, Minn. airports. To date, however, the 3-person Bemidji Police Civil Service Commission (the board that hires, fires and disciplines police officers in Bemidji) has yet to act, and the 2 commissioners contacted (Palmer Berg and Doug Deblieck - the commission is chaired by Bill Batchelder) denied knowledge of the Chief's alleged business wrongdoings. The matter was widely publicized on the front page of Northern Herald of May 4th, 2002, but as yet, to our knowledge, has not been covered by any other area paper. Many of the papers in North Central Minnesota are owned by a single interest: The Fargo Forum. The matter, however, has drawn the interest of the Hennepin County Attorney (where Crystal, near Minneapolis, is) and persons with information are encouraged to contact Pat Diamond, of the white collar crimes unit, at 612-348-8406. Nature of the beast. Most of the allegations center around sales or lease-backs of helicopters. These are about $300,000 items, but titling and documentation, controlled by FAA, does not appear to be nearly as strict and tight as it is, in Minnesota, for motor vehicles. It is here that Chief Preece seems to have seen opportunity. In early 2002, Preece's Helicopter Flight Inc. (HFI) was a franchisee for the Torrance, Calif. firm of Robinson Helicopters, which custom-builds each bird, until Robinson pulled the franchise for Preece's misdealings with customers. Robinson requires that all manufacturing funds paid by customers be immediately turned over to Robinson; this appears, here, to not have been done. As earlier reported (NH of 05/04/02), in January, 2002, Preece sold a helicopter to Jim Bult, owner of a trucking company near Chicago. Per Bult, Preece requested payment in full (about $320,000), in order to procure rush delivery by February 15th. Bult wired the money. But the representation was intrinsically false - Robinson Helicopters could not have built the bird before April, and, in fact, scheduled it to be released April 5th, notifying Preece accordingly. Of the $320,000. paid to him by Bult, Preece paid Robinson the minimal $25,000 deposit to start manufacturing of Bult's bird. As to what happened to the remaining $295,000, a credible source close to the story said, "He was either using it for personal gain, or to put into his business - pretty much anything other than use it for what the helicopter buyers were assuming it was used for," and that Preece intended, in a kind of ponzi scheme, to use the money from future helicopter sales to cover the old contracts. This scheme, of course, fell apart when Robinson canceled the franchise - there were no future helicopters to sell. April came and went, Bult still didn't have his bird. It was built and sitting at the Robinson hangar awaiting payment. In early May, in interview, Preece said that he had dispatched two pilots to California to pick up and deliver Bult's bird. This also proved false. He may have sent pilots, but as of the following week, Bult still didn't have his bird. He didn't get it until mid- July, when Bult had to pay, a second time, and this time directly to Robinson, the balance owing - another $295,000, approximately. As of late July, Bult said that, in aftermath, Preece offered him a promissory note wherein Preece had agreed to repay the amount, to Bult, by August 11th, and Bult accepted same. It is not presently known whether Preece will perform under the note. Since our first reporting, new, similar, cases, involving apparent financial misdealings by Preece and HFI, have come to light. One of those was with Twin Cities area resident Leonard Busch. Because aircraft are expensive, and generally aren't used every day by the owner, often, aircraft ownership involves an arrangement where the owner allows the aircraft firm at the airport (here, HFI) to rent or lease the aircraft to others, in exchange for a portion of the lease proceeds. Per Busch, in July, 2001, he purchased, through Preece, a used Robinson R-44 helicopter, tendering full payment of about $235,000. Busch bought it with the provision that Preece would resell it (presumably at a profit) within eight weeks; and, should Preece fail to so resell it, Busch would get full title, and $15,000, and any lease payments which accrued from HFI leasing the bird to others. Per Busch, though, Preece failed to resell the bird, failed to pay the $15,000, put 120 hours flight time on the helicopter, and Busch has yet to receive a cent of lease payment. Preece also failed to deliver title to Busch. In February, 2002, Busch demanded title to the $235,000 bird and received it in March. But he also found out that Preece had pledged the bird as collateral for debt with Security Bank USA (managed by John Baer, a relative of former Bemidji attorney Carl Baer), and had encumbered the title with about $150,000 of outstanding debt. Before long, the bank contacted Busch and told him that they wanted the chopper back for the debt, and in approx. May, 2002, Security Bank served papers in a replevin (repossession) action upon Busch. That matter is presently pending trial. Busch noted that the bank lien on the bird wasn't recorded with FAA until after the bird was transferred to Busch. Also pending trial is a suit, by Busch, against Preece for the $15,000 promised, and $16,000 in lease payments due, and for alleged fraud in Preece's mortgaging Busch's helicopter. Busch claims that since buying the helicopter (FAA Reg. No. 144GH) from Preece, he's been contacted by a man from North Dakota, who claimed that he (the ND resident) owned it, having paid Preece for it. Said Busch, "I don't even like to call Bruce Preece because what he says doesn't make any sense - it's seldom truthful." Asked if they would be concerned by the Bemidji Police Chief's apparent lack of integrity in his dealings, the two police commissioners contacted declined to make any substantial statement. The Bemidji Police Commission can be disbanded by action of the City Council, or by petition of 25% of the city's voters (M.S. 419.16). In that event, control (i.e. hiring, firing, discipline of personnel) of the police dept. would revert to the City Manager, who serves at the will of the City Council. Leading Edge Journalism - Follow Up ----------------------------------- PREECE NOT YET CHARGED From Vol. 8 No. 2 - 12/30/02 MINNEAPOLIS -- As yet, no charges have been brought against Bemidji Police Chief Bruce Preece for alleged swindling in $300,000 helicopter deals from his Helicopter Flight Incorporated (HFI) locations at the Crystal and Moorhead airports. (See New Helicopter Fraud Allegations Surface Against Bemidji Police Chief Preece, NH of 07/27/02, on this page, ante) Current status of the case is unavailable (law enforcement agencies, generally, may not comment on matters while investigation is in progress). Persons having further information are encouraged to contact Pat Diamond, of the Hennepin County Attorney's office, at 612-348-8406. Leading Edge Journalism ----------------------- Bemidji Crooks EVIDENCE MOUNTS IN BEMIDJI POLICE CHIEF PREECE ALLEGED HELICOPTER SCAMS But No Criminal Charges Are Landed Yet From Vol. 8 No. 3 - 02/10/03 BEMIDJI -- "We're all horrified that somebody like Bruce Preece can be the Chief of Police of a city," said Minneapolis attorney Mary Mason, Esq. Mason is part of a legal team representing a Wisconsin man, Richard Stanger, who is involved in a suit surrounding a $344,910 helicopter sold by Helicopter Flight Inc. (HFI), a corporation controlled and operated by Bemidji Chief of Police Bruce Preece, who allegedly personally transacted all of the alleged frauds involved. HFI operated primarily out of its base at the airport at Crystal, a suburb of Minneapolis, in Hennepin County; and also had operations at the airport at Moorhead. Allegedly, Preece firstly, in June, 2001, sold a Robinson R-44 helicopter to Stanger and was paid in full, by Stanger, the purchase price of $344,910, with Stanger taking title. In November, 2001, Stanger was willing to sell the craft, and entered into an agreement with Preece under which Preece would, for 90 days, be the exclusive agent for sale of the helicopter on Stanger's behalf. The helicopter, hangared at HFI at Crystal airport, however, was not sold during that period. Preece was authorized only to sell the helicopter, for $307,000, plus commission. Stanger said that he did not authorize Preece or HFI to use the helicopter for any other purpose. Stanger was to be notified, for approval, of any prospective offer, and was to have immediately received the proceeds, less commission, if the helicopter was sold. But, per the filed court Complaint, pursuant to a contract entered into on March 21st, 2002, between Preece/HFI, and Blue Skies, Inc., a corporation operated by Kenneth Schoenfelder, of Rochester, Minn., Preece sold Stanger's helicopter to Blue Skies, Inc. for $260,000. Attorney Mason said that Stanger was told nothing of the delivery of the helicopter to Schoenfelder, and received no payment for his helicopter. In interview, Stanger said that, essentially, Preece stole his helicopter, and delivered it to Schoenfelder, for Preece's own purposes. Stanger learned that his helicopter was gone from HFI only much later, when a mechanic told him that it was no longer there. Schoenfelder took possession of the helicopter and removed it from the HFI base. But the bird was still titled, with FAA, to Stanger. Per Blue Skies, Inc.'s filed complaint, "J. Bruce Preece and HFI failed to provide an FAA Aircraft Bill of Sale and other documentation required to record the transfer of ownership." On July 26, 2002, Schoenfelder's Blue Skies, Inc. sued Preece, HFI, Mr. & Mrs. Stanger, and Dairy State Bank (Stanger's lienholder), in Minnesota District Court at Olmstead County (Rochester), for title to the helicopter and damages "in excess of $260,000." (Blue Skies, Inc. v. Preece, et al.) The Stangers, who are out their helicopter, have filed a counterclaim against Preece and HFI, alleging that they are "entitled to the immediate return of the ... helicopter ... in good and workable condition or damages in the sum of $307,000" plus costs and disbursements, including attorneys' fees, "for the conversion of said property." Court records also disclose that on March 22nd, 2002, HFI, by Preece, gave Schoenfelder a promissory note in the amount of $260,000 plus $10,000 interest. Preece secured the promissory note with the HFI buildings, per a UCC financing statement. Stanger had nothing to do with this note. It is known that, in Preece's previously reported, allegedly fraudulent, dealings with other customers, he sometimes has given them a promissory note when he has been unable to meet his business obligations. In 2002, in the wake of other allegations of misdealings, Robinson Helicopter Company terminated HFI as a dealer in their products, and HFI, itself, has recently been, by Preece, put up for sale. The complaint by Blue Skies, Inc. (Schoenfelder) recites, "J. Bruce Preece and HFI used fraud, misrepresentation and deceptive practices, within the meaning of Minn. Stat. 325F.69 to induce [Blue Skies, Inc.] to purchase the helicopter." Schoenfelder and Blue Skies, Inc. are represented by Ken D. Schueler, Esq., Rochester; the Stangers are represented by the firm of Shulman & Associates, also of Rochester. Said attorney Mason, "... our client, Stanger, has never been paid; Schoenfelder has the helicopter ... [and is] using it in his business, but he doesn't have title to it. So both Schoenfelder and Stanger have paid HFI for the same helicopter." Said Stanger, "We're getting my helicopter back. ... It's my helicopter and if anybody else has it, they need my permission... and, so far, no one has it." Editor's Notes: (See also, Bemidji Police Chief Bruce Preece's Wife Guilty of DWI with .20, this issue, and Preece's other alleged helicopter swindles, reported in NH of 05/04/02 and 07/27/02 at northernherald.com) Persons with further information regarding alleged misdealings by Bruce Preece and/or HFI are encouraged to contact Pat Diamond, of the white collar crimes unit of the Hennepin County Attorney's Office, at 612-348-8406. --------------------------------------------------------------- Leading Edge Journalism ----------------------- BEMIDJI POLICE CHIEF BRUCE PREECE'S WIFE GUILTY OF DWI WITH .20 Car Goes Off Roadway From Vol. 8 No. 3 - 02/10/03 Note: This article contains editorial content BEMIDJI -- In Bemidji, it is somewhat unusual for elected officials and local public figures to get picked up for DWI. That doesn't mean they're saints - former representative Bob Johnson, after falling into disfavour with police, pulled 3 DWIs within a year, before leaving office. And a pretty woman can get away with most anything, most anywhere. But when an accident happens, it becomes harder to look the other way. So it was on January 3rd, 2003, at about 11:30 am, when the extremely beautiful Michelle Diane Preece, standing tall and stately, with windswept long hair and a clean Minnesota prairie look, the wife of Bemidji Police Chief Bruce Preece, appeared, for omnibus, before the Honourable Judge Murphy, sitting at the County Courthouse at Bemidji, and pled guilty to third degree (gross misdemeanor) Driving while Impaired under M.S. 169A.20 and 169A.26 (case no. KX-02-2120). Mrs. Preece was represented by Bemidji attorney Robert Wallner. Special prosecutor (due to the appearance of conflict had the Beltrami County Attorney prosecuted) was Hubbard County Attorney Greg Larson. The offense occurred on October 9th, 2002 in Beltrami County. Prior to sentencing, Mrs. Preece took the stand and testified that she had been involved in an accident (her car left the roadway and struck a fence) on the day in question, and that afterwards, she went home; "I was just a short distance from my house," she said. She testified that officers arrived at her home within 10-20 minutes. Judge Murphy read, from the documents, that the officers found that she smelled of alcohol (Editor's Note: At .20, the equivalent of about 8 stiff drinks, she must have smelled like a brewery) and a blood alcohol test showed over .20 %. Mrs. Preece, still on the stand, agreed with His Honour's recital of the facts. The collar was made by Deputy Bill Cross. In sentencing, it was revealed that police did not immediately take Mrs. Preece into custody, as is done in many DWIs, but waited for the blood test results to come back and then sent her a Summons to appear in court. His Honour confirmed that the normal sentence for 3rd degree DWI is 10-20 days to serve, a fine, and probation on conditions. Attorney Wallner argued for the low end of that, as Mrs. Preece had already spent time in inpatient treatment since the offense; and His Honour imposed sentence of 12 days to serve, and actual fine and costs to be paid totalling $1,043; with the remainder of a 1 yr. sentence and $3,000 fine suspended. The Judge also imposed up to 6 yrs. supervised probation on conditions that: 1) She have an alcohol assessment and pay the $125 fee for same; 2) she not be in places where, primarily, alcohol is sold; 3) she not consume or purchase alcohol; 4) that she is subject to random searches and breath tests for alcohol; 5) that she will continue with treatment; and 6) she not operate a motor vehicle until her privileges to do so have been restored. The probation agreement signed by Mrs. Preece on 01/22/03 provides additional conditions, including that she not leave the State without notifying her probation officer, no possession of alcohol, and no driving without a valid license and insurance. Mrs. Preece, in order to arrange day care for her son, was allowed time for same, and arranged with the Court to begin her sentence on a later date. For security reasons, she was allowed to be housed at a jail outside Beltrami County, at her expense. Huber privileges were not requested; she was allowed to perform community service with Sentencing-To-Service (STS), but did not do so. Jailhouse math. As with other inmates, the 12 days could have equated to as little as about two and a fraction actual days. How this works: An inmate performing community service gets 2 days for 1; that makes it 6 days. They get 1/3 off for good behaviour, making it 4. Any part of a day is counted as a day, and the jail usually releases in the morning. So, a person might go in, say, Tuesday night, work Wednesday and Thursday, is released Friday morning, and they're done. But checking into the Hubbard County Jail January 8th, 2003 at 3:30 p.m., Preece did not use her STS privileges and served almost seven days until her release January 15th at 8:30 a.m., per Hubbard County Sheriff Gary Mills. No comment - The Bemidji nest of corruption. Mrs. Preece's attorney, Robert Wallner, would not allow her to speak with press after the hearing. Wallner is known for having represented other high-profile persons and law enforcement officers when they have been charged with crimes. He is a member of the firm formerly headed by Carl Baer. Carl's brother, John, heads Security Bank, involved in Bruce Preece's alleged helicopter swindles. The law firm also employs Rebecca Anderson, the daughter of Minn. Supreme Court Justice Russell Anderson, and wife of Asst. Co. Atty. Eric Schieferdecker. Editor's Note: Northern Herald was the only press present at the hearing, which was held at a time when it would be, pretty much, out of the public's eye. Mrs. Preece suggested that the story not be printed "because of my husband's position," but we, at the Northern Herald, believe that such matters are equally reportable when the criminal happens to be our Chief of Police or his family, as when it happens to be any other Bemidji Bum. The Preeces may believe that his position makes them above the law he's sworn to uphold, but here at Northern Herald, we're pretty old-fashioned, and we don't think so. Bruce Preece himself has been alleged to have swindled many hundreds of thousands of dollars in a helicopter ponzi scheme, involving his firm of Helicopter Flight Incorporated operating at Crystal and Moorhead airports (See stories, pg. 1 of this issue, and in NH of 05/04/02 and 07/27/02 at northernherald.com) In Bemidji, police hiring and firing is controlled by a three-man citizen Police Commission. Bruce Preece was hired about a year ago upon the retirement of corrupt (phony travel vouchers) Police Chief Robert Tell. The Police Commission is presently chaired by Bill Batchelder (operator of Bemidji Woolen Mills - a high-priced retail store, really, - which advertises to tourists and has been observed selling "Bemidji Woolen Mills" shirts, where the shirts were manufactured and purchased elsewhere, with the "Bemidji Woolen Mills" label then sewn in). Batchelder, along with his crony, Palmer Berg, who also sits on the Commission, comprise a majority of it. So don't look for any positive changes in the Bemidji Police Dept. leadership soon. Batchelder was also a campaign manager to State Rep. Doug Fuller, and former (fortunately) City Councilman Herb South. He is active in the Beltrami Co. Republican Party. The upside of things is that, here in Northern Minnesota, the news sometimes gets dull. But between the business antics of Bruce, and the other antics of his family, as long as the Preeces are in Bemidji, they will probably keep the news interesting and fun to read. From Vol. 8 No. 7 - 08/11/03 ----------------------------- Leading Edge Journalism ----------------------- The Inevitable Happens BEMIDJI POLICE CHIEF PREECE GOES BANKO New Judgement Likely Prompted Filing; Leaves Trail of Scammed Helicopter Debt Editors Note: For earlier stories concerning Bemidji Police Chief Preece's alleged helicopter swindles, see NH of 5/4/02, 7/27/02 & 2/10/03 at northernherald.com Preece remains Chief of Police in the corrupt little town of Bemidji. MINNEAPOLIS -- Amidst many claims, by people who claim to have been defrauded by having been sold helicopters (usually about $300,000 each), and either didn't get, or didn't get clear title to the birds, and in the wake of a $174,937 judgement recently entered against him in a single case, Bemidji Police Chief James Bruce Preece filed a Chapter 7 Bankruptcy Petition, July 11, 2003, in the federal Bankruptcy Court at Minneapolis (case no. 03-44078). The filing papers indicate that, after claimed exemptions, there will not be funds available to pay unsecured creditors (including the swindle victims), who will, consequently, be totally shafted. The filing lists Preece as doing business as, and surety for, Helicopter Flight, Inc., Aircare Executive Charter and Security, and HFI Aviation Services (HFIAS). Helicopter Flight, Inc. is based at the Crystal airport near the Twin Cities, and HFIAS may also have had operations at the Moorhead airport. The bankruptcy petition lists assets of $369,285 and liabilities of $1,563,626 The Meeting of Creditors is scheduled at 1 pm, 8/14/03, at the U.S. Courthouse, Minneapolis. The deadline for filing a complaint objecting to discharge of the debtor is 10/14/03. Preece's attorney is Gregory J. Wald Esq., of Edina. Allegations, against Preece, of fraud include at least one case where Preece allegedly sold, and received payment for, the same helicopter to two different people. One received title, the other got the bird. (see NH of 02/10/03). Although these matters have been under investigation by Pat Diamond of the Hennepin Co. Atty's Office, no criminal charges are known to have been brought. In addition to the judgement (ante), the Petition discloses 3 pending civil suits against Preece in Hennepin, Olmstead and Roseau Counties. Although the unsecured creditors listed in the Petition include some of the persons who have claimed that Preece owes them money due to the alleged helicopter swindles, the filed list may not be complete. There is, for example, no mention of Jim Bult, an Illinois man who claims that Preece owes him $295,000 as funds paid by Bult to Preece for a custom helicopter, which funds Preece never remitted to the helicopter manufacturer (see NH of 05/04/02). Bult had to pay for the bird a second time, directly to the manufacturer (Robinson Helicopter, which terminated Preece's franchise), to get delivery of the custom-built helicopter. Per Bult, Preece then gave him a promissory note for the $295,000; but it has yet to be paid. It is not known what Preece did with Bult's $295,000 which should have been remitted to Robinson; Preece's Petition lists only $6,000 as 2002 income from Helicopter Flight, Inc. The Petition discloses a federal tax lien, against Preece, for $90,000, presumably for unpaid taxes, and lists as a priority debt $41,615.12 as payroll taxes, owed to the Internal Revenue Service, for periods from 7/1/01 through 3/31/02, during which periods, presumably, withheld payroll taxes for employees of Helicopter Flight, Inc., were not being paid over, by Preece, to the IRS. Also listed in the Petition is a $174,937. judgement against Preece, entered in a North Dakota court and transcribed to Beltrami Co., for execution, in favor of Textron Financial Corp., which lists its address as c/o Cessna (aircraft) Financing Corp., Wichita, Kansas. From Vol. 9 No. 1 - 09/29/03 ----------------------------- Leading Edge Journalism - Follow-Up ----------------------------------- This Is Bemidji SWINDLE VICTIM, TRUSTEE, WON'T LET PREECE GET AWAY WITH IT Victim Files Claims of Embezzlement, Larceny Against Bemidji Police Chief, Bankruptcy Trustee Files Objection to Preece's Claim of Exempt Property MINNEAPOLIS -- You can fool some of the people some of the time, but Ken Schoenfelder, of Rochester, isn't having any of it. As reported last issue (NH of 08/11/03 - archive at northernherald.com), Bemidji Police Chief Bruce Preece, after having swindled several persons, at about $300,000 a crack, on helicopter deals, and facing several lawsuits and at least one judgement against him; filed Chapter 7 bankruptcy July 11th, 2003 (case no. 03-44078) at the U.S. Bankruptcy Court at Minneapolis. The swindle victims were named as unsecured creditors; that means that the bankruptcy asked that those debts be forever discharged, becoming legally uncollectible, with no payment thereon. With no criminal charges yet filed by the Hennepin County Attorney (why?) Preece would have effectively gotten away with scams that appear to total over $1 million in the aggregate - never even having to pay any of it back. But on September 4th, 2003, Ken Schoenfelder, one of the swindle victims, by his attorney, Michael S. Dietz, of Rochester, filed a complaint in the Bankruptcy Court stating that Preece isn't entitled to bankruptcy protection. Debts due to fraud, theft, and other crime aren't dischargable in bankruptcy. The complaint. Although each has its own particular circumstances, the fraud in this case is similar to other deals Preece put together, and on each of which, he received payment, but failed to deliver lawfully titlable helicopters. The complaint of Schoenfelder, and his corporation, Blue Skies, Inc., against Preece, recites: "... 4. Helicopter Flight, Inc. ("HFI") is a Minnesota corporation doing business at 5930 Lakeland Avenue North, Minneapolis, Minnesota [at the Crystal airport]. "5. At all times relevant herein, James Bruce Preece has been the sole shareholder and President of HFI. "6. On August 3, 2001, Richard S. Stanger ("Stanger") purchased a Robinson helicopter, model R44, Serial No. 1090 and registration number 240RM (the "Helicopter"). "7. In November of 2001, Stanger entered into a listing agreement with Defendant [Preece] for the sale of the Helicopter. Under this Agreement Defendant was appointed as sales agent for a period of ninety days to sell the Helicopter for $335,000.00. In exchange Defendants were to receive a commission of five percent of the sales price. Stanger delivered possession of the Helicopter to Defendants at approximately the same time. "8. By the terms of the Agreement, Defendant's appointment as Sales Agent would have expired on approximately February 20, 2002. "9. In March of 2002, Defendant contacted Plaintiff [Schoenfelder] about a loan/purchase transaction regarding the Helicopter. "10. Prior to the contact in March of 2002, Defendant had not communicated with Plaintiff for a period of several years. "11. Defendant represented that he had the present ability to commit ownership and possession of the Helicopter to Plaintiff. "12. The terms of the arrangement proposed by Defendant to Plaintiff was memorialized in a writing signed by both parties and attached hereto as Exhibit "A." [not reprinted here] "13. Under the terms of Exhibit "A" Plaintiff was to transfer $260,000.00 to Defendant for the purpose of acquiring the Helicopter. In the event Defendant did not repay the $260,000.00, plus $10,000.00, on or before May 21, 2002, Defendant was to transfer the Helicopter to Plaintiff and deliver an FAA Aircraft Bill of Sale to Plaintiff for the Helicopter. "14. On March 22, 2002, Plaintiff wire transferred $260,000.00 to Defendant (the "Funds"). "15. Defendant did not use the Funds to acquire title to the Helicopter. Instead he diverted it to his own use for other purposes. "16. At approximately the same time Defendant diverted the Funds, he was involved in a second claim by Dennis Brazier in which Dennis Brazier claimed that he had paid $260,000.00 for a helicopter, but had not received the helicopter. "17. At the time Defendant diverted Plaintiff's Funds, he had no present ability to repay the funds to Plaintiff and he had no idea how he would go about repaying them. "18. Defendant has not repaid any of the Funds to Plaintiff. "19. On May 30, 2002, Defendant made out an FAA Aircraft Bill of Sale for the Helicopter, executed it, and delivered it to Plaintiff. "20. Neither Defendant nor HFI owned the Helicopter at the time Defendant accepted the Funds from Plaintiff, nor at the time Defendant delivered a Bill of Sale for the Helicopter to Plaintiff. "21. Defendant never informed Plaintiff that Stanger owned the Helicopter. "22. Defendant had never informed Stanger that Defendant had ostensibly sold the Helicopter to Plaintiff for $260,000.00. "23. Upon learning about the transaction, Stanger asserted his ownership rights in the Helicopter. "24. Plaintiff commenced a lawsuit against Defendant in Olmsted County District Court in July of 2002. "25. The Olmsted County District Court entered summary judgment determining that Stanger was the rightful owner of the Helicopter. "26. Defendant filed his bankruptcy petition on July 11, 2003, before a final Judgment was entered against him in the State Court action. "COUNT I ... 28. Defendant obtained $260,000.00 from Plaintiff by fraud, false pretenses or actual fraud. "29. Defendant owes a debt to Plaintiff in the amount of $260,000.00 which is not dischargeable in bankruptcy pursuant to 11 U.S.C. § 523 (a)(2)(A). "COUNT II ... 31. Defendant obtained $260,000.00 from Plaintiff by using a statement in writing that was materially false respecting Debtor’s financial condition. "32. Defendant owes a debt to Plaintiff in the amount of $260,000.00 which is not dischargeable in bankruptcy pursuant to 11 U.S.C. Sec. 523 (a)(2)(B). "COUNT III ... 34. ... Defendant converted $260,000.00 given to him by Plaintiff for the express purpose of acquiring the Helicopter to his own use and deprived the Plaintiff thereof. "35. Defendant obtained $260,000.00 from Plaintiff by embezzlement and/or larceny. "36. Defendant owes a debt to Plaintiff in the amount of $260,000.00 which is not dischargeable in bankruptcy pursuant to 11 U.S.C. Sec. 523 (a)(4). "COUNT IV ... 38. ... the document executed by the parties on March 21, 2002, (Exhibit "A") constitutes an express trust in which Plaintiff is the settlor and beneficiary and Defendant was the trustee (the "Trust"). "39. Plaintiff delivered $260,000.00 to Defendant in trust to be used to acquire the Helicopter. "40. Defendant's use of Plaintiff's funds for a purpose other than according to the terms of the Trust constitutes a defalcation while acting in a fiduciary capacity as trustee. "41. Defendant is indebted to Plaintiff in the amount of $260,000.00 for the improper use of the Trust res. "42. Defendant's debt to Plaintiff is not dischargeable in bankruptcy pursuant to 11 U.S.C. Sec. 523 (a)(4). "COUNT V ... 44. In the alternative, Defendant's conversion of Plaintiff's $260,000.00 constitutes a willful and malicious injury by Defendant to another entity or the property of another entity. "45. Defendant is indebted to Plaintiff in the amount of $260,000.00 which is not dischargeable in bankruptcy pursuant to 11 U.S.C. Sec. 523 (a)(6). "WHEREFORE, Plaintiff prays the Court enter its Judgment as follows: 1. Entering Judgment in favor of Plaintiff and against Defendant in the amount of $260,000.00. 2. Declaring that such debt is not discharged by Defendant's bankruptcy filing. 3. Such other and further relief as the Court deems just and equitable." Most people can't just put their helicopters in their driveways, they have to keep them at an airport. Mr. Stanger kept the helicopter that Preece had sold him at Preece's HFI base at the Crystal (near Mpls.) airport. At one point, while it was there, Preece delivered it to Schoenfelder, who, as described above, had paid Preece $260,000 for it. Schoenfelder removed the bird from the HFI field. Preece, however, made no payment to Stanger for the helicopter, nor any mention that Preece had sold Stanger's helicopter. Stanger learned of this only later, when he was surprised to discover that his helicopter was no longer at HFI. But despite Preece's fraudulent (he didn't own the helicopter) FAA bill of sale, Schoenfelder was unable to title it, and, eventually, after expensive legal action, had to return it to Stanger. (Initial reporting of this matter may be found in NH of 02/10/03 at northernherald.com See also earlier stories of other similar alleged swindles by Preece in issues of 07/27/02 and 05/04/02. Following the first reported instance, Robinson Helicopter, of Torrance, Calif., discontinued Preece's franchise for their product.) What happened to the $260,000 Schoenfelder paid Preece? Per a credible source close to the story, Preece used Schoenfelder's, and many other customers' money for, "pretty much anything other than use it for what the helicopter buyers were assuming it was used for." In his bankruptcy petition, though, Preece reported only $6,000 as 2002 income from his Helicopter Flight, Inc. The deadline for filing of other complaints objecting to the bankruptcy discharge is October 14th, 2003. James Bruce Preece currently remains the Chief of Police for the City of Bemidji. Trustee files objection. A hearing will be held at 10:30 a.m., October 30th at the bankruptcy court in Minneapolis regarding objections filed by the bankruptcy trustee to Preece's claims of exempt property (this is property that the bankruptcy debtor is allowed to keep, rather than it being liquidated to pay the debts). Specifically, the trustee, Brian F. Leonard, has objected to the following property being considered exempt, as it allegedly exceeds the limitations under 11 USC Sec. 522: 1) The shares in Helicopter Flight Inc., and Preece's other aircraft corporations; 2) Preece's home, located at 2813 Monroe Ave. SW, Bemidji; 3) miscellaneous assets including: an account receivable in the amount of $200,000 owed by HFI to Preece; income tax refunds of approximately $5,000; two diamond rings and a gold wedding ring; a 1997 BMW Z3 auto, and a 2001 Acura TL automobile. It is not known whether Preece will lose his beautiful wife in the bankruptcy - she was not mentioned in the trustee's objections, except for the possibility that she may be called as a witness; we have reasonable question as to whether her value exceeds exemption amounts. -- Ed. From Vol. 9 No. 2 - 11/17/03 ----------------------------- Leading Edge Journalism - Follow Up THIS IS BEMIDJI --------------- ANOTHER SWINDLE VICTIM FILES CLAIM IN POLICE CHIEF PREECE BANKRUPTCY Unchallenged Debts of Bemidji Police Chief Preece Discharged 10/15/03 Editor's Note: This story follows past coverage of the many helicopter sales swindles attributed to Bemidji Police Chief James "Bruce" Preece. For details of earlier reports and incidents, see NH of 5/4/02, 7/27/02, 2/10/03, 8/11/03, and 9/29/03 at northernherald.com At this time, the total amounts which Preece allegedly has swindled, in documented incidents (listed by victim, with date of NH issue containing details) appear to be: Jim Bult, $295,000 (5/4/02); Leonard Busch, $165,000 (7/27/02); Ken Schoenfelder $270,000 (2/10/03 & 9/29/03) and Central Boiler Inc. (officer: Dennis Brazier) $296,414 (this issue); totalling $1,026,414. The disposition to which Preece put the money is not known; it is suspected that there may be other fraudulent transactions which have not yet surfaced. In all but the Schoenfelder and Central Boiler matters, Preece's personal liability has been discharged in bankruptcy, as adverse Bankruptcy Court claims were not filed. Preece's firm, HFI (post), will escape liability because that corporation (HFI) has no net assets. We are most often asked, "How can this person still be the Police Chief and Director of Public Safety for a city?" The answer is simple. This is Bemidji. This is what the majority of the people of Bemidji support. We, at Northern Herald, have often commented on the integrity, or lack thereof, of Bemidjians (not all, but the majority), generally. This case, and the retention by the City, of Preece as its top law enforcement officer, though, say more than we ever could. It firmly demonstrates the low regard the people of Bemidji (in large part) have for the property and rights of others. -- Adam Steele, Editor MINNEAPOLIS -- On October 1st, 2003, Central Boiler, Inc., of Greenbush, Minnesota, filed an adverse claim and Complaint in the matter of the bankruptcy petition of Bemidji Police Chief James Bruce Preece, then before the United States Bankruptcy Court at Minneapolis (case no. 03-44978). The matter of whether the claimed debt of $296,414, stemming from an allegedly fraudulent helicopter sale, will be allowed to be discharged, is scheduled for trial on March 8th, 2004 at Minneapolis. The complaint. This claim is similar to the other instances where helicopter buyers paid large sums of money to Preece for purchase of a helicopter, and Preece failed to deliver the bird, or failed to deliver clear titling documents for same (in one case, Preece sold a bird that was actually owned by someone else, and delivered a fraudulent FAA bill of sale for same - see NH of 2/10/03 and 9/29/03, and Schoenfelder, post). The Central Boiler, Inc. complaint, brought on by their attorney, Edward F. Klinger, of Moorhead, Minn., recites: "... 5. That Helicopter Flight, Inc. (HFI) is upon information and belief a Minnesota corporation having it's principal place of business in Crystal, Minnesota [at the Crystal airport]. "6. That Preece is and was the President of HFI, its alter ego, and is responsible for actions taken by HFI and his own actions, individually. "7. That in 1994 Central, through the auspices of HFI as agent, purchased an R22 helicopter, serial number 2403, from Robinson Helicopter Company (RHC). "8. That in early 2002 negotiations began whereby Central would purchase from HFI a new R44 Helicopter. Ultimately, the serial number assigned to this helicopter was 1203. "9. That as negotiations continued, a $25,000 down payment on the R44 helicopter was deposited by Central with HFI and forwarded by HFI to RHC. "10. That in full payment for the helicopter, HFI agreed to accept the R22 helicopter at a trade in value of $90,000, together with additional cash in the amount of $181,414 for the purchase of the R44 helicopter. "11. That the funds for the R22 trade were specifically agreed to and to be earmarked for the purchase of the R44 helicopter by Central. "12. That thereafter all of the sums required by HFI to complete the purchase, together with the helicopter, were tendered by Central to HFI. "13. That it appears that Central was deliberately mislead [sic] in the transaction by HFI and Preece. "14. That Central was unable to pick up the R44 helicopter due to the fact that funds (other than the $25,000) were not tendered from HFI to RHC. "15. That HFI was insolvent both before and after receipt of funds from Central. "16. That HFI and Preece have deliberately mislead Central by continually stating that the purchase was to be completed. "17. That despite the agreement to the contrary, HFI and Preece have apparently allowed the R22 or its proceeds to be commingled with other assets of HFI and may be subject to alleged claims by secured parties. "18. That the actions of Preece constitute conversion. "19. That Central commenced a lawsuit against HFI and Preece in Roseau County District Court in May of 2002. "20. That sufficient evidence was obtained during the course of litigation in Roseau County through written discovery and deposition which would indicate and demonstrate that Preece operated HFI as an alter ego, and is responsible for the debts of HFI. By way of example, attached as Exhibit A [not reprinted here] to the complaint is a copy of the affidavit (together with attachment) of Michelle Benton, CPA, [at Thief River Falls] dated June 6, 2003. This evidence, together with evidence to be submitted, will demonstrate that Preece is the alter ego of the corporation. "21. That a hearing on the plaintiff's motion for default judgment was to be held in Roseau County District Court on July 15, 2003, however, the defendant filed his bankruptcy petition on July 11, 2003, before a final judgment could be entered against him in the state court action. "22. That plaintiff suffered actual losses pursuant to the complaint in the amount of $296,414.00, together with attorney’s fees and other costs." The complaint concludes, asserting, in three counts, that the debt of $296,414 is not dischargeable in bankruptcy under 11 U.S.C. Sec. 523 (a)(2)(A), (a)(4), and (a)(6); because it is due to fraud, false pretenses or actual fraud; embezzlement and/or larceny; and, "defendant’s conversion of plaintiff's $296,414. 00 constitutes a willful and malicious injury by defendant to another entity or the property of another entity"; and asks that the Court 1) declare the debt not discharged by Preece's bankruptcy; 2) grant judgment in the amount of $296,414 plus interest, costs, disbursements, and attorney's fees; and 3) for such other and further relief as the Court deems just and equitable. Preece's answer to the complaint, filed October 31st, through his Minneapolis attorney Thomas F. Miller, admits most of the factual details, including receipt of the funds, but attempts to deny any unlawful act, and attempts to establish that any debt is that of HFI (Preece's corporation, which is without assets, and thusly judgment-proof), and not Preece. The answer denies the allegations of para. 6, 11, 13-18 & 20-22 of the complaint (ante), and denies the assertations of wrongdoing, and of the acts enumerated in 11 USC 523(a). The answer recites, "... 3) That regarding paragraph 6 of the Complaint, Defendant admits that he is responsible for his own actions, but he denies that he is responsible for the actions of Helicopter Flight, Inc., or that he is the alter ego of that entity." Preece's denial of responsibility "for the actions of [HFI]" comes notwithstanding that Preece was personally involved in the transaction, and was President and sole stockholder of HFI. (In a normal business transaction where the corporation simply could not perform, the officers and shareholders generally are not liable for the corporation's debt. But fraud is a personal tort and crime, and personal liability for damages accruing due to same And in regard to the phony FAA Bill of Sale tendered by Preece to Schoenfelder (neither Preece, nor HFI owned the helicopter when Preece issued, as an aircraft dealer, the Bill of Sale for same), "Defendant admits the allegation, but Plaintiff knew that bill of sale was only to be exercised if Defendant obtained title to the Helicopter ...." This argument is not plausible. We know of no valid transaction where a bill of sale would be issued where the issuer did not own the property at the time of issuance. Even if the issuer did subsequently acquire the property, the dates of the transaction, on the bill of sale, would then be wrong. Preece (or HFI, depending on how one looks at it) received $260,000 from Schoenfelder for that helicopter, but could not legally transfer the helicopter to Schoenfelder, because neither Preece, nor HFI owned it, and Preece did not return the $260,000 (plus $10,000 interest promised if Preece could not deliver the helicopter) to Schoenfelder. Out this $260,000, Mr. Schoenfelder eventually had to pay a second time to purchase the helicopter from a Mr. Stanger, the true owner of the bird. At one point, earlier, Preece physically delivered the bird, stored at the HFI base at Crystal, to Schoenfelder (Preece's answer refers to this as movement to a "neutral location"), notwithstanding that Stanger still owned it. Stanger knew nothing of these purported transactions and became aware of this only when he later discovered that his helicopter was no longer at HFI. In Schoenfelder's complaint against Preece, he mentioned Preece's liability to Dennis Brazier (Central Boiler, Inc.), leading to the speculation that Preece might have used Schoenfelder's money to pay off Brazier. But, in fact, the later filed Central complaint indicates that this did not happen. Both Schoenfelder and Brazier were shafted and neither was repaid. Said a source close to the story as to what was happening to the customers' money, Preece used it for, "pretty much anything other than use it for what the helicopter buyers were assuming it was used for." And in interview last year, another alleged swindle victim, Leonard Busch (NH of 07/27/02) said, "I don't even like to call Bruce Preece because what he says doesn't make any sense - it's seldom truthful." Trustee's objections. The hearing on the bankruptcy trustee's objections to property claimed by Preece as exempt, originally scheduled for October 30th (for details, see NH of 9/29/03) has been continued (postponed) to November 20, 2003, at 1 pm, at the United States Bankruptcy Court at Minneapolis. Northern Herald notes: The apparent lack of credibility of the chief administrator of the Bemidji Police Dept. should be of particular note to potential Beltrami County jurors who may at some time serve on juries hearing criminal cases, against others, and based on the testimony of Chief Preece or his officers. It would be well if an officer's testimony could be taken at face value; but given these circumstances, we would require, before accepting their statements, the highest standard of proof. Of course, as informed Americans, official lying should not be anything new or novel to us. We know that Presidents can do it, and now, apparently, policemen can. Caveat Emptor. Nothing herein is, or should be taken as, legal advice. From Vol. 9 No. 5 - 04/26/04 ----------------------------- Leading Edge Journalism - Follow-Up ----------------------------------- PREECE SWINDLE TRIALS RESET FOR SEPT. 28TH MINNEAPOLIS -- The two civil suits, brought against present Bemidji Police Chief Bruce Preece, making allegations in the nature of theft by swindle, and claiming over $566,414 in damages due to fraud and larceny, have been rescheduled to be tried September 28th, 2004 at the United States Courthouse at Minneapolis. These trials are ancillary to the Chief's federal bankruptcy filing, and seek to have the debts excluded from the bankruptcy and to have judgement awarded thereupon. The Ken Schoenfelder (Plaintiff) matter is set for 10 a.m., and the Central Boiler (Plaintiff) matter at 2 p.m. The bankruptcy trustee has also lodged an objection to property claimed by Preece to be exempt from the bankruptcy. Although an investigation appears to be pending by the Hennepin Co. Atty's Office (Preece's base of operations was at Crystal, Minn.), no criminal charges have yet been brought. =============================================================== THE POLICE CHIEF ROBERT TELL ACCOUNTS - This series of stories documents the discovery by a Bemidji official of the Bemidji Police Chief's unauthorized taking of over $2,000 in city funds; the non- prosecution for 18 months, until the story was released in Northern Herald; the trial - an acquittal, the jury calling it, effectively, just a mistake; and the City Manager's (Phil Shealy's) restoration of Tell to his office by directing the attorney representing the City to not prosecute before the Police Commission. Robert Tell remained Bemidji Police Chief until his eventual retirement in 2001. The City Council gave City Manager Phil Shealy a raise in early 1997. From Vol. 1 No. 8 11/24/95 ----------------------------- BEMIDJI POLICE CHIEF MAY BE UNDER INVESTIGATION BUT COUNTY ATTORNEYS HAVE FAILED TO ACT IN A YEAR AND A HALF ON ALLEGED DOUBLE-BILLING SCHEME; FAVER, MUHAR REFUSE COMMENT NOW. Per an official of the City of Bemidji, the matter of Police Chief Robert Tell's possible double-billing of trips to meetings has been submitted to the County Attorney for investigation. But no action has been taken since the matter was turned over in spring of '94. "It seems like a long time...I certainly hope the investigations don't indicate anything wrong", the official said. In Bemidji, a city employee, say, a police chief, who has job-related duties out of town, may use a city vehicle, if he has one, for the trip, charging gas and expenses to a city account. Or, he may use his personal vehicle and claim mileage reimbursement. But not both. A sharp-eyed official of the City of Bemidji, who was asked to sign a reimbursement travel voucher when the person who usually signed was absent, became concerned as to why Tell was supposedly using his own car for trips to the twin cities, and claiming reimbursement, when he had access to a city-owned vehicle. Said the official, "I became concerned because we have a city vehicle that we pay insurance and maintenance on. Why wasn't it being used, rather than the personal vehicle" on which the City also has to pay mileage reimbursement? And subsequently, the city received gas charge slips that tended to indicate an irregularity. So the City asked Tim Faver, Beltrami County Attorney, to investigate. "I think it's [the county attorney's] job to see that it's looked at from a proper perspective," said the Bemidji official. Even though County Attorney Tim Faver received the information in spring of 1994, and as of this date, no charges have been brought, Faver refuses to comment on the matter. Said Faver, "I don't comment on things that are or are not under investigation." Per a city official, there may be as many as 20 trips involved, at twenty-seven cents a mile for the 480 mile trips, or resulting in about $2,500 in allegedly wrongful reimbursement within the two year period under scrutiny. In one instance, Bemidji city records show that on February 9th and 10th, 1993, Tell attended a Police Chiefs' meeting in or near South St. Paul. He applied for personal car mileage reimbursement of $129.60 for the 480 mile trip. But while in the Twin Cities, he had purchased gas which was charged to his city credit card, and the receipt for the purchase, with date corresponding to that trip, which the city later received, disclosed the license plate number of Tell's city vehicle, not his personal car. Police Chief Tell is primarily accountable to the City Manager, Phil Shealy. Due to the workings of municipal law, it is Shealy, and not the City Council, that has the power to act upon the Police Chief's position. Asked why Tell wasn't relieved of his duties when the apparent double-billing became known, in early 1994, Shealy said, "Because it was turned over to the County Attorney to see what action should be taken." and added, "Tell did make restitution when we became aware of the situation." The precise amount of restitution paid by Tell was unavailable at presstime. Per Shealy, Tim Faver, Beltrami County Attorney, referred the case to the Itasca County Attorney, Jack Muhar, possibly to avoid conflict of interest, and to determine if criminal charges or other disciplinary action should be brought against Tell for wrongfully obtaining the reimbursements. When contacted, Muhar, however, refused to either confirm or deny the information. Said Shealy, "To my knowledge, no action has been taken." Asked about his statement on the incident, Tell said "No comment". In recent years, Tell has been promoted by the City to Director of Public Safety, a position which encompasses the jobs of both Police and Fire Chief. From Vol. 1 No. 11 01/05/96 ----------------------------- BEMIDJI POLICE CHIEF BOB TELL CHARGED, SUSPENDED Bemidji Police Chief Robert Lee Tell, 50, was charged December 29th in District Court at Beltrami County with 5 felonies and 3 misdemeanors, including 3 counts of felony theft of public funds by swindle, 1 count of felony theft by swindle, 1 felony count of presenting a false claim to a public officer, 2 counts of gross misdemeanor theft by swindle, and 1 count of misdemeanor unauthorized compensation to a public official. The complaint was signed by special agent Terry Smith of the Minnesota Bureau of Criminal Apprehension (BCA) and Tell was summoned to appear for arraignment on January 19th. The charges stem from Tell's alleged double-billing of his expenses for trips, mostly to chiefs' meetings in South St. Paul. A city employee may receive mileage reimbursement for use of his personal vehicle, or, if he has a city vehicle, he may use it and charge gas to the city account. But not both. Receipts, such as the copies published in Northern Herald in the 11/10 issue ("Bemidji Police Chief May Be Under Investigation") disclosed that Tell may have been drawing personal car reimbursement, but then using the city vehicle for the same trips, and charging gasoline on the city account as well. Additionally, he may have used the city card to buy gas for his personal vehicle. The complaint recites, "Robert Lee Tell used a city of Bemidji credit card to pay for gasoline for his personal vehicle when he had already claimed and received payment for the use of his personal vehicle at the rate of 27 cents a mile [which includes gas]." On January 2nd, City Manager Phil Shealy suspended Tell, without pay, until the matter is resolved through the legal process. As to the position of Chief in the interim, Shealy indicated that the position would rotate among the sergeants. Whomever the sergeant- on-duty was at any time would be acting Chief. "It's kind of a committee approach... if that doesn't work, we'll designate one of the existing sergeants", said Shealy, who was recently interviewing for a new police detective. Per Shealy, the Chief's position would not be permanently filled until there is a disposition on Tell's charges. The discrepancy in the city records of Tell's reimbursements was originally spotted by Finance Officer Dale Page, who thought it unusual, and not cost-effective, that Tell, who has a city vehicle assigned to him, would be using his personal car and collecting reimbursements. When he checked some of the charge slips, he noticed that they were for the same dates for which Tell has filed personal car expense reports. Page notified Phil Shealy, City Manager, and when confronted with the situation in mid 1994, Tell repaid $3,184 to the City as reimbursement. The matter was turned over to the BCA for investigation, and they reported their findings to Tim Faver, Beltrami County Attorney, who then, on May 9, 1994, per Faver, sent the case to Jack Muhar, Itasca County Attorney at Grand Rapids, to determine if charges should be brought. Asked about the long delay in bringing charges, The (Bemidji) Pioneer reports Muhar as saying that it was a complicated case and his office just didn't get to it until the end of this year. Due to the delay, the statute of limitations had run on several of the alleged violations. 11 of the estimated 26 questionable claims may still be prosecuted. Note: Although Muhar has claimed that it was a complicated case and he needed time for investigation, Tim Faver stated adamantly that the County Attorney doesn't investigate. BCA completed the investigation in 1994; as far as the case being "complicated" goes, well, we printed the hard evidence a few weeks back, the charge slips and expense reports for the same dates. It looked pretty straightforward -- Ed. From Vol. 1 No. 18 04/05/96 ----------------------------- FOLLOW UP TELL HEARING MOVED TO APRIL 30TH The three-citizen Bemidji Police Commission convened at Bemidji City Hall Wednesday, April 3rd, to consider what action, if any, would be taken regarding Bemidji Police Chief Robert Tell, now on administrative leave, and facing 5 felony and 3 misdemeanor counts, including theft by swindle. The charges stem from up to 27 instances over several years where Tell allegedly used a city vehicle for trips to meetings in South St. Paul, charging gas to a city credit card, but nonetheless, filed for and collected mileage reimbursement as if he was using his personal vehicle. Due to the County Attorney's inaction on this matter for about 18 months, only 11 incidents were still within the statute of limitations when charges were brought last December. The Police Commission meets once each year, with a general meeting in February, and meets otherwise as necessary for the hiring, termination and other action regarding police personnel. Most of Wednesday's meeting was concerned with procedural details, and attempts by the Commission to interpret the pertinent law, from the two versions presented by Tell's attorney, Charles LeDuc, of International Falls, and Thomas T. Smith, Bemidji attorney for the city. Chairman Jim Sharp appeared consternated at the City for City Manager Phil Shealy having known of these alleged offenses for 20 months without having notified the Commission, and because the City had refused to provide the Commission with legal counsel to assist them in interpreting the complex laws surrounding suspension or removal of an officer. Chairman Sharp said that the Commission had requested of Alan Felix, Bemidji City Attorney that they have counsel, and had been refused same, except at the Commissioners' own expense. The Police Commission does not have a budget of its own. A question arose, early in the proceeding, as to whether the Commission's action in suspending Tell at their last hearing, February 14th, was proper, as he had not received procedural notice. To assure legality, the Commission voted unanimously to rescind the suspension and pay Tell about $1,882 in back salary for those two weeks. LeDuc challenged the propriety of Jerry Amble sitting on the Commission, for possibility of conflict of interest. He is the stepson of Bemidji City Councilwoman, Rosemary Given-Amble. Smith stated that Amble's disqualification would put the City at a disadvantage, as it would leave only two members on the Commission, requiring a unanimous decision for the Commission to act. Smith said "We don't have anybody to fill your spot," and pointed out that the stricter rules of conflicts due to blood relations of, for instance, judges, don't apply to the citizen Commission. Amble stated that the relation would not impair his impartiality, and it was the determination of the Commission that he could remain. Finally, LeDuc argued that Tell should not face the hearing that day because his criminal trial was expected on April 9th, and there was exculpatory matter that he was not free to discuss before the trial. LeDuc said that Tell did not wish to testify before the commission prior to his testimony at trial. Smith responded that if Tell didn't testify, that was his choice; it was not a reason to delay the hearing. "To suggest that we just continue to pay his salary until this cloud is lifted is just a pretext to get paid." said Smith. Smith suggested that if the continuance was granted it be on stipulation that it would be without pay until the hearing could resume. LeDuc responded, "No, we're not prepared to give up any money." The Commission recessed briefly, and when it resumed, Chairman Sharp commented, "I guess at the recess everyone met with their counsel except the Commission. We do not want to proceed without legal counsel." Smith said that the City was prepared to retain counsel for the Commission "if we can go forward on this very quickly." Commissioner Cuperus again criticized the City Manager's delay in convening the Commission. Smith stated that the Commission would be allowed to choose their own attorney, within reason, to act as a hearing officer at the next hearing, and that they should select counsel by the time they reconvene for a hiring natter on April 16th. The Commission then voted unanimously to recess, on the Tell matter, until April 30th. Between the hearing and April 30th, Tell will remain on paid administrative leave, drawing pay and receiving city benefits totalling approximately $4,313. From Vol. 1 No. 19 04/22/96 ----------------------------- Editorial ANALYSIS OF THE TELL MATTER "Gee... It was all a mistake" Those might just as well have been Tell's words, as they reflect the explanation accepted by the jury in finding Tell not guilty and by Phil Shealy, City Manager in restoring Robert Tell to the office of Bemidji Police Chief. An elderly gentleman absent-mindedly puts a pack of fish-hooks in his pocket while shopping with his family at Fleet Farm, and before checking out with the rest of their tackle. It was clearly a mistake. He pays $25 as "costs" for his carelessness, as the best plea-bargain offered by Alan Felix, Bemidji City Attorney. A detective, only a few years from retirement, with Bemidji Police Department and a female bank teller, with whom he's working on a case, become romantically interested in each other and exchange kisses. Afterward, the detective admits that it was a mistake, and a County Attorney said no crime was committed. But that didn't keep the detective from being busted to a patrolman's beat and salary by Bemidji Police Chief Robert Tell. But when the Chief, Robert Tell, was found to have unlawfully requested and taken mileage reimbursements, amounting to, at latest court estimates, about $2,000, to which he was not entitled, and hard evidence (a tape recording of the interview) was presented showing that in the initial investigation Tell told the investigating Bureau of Criminal Apprehension (BCA) agent that Tell had refunded the money to the city by way of immediate reimbursements after each trip; reimbursements for which no record was ever found, which one would think would cast severe doubt upon Tell's credibility, the net results were: 1) Tell was allowed, by Phil Shealy, City Manager, to keep his job through 18 months (until early 1996) of inaction by the County Attorney; 2) he was finally taken off-duty in January, 1996, but was paid for all of the off- duty time pending trial and reinstatement. 3) when the matter finally came to trial, Tell was subjected to no criminal penalty; 4) Tell was fully restored to Police Chief, by action of Phil Shealy, City Manager, and ratified by the Police Commission on April 18th. The only substantive penalty was that he forfeit his accrued vacation pay, but we note that he had just had three and one-half months off-duty with pay exceeding $12,000. Bemidji is now left with a top police administrator who has admitted applying for reimbursements to which he was not entitled, and seems to have lied to the BCA investigator in an attempt to cover his actions. If you think something is very wrong here, you're not alone. We question how Tell's department can ever be ascribed any particular degree of credibility from this point forth. Before the Trial. In mid-1994, Bemidji City Finance Officer Dale Page reviewed personal car reimbursement requests by Tell, for various trips, mostly to the Twin Cities, usually in the amount of about $129. per trip. Page noticed that on some of the trips, Tell paid for gas with a Bemidji city credit card. Because the mileage allowance includes gas cost, this is double reimbursement. Page also noticed that on some of the gasoline receipts was written the auto's license number. That license belonged not to Tell's personal car, but rather, his city-provided vehicle. Because the city already pays the costs of the city car, no cash reimbursement for costs is allowed when it is used. An employee can use his personal car and claim reimbursement, or he can use the city car, but not both. An accountant is required to report this type of irregularity to his superior. Page properly and promptly turned this information over to City Manager Phil Shealy. When Shealy confronted Tell with the information, Tell repaid the city over $3,000. as the amount then believed to have been improperly received by Tell. The matter was turned over to Tim Faver, Beltrami County Attorney to determine if criminal charges were indicated. But, as it involved the Police Chief, Faver referred it, due to conflict of interest, to Jack Muhar, Itasca County Attorney at Grand Rapids, as special prosecutor. An investigation by BCA was conducted to determine if a crime had occurred. The tape of Tell's interview with BCA became public when it was played at trial. The conversation belies the fact that Tell knew the city's personal car mileage allowance rules. He knew that mileages advances didn't apply where the city vehicle was used. In the interview, then-BCA Agent Collin Comer asked Tell, regarding some of the trips, "Why did you put in for advances on your personal car" if you were going to use the city vehicle? Tell replied, "There was no provision for (city) car problems -- I would take the travel money and reimburse it." Tell explained that this was so he'd have some pocket money in case he had a flat tire or other problem. Tell earlier had said that he was "sure I reimbursed" the money after each trip. But Comer asked Tell about the supposed reimbursements on certain trips and Tell said, "I don't know that I can be specific on any one." City records were reviewed three times, including once by auditors; no record was ever found of Tell's claimed reimbursements after each trip and the question is raised that if Tell really thought he had already reimbursed the money after each trip, why would he reimburse it again, when confronted with the discrepancy after Page notified Shealy of it?. The BCA investigation was completed by October, 1994. Charges were recommended on various counts, including felony theft by swindle. Jack Muhar, however took no action to bring charges for over a year, allowing the statute of limitations to run on several incidents. Tim Faver later said in a late-1995 interview, "I would expect that any prosecutor would handle matters promptly," but had not acted to bring about action by Muhar. At no time, in this interim, did Phil Shealy notify the Police Commission of what was going on or take any action to remove or discipline Tell and it has been speculated that it may have been hoped by some officials that the matter would just "go away" as the statute of limitations ran on the other, more recent incidents. In retrospect, there has been public speculation of a cover-up. The matter was kept quiet, and even councilmen's inquiries weren't answered, until mid-November, 1995, when, acting on an anonymous tip, Northern Herald investigated the matter and revealed, on November 24th, the allegations against Tell, with publication of copies of the double-billing documents signed by Tell, and the fact that no charges had been brought in the 18 months since the matter was first discovered by the City. When Tell was asked about it, he refused comment and would only say, "How did you find out?" The (Bemidji) Pioneer followed with coverage in mid-December and by late December Muhar filed criminal charges against Tell on three misdemeanor and five felony counts, stemming from those improper reimbursements on which the statute of limitations had not yet run. The Trial. Tell went to jury trial on April 10th, 1996. The BCA tape was played and former agent Collin Comer testified to the interview. There were many inconsistencies in Tell's taped statements. At the end of the BCA interview tape, Tell maintained, to the BCA agent, that "there's no explanation except stupidity" and that he "didn't need the money". But he explained his claiming of advance expenses of 129.60 before each trip, when he planned to use the city car, as being to pay for emergency expenses such as a flat tire. These statements are essentially inconsistent, as, if Tell didn't need money, it would stand to reason that he would have had the small amount on him needed to pay for a tire repair or other emergency service if the need arose. Additionally, he carried a city credit card that could be used to pay for such things for the city car. It just doesn't add up. And he drew these expenses "for emergency repairs" repeatedly before trips, notwithstanding that the amount "for emergency repairs" from the last trip hadn't been used, and hadn't been returned to the City. Its hard to be that absent-minded. Tell's assertion that he didn't need the money was also called into question by Shealy's statement, as reported in The (Bemidji) Pioneer that Tell had asked him for a raise about once a month. Comer's tape included questioning of a trip Tell took for personal purposes on June 6th and 7th, 1991 where he'd used his personal car, but used the city credit card to put gas in it. Tell said he reimbursed the city; as in the other instances, there was no record of any such reimbursement for the improper use of the city card. Tell's defense in court was primarily a credibility case, coupled with an augmented attempt to portray Tell as a good-natured but financially inept person. Tell's witnesses were predominantly character witnesses, including Beltrami Judge James Preece, who testified as to Tell's predominantly honest nature. But this contention is shaken as, recalling the BCA tape, Tell claimed to have reimbursed the City for the unused mileage money after each trip. Inspection of City records by three persons, including an auditor, disclosed no evidence that the money was ever repaid by Tell; neither could Tell produce evidence of the claimed repayments. When money is paid to the city, an accounting entry is made. Usually, a receipt is issued. Auditing has disclosed no problem in the City's accounting for money received. We believe that it is unlikely that the city, with a fairly tight system of accounting for cash received, would have failed, in all of the repeated incidents, to record their receipt of the cash. In one or two instances, by oversight, maybe. But not in every one of the 8 instances cited. And if a person had made some reimbursements, he might have trouble remembering just which ones he did or didn't make. But where he didn't make any, as it appears in Tell's case, that wouldn't seem so difficult to remember. The alternative hypothesis would be that Tell was intentionally lying to the BCA investigator (or maybe was just mistaken). We're not sure just how this was taken into account by the 5 man, 7 woman jury in their assessment of Tell's credibility and generally honest nature that led them to conclude that Tell's repeated actions were just "honest mistakes". . Judge James Preece testified that "I would never have cause to doubt his veracity and his truthfulness." But under cross-examination Preece said that Tell was a good administrator, raising a question as to why a "good administrator" would forget to make so many reimbursements. Leroy Stenson, a friend of Tell's since boyhood, testified that "I can't say I know anyone who has a better reputation for honesty than Bob [Tell]." Mark Elliot, CPA, told the jury of the large police funds Tell's department maintained, and the opportunity for theft of much larger amounts than the reimbursements. But in the hallway after the proceedings, veteran Agent Comer commented, drawing on his experience in this type of case, "They never do big amounts -- big amounts get noticed right off the bat." As reported by The (Bemidji) Pioneer, Tell's secretary, Carol Lauderbaugh, testified that Tell was a "lousy bookkeeper" and that he occasionally miscalculated budget figures, requiring staff to go back and refigure it. Tell's wife testified that he would forget to write down amounts in the checkbook and said that his home office was a mess. In his closing argument, Robert Wallner, attorney for Tell, played up Tell's honest nature and said "It's not a crime to make a stupid, embarrassing, almost incomprehensible mistake." Special prosecutor Muhar had said that "His intent was to take the money ... You cannot repeatedly do what Mr. Tell did and have it be a mistake." The jury, after about four hours, found Tell not guilty of the criminal charges. Under our judicial system, a jury is deemed to be infallible. Their decision is final, and lays the matter, as far as court action is concerned, to rest. If there is one thing to be learned from the trial, it is that people do make mistakes. As was said so long ago, to err is human. When dealing with a human component, the incidence of mistakes, sometimes, is unavoidable. And these mistakes, some of which cannot be changed, must be accepted and put behind us. This is so even where an honest, but very final mistake has been made by a jury of twelve. The Commission Hearing. But the jury's decision was only that Tell shouldn't face criminal sanctions, including prison time, for his conduct. Their verdict was never meant as a mandate that he be restored as police chief. Shealy said shortly after the Commission hearing, "I think [the Police Commission is] reflecting what they felt was the outcome of the trial." But the standards for removal of an employee before the police commission, that is, of inefficiency and misconduct, are not at all the same standards that the jury had to consider for criminal punishment. And as we shall see, it was actually Shealy's decision that restored Tell to his position as Bemidji Police Chief. Much of Tell's defense was predicated on the fact that he makes a lot of mistakes. And giving Chief Tell every benefit of the doubt, it is saying the very least to say that he makes a lot of mistakes, for a police administrator. And recalling the erroneous jailing of Roy Martin, for seven months until it became obvious that the was no corroborative evidence which would have justified the arrest of Martin by Chief Tell's department, as Martin was returning home from his BSU class, unsuspecting that anything was wrong; we note that those mistakes in Tell's official capacity have not been limited to accounting matters, but have very seriously affected people's lives in Bemidji. And, regardless of criminal guilt or innocence, which has been determined in a final and incontrovertible manner, we question, as a wholly separate issue, whether it is beneficial for Bemidji to have a top police administrator who makes severe mistakes that often. The decision to return Tell to the office of police chief was made by Phil Shealy, Bemidji City Manager. Said Shealy, "I felt it was best for the City, the department, and the community." Although the action restoring Tell to office was officially approved by the Bemidji Police Civil Service Commission, it was actually a "done deal" by the City Manager, before the Commission was called to emergency session, on April 18th, to ratify it as a formality. Shealy had instructed Thomas Smith, private attorney for the City of Bemidji at the hearing, to agree to the terms, which were, of course, also agreeable to Tell. Lacking prosecution of the matter by the City, the Commission could not, as a practical matter, do other than "rubber stamp" the deal. Their only inquiry of the attorneys was "What would be the form of the public apology?" Tell's department has been called into question on many occasions. From data practices violations and complaints on his animal control department to the breaking down of a Native American's door on a loud party complaint (the Mike Lemon matter, 1992) to the Martin matter of 1994. All of these matters have been brought to the attention of the City Manager, but there has never been so much as an inquiry, and the police commission has never before been notified that action might be indicated. Much as a Police Commissioner had criticized, that the commission was kept in the dark on this matter, by the City Manager, for the 20 months from when the discrepancy in Tell's reimbursements first surfaced in early 1994 until February of this year. This incident calls into severe question the ability of the present City Manager to manage city affairs where key personnel are involved. We believe the handling of this matter throughout gives powerful credence to speculated claims of attempted cover-up, or at least that things aren't going just right at City Hall, or in the County Attorney's office, much to the detriment of Bemidji and Beltrami County citizens. Although they cannot direct his actions, the City Manager serves at the will of the City Council. Any change of Manager has to be brought about by the City Council. It is currently believed that the current Council is unwilling to address this task, and if there is to be a change in the City Manager, it will likely come only with a complete change of Mayor and City Council members. This is an election year, Bemidji citizens who believe this change is necessary will have the opportunity to express their will. There is, of course, a perennial shortage of qualified Council candidates, but after what we've seen, if Charles Manson were to run for Council, he might be better than the status quo. It might be better than having a Manager who has protected and restored to office a Police Chief who has (in our opinion) committed crimes and then lied to the BCA agent to cover himself, and it might be better than having a police department that now lacks credibility due to its leadership. Some of the Council members have been there for a long time anyway, and are resistent to necessary change to personnel, even where it is warranted by very aggravated circumstances. The attorneys at the hearing maintained that Bemidji needs a police chief. We agree. Had Tell been removed for cause, it would have provided an opportunity to find a new police chief, possibly from broad-based and nationwide sources (as is practiced by many major cities to find professional police department leadership) who might not make as many mistakes. We note that the leniency and acceptance of mistake that Tell asked for before the jury and the commission was not what he practiced in his dealings with his own men. We cite the case of the detective, mentioned at the beginning of this article, who was demoted to patrolman by Tell, without allowance for mistake, and without the benefit of approval of the police commission, to which we believe the detective was entitled, and upon which Tell insisted in his own case. In this, the demotion of the detective, by Tell, may have been unlawful, and the former detective may have an action for damages against the city available to him at law. We note that some benefit has come to the city by way of Tell's temporary absence. A few years ago, then- councilman Henry Rossiter asked, at a city council meeting, if we could get rid of some of those 4-way stop signs on every corner downtown. Tell opposed the suggestion, saying that it might cause some fender-benders, and it died. While Tell has been on leave, a few of those signs have come down and we'll have to see if we can live with only 2-way stops like most normal cities and towns have. And, in the interests of consistency, as per the jury's verdict, and Shealy's action, we seem to recognize honest mistakes in Beltrami County, we would suggest that the next time our City Attorney, Alan Felix is approached by a guy who inadvertently put a pack of fish hooks in his pocket, Al might want to consider whether it was an honset mistake before requiring "costs". There should be justice also for those, like that vacationer, who haven't been here long enough, or don't occupy such an office that they can have a District Judge testify as to their character. A jury is deemed infallible. Whether otherwise considered right or wrong, the decision of a jury is final. Robert Tell's defense was a defense of ineptitude. He proved it well and beyond a reasonable doubt. Tell won. He said he was stupid and the jury believed him. We accept, as we must, the finding of the jury on this. What we can't figure out is why the City Manager would want a person admittedly possessing that quality, in that degree, heading up Bemidji's most powerful law enforcement agency. ================================================================= THE PAT MEDURE FILES Leading Edge Journalism ----------------------- ITASCA COUNTY SHERIFF'S PENSION POLICY QUESTIONED From Vol. 8 No. 2 - 12/30/02 Allegedly Disbands Posse to Put Office Staff on PERA Police Pensions GRAND RAPIDS -- Certain concerned citizens, and at least one licensed part-time peace officer, a high-security U.S. armed services veteran who also served as the Itasca Co. Sheriff's Posse Training Officer, have alleged that Itasca Co. Sheriff Pat Medure disbanded the Posse, comprised of professional part-time peace officers, in order to, instead, designate his office staff as part- time peace officers (limited in number by statute), so to make Medure's secretaries, dispatchers and jailers eligible for PERA's more generous Police and Fire pensions. (Note: to better understand this, see The Law, post) And the critics of the Sheriff's actions have tried to bring the alleged improprieties to the attention of state regulatory agencies, including the Minnesota Attorney General, but at present, no action has been taken, although the year-old investigation by PERA remains ongoing at this time. The Players. Pat Medure is the second-term Sheriff of Itasca County, and President of the Minnesota Sheriffs' Association. Itasca Co. resident Gary Goltz is a Minnesota licensed part-time peace officer who was employed by the Itasca Co. Sheriff's Posse from 1994 until his resignation in 2001, at the rank of Posse Training Officer. Since resignation, he has volunteered time for the Sheriff's Search and Rescue team. Goltz is a twenty-three year veteran officer of the U.S. Air Force, where he flew fighter jets, and was involved in special operations; he held U.S. top security clearance. Goltz now works as a Captain and pilot for Northwest Airlines. The Posse. The 20 to 30 members of the Itasca Co. Sheriff's Posse were Minnesota licensed part-time peace officers, paid at a rate of $7/hr for service as needed. They were not offered pension plan participation. In interview, Goltz alleged that, since the passage of a law in 1998 limiting the number of part-time peace officers, Medure terminated 20 members of the Sheriff's Posse to make their part-time peace officer designations available to his office and jail staff, who were then appointed, 6 at a time, as part-time peace officers and were enrolled in PERA's Police Pension. Goltz said that the part-time designation was used because more training would be required to be licensed as a full-time peace officer; but the part-time designation was improper under M.S. 626.84 (The Law, post), as they (the office and jail staff) worked, essentially, full-time. To clarify, he explained that part-time peace officer licenses are capped at an average of 20 hours per week. If the staff was actually doing the type of police work contemplated by the statute, they could only do it for 20 hours per week, without having a full- time license. Goltz said that this shows explicitly that either (1) the staff (dispatchers, secretaries and jailers) are violating the requirements of the type of work necessary to qualify for Police Pension, or (2) if they are doing that type of work, then they are violating the 20 hour limitation for part-time license holders. Goltz also maintained that the designation of Sheriff's clerical staff as part-time peace officers, for pension purposes, was contrary to the intent of the law to provide special pension coverage for active police officers who, as stated in M.S. 353.63 (POLICY), "devote their time and skills to protecting the property and personal safety of others. Since this work is hazardous, special provisions are hereby made for retirement pensions...." Per Goltz, the work of jailers, dispatchers, secretaries and other Sheriff's Office support staff also does not meet the criteria, under M.S. 353.64, of "being charged with the prevention and detection of crime, ... and whose primary ... [jobs are] the enforcement of the general criminal laws of the state." Further, Goltz maintains that the Sheriff's Posse officers, who did meet this criteria (they were asked to assist in all types of Sheriff's work, up to and including homicide investigation) should have been allowed to participate in the pension plan. In a letter to Sheriff Medure dated August 5, 2001, Goltz wrote, "There is no doubt about [Posse members'] compliance with Statute 353.63 and 353.64 because Posse members' ... 'primary job is enforcement of the general laws of the state...' That can not be honestly said about the staff who are claiming our deactivated licenses, and that is the requirement. It is the law." Goltz attempted to discuss the matter with Medure, but, per Goltz, Sheriff Medure told him, "All the staff here is in Police & Fire [Pension]. I can run the office any ... [darn] way I want." Contacted regarding this matter, Sheriff Medure declined specific comment until the end of the PERA investigation, expected to conclude in spring, 2003. He said that Itasca was not the only county where this sort of thing was being done, but a check of a another nearby Northern Minnesota county disclosed that Sheriff's office and jail staff, of that nearby county, were not on the Police Pension Plan - those workers were, instead, on PERA's Coordinated plan, or the Corrections plan (jail staff), which is normal. The fox and the henhouse. Goltz took his complaint to Itasca County Attorney Jack Muhar, but reports that Muhar said he wouldn't investigate his own county's Sheriff's Dept., unless ordered to by the Attorney General. Goltz said that Medure hired two new full time officers to replace the disbanded Posse, at a cost well in excess of the entire annual budget for the 20 - 30 man Posse. He said it was far more expensive for the taxpayers than the Posse's professional peace officers who worked for $7 an hour, "plus getting not nearly the coverage" of the large county area, said Goltz. Goltz, an airline Captain, said that, at this point, he doesn't want his $7/hr job back, but is acting out of ethical considerations, and on duty under the oath that he was sworn to uphold; "no person, not even the Sheriff, should be above the law," he said, adding that, as to the Posse members, "none of them did it for the paycheck - they did it for the County." The Law ------- Excepting where quoted excerpts appear, the following are edited descriptions, and not verbatim text, of the applicable statutes. Complete text can be found at the Minnesota Revisor of Statutes website: http://www.leg.state.mn. us/leg/statutes.asp Minnesota Statutes (M.S.) 626.843 establishes standards for peace officers. M.S. 626.8465, 626.8462, and 626.8463 allows for the appointment, by a law-enforcement agency, of part-time peace officers, and establishes lesser competency and training standards than full-time. M.S. 626.84 defines a "part-time peace officer" as an individual who performs no more than an average of 20 hours per week of police services, who has either full powers of arrest or authorization to carry a firearm while on active duty. M.S. 626.8468 limits, with certain exceptions, the number of part- time peace officers that a law enforcement agency may employ. M.S. 353.63 denotes Minnesota pension policy, allowing for special benefits for members of PERA's Police and Fire (P&F) Pension Plan, as differentiated from regular PERA coverage. M.S. 353.64 allows for PERA Police and Fire Pension Plan coverage for part-time county peace officers, if the County Board passes a resolution allowing same; and provided that said officers are "charged with the prevention and detection of crime, ... [have] the full power of arrest, ... [are] assigned to a designated police or sheriff's department, and whose primary ... [jobs are] the enforcement of the general criminal laws of the state." ================================================================ Leading Edge Journalism - Bemidji Police Corruption Continues ------------------------------------------------------------- BPD COWBOY CHARBONEAU ARRESTS RYAN NEWMAN FOR NONEXISTANT NO-DRINK ORDER. Newman Files $8 Billion Federal Lawsuit; Northern Herald Calls for National Guard; Martial Law From Vol. 9 No. 6 - 06/21/04 BEMIDJI -- Thomas Newman, of Turtle River, Minn., is a Beltrami County citizen who stands up for his rights; so his family isn't exactly on the buddy list of the corrupt Bemidji Police Dept. (BPD) (administered by Chief Bruce Preece, who is known to have swindled over $1 million in phony helicopter sales, sometimes delivering a false FAA bill of sale) and other Beltrami County authorities. They'll cite or jail Tom Newman's son Ryan pretty much anytime they see him with a beer in his hand; regardless of whether he's committed any crime. As a result, he's grown a petty charge legal record that reads like a laundry list; but if one reads further, one notes that a lot of the charges are noted "no convictions", indicating that there was not legal cause for the citation or arrest. And with an improper jailing of Ryan in mid-May, the Newmans have gotten tired of their family being harassed; they've filed a federal lawsuit to put an end to it. Like many people, Ryan likes a beer now and then. He liked it before he turned 21, and some of the earlier charges involve allegations of minor consumption. Having become an adult last year, he can drink legally now, as long as he does it responsibly. But that didn't stop Beltrami's Finest on May 12th, 2004. Ryan's latest formal charge is one which resulted from his being discovered, stuck in a ditch that morning, by Beltrami deputies. He had, apparently, had a few beers, but knew when to stop. The deputies found that he was not legally intoxicated; nonetheless, unable to cite him for DWI, they cited him for careless driving and took him to jail. There is nothing in the record indicating that his driving was careless - just that he got stuck in a ditch as many people up here do. A few days later, BPD cowboy Tom Charboneau found Ryan, as a passenger in an auto stopped in the early morning of May 15th, 2004; Ryan had alcohol on his breath, but again, a field test showed that he was not legally intoxicated. Charboneau threw him in jail for the weekend, anyway, for violation of an alleged no-drink order. But come Monday, no charge was filed and Newman was released. Trouble was, that the supposed no-drink order, from a case on another baseless charge that had been ultimately dismissed, had also been dismissed and was no longer in effect. It should have been purged from the system. So Ryan had been held in jail for the weekend, without apparent legal cause. Accordingly, on May 20th, Newman filed, in the United States District Court at Minneapolis, a civil lawsuit against Tom Charboneau and several other Bemidji City and Beltrami County officials, for the false arrest and complicity therein (Ryan Newman vs. Tim Faver, Tom Charbono, et. al.; case no. 04-CV-2728). The suit seeks damages of $8 billion. At this time, the corruption of the City of Bemidji appearing to be so deeply seated that it cannot be reasonably extricated, and its causing the abridgement of rights, and unlawful detention of U.S. citizens, this paper now calls for the United States to send the National Guard to Bemidji, to establish martial law protecting the rights of citizens in Bemidji; until such time as that remote little burg can become self-governing in keeping with the laws and Constitution of the United States. =============================================================== Leading Edge Journalism BEMIDJI DEPUTY UNNATURAL ACT CASE REMANDED TO STATE COURT Suit Alleges Deputy Asked Minor Male for Unnatural Favour. From Vol. 8 No. 1 - 10/28/02 ST. PAUL -- A federal civil rights lawsuit, alleging that a Beltrami County Deputy insisted on receiving oral romance from a (then) underage rural Bemidji male, as an alternative to taking him to jail, has been remanded back to the state courts for lack of a federal question, per an order of the United States District Court (USDC) dated June 18th, 2002. The County of Beltrami is able to weasel out of paying damages, as, although the deputy was on-duty at the time, it was not adequately established that the County has a policy or custom of letting people off for romantic favours, although the same has also been alleged, in interview. Accordingly, per the Order, summary judgement was entered in favor of Beltrami County, and the case now proceeds only against the officer himself, Beltrami County Deputy Ernie Beitel. And statements are not exactly forthcoming from those officials who might have personal knowledge, as, apparently, Sheriff's Dept. personnel have been told not to talk about it, and are as tight as a clamshell. One employee just hung up when contacted. No criminal charges. Kemmer said that the initial complaint for criminal charging of the deputy was investigated by Bemidji PD Detective Gerald Johnson, one of the department's most corrupt*, who recommended no charges. Accordingly, Beltrami County's corrupt (our opinion) County Attorney, Tim Faver, filed none. The civil suit was then brought by alleged victim, Jerrold Ryan Kemmer, an admitted homosexual living in Bemidji. It was originally commenced in Minnesota District Court, but moved, by the Defendants, to federal Court because the case (Kemmer v. Beltrami County, Randy Fitzgerald [not involved in the romantic abuse allegations] and Ernie Beitel - USDC case no. 01-403 ADM/RLE) presented a federal civil rights question, as relates to Defendant Beltrami County, under 42 USC Sec. 1983 (Deprivation of Civil Rights). Now, with Beltrami County no longer a party defendant, the case now goes back to the Minnesota state court, for trial. The allegations. The suit alleges 3 instances of male-to-male romantic abuse (Beitel), and one instance of excessive use of force (Fitzgerald). Additionally, it alleged that the County of Beltrami was liable under Sec. 1983 for failing to prevent the alleged police misconduct. In it's order, the Court found that Deputy Fitzgerald's use of force was not excessive under the circumstances, and also granted summary judgement for Fitzgerald. The Court, however, denied Beitel's motion for summary judgement, saying, "Kemmer has presented sufficient evidence creating a genuine issue of material fact with regard to his sexual abuse claims," and remanded the case against him to the Minnesota State Court for trial. The Complaint, and depositions of Plaintiff, allege that: 1) On July 18th, 1996, when Kemmer was 16, Deputy Beitel contacted him, at his residence, regarding an accusation that Kemmer had unlawfully impersonated a police officer. The USDC Order recites, "Beitel allegedly told Kemmer there were 'two ways out of this ... one, I can take you to jail for impersonating a police officer right now, or you can give me a ... [act of oral romance - the actual word allegedly used by Beitel relates to something one would do with a balloon, or breatholyzer],'" and that, after a delay, Kemmer then performed oral romance upon Beitel, after which, Beitel warned Kemmer not to tell anyone what happened, and that he was not charging Kemmer with any crime; 2) On July 13th, 1997, at approximately 4:20 a.m., responding to a call from Kemmer that he was being harassed at Kelliher, Minnesota, Beitel arrived, and determined that (in his opinion) law enforcement assistance was not needed. Kemmer alleged, however, that then Beitel said, "the night does not have to be a total waste," and told Kemmer that if he would "do what you did last time," Beitel would let Kemmer "drive the squad for a little while." Per Kemmer's deposition, he wanted to drive the squad car, and so engaged in the oral romance with Beitel. In deposition, Kemmer alleged that Beitel then allowed him to drive the squad car, even activating the lights and siren to stop someone for a taillight violation. No citation was issued for the traffic violation, however, and Beitel made no record of the alleged stop, if it occurred; and 3) In fall, 1998, while Kemmer was being held in the Beltrami County jail, Beitel visited him in his jail cell and offered to "see what he could do" about getting Kemmer out of jail, in exchange for oral romance, which, allegedly, was then performed. Two causes allowed. The Court said that the third alleged incident was barred, as a cause of action, by the statute of limitations, but the first two incidents qualify for a longer, 6-year limitations period, because Kemmer was under 18 when these incidents allegedly occurred. The Memorandum Opinion and Order of the Court reflects that, per his affidavit, Deputy Beitel has denied visiting Kemmer in jail, and has denied ever having any kind of romantic contact with him. But the Opinion also recites, "Defendants argue Beitel's alleged interactions with Kemmer do not rise to the level of criminal sexual conduct because Kemmer consented to the acts and Beitel was not in a 'position of authority' over Kemmer." Kemmer is represented by Minneapolis attorney Joni Thome, who said that they wouldn't appeal the summary judgement for Beltrami County and Deputy Fitzgerald, but, rather, would proceed against Beitel in state court. She said that there was pertinent "information that [Kemmer] shared with others [including his counselor] close to the time of the events," and that "at the time it happened, he [Kemmer] tried to make [police] reports, [but] the County did nothing to go forward [in criminal prosecution of Beitel] on the reports." The Opinion reflects that Beltrami County law enforcement deemed Kemmer's allegations to be "unsubstantiated". Deputy Beitel failed to return Northern Herald's call for comment. Editor's Note: In fairness to the officer involved, we remind readers that allegations, no matter how compelling, are, until proven in court, just that: allegations. Anyone can allege anything against anyone, and in researching and reporting other unrelated news matters, we have seen many very compelling allegations (e.g. in TRO affidavits prepared with the assistance of the women's shelters/advocates) that were simply fairy tales. Like a paperback novel, very intriguing, racy, and compelling material that, when examined, ultimately proved to be simply creatively written fiction. In this matter (Kemmer v. Beitel), the Plaintiff has gone to the time and trouble of bringing his allegations before the court, and the Defendant refuses to discuss them. It remains to be seen whether the allegations will be proven, by cross-examined testimony and a preponderance of the evidence, to the satisfaction of a jury. * our opinion - Johnson was the investigating officer in the (unrelated case) Roy Martin matter (1994) where Martin, a Native American, was held, on a sexual assault charge, for about 6 months, before a jury took a little over an hour to fully acquit him. In that matter, while Martin was held in jail, Johnson was furnished leads as to who a more probable suspect was, but never acted upon them - not even insofar as to show the furnished photos of the suspect to the alleged assault victim, Ida Stein Hightshoe. Post-publication note: For follow-up to this story, see following item. ----------------------- Leading Edge Journalism - Follow Up BELTRAMI DEPUTY UNNATURAL ACT CASE SETTLED From Vol. 8 No. 5 - 05/12/03 BEMIDJI -- The federal civil rights case, remanded back to the State District Court, brought by Ryan Kemmer, an admittedly gay Bemidji man, against a Beltrami County (Bemidji) deputy, Ernie Beitel, for allegedly requiring Kemmer, when he was a minor, to perform oral romance upon Beitel; was settled January 29th, 2003, with payment by Beltrami County (or its insurer) of $9,250. As is usual with settlements, the settlement agreement did not specify whether or not the acts actually occurred. (See Bemidji Deputy Unnatural Act Case Remanded to State Court, NH of 10/28/02, at northernherald.com) Covers Fees. The agreement specified that the payment was to be made to Kemmer's Minneapolis attorney, Joni Thome, for costs, disbursements and fees incurred in prosecuting the suit. It is not known how much, if any, of the proceeds were finally received by Kemmer. Originally, the suit (USDC case no. 01-403 ADM/RLE) had been brought against Beltrami County, as well as the deputy, but the federal Court, in remanding to the State (at Beltrami County) Court, dismissed the County as a defendant, so the case proceeded only against Beitel, personally. Thome said that Kemmer "wants to get on with his life," and that, although Kemmer maintains that the act did occur, there was a practical question of whether a Beltrami County Jury would be likely to believe his testimony over that of a County Deputy. "Bringing claims against counties ... is not an easy task, emotionally, financially, and physically," she said. =============================================================== Leading Edge Journalism This Is Bemidji ------------------------- HAVOLINE XPRESS LUBE TRIES TO FRAME NATIVE EMPLOYEE Owner Randy Johnson makes racial statements; threatens to file charge if employee won't resign. From Vol. 10 No. 2 - 12/20/04 BEMIDJI -- The corrupt little berg of Bemidji is a remote and strange place. It's a place where a good worker can get fired without good cause. Of course, if he resigns, that saves the employer unemployment taxes; and if he won't, in this Good 'Ol Boy town, certain officers of our police dept., headed by civilly-proven swindler Bruce Preece (son of former Judge James Preece), may be glad to help; particularly if the person is not well liked, or of the wrong colour. The Players. In this case, Randy Johnson, owner of the Lakeside Havoline Xpress Lube, at 500 Paul Bunyan Dr. SW, Bemidji (next to Overbeek Electronics), wanted Craig Littleghost, a Native American employee with a mild, but not work-affecting, neurological impairment (if he didn't tell one, one would never know it was there) to leave. But Johnson likely didn't want the firing without just cause to go on his unemployment tax record; so, he tried to extort Littleghost into signing a resignation. Johnson threatened that if Littleghost didn't sign, Johnson would bring a theft charge against him. When Littleghost refused to resign his job, Johnson fired him, and then, on Nov. 15th, 2004, contacted Bemidji Police Dept. (BPD) Officer Lehmann, and made what appears to be an unfounded accusation of theft of an old, used, grey metal small parts tote box, with dividers, worth about $20, per Johnson's estimate. Lehmann took Johnson's statement and issued a citation charging Littleghost with theft. Littleghost, who received the citation by mail on Nov. 17th, said that he had been on the job for over 10 months, longer than any other employee there; a few months earlier, his performance had been evaluated and he received a raise. SSI. But shortly thereafter, per Littleghost, he was made aware by the Social Security Administration, payers of his SSI, that Littleghost was required to notify his employer of his condition. He did so. It was then, said Littleghost, that Johnson's attitude toward him changed. Littleghost's SSI, of course, was reduced for his earnings, but he wanted to work. Theft? Per Littleghost, he was on 11/15/04, routinely working his 8 am - Noon shift. Johnson had told him to empty the refuse (mostly recyclable containers) into the public recycling bins, which are actually on the Xpress Lube property. He did so; when he emptied to almost the bottom of the refuse container, he noticed the tote box in it, and, assuming it to have been discarded, dumped it, too into the recycling bin. He finished his shift and went home. At no time did Littleghost attempt to retrieve the parts box from the bin; and, in fact, in the bin, it remained on the Xpress Lube premises. After his shift, shortly after getting back home, and while taking a shower, Littleghost got a call from Johnson. Johnson accused him of stealing the parts box and threatened Littleghost, telling him that if he didn't resign, Johnson would file a theft charge against him. Littleghost told Johnson what had actually happened, and refused to resign. Later that afternoon, Johnson called Lehmann and made the accusation, which Lehmann used to prepare the charge, mailing the citation to Littleghost. The file (case no. TX-04-4518) contains a report of officer Lehmann's interview with Johnson (Littleghost was never interviewed by police or offered an opportunity to make a statement prior to charging; he was cited immediately based solely on Johnson's accusation). Per the report, Johnson told officer Lehmann, at Xpress Lube, "at approximately 10 a.m., Littleghost was seen going out the door carrying a large red plastic garbage can. Johnson knew that this garbage can had very little contents of garbage . . . this particular can is used for plastic, empty oil cans for . . . synthetic oil . . . . the garbage can is in no need of being dumped." The report continued that Johnson reported that after seeing the can dumped into the recycle bin, he went out to the bin and "located a grey metal storage tote . . . ." Johnson told Lehmann that he confronted Littleghost, and "Littleghost admitted to taking the tote." In interview, Littleghost adamantly denied ever making such an admission; he acknowledged that the tote was in the garbage can he was told to dump; but that he didn't put it there, and that the can was so full that he didn't know that it was there until the can had been mostly dumped. When he saw it, he assumed that it was there because it had been discarded, and, accordingly, dumped it with the rest of the contents. He also noted that the time given by Johnson (10 a.m.) was not the time he emptied the can, that it was almost noon - near the end of his shift; and that Johnson didn't confront him, as the report indicates, on the premises prior to the end of his shift; Littleghost said that the first he'd heard of this was when Johnson called him, while he was showering at home, after he'd routinely left the Xpress Lube premises when his shift was over at noon. Littleghost further told Northern Herald that contrary to what Johnson had reported, routinely, the shop help didn't just use that garbage can for synthetic oil cans; and that it had been used all morning and was full, with a lot of boxes, papers, and the like in it, when he dumped it. He said, "It's normally made for plastic . . . oil containers, but the [employees] . . . tend to throw . . . remains of lunches, . . . household garbage, papers, this and that, and there was a stack of recycled newspapers that were already in there, so I saved that [the task of emptying the trash can] for the last, because we started to get vehicles in the bay." Littleghost continued that with customers arriving, he had to go to the lower bay to drain the oil, "we started to have [customers] lined up at the door, so I . . . didn't get to get up to take out the garbage [until when] . . . I looked at the time, it was like a quarter to, ten to, twelve; I came upstairs, we had no vehicles in the bay at that time, . . . I went out and I started dumping garbage . . . at the bottom, I noticed something heavy and stuck, so I leaned my hand in there, and it was . . . one of the boxes . . . for PCV valves . . . I took it out, threw it in there (the recycling bin), shut the bin. . . . When he [Johnson] told me to take out the recycling, I didn't know what was in there." Littleghost's assumption that the box, in the refuse can, was meant for disposal, was reasonable. He said, "It was an old, . . . scratched up, . . . crusty box. He [Johnson] has a newer one . . . that he's using now." He continued, "I went back in, put the [garbage can] . . . back where it belonged, went and changed my clothes, punched out, said . . . [to the other employees] I'd see 'em Wednesday, because Tuesday was my day off . . . went home, jumped in the shower; about maybe 12:30 or so, . . . he [Johnson] called me up and said, 'I want you to come back down here; I want you to explain something to me.'" Returning to Xpress Lube, Littleghost was approached by Johnson who accused him of stealing the PCV tote box. "I told him . . . that was already in the [garbage can], I just dumped it all out, I didn't think nothin' of it," and that he had no need for the box and wouldn't be jeopardizing his job over such a petty item. "I love my job, and I kept telling him over and over," Littleghost said, but Johnson continued to accuse him and demand that he resign. "He told me, . . . 'I want you to sign resignation papers, . . . I'll be able to help you out, by telling the employers that you just got burned out, you got tired of working here, and that you moved on to something bigger 'n better.'" Littleghost retorted, "I said, 'I don't know what you're talking about, . . . I don't know what you're up to,' I said, 'I did enjoy this. . . . You make it seem like changing oil and stuff, you know, people don't like it . . . I actually like it . . . . I enjoy it,' I said, 'so there is no moving on to bigger and better things,' I said, 'this was it for me." The ultimatum. Littleghost recalled, "I said, 'I'm not signing them papers, I'm not doing nothing,' [and Johnson said,] 'Well then, if you don't sign these papers, then I'm going to call the cops on you and say that you tried to steal that.'" Lehmann's report reflects Johnson's apparently extortive attempt to get Littleghost to sign a "separation from employment" (resignation) form, and that when Littleghost wouldn't sign it, recites the report, "Johnson terminated Littleghost. Littleghost will be cited for theft . . . ." It has been speculated that Johnson may have earlier planted the parts box at the bottom of that refuse container, to provide a way to pressure Littleghost into resigning, so Johnson could avoid firing him. That would tend to explain why Johnson, so soon, knew to look for it in the recycling bin. Originally, Littleghost applied for the job, from a newspaper ad, about January, 2004. By about August, he had his positive review, and received a fifty cent an hour raise. The following month, Littleghost was required to notify Johnson of his condition, which resulted from an auto accident many years ago. "He wasn't sitting well with that - he got very upset about it - that's when the unfairness - the being treated differently [started]," Littleghost said. He added that Johnson told him then that due to his minimal condition, which didn't affect his work in the oil change business, "I wouldn't be advanced," anymore, and that upon firing Littleghost, Johnson again reiterated it; Littleghost recounted, "he said, 'The only reason why I always held you back is because you had a mental instability,'" and "he said, 'the reason you're not upstairs on the computer is because you have a mental instability.'" In interview, and as can be discerned by his comments, Mr. Littleghost was perfectly cognizant, concise, coherent, conversant, and professional. Whatever his condition is, it is sufficiently minimal to where it is not a factor in his life, work, or dealings with people. That Johnson didn't suspect any disability, and, in fact, promoted Littleghost, before Littleghost notified him of it, is pretty good evidence of that. Nonetheless, when Johnson learned of it, per Littleghost, his hours were immediately cut from 35-40 to 10-12 per week. He said that he told Johnson he wanted more hours, although it meant less disability payment, "I said, 'I'm just interested in making my money here, even if they cut my (SSI) check," he said. Racist statements also started then. The auto service bays are divided into an upper level, where the car and customer are - where the fluids are checked and under-hood maintenance is performed; and the lower level - under the car, where the serviceman does the lube, and other under chassis work. Littleghost recalls Johnson telling him that, "I was one of his first . . . Natives to work for him, and that he didn't want me upstairs, to be seen by any customers, and the Native employees belong downstairs [when customers were there]; . . . before this finding of disability, I was always upstairs helping him out. I was always good with the customers, there was no reason for him to keep me downstairs. And all of a sudden, when this issue (the disability) comes about, he starts telling me to stay downstairs; that he didn't want me to be seen by customers upstairs; that I had no business up there. As to pay disparities, Littleghost said of the newer employees, "I was there way before they were, and they're already making over eight dollars an hour." With his advancement stifled by Johnson, he was held at $7.50 until he was fired. Littleghost said that while he was there, he was the only Native employee; that in his latter months (after the disability issue) a friend applied for work there. Littleghost recounted that Johnson asked him, "'Do you know Craig Littleghost,' he said, 'Yeah, I know him, he's a good friend of mine,' he [Johnson] said, 'Well, then, I can't hire you.'" Littleghost is aware of other instances where Johnson, or his wife, have threatened other employees at Xpress Lube. Littleghost addressed his positive relations with clients at Xpress Lube, and said he brought in customers who run another local business and wanted him to service their car, "They . . . talked to me about . . . watching out for their family . . . keeping an eye on Randy [Johnson], making sure that Randy doesn't take advantage of them by selling them products that they don't need. He has done that in the past, before, and I've seen it. He's even trained his upper bay guys to sell them air filters and Justice Bros. products when it's not needed at all. . . . They're always young girls . . . that are not mechanically inclined, they don't know nothin' about it, you know, and I'd come up to 'em and tell them that it doesn't look that bad. . . . That's why a lot of these old timers from these local businesses would come here [to Xpress Lube] without Randy's presence, and tell me, 'When my daughter or my son . . . comes in, you know, would you please watch after them and make sure that they're not getting taken advantage of'; because Randy's done this in the past, you know, not only here, but at Champion Auto." Littleghost wants to be back to work, and is looking for another job. He's also considering going back to college for ASE Mechanic's Certification. He closed the interview saying, "I just wanted to make it fair to the Native people . . . . I enjoyed my job, and I did do a good job for this man and I've always meant well for that business. It's something that I'll carry with me. But I'm being treated really unfair in this case; I'm being charged for something that I did not do. I did not, you know, commit no crime there; there was no wrongdoing. Mr. Johnson is just being typical, wanting to get me out of there, because, in his eyes, he's not going to be able to advance me. . . . I had seniority over all these other employees that came along; he gave the job to them, they got started out at eight and a quarter, eight and a half an hour; you know, and like I said, there was a lot of things that were, you know, unfair." Contacted by Northern Herald, Johnson scheduled an appointment to discuss the matter, at Xpress Lube, but when Northern Herald arrived at the appointed time, he refused to comment on the matter. While our reporter was there, however, he noted the rack of Justice Bros. products, mentioned by Littleghost, priced from $6.99 to $24.99. There was also a price stated for Justice Bros. Products on the station's large service marquee sign which shows it's other rates. The marquee price was $5.99. Asked about this, Johnson said that the marquee price, was an "average". But it wasn't - in fact, there was no Justice Bros. product on his shelf with a price that low; so a customer would see the $5.99 on the marquee, order the product, and then be charged the higher price shown on the small sticker on each container. County connections and camaraderies. The Northern Herald reporter also noted, at the time, that there was a Beltrami Co. official vehicle in the shop for service. Johnson's wife, Debbie, works for the Beltrami Co. Sheriff as a bailiff in the courts. And records disclosed that The City of Bemidji and Beltrami Co. are regular customers of Johnson's Xpress Lube. For 2004, through mid-November, the Beltrami Sheriff's, Highway, and other County departments had contracted with Lakeside Xpress Lube for 103 vehicle servicings, for which Beltrami Co. paid $3,091.85; the City of Bemidji had paid $257.00 (2004 through 10/31) for servicing it's Water Dept. vehicles. Both the City and County also use other lube stations, such as Valvoline. Editor's Note: Discrimination isn't just illegal; it's downright stupid. As all employers here know, in Northern Minnesota, it's hard to find good stable help. When someone likes a job that most don't, does it well, and is dedicated, stable, and permanent, and brings business in the door, that person is a find and a major asset to any business. Mr. Littleghost was the senior employee there; he'd stayed with Xpress Lube longer than anyone else. That that was only 10 mos. says something for the turnover of the Bemidji labour market, generally; but Mr. Littleghost liked his job there and had no intention of quitting or looking elsewhere. Mr. Littleghost is now contacting the new Bemidji ACLU office regarding filing of a major lawsuit against Johnson. He's expected to seek damages for back pay, emotional distress, and hopefully, some punitive damages for general evil. If properly prosecuted and adjudicated, Littleghost could own that Xpress Lube, which would be justice done. But that aside, Johnson may have done himself the most damage by firing his best, most stable employee, in a market where those kind are hard to come by. Talk about cutting off your nose to spite your face. Randy Johnson, by the way, is no newcomer to the dregs of the Bemidji business scene. For years he ran Champion Auto (next to Ace Hardware); where people bought rebuilt parts that didn't work. When enough people found out, he went out of business; a boon for Bemidji motorists. ------------------------------------------------------------ Leading Edge Journalism-Follow Up ------------------------------- Northern Herald - Fighting Northland Corruption - And we're winning! This is Bemidji - There's lots of open space and lots of opportunity, but DISCRIMINATION HAS NO PLACE IN BEMIDJI. From Vol. 10 No. 3 - 03/07/05 Photo caption (photos are not included in Living On The Edge): The light patches on the building front above are where the Havoline Xpress Lube lettering used to be, at their former location on Bemidji Avenue across from Lake Bemidji. The big free standing Havoline sign was hauled down by a crane truck the day before, less than 3 weeks following Northern Herald's exclusive release of the story, Havoline Xpress Lube Tries To Frame Native Employee. Bemidji consumers are to be commended for not standing for this type of business practice. The former Xpress Lube property was transferred to Valvoline, which held it's grand opening January 12th, 2005 (sign at inset). Hopefully, they will be a better employer, although owner, Allen Korpi, failed to return press calls inquiring as to whether he'd be hiring the displaced Havoline workers. Charges remain pending against Craig Littleghost, the former Havoline employee who was subject to an extortive attempt to obtain his resignation by Xpress Lube owner Randy Johnson. Johnson had threatened to make a police complaint of theft unless the employee agreed to resign. Littleghost will answer the charge, which may have been fabricated by Johnson, at pre-trial, March 29th, 2005 at 2 p.m. For full details, see our original story, ante, on this page. ------------------------------------ Leading Edge Journalism The Craig Littleghost trial - Littleghost Acquitted This is Bemidji --------------- FORMER XPRESS LUBE OWNER RANDY JOHNSON: "I'LL MAKE SURE THAT YOU'LL END UP IN JAIL, AND I CAN DO IT BECAUSE DEBBIE IS AN OFFICER." From the testimony of former Havoline Xpress Lube employee Scott Brein From Vol. 10 No. 5 - 07/04/05 BEMIDJI -- Per the former Bemidji Havoline Xpress Lube foreman, Scott Brein, that's what owner Randy Johnson told him, and, apparently, what he sometimes told employees whom he wanted to leave, but didn't have a reason to fire them. If he fired them without cause, his unemployment taxes would go up; if the employee resigned, they didn't. Resignation also reduced the probability of a discrimination lawsuit, such as the one former employee Craig Littleghost is now bringing against Johnson. "Debbie" is Debbie Johnson, Randy's wife, who works as a bailiff in the Beltrami County Sheriff's Dept., at Bemidji. Brein succumbed to the threat and resigned. He now works at Tires Plus, Bemidji. Craig Littleghost, however, didn't knuckle under to Johnson's attempted coercion. He knew he hadn't done anything wrong and wasn't about to pretend that he had. On May 12th, 2005, at Bemidji, following a strenuous trial, and one containing candid testimony damning to Johnson, the Honourable Judge Paul Benshoof found Littleghost Not Guilty of the theft charges that Johnson tried, with the help of Bemidji Police Dept. (BPD) Sgt. Lehmann, to bring against Littleghost because Littleghost wouldn't resign (case no. TX-04-4518). Littleghost was represented by public defender Kristine Cannon, Esq.; prosecutor was Asst. Co. Atty. Randall Burg, of the office of Tim Faver, Beltrami Co. Atty. Unfortunately, His Honour lacked the proper jurisdiction to, at the same time, sentence Johnson to Stillwater, and then Hell, where the likes of him and his ilk belong; but then, a higher court may take up that matter by and by. For now, per Littleghost, the EEOC has investigated and is prepared to support a lawsuit against Johnson, to relieve him of some of his worldly goods, while he awaits final judgment. Note: For further detail on this matter, the reader is directed to the breaking stories: Havoline Xpress Lube Tries To Frame Native Employee, NH of 12/20/04, and Discrimination has No Place in Bemidji, NH of 03/07/05, ante Digest of the case background. As of 11/15/04, the date of the alleged incident, Craig Littleghost, a Native American, had been working for Johnson's Xpress Lube for almost 7 mos., longer than any other employee there. He was a devoted worker; hired 04/23/04, he received a positive evaluation, with pay raise, to $7.50 an hour, in early July. Littleghost also received SSI benefits for a minor disability that didn't affect his job performance. He understood, however, from his SSI worker, that he had to notify his employer, and work reduced hours. When he notified Johnson, per Littleghost, Johnson's attitude toward him changed markedly. His hours were cut to only two hours a day (far less than he could work), and he was denied further advancement. Per Littleghost, racial statements also started then. The auto service bays are divided into an upper level, where the car and customer are - where the fluids are checked and under-hood maintenance is performed; and the lower level - under the car, where the serviceman does the lube, and other under-chassis work. Littleghost recalls Johnson telling him that, "I was one of his first . . . Natives to work for him, and that he didn't want me upstairs, to be seen by any customers, and the Native employees belong downstairs [when customers were there]; . . . before this finding of disability, I was always upstairs helping him out. I was always good with the customers, there was no reason for him to keep me downstairs. And all of a sudden, when this issue (the disability) comes about, he starts telling me to stay downstairs; that he didn't want me to be seen by customers upstairs; that I had no business up there." Littleghost would later ask that his regular hours be reinstated, as although his benefits might be reduced, he enjoyed his job and would rather work. Littleghost recalls his conversation with Johnson, "I said, 'I'm just interested in making my money here, even if they cut my (SSI) check,'" he said. When Johnson finally fired Littleghost, on 11/15/14, Littleghost recounted, "he said, 'The only reason why I always held you back is because you had a mental instability,'" and "he said, 'the reason you're not upstairs on the computer is because you have a mental instability.'" In interview, and as can be discerned by his comments, Mr. Littleghost was perfectly cognizant, concise, coherent, conversant, and professional. Whatever his condition is, it is sufficiently minimal to where it is not a factor in his life, work, or dealings with people. Nonetheless, it was clear that Johnson no longer wanted him working at Xpress Lube. The opportunity to force him out would occur on 11/15/04. Per the trial testimony, other official records and statements of Johnson and Littleghost, he arrived for work per usual on Nov. 15, 2004. His job involved emptying certain trash cans into the public recycling bins which were, at that time, on the Xpress Lube property. Upon emptying one of the trash cans, Littleghost noticed a used parts box (a sectioned PCV valve tote box, valued at about $20) in it, and dumped it in the recycling compartment that he thought was for aluminum waste. Johnson had previously had him throw out items of value, even new parts inventory that wasn't moving, so Littleghost thought little of the parts box being in the trash can, and assumed it was to be discarded. At trial, Littleghost's attorney, public defender Kristine Cannon, would argue to the Court that Johnson's previous acts, coupled with the parts box mysteriously being in the trash can "begs the question" of whether Johnson deliberately put the parts box in the trash can to create a premise to force Littleghost's resignation. Shortly after Littleghost had left work for the day at noon, Johnson telephoned him at his residence and called him back in. Johnson claimed to have found the parts box in the recycling bin, and accused Littleghost of trying to steal it. Said Littleghost, "I told him . . . that was already in the [trash can], I just dumped it all out, I didn't think nothin' of it," and that he had no need for the box and wouldn't be jeopardizing his job over such a petty item. "I love my job, and I kept telling him over and over," Littleghost said, but Johnson continued to accuse him and demand that he resign. "He told me, . . . 'I want you to sign resignation papers, . . . I'll be able to help you out, by telling the employers that you just got burned out, you got tired of working here, and that you moved on to something bigger 'n better.'" Littleghost retorted, "I said, 'I don't know what you're talking about, . . . I don't know what you're up to,' I said, 'I did enjoy this. . . . You make it seem like changing oil and stuff, you know, people don't like it . . . I actually like it . . . . I enjoy it,' I said, 'so there is no moving on to bigger and better things,' I said, 'this was it for me.'" The ultimatum. Littleghost recalled, "I said, 'I'm not signing them papers, I'm not doing nothing,' [and Johnson said,] 'Well then, if you don't sign these papers, then I'm going to call the cops on you and say that you tried to steal that.'" Later that afternoon, Johnson followed through by calling BPD Sgt. Lehmann and making the accusatory statement. Sgt. Lehmann misleadingly recorded in his report that Littleghost had admitted to Johnson that he had taken the parts box; but this actually referred only to Littleghost's statement to Johnson that, as was his job, he dumped the parts box, from the trash can, into the recycling bin - not that he put it in the trash can to be dumped. Lehmann's report concludes, "Johnson terminated Littleghost. Littleghost will be cited for theft . . . ." Littleghost received Lehmann's citation by mail on Nov. 17th. He contacted Sgt. Lehmann and insisted that he be allowed to make a police statement. Lehmann went to Littleghost's house, and per Littleghost, immediately told him, "First of all, you should know, Randy [Johnson] and me are good friends - we go way back." Littleghost said that, at that point, Lehmann didn't realize that Littleghost's wife was also present and that she witnessed that statement by Lehmann. Littleghost gave Lehmann an interview, and Lehmann taped Littleghost's statement. The court file, however, only contains the report of Lehmann's interview of Randy Johnson. Apparently, his interview with Littleghost was not submitted to the Court. And for reasons unknown, Sgt. Lehmann did not testify at trial. The trial opened, at 2 p.m. May 4th, 2005, with prosecutor Burg calling Johnson to the stand. Johnson would be characterized in later testimony as a very meticulous "a place for everything and everything in it's place" type of person. Johnson testified that, on the morning of Nov. 15th, before Littleghost's shift, Johnson did a walk-through of the premises, and noticed the subject parts box in the break room near the trash can; and that this was not where it belonged (Johnson offered no testimony as to why he didn't at that time put it, or later have it put, in it's proper place, which would have been more true to his character and way of doing business). He reiterated, on the stand, that he later saw Littleghost empty the trash can, and that after Littleghost left for the day, Johnson went to examine what Littleghost had dumped, and "found" the parts box in the recycling bin. On cross-examination, Cannon asked Johnson: "Why did you look in the other [i.e. other than plastics, as for the oil containers which were usually dumped] recycling bin?" Johnson: "I looked in both of them." Cannon: "Because you knew the box was in there?" Johnson: "No." [Editor's note: there were actually many different bins, but Johnson, apparently, only inspected two, stopping when he "found" the parts box, as if that was what he was looking for and he expected to find it.] Johnson testified that he called Littleghost back to the shop, and offered him the opportunity to resign. Basing its case only solely on Johnson's testimony, the prosecution rested. Kris Cannon called to the stand Mr. Scott Brein, a former foreman at Xpress Lube. Brein testified that while he was foreman, he worked with Littleghost and "he [Littleghost] was a hard worker." Brein intimated that Johnson had paranoid tendencies; that he frequently accused employees of stealing, and "he [Johnson] said he couldn't trust Craig [Littleghost], being Native and stuff." Brein testified that when he spoke to Johnson favorably about Littleghost, Johnson punished him [Brein] by no longer letting him handle ordering, and demoting him to lower bay technician. As to used and empty PCV valve boxes, Brein testified that, prior to this incident, Johnson had routinely directed Brein to throw away many of them - they'd be dumped in the recycling bins. Brein further testified, "Randy [Johnson] got upset and started yelling at me" about Littleghost's request to be part-time, and that Johnson said Littleghost would be "let go" first chance he got. Brein testified that, at the time, Johnson made racial comments, but said that Littleghost wouldn't be fired immediately because of legal liability. Over time, as happens with many of the Xpress Lube employees, and possibly because of his speaking well of Littleghost, Brein fell out of Johnson's favour. He testified that at the end of July, 2004, Johnson demanded that he resign, and threatened to file a criminal charge against him if he didn't. Johnson told him, "He'd make sure that I'd end up in jail, and he can do it because Debbie is an officer," Brein testified. Under cross-examination, Burg asked Brein what Johnson threatened to falsely accuse him of; Brein answered, "He didn't say - he just said he'd find a way." Cannon called Craig Littleghost to the stand. Littleghost testified that, on 11/15/04, the day of the alleged incident, "Randy [Johnson] asked me to look in the break room [where Johnson had earlier testified the PCV valve box was] ... make sure the trashes were empty ... take out the recycling;" and that later that morning, after the second customer had come and gone, Johnson again asked him if he'd emptied the trash can. Littleghost testified that when he later emptied it, "I noticed the PCV box" and that he dumped it into what he thought was the recycling bin for aluminum. Littleghost further testified that when he had gone for the day at noon, and Johnson called him back, "I noticed that, behind the door, he had a PCV box," and that Johnson asked Littleghost if he had put it into the recycling bin. Littleghost said, "Yes, I did," whereupon Johnson told him, "It looks like a theft to me" and showed Littleghost a resignation form he'd prepared, and told Littleghost to sign it or be charged with theft. Littleghost refused to sign the resignation. Littleghost testified that Johnson then told him, "Do you think anybody's going to believe you? I'm a well-respected businessman - you're a nobody." Littleghost testified as to his change of hours, that per his caseworker's direction, he'd asked for part-time, but then he had another consultation with his caseworker and found out that he'd make more money [than the benefits] if he worked more, so he asked Johnson for more hours, but didn't get them. After telling Johnson of the disability, "He talked to me like I was stupid," Littleghost testified, and Johnson would, on occasion, ask Littleghost if he'd found another job yet. Littleghost corroborated Brein's earlier testimony that Johnson was kind of nutty and paranoid about employee theft - that he'd "jumped on" Littleghost when he opened the till to change a dollar. Littleghost testified that because Johnson accused him of stealing socket wrenches, Littleghost bought his own set to use at work. Littleghost testified that, at one time, Johnson told him, "He wanted his non-Native employees to be upstairs [where the customers were] and he wanted his Native employees downstairs." Still, Littleghost testified, "This job I had at Lakeside Xpress Lube was just right for me . . . I never would have done something that would jeopardize my job." Burg began his cross-examination clarifying Littleghost's requests as to his hours, and then the alleged incident; and with the case obviously going against him, began to slip up in his details, referring to Littleghost's car as a "pick-up". Under cross-examination, Littleghost explained that it wasn't unusual for Johnson to throw away items of value; that the week before, Johnson had Littleghost throw out a lot of air filters and other new supplies because they were overstocked and Johnson didn't think they would move. About the previous theft accusations, and why he bought his own wrenches, Littleghost said, "He [Johnson] always makes it out you're trying to do something wrong to him when you're not." Clutching now at straws, Burg intimated that the sectioned PCV box would have had use for Littleghost to store the socket set he bought. He pounded: "It's kind of handy to keep them in separate compartments, isn't it?" But Littleghost just calmly and honestly answered Burg: "Not really," and said that there are boxes specially made for socket sets. [They usually come with the set. -- Ed.] In closing, Burg argued to the Court that Littleghost "became angry" that Johnson wouldn't custom-tailor his hours at Littleghost's requests. But this was unsupported by the evidence - no witness testified that Littleghost was angry at any time - quite to the contrary, testimony had shown that it was Johnson who frequently lost his temper. Even under cross examination, when Burg tried to put words into Littleghost's mouth; while testifying about the demanded resignation Littleghost repeatedly corrected Burg and said not that he was angry, but rather that he was "hurt and offended" by Johnson's accusation and demand. Cannon wrapped up telling the Court that Johnson was "obsessive" about people stealing things, so Littleghost brought his own tools to work so Johnson wouldn't be worried. She said, "My client does as he's told ... so he took out the recycling ... Mr. Johnson has had him throw out stacks of [new] stuff in the past. ... Mr. Brein didn't want to resign ... he was coerced out of fear" The testimony had shown that there were various entrances, exits and garage doors that could have been used to empty the trash; but Littleghost took it out the front way; and to conserve energy and not needlessly open the garage door, he took it through the lobby, and the lobby door. Cannon continued that if Littleghost was doing something illegal, why would he have emptied the trash can walking right through the lobby door, "right in front of Mr. Johnson." "Mr. Littleghost did not commit this crime," Cannon concluded. The Honourable Judge Benshoof took the matter under advisement to consider all of the lengthy evidence, rendering the Not Guilty verdict eight days later, May 12th. Judge Benshoof is known for fully and diligently considering his cases. In this matter, his detailed Memorandum of findings stated, in part, and as regards Littleghost's charge of trying to steal a $20 parts box by dumping a trash can containing same, as he was directed by Johnson to do, "I have decided that criminal intent was not proved beyond a reasonable doubt." [Emphasis added.] In going over the inconsistencies in the evidence, and with his usual judicial wisdom, Judge Benshoof cited an obscure and passing, but very important item that came up in Randy Johnson's testimony: " ... Mr. Johnson admitted that the metal PCV box was sitting near the ... [trash can] ... when he got to work that morning, and he was there one-half hour before the Defendant was. He admitted that was not the box's normal location. So who put it there and why?" After the verdict, Craig Littleghost said, "It was good - I was not guilty of anything from the get-go; I just had to prove it - I am happy." And Littleghost, who is now studying at NTC for an ASE mechanic's certification, said that he's moving forward on his civil suit, through the Equal Employment Opportunity Commission, against Johnson; and expects to be able to use, in that suit, the information derived in disclosure during the criminal proceedings. Editor's Note: Johnson's Lakeside Havoline Xpress Lube closed and was sold in January, 2005, less than 3 weeks after Northern Herald's exclusive publication of the initial breaking story on this, "Havoline Xpress Lube Tries To Frame Native Employee" (ante). It's hard for a newspaper to take credit for things that just seem to happen, but we are told that, in this matter, this was not a coincidence; and it further corroborates Johnson's culpability. The former Havoline store is now a Valvoline location. -- Ed. =============================================================== SLAUGHTERS FIND NO HELP IN NORTHERN CHURCHES, BLIND AGENCIES From Vol. 9 No. 6 - 06/21/04 BEMIDJI -- It wouldn't seem that there are that many ways a blind person, let alone a blind couple, could support themselves. But when one is blind, they're sometimes resourceful and want to do more than just languish on what the government will provide. These people are looking for a hand, not a handout. In Northern Minnesota, though, the system isn't geared to these people who earnestly want to work; people who are handicapped, but are nonetheless used to and willing to help themselves. And, as it turns out, neither are Bemidji's employers; nor its massive churches nor others of what passes for religious and charitable institutions here. Elizabeth and Roosevelt Slaughter have been blind since birth. That didn't stop them from being gainfully employed in Des Plaines, Illinois, where they lived until 1999. Roosevelt worked as a darkroom technician for a photo processing firm, Elizabeth earned her B.A., in sociology, and teacher's license, and was employed as a social caseworker. Together, they built equity in their home, the sale of which provided money for a new home in suburban Bemidji when they moved here 5 years ago. Additionally, Elizabeth designed a line of greeting cards with both braille and large type; and started a mail order business. They are both accomplished musicians who have been able to further supplement their income by playing together professionally on piano and organ. With their music leaning toward gospel, they rented facilities and gave a well attended recital in Bemidji a few years ago. They also are available for weddings and other functions. But now, Bemidji churches have been unwilling to consider them for hire, and all but one has refused to allow premises use or rental for further private recitals. Speaking to the Slaughters, one might not even suspect their handicap unless they told him. For example, when this reporter pulled into their driveway, then backed the car up a little, Roosevelt came out to say he didn't have to park so far back. Nonetheless, they have been unable to find suitable work here, and State Services for the Blind (SSB - a division of the Minn. Dept. of Employment and Economic Development), refused to place Elizabeth in available employment for which she is qualified. When she left an unsuitable job at DAC, SSB also pretty much pulled the rug out from any home-based business she might undertake by requiring her to return the computer and specialized blind-oriented software she needs for that, as well as for day-to-day living. Elizabeth said that the equipment they need includes a reasonably up-to-date laptop computer, the JAWS screen reading program, Open Book scanning program, a braille translator, bar code scanner, color identifier, braille embosser, and braille paper. The equipment and software amounts to approx. $8,850. Cheryl Chappuis, of State Services for the Blind, at Bemidji, refused to comment on the matter. Presently, the Slaughters' only income is a small pension, and Roosevelt's Social Security (they don't qualify for SSI), much of which goes for the house payment. Much as a person with one leg can now, with a prosthesis, lead a relatively normal life; so it is with the blind. Technology now makes possible the things that enable a blind person to lead a normal day-to-day existence. But unlike the medical appliances, there is no stopgap in place to provide that simple technology to those with limited means. Per Elizabeth, "The computer, now, is not a luxury, but an essential tool for a blind person ...." She said that without it, they can't even read their daily mail, or distinguish canned groceries. A sample of the Slaughter's music will be available at northernherald.com For performances at weddings, events, etc., they may be reached at 218-755-1271 ================================================================= THE RICHARD LORY STORIES As of May 3, 1997, Richard Lory is serving a 12 1/2 year sentence at the Minnesota State Prison, Stillwater, Minnesota for the fatal shooting of Bruce Bradach Jr. in late 1993. Lory has maintained throughout that he was trying to defend his family, including his daughter who, hours earlier, had been gang raped by Bradach and others. His appeal to the Minnesota Appellate Court failed, and the Minnesota Supreme Court denied review. He began serving his sentence in late September, 1995 and will be eligible for parole after serving eight years. -------------------------- TEEN SEX PARTY LED TO DISASTER From Vol. 1 No. 2 - 9/22/95 BEMIDJI-- In the eighth grade, schoolgirls are taught everything they could possibly know about anatomy, sexuality, contraception, pregnancy, birth and single parenting. By the ninth grade, studies show, 48 percent of them are sexually active. Some call teenage promiscuity "victimless" but in this case it led to the rape of one 14-year old teenage girl, and the death of a 17-year old teenage boy; as Heather Lory was unknowingly served up as the "main course" at an orgy staged by her chaperones, two older Bemidji-area teenage girls. Heather Lory, her friend Laura Olson, and several of their young school friends, girls aged 13 to 15, had planned on an evening of skating, on August 21, 1993, and then to go to Laura's parent's camper to talk, play games and finally retire afterward. Heather recalls, "We played games, we sang, we talked about school." Heather says that she didn't know Laura's older (17 yrs. at the time) sister, Faith Olson (now Faith Vernlund) that well, but Faith and her friend Sarah Holloway were told by Faith's mother, Kathleen Olson, to chaperone the kids and keep an eye on their get-together. But Faith and Sarah had other plans. Heather explains that Faith left the camper telling the young girls not tell her mother she was gone. She returned a while later with Bruce Bradach Jr. (the slain boy), Jamie Anderson, Adam Andler and Joe and Jesse Bradach. They had brought beer and hard liquor. Heather recalls, "Bruce carried a cooler to the rear of the camper, and Jesse brought liquor inside ... they all started drinking and they were offering it to the young girls." Asked if she drank, Heather states, "I did a little bit". But not having drank liquor before, she didn't know that a little bit of it goes a long way. "I just wanted to go to sleep," said Heather and she told how she laid down in the corner of the trailer. The boys were asking the 13-15 yr. old girls to go outside with them and the girls were refusing. "They all started asking me; I said no," recalls Heather, "Eventually Sarah Holloway dragged me out of the camper and Adam Andler helped her." They dragged Heather, to the nearby cemetery. "I was yelling 'no' all the way down the road," said Heather, who has been told by her young friends that while this was going on, Faith Olson, along with Anderson and Jesse Bradach, held the younger girls (Heather's friends) captive in the trailer so they wouldn't interfere. Heather remembers that Adam Andler, Joe Bradach, Bruce Bradach Jr. and Sarah Holloway were at the cemetery. It was dark but "we think ...[Sarah Holloway] may have been the one who took my clothes off by the fingernail scratches," said Heather. Heather recalls that the three boys took turns raping her while Holloway watched. Heather would later learn that while Faith Olson, Anderson and Jesse Bradach went outside the camper briefly, some of her friends sneaked out with a flashlight and went to find Heather at the cemetery. "They could hear me yelling 'no' and one of them flicked on the flashlight and the boys took off running." Heather's friends helped her get dressed and then carried her to the camper where they found the three boys who had participated in the rape talking to Faith Olson, Jesse Bradach, and Jamie Anderson. Heather accused them of the rape, and the boys left and presumably drove to their home. Heather recalls hearing Sarah Holloway say to Faith Olson, "She'll forget about it by morning." Per Heather, she remembers Sarah Holloway trying to tell her that the rape didn't happen [DNA evidence has now proven that it did] and when Heather insisted it did happen, Sarah slapped her in the face. "My friends were huddled around me, " recalls Heather, "we didn't know what to do." And they were afraid of what Sarah and Faith might do if they tried to call Heather's parents from the Olson home. After about an hour and a half, they went to one of her girlfriends' homes, from which Heather's parents were telephoned. EDITOR'S NOTE: In this issue, we present comprehensive coverage of the events that led up to the shooting for which Richard Lory is now being tried. Much of the information will not be reflected in the reports of the trial, as the events which led up to the shooting are not necessarily relevant to whether or not a person is guilty of the shooting. Further, much of this information has not previously been publicly available, as the prosecutor initially sought to suppress coverage of the Lory rape. The information presented is the result of interviews with the Lory family, is primarily based upon their statements and has not necessarily been independently corroborated in its entirety. Faith Olson has declined to be interviewed. ---------------------- THE THREE LORY TRIALS A TRAGIC COMEDY OF ERRORS, AT TAXPAYERS' EXPENSE From Vol. 1 No. 2 - 9/22/95 With a chronology that has been marked by bothersome inconsistencies, and certain acts of the prosecution and judiciary for which explanation does not seem to be forthcoming, Richard Lory is now standing his third trial, in Beltrami County, for what he claims was the accidental shooting of the boy who is alleged to have raped his daughter. The verdict of the first trial was set aside in August of 1994 when three jurors came forth after the trial and told of a private meeting between Beltrami Judge Preece and the jury foreman, during the deliberations. "We were told the judge would not accept a hung jury," one of the jurors is quoted by The Bemidji Pioneer as stating. The alleged private meeting between Preece and the foreman has resulted in the need for two more trials at inestimable public expense, including court time, jury fees, witness fees, and work by the county attorney and his staff (County Attorney Tim Faver is now trying to get his job upgraded to full-time with a higher pay scale). But how this happened is just the last in a long series of questions surrounding the prosecution and adjudication of the Lory case. The first arose only days after Richard Lory was arrested when County Attorney Tim Faver made the strong public statement that the slain boy (Bruce Bradach Jr.) was not one of the rapists. Faver, interviewed after trial Wednesday, told Northern Herald that he didn't think that had anything to do with the high bail that was initially set. But in August of 1993, Faver is quoted in The Pioneer as stating that he requested high bail "because the boy in question [involved in the rape] was not Bruce Bradach Jr." Bail was set at $300,000. It is hard to conceive how this severe a mistake could have been made in a very serious judicial proceeding. And it raises a question as to whether the prosecution had something to gain by portraying Mr. Lory as a man, gone berserk with rage, who shot an innocent bystander, rather than a man who, in a confrontation, accidentally shot the boy who raped his daughter. The miscommunication which led to this statement by Faver, just before maintaining media silence on the case, is overwhelming. Faver said Wednesday, "The statement I made was based on law enforcement data." We asked Heather Lory about what she told police. She stated that right after the assault and shooting she named, to police, Adam Andler, Joe Bradach and Bruce Bradach Jr. as the boys who had raped her. But, she says, law enforcement officers tried to talk her out of naming those persons. "[The] police told me it was too dark, I was not in a state to know, [and that] ... the DNA would say that it was not those three. I kept saying 'I know I'm right' and they kept saying no," recalls Heather, who said police did not tape that part of her statement. Andler and Joe Bradach have since pled guilty to the rape. In a county where charges of contributing to the delinquency of a minor frequently go before the court, a question is raised as to why the County Attorney brought no charges against Faith Olson and Sarah Holloway. Inducing teenage boys to come over and drink seems, to come within that offense, and there is also an allegation, by Heather Lory, that Holloway aided and abetted the rape. Holding persons captive in a camper, and restraining them from leaving could be construed as kidnapping. But not even disorderly conduct charges have been brought against the girls that Heather alleges to have set up the rape. Questioned on this, Faver said, "No evidence has been submitted to my office to warrant a charge." But Heather's testimony is evidence, and the Beltrami County Attorney's office has a history of bringing charges, when it sees fit, based upon oral evidence alone. If no evidence has been submitted to Faver's office, then it is not readily understandable why Heather's statements to police were not submitted to him. Linda Lory, Heather's mother, stated to Northern Herald, "We asked police why they didn't check Sarah Holloway's [finger]nails for DNA [Heather says Holloway may have scratched her when removing her clothes] - they said they were too busy with the [shooting] investigation. A shooting is a serious matter, but so is rape. If Linda Lory's statement is correct, it seems that it would be hard to justify this law enforcement oversight. Linda Lory said that she "pushed and pushed" to have them prosecute Sarah Holloway. She claims she tried to pursue this through the Sheriff's office, Tim Faver's office and through a crime victim's ombudsman in St. Paul. Richard Lory brought up the fact that many of the witnesses called on behalf of the prosecution at the first trial were persons who were involved, directly or indirectly, in the rape, and he speculated that this may have affected the County Attorney's willingness to prosecute these individuals. No visible action was taken on Heather Lory's rape complaint until March, 1994, over 6 months after the rape occurred, and after the inaction had been criticized on national television on the Sally Jesse Raphael Show. When charged, the boys pled guilty. As to the DNA testing, Faver's office has steadfastly refused to release information as to whether it showed Bruce Bradach Jr. to have been involved in the rape. If positive, it would tend to confirm what Heather Lory has said, and further cast doubt upon Faver's earlier statements. Linda Lory claims to have received a call from an employee at the Minnesota Bureau of Criminal Apprehension, where the DNA tests are done, wherein the employee told her that "Faver had put a stop on [part of the DNA testing]." Faver denies ever having done so. ---------------------------- HEATHER LORY OVERCOMING TRAUMA OF ORDEAL From Vol. 1 No. 2 - 9/22/95 On the surface, she seems like just another good-natured country kid. But Heather Lory has gone through some life-shaking experiences, first, due to her rape, and then the prosecution of her father for shooting her alleged assailant. "I had nightmares, and flashbacks at school all the time,", said Heather from her Puposky home. She initially sought counseling from Upper Mississippi Mental Health, which handles a number of court-ordered counseling referrals, but said she was told by UMMHC that she couldn't speak of the incident, even in counseling.. So she sought counseling out- of-state where she had gone to attend school after being harassed at the High School in Bemidji. Asked how she felt about teenage promiscuity and peer pressure, Heather said, "I believe very strongly that if a girl is lucky enough to be virtuous, she should stay that way until she's married." And she added, "Listen to your heart, not what your friends are saying. If your friends are pressuring you to do something, they're not really your friends." ------------------------- HEATHER LORY ATTACKED AT PAUL BUNYAN MALL From Vol. 1 No. 3 - 9/29/95 BEMIDJI -- Even while in town only briefly, to give testimony as a witness at her father's trial, Heather Lory, the (then) 14-year old girl who was gang-raped two years ago, says that she's suffered continuing harassment from certain Bemidji families, which culminated in an assault at Paul Bunyan Mall, Bemidji. Shortly after the rape, Heather had to leave her High School and be home-tutored, due to harassment at school. She is now attending an out-of-state school. At the hospital, Heather described her attack. She said she was grabbed from behind, beaten about the head and then slammed into the sidewalk in front of the mall. She sustained a minor concussion but was treated at North Country Memorial Hospital, Bemidji, and released. Heather stated that she and her friends "were walking around the mall and Jessica Holloway, [a juvenile], started following us with four of her friends." When Heather thought they had left she exited the mall "we were going towards the car," said Heather, "on the sidewalk". Heather stated that Holloway came up behind her, Heather turned around and Jessica began trying to provoke an argument. Heather turned away and "I felt something from behind; she grabbed my head, " said Heather, "from behind and started beating on the back of my head with her fists, and then smashed me into the ground [sidewalk] and," continued Heather, "started kicking me." Heather states that she blacked out for what observers have said was about 5 minutes. Heather's parents were called and picked her up, but took her to the hospital when she complained of dizzy spells later in the evening. Holloway's mother, Debbie Claussen, denied that her daughter was involved in the assault. Contacted at her place of work, Bi-County CAP, Bemidji, Claussen said her daughter, Jessica Holloway, was in Cass Lake on the day of the assault, but added, "If she [Heather Lory] stays around here, a lot more things might happen to her." Attempts were made to contact Holloway's father, Dan Holloway, at Gilfillan Center where he works a child care counselor, but we were unable to contact him and calls were not returned. Police claim to have submitted a report of the assault to Tim Faver, Beltrami County Attorney, but as of this printing it is not known whether Faver intends to bring charges on the matter. ---------------------- MILLER PLANS APPEAL OF LORY CONVICTION From Vol. 1 No. 3 - 9/29/95 Robert D. Miller, attorney for the recently convicted Richard Lory, said Wednesday, from his Twin Cities office that an appeal is planned. After a week-long trial, and five hours jury deliberation, Lory was convicted Tuesday night of second-degree murder in the shooting death of Bruce Bradach Jr., whom Lory claims raped his daughter, along with two other teenagers in late 1993, and immediately prior to the shooting. Lory has maintained throughout the proceedings that the shooting was accidental, that he took his gun out of his truck only when Bradach blocked Lory's way when he tried to leave the scene of the verbal confrontation with the Bradachs, and some question was raised during trial, due to the bullet fragments, as to whether there was another gun [besides Lory's] fired. This was Lory's third trial on the murder count. The first verdict was voided due to judicial impropriety, and the second ended in a hung jury. Lory's Attorney, Miller said, regarding the trial, that there would be an appeal. "There have been a number of pre-trial issues raised, [including] double-jeopardy," said Miller, "Because of the manner that the incidents happened at the first trial, it should be a bar to further proceedings." Miller also spoke of direct errors at the recent trial, including what he described as an eight to nine minute emotional display by the Bradachs, in the presence of the jury, but while the attorneys and the judge were in chambers. Miller also faulted the prosecutor for trying to re-raise, in closing arguments, matters which the court had earlier ruled inadmissable in testimony. Sentencing for Richard Lory is set for October 12th. Miller stated that he intended to move for a new trial within a matter of days. Regarding the Mahnomen judge who presided over the trial, Miller was complementary, and said, "I thought basically the judge presided over the trial in a judicious manner; it was a difficult and emotional trial for everyone." ------------------- LORY SENTENCED From Vol. 1 No. 5 - 10/16/95 Richard Lory, 46, of rural Puposky, was sentenced Thursday in Bemidji, to serve 150 months for the purportedly accidental shooting of the the boy who raped his then 14-year old daughter. Judge Michael Kraker of Mahnomen, sitting in the Beltrami County Court, pronounced the sentence on the charge of second-degree murder. Per normal guidelines, Lory will have to serve 2/3 of the sentence before being eligible for supervised release. Lory's attorney, Robert D. Miller, earlier indicated that an appeal is planned. ------------------------------ A LETTER TO THE EDITOR From Vol. 2 No. 14 - 04/28/97 LORY: WORKING ON APPEAL, ASSAULTED IN PRISON My attorney, John Westrick, is trying to get my case heard by the State Supreme Court. Right now, Mr. Westrick is trying to get the [record of the] jury instruction part of the Grand Jury [proceedings]. Originally, when the Grand Jury transcripts were asked for, Mr. Westrick was told that there were "no transcripts" of the jury instructions. But now, the court reporter is saying that did not mean there was "no record" of that part of the Grand Jury [proceeding], but we asked for the transcript. Make any sense? Kind of like the "lost" 911 tapes. In August, I was attacked by a compatriot of the people who had attacked my daughter, a guy by the name of Alvin Jones. There was a rather one sided fight, which I lost, of course. Since then, his friends have been causing me quite a bit of trouble. Many convicts do not like citizens that try to protect their families. My children have struggled since I have been gone, but I think they are adjusting better now. I just hope and pray that I can be reunited with them as soon as possible. It is very hard to keep in touch with the kids because of the prison's restrictions on communication. We will need to make up a lot of lost time. Rich Lory #184291 Stillwater, MN =================================================================== From Vol. 1 No. 10 12/22/95 ----------------------------- POLICE "OK" GANG-FIGHTING AT BEMIDJI HIGH SCHOOL Charboneau calls gang ambush of student a "consensual fight" - says no crime committed Proponents of the sport of gang-fighting will be pleased to learn that, per recent action of Bemidji Police Department, it may become a legitimate mainstay at Bemidji High School. It is not yet known whether pari-mutuel wagering will be permitted. This as Bemidji police have demonstrated that they will regard these incidents as "consensual fights", and not recommend charges, and school officials have dodged taking jurisdiction. On November 30th, 1995, Thomas Scarborough, a 14 year-old honors student at Bemidji High School, was on his way back to the school on his lunch hour, and was walking along an alley behind North Country Dental clinic, about a block and a half from the school, when a group of Native American students approached him from behind and one of them punched Scarborough in the back of the head, per David Wills, another student who was at the scene. Scarborough, a white student, said he asked "What did you do that for?" And the assailant replied, "Because you're a racist." Per Wills, Scarborough tried to continue walking toward the school, but members of the gang of Native Americans, purportedly led by Joe Ducheneaux, a student from Cass Lake, kept pushing Scarborough back into a circle they had formed. Trapped in the circle, Scarborough says that he told Ducheneaux that he didn't have any reason to fight him, but the gang would not let him leave, Ducheneaux making gestures as if to strike Scarborough, finally striking him on the side of the head. The two fought briefly, Scarborough putting Ducheneaux into a head-lock, when a fifteen-year old girl, a member of Ducheneaux's gang, sprayed pepper mace in Scarborough's eyes. Per Wills, about five other teenagers with Ducheneaux's gang then intervened, pulling Ducheneaux from Scarborough's hold, and then began kicking Scarborough until employees of the dental clinic saw the fight and called police; the teenagers dispersed when they heard the sirens. Staff of the dental clinic took Scarborough inside and, for about a half hour, washed the mace out of his eyes. He suffered intense swelling of the nose, a black eye, cuts on nose and above the eye, bruised ribs and a knot on the head. Per Judi Scarborough, Thomas's mother, upon police investigation by Officer Charboneau of Bemidji Police Department, the girl who sprayed the pepper mace told Charboneau that she did it to break up the fight. But Wills recalls, "She had the can in her hands and [she] said 'let's party'". Scarborough stated that Charboneau spoke briefly with him, only asking his name, but not taking his statement as to how the fight got started, then Charboneau spoke to members of the Native American gang that had attacked Scarborough. Charboneau would not take the statements of Wills or of several other friends of Scarborough who witnessed the fight, and spent several hours conferring within the high school. Per James Scarborough, the victim's father, he took his son and David Wills to Bemidji Law Enforcement Center to make a statements, but Charboneau was not available to take them; Charboneau said that he'd call James Scarborough that night to get a statement, but failed to do so. When James Scarborough went to the Law Enforcement Center the following day, and Charboneau told him that he had determined that it was a "consensual fight" between the two boys, so no crime had been committed by Ducheneaux or the boys with him. Charboneau had made this determination without having taken statements from the victim, or any of his witnesses. Judi Scarborough, the victim's mother, said that Charboneau had told her that there were over 200 kids there at the fight scene, and that was why he couldn't make an arrest. Officer Charboneau could not be contacted for comment at presstime, and Bemidji Police Department referred inquiry regarding the matter to Tim Faver, Beltrami County Attorney. Faver reported that a juvenile charge of fifth degree assault has been brought against a 15-year old girl for allegedly spraying the pepper spray, and another girl had been charged with disorderly conduct, but knew of no other persons, from the police investigation report, against whom charges were recommended. In first offense juvenile fifth degree assault charges generally, likely sentences include probation, community service and restitution, he said. Mr. Morris, Assistant Principal of Bemidji High School, described what the school considers to be a 1,000 ft. "safe zone" around it, for violence in which, the school will take disciplinary action. He said, however, that no action has been taken against Ducheneaux or members of his group. Morris stated that he had determined that the fight occurred outside of that 1000 ft. safe zone, and was thus outside of the school's ability to take action. The site of the fight, however, when measured with a measuring wheel, on December 20th, proved to be precisely 849 ft., 9 inches from the school entrance. This incident of racial violence at Bemidji High School does not appear to be isolated. In another unrelated incident in recent weeks, three Native American boys attacked a 15-year old white student while the student was walking home from school and had his hands full carrying his band instrument, books and candy he was selling for the choir. According to the boy's father, the Native Americans tried to provoke the youth by "calling him names", and then kicked him in the side, and took his glasses, which were damaged when the indian youths threw them on the ground. The boy was treated at the North Country Regional Hospital emergency room and a police report was made, but there has been no visible investigation by police or school officials to ascertain the identity of the perpetrators. No charges have been brought. Speaking on the matter of violence, generally, and particularly racial violence, in the school, Wills said "There definitely is a problem." Although one of the provokers of the fight called Scarborough a racist, Wills, who knows Scarborough well, said he wasn't racist at all, and believes the statement was made merely as justification to start the conflict. Both Wills and Scarborough attested to a high degree of racial tension and recurrent fights in the halls and corridors of the school. They spoke of frequent fights and students having to travel the tunnels between buildings in groups to avoid assault. Being familiar with the problem Mrs. Scarborough said "You have to look over your back all the time" in the school hallways. Bemidji High School has two hall monitors for about 1700 students scattered over two buildings, and no security in the tunnels. Cass Lake/Bena school, by way of comparison, has 2 hall monitors for about 350 students. School Principal Everett Arnold shared the concern for adequate security in the school, saying, "If a kid can't be safe in school, he's not going to learn very much." and acknowledged that the school has responsibility for kids within the 1000 ft. "safe zone" of the school. Mrs. Scarborough is organizing other parents and students to discuss the problem and try to find solutions to the school violence dilemma. Interested members of the community may contact her, evenings, at 759-2316. In the meantime, as long as gang-fighting is being treated as legitimate sport by school officials and police, this newspaper would appreciate it if the organizers of the gang fights would notify us of the perpetrators, victims, dates and results, so we can post them on our high school sports scoreboard; if you give us a little lead time, we'll come out and get some pictures, too. - ============================================================= From Vol. 1 No. 11 01/05/96 ----------------------------- NORTHERN EDITOR ORDERED TO JAIL At the insistence of Al Felix, Bemidji City Attorney, Sgt. Jerry Johnson of Bemidji Police Dept. and the woman who earlier testified that she was "200% sure" her assailant was Roy Martin, Adam Steele, Editor of Northern Herald, has been sentenced to 6 days in jail for trespassing in the course of reinvestigating the charge against Roy Martin. On February 8, 1995, Martin was fully acquitted of charges by a jury. He had been held for almost 7 months; the trial took a week; the jury took a little over an hour to find the evidence wholly insufficient and Martin not guilty. On July 26, 1994, a few days following Martin's arrest, Steele, noting that Martin, a disabled Native American, did not even remotely fit the description given of the assailant shortly after it allegedly happened, went to inquire of the alleged victim, a neighbor, as to the description of her attacker and whether she was sure it was Martin. Per trial testimony, she became enraged and said she was going to call police. Steele left, within about 3 minutes of arriving. Per trial testimony, she spoke to Sgt. Johnson the following morning, and Johnson decided that the 3 minute conversation on her doorstep constituted a trespass. He served a citation on Steele the next day. City Attorney Al Felix made it clear in pre-trial conferences that he didn't want Steele to investigate the shaky charge against Martin, and the appellate brief filed in the case alleges that the charge was brought to discourage the questioning of Bemidji police work, and that a 3-minute doorstep conversation is not generally regarded as trespass. At trial, the woman testified that she told Steele to leave three times; Steele's testimony was that she never asked him to leave, but she asked questions several questions and said twice she was going to call police. A jury found Steele guilty of trespass in December, 1994. The normal penalty for first offense trespassing is a $210 fine, but Felix argued for executed jail time and the court, with Judge Rassmussen presiding, imposed a six day jail sentence in addition to the fine. On December 12, 1995 the Minnesota Appellate Court affirmed the conviction. The matter has been appealed to the Minnesota Supreme Court, but Steele, appearing before Judge Rassmussen, Ninth Judicial District Judge sitting in Beltrami County, last week, was ordered to begin serving his sentence on January 12th, unless stayed by the Supreme Court. A six-day sentence usually results in four days actually served. City Attorney Al Felix stated at the hearing that costs to Beltrami County in conjunction with this matter exceed $8,000. ============================================================= From Vol 1 No. 17 - 03/22/96 ----------------------------- FORMER PAUL BUNYAN TELEPHONE MANAGER ISSUES CAVEAT Drawing on his experience and what he saw when he was general manager, Thomas Runningen issued a caveat, by way of letter, to current directors and others associated with Paul Bunyan Rural Telephone Co-op to take a look at what's being spent, particularly by key employees. In interviews, Runningen spoke of a time when he said that it was routine for directors to take irregular reimbursements, and for key employees to have the company pay for unauthorized relatives at out-of-town business functions. He raises matters that occurred before 1993, but expressed concern as to whether policies have been tightened since. In his letter, Runningen asks, "In what account are the mileage payments Mr. Moe [Ole Moe, Chairman of the Board] received for driving to the Deer River Board meetings?" In interview, Runningen explained that he knows Moe didn't drive to certain meetings for which he collected reimbursement, because Moe rode with Runningen in a company car to those meetings. Moe refused to comment on this. Mary Knobloch, Minneapolis attorney for Paul Bunyan Cooperative, explained that there were per diems, as well as mileage, authorized for board members to attend meetings, and Moe would be entitled to the per diem whether or not he drove. But in subsequent interview, Runningen was adamant that that the payments Moe collected were not just per diem, but for mileage. Paul Bunyan's policy on out-of-town meetings is more liberal than many firms in that, per current manager, Paul Freude and attorney Knobloch, it allows the manager and board members to take their spouses, with their expenses paid, on business trips. But Runningen questions the propriety of his payment of meals for Freude's mother-in-law on a 1989 trip to New Orleans. Freude stated that it would have been all right if Runningen, as general manager, had refused to pay the bill; Runningen said, however, that liberal "unwritten rules" on expensing were such at that time that it might have created a stir had it not been paid. Paul Freude became general manager of the cooperative when Runningen was removed from the firm, in 1992, due to having taken large unauthorized salary advances. Suit dismissed. Runningen left the cooperative under adverse circumstances. Although some of the advances which supported Runningen's, then, gambling habit, had actually been done with the co-op's approval, as acknowledged by an agreement signed by the co-op in November 1992, the co-op was interested in getting their money back as soon as possible, so they entered into the said agreement which provided that Runningen would be "immediately terminated as an employee to permit him to have access to his retirement account funds [so that he could use those funds to pay back the co-op] but as soon as possible thereafter, Employee shall be rehired by Employer." The agreement then provides that Runningen would complete a treatment program for the gambling addiction, repay Paul Bunyan, and if certain other terms were met, "Employer [Paul Bunyan Telephone] will reinstate Employee [Runningen] ...." But when Runningen met the terms and depleted his retirement account to make prompt repayment, the co-op refused to rehire him. As it turned out, the agreement contains what some might characterize as "double-talk", in that, while it devoted most of it's seven page bulk to the terms under which Runningen could be reinstated, and seemed to make a conditional assurance of same, paragraph 10. of the agreement defined Runningen as an "at-will" employee, who could be dismissed without notice and without cause. After completing his terms of the agreement, when Paul Bunyan refused to rehire Runningen, he sued in District Court. On January 11, 1995, Judge James Preece granted Paul Bunyan's motion for summary judgement, preventing the issues of the case from ever being placed before a jury; effectively, the suit was "thrown out of court". This judgement was later affirmed by the Minnesota Appellate court. Summary judgement may, by rule, issue only where there is no genuine issue of material fact; but other cases where summary judgement has been issued for certain defendants by the same court, and where there has seemed to be a genuine issue of material fact present, are not unknown. In his letter, Mr. Runningen admits his error, but more importantly, he has raised several questions to which members, subscribers and others affilliated with Paul Bunyan Rural Telephone Co-op may want answers. In interviews with Runningen, it is apparent that at one time, anyway, the policies of the cooperative may have been more liberal than many would have thought usual, and Runningen has personal knowledge because he paid some of those questionable expenses. The present question is whether any of those policies are ongoing. In his letter, to the Board, Runningen cites a statement of another, made in 1993, that "We, the subscribers of Paul Bunyan Telephone have the fox guarding the chicken coop", and he ends the letter by saying that he [Runningen] has "asked to meet with you [the Board] and honestly share what transpired when I was employed at Paul Bunyan Rural Telephone and what has resulted since then." In addition to telephone service, Paul Bunyan Rural Telephone Cooperative also derives revenue from Direct TV, Pinnacle Publishing, and certain other entities and sources. Fruede said that expenses, other than IRS-approved normal business expenses (spouses on trips, etc.) can be paid out of those accounts from other than telephone subscriber revenue. ----------------------------------- Editor's Notes: Cooperative: A unique form of business organization in which the customers, in the aggregate, own the company. Unlike a sole proprietorship or corporation, where the business can fleece the public, in a co-op, outside ownership is eliminated and the subscribers/shareholders have the prerogative of doing it to each other. -- Ed. With some of the goings on up here, both in government and private business, lately, it seems, we've had to carry so much garbage, we ought to be paid by Beltrami County Solid Waste. -Ed. ================================================================== From Vol. 1 No. 7 11/10/95 ----------------------------- Guest Column SNOW NOT JUST OUTSIDE Probe suggests history of cocaine involvement, homocide cover-ups, by key officials by John Remington Graham There is an ancient maxim of fundamental law, "Salus populi suprema lex," cited by the Baron de Montesquieu in justification of that peaceful and orderly upheaval in England in 1688-89, known as the Glorious Revolution, and thus rendered by James Otis who was one of the great statesmen of the American Revolution: THE SAFETY OF THE PEOPLE IS THE LAW OF GOD. What I am about to relate is a matter of public record, and concerns facts painstakingly gathered from trustworthy persons. What I am about to say came to my knowledge while I served as County Attorney in Brainerd, following my election in 1990, after I had been called home out of foreign exile by my fellow citizens, placed on the ballot by their petition, and asked by them to clean up the county from rampant public corruption. During my tenure in office, I was constantly set up and smeared by the press, and was the target of endless intrigues and plots in the courthouse. Recent events compel me to make known sordid facts of murder, cocaine, and cover-ups, long held by me in silence out of official duty, so the people will know and be able to act lawfully and reasonably for their own protection, since it is now clear that their government, due to moral incapacity, will not protect the public safety out of deference to a privileged class. In summer of 1991, the top assistant county attorney in my office, with my authorization, began a series of encounters with one William "Blue" Gast, who had been an undercover agent or informer for several law enforcement agencies. Gast advised us of what he alleged to be a drug running operation for the distribution of cocaine to better-off citizens of Crow Wing and Beltrami County, ultimately deriving from sources in the Twin Cities and Chicago. He claimed to have been involved, mainly as an occasional user, but also as having some inside connections. We made clear to Gast that our office had no funds or means to pay him for the information he provided us, but he was still anxious to tell his story. Essentially, he advised us that cocaine was brought to an identified business outlet in the Brainerd/Baxter area and another identified business outlet in the Bemidji area; that there was a distribution center at Breezy Point in Crow Wing county; that the organization included persons who are or were public officials in northern Minnesota; and that the organization included an identified hired killer who was adept at committing murder and arranging the scene so as to appear as suicide, or was capable of contracting for such things. Gast claimed to have inside connections with this operation, and said he came to my office because he felt in danger and believed we could help him. Gast provided us with the names of persons who, he said, were involved financially, including the spouse of a certain key public officer in the courthouse at the time of Gast's subsequent death, and a high ranking peace officer in the Law Enforcement Center, Brainerd, who has held important investigative and executive positions. Gast also identified two deaths, supposedly suicides, one in late 1981, another in late 1984, which, he said, were actually murders. I have carefully examined the criminal investigation files in both cases. In the 1981 case, if the theory of suicide were correct, the pistol should have been found above the right shoulder of the deceased, having fallen face forward upon death from a head wound; but was found neatly tucked under the left armpit of the victim, as if deliberately placed after the fact. In the 1984 case, the victim was supposed to have died from carbon monoxide poisoning, yet an impartial review of the facts shows that the setting was much too elaborate for a desperation suicide, as is the theory of the case. It is a fact of public record, well remembered in the area usually served by this newspaper, that Tom Keyes, the county attorney in Bemidji, fell over dead in late 1989 from cocaine toxicity, which is obviously consistent with what Gast told us. It is not far-fetched to say that those enforcing the law in northern Minnesota have been involved with cocaine. After finding reasonable corroboration for Gast's story, my office made confidential contact with Sheriff Dick Ross, in Brainerd, in early 1992. We revealed to Ross the essential particulars we had learned, and asked him for help. Ross assured us, in keeping with Gast's request, that he would meet in person with Gast. We asked Ross not to get others in his department involved. Since we had a suspect in the LEC, we did not want any talk. Ross understood and he agreed. No sooner had we gotten Ross's assurances than Dan Gottsch, Ross's chief deputy, got involved. Gast refused to cooperate with Gottsch, who, interestingly, had been chief of police at Breezy Point. Shortly thereafter, during the second month of 1992, the assistant in my office working on the problem met with Gast and a family member in Pillager. Gast then agreed to provide us with specific assistance in ensnaring the "dirty cop" in the Law Enforcement Center in Brainerd. Two days later, Gast was found dead in his truck, shot clean through the head with entry point at the right temple, the exit point about 15-20 degrees above the left ear. The bullet is supposed to have sailed out the opened window of the truck on the driver's side, and was never recovered. A low calibre weapon was found in Gast's hands at the death scene. Under the circumstances, my assistant suspected murder. Six weeks passed by, and no investigative report was sent over from the sheriff's department. At length, I received a belligerent and irrational letter from Gottsch, the chief deputy. Gast, he said, was an unreliable informant. He went on to say that the death was a suicide, that we should not question his experience or expertise, that my assistant was an incompetent liar, that we should hand the case over to other prosecutors, and that the case was closed. The problem was that he had still not sent us his investigation report! I then demanded the report, which was grudgingly handed over three days later with a cover letter from Ross, the sheriff, asserting that there was nothing suspicious about the death. Over the two months following receipt of Gottsch's report, I repeatedly met and corresponded with Ross, explaining that there were suspicious particulars, identifying the questions in my mind, reminding him that a certain high-ranking peace officer had been identified by Gast as involved with cocaine, when suddenly he showed up dead. I urged Ross to join me in a request to the state Bureau of Criminal Apprehension (BCA) for investigative help. As the file shows, Ross adamantly defied my request, and refused to ask for outside help from BCA. Not only did he refuse, but he advised me that he had shared my correspondence with others in the law enforcement center, and conveyed evidence to a peace officer that Gast had identified as a suspect. I called the superintendent of the BCA and asked for help, but he insisted that he would not send help, because Ross objected to their intervention. This abnormal behavior of the superintendent of the BCA made absolutely no sense. I did not think it prudent to call a grand jury without development of further evidence. As my term expired last year, I declined prosecution for technical sufficiency of evidence, expressed grave personal doubts of suicide, explained the situation to my successor, and retired from public life. I have done all I could to get some official action, but nobody in public office was willing to provide timely assistance which might have led to productive results. However, since leaving public office, loyal citizens in or near Brainerd, a sergeant of provincial police in Ontario, and a coroner in a neighboring county of Minnesota have helped me put more pieces of the puzzle together. It is very unlikely, in the view of several firearms experts, that the weapon found in Gast's hands at the death scene, said by Gottsch's report to be an instrument of suicide, was the weapon causing the head wound in the autopsy report, which, by the way, appears to be good medical work. A more powerful firearm appears to have been necessary to inflict the head wound by which Gast died. This means, of course, that the death scene was probably tampered with at the time of Gast's death, or shortly thereafter, and that the death was probably a murder. This probability raises serious questions about Gottsch's report, and Ross's refusal to join me in calling for BCA help. Gast's family members and friends have supplied facts which unmistakably show that, two weeks before he died, Gast said that he stumbled onto a "nest" at Breezy Point, that he learned something that he should not know, and that he feared somewhat for his life as a result; yet that, on the day of his unexpected death, Gast was in a "happy-go-lucky" mood, and was headed for a prearranged meeting with friends at "beer-thirty," which was his way of referring to happy hour, at a certain bar out in the county toward which he was headed at the time he died. In 1990, while he was on the campaign trail in running for sheriff, Ross was heard by a citizen of good character, in close conversation, to relate the existence of a drug-running operation having about the same characteristics as were later described by Gast to my assistant, and including a suspect in the Law Enforcement Center (who was the same suspect identified by Gast shortly before his death); and on that basis Ross promised to "clean up the county". The story goes deeper. In the first month of 1993, Ross made a dramatic front-page announcement in the Brainerd press about myself: "Graham must go!" Ross said that I was not effectively prosecuting serious crime. It is a fact that that the court administrator in Brainerd published statistics at the end of 1992, showing that my office prosecuted 79% more felony cases in 1992 than my predecessor did during his last year in office. Nor can anybody deny that, in the spring of 1994, the state department of corrections published a jail study which showed that, during 1993, there were more offenders incarcerated in my county than ever before in the history of the county. Ross attended a secret meeting in St. Paul in the first month of 1993, at which the subject matter was what an irresponsible prosecutor I was supposed to be. There, behind my back, Ross cited statistics compiled, so he said, by Gottsch, his chief deputy, showing that of 45 felony sex crime cases arising since I had taken office as county attorney, only 5 had been taken to court. I have produced the files for 1992 and the first week of 1993, and these alone were 31 cases, the highest number of felony sex crime cases ever prosecuted in any one year in the history of my county. From when I had taken office in early 1991, until when Ross had spoken behind my back in early 1993, about 60 felony sex crime cases had been commenced, which was the highest number of such cases ever prosecuted in any two year period in the history of my county. I had my felony sex crime files for 1992 examined by committee of senior peace officers, including a retired captain investigator with twenty years of service in a metropolitan county sheriff's department, and a retired sergeant investigator with twenty-four years of service in a municipal police department. Their conclusions, published in the second month of 1993, were that, as compared with general practice in Minnesota, my office had prosecuted significantly more felony sex crime cases than were usually prosecuted from those submitted; that these cases were all properly and responsibly prosecuted; and that my critics (i.e. Ross, Gottsch and others) were either so "misinformed that it's pathetic, or this is a political vendetta." It was a political vendetta and the motive was my insistence that Gast's death be properly investigated and solved, which Ross and Gottsch had strenuously tried to prevent. The story does not here end. I shall provide only a few little tidbits, for the whole story is too long, although every chapter is a gem. At the secret meeting at which Ross spoke about me behind my back, citing Gottsch's contrived statistics, it was decided to mount a petition campaign, demanding my removal from public office. The petition declared in glittering generalities that I did not prosecute felony sex crimes as recommended, and constantly abused my discretion, but the petition did not cite one specific case. The press cynically blasted me day after day with glittering generalities, inducing frightened citizens to sign the petition which was actively circulated by deputies under the direction of Ross and Gottsch. The petition demanding my removal from office, without specifying a single fact so that I might defend myself, was drafted by Mike Milligan, former county attorney in Walker, who suddenly resigned from his public office in the summer of 1986. There is a public document on file in Walker, or it should be on file at least -- if it has been "lost", I have a photocopy -- and it shows that, during hunting season in late 1985, Milligan paid a visit to the home of a lady whom he desired as a paramour. The visit, according to the lady, ended up in a forcible struggle on her bed, resulting in her involuntary submission to an unwanted sexual invasion of her body. There was previous correspondence between the lady and Milligan, which, according to the document filed in Walker, indicates that Milligan ardently desired a sexual encounter, although, as she related, she did not, in part because he was married. Under the law of Minnesota and every other civilized jurisdiction, carnal knowledge of a woman forcibly and against her will, regardless of variations in statutory language, is known as rape, which is the common law term, although we now have new statutory language saying the same thing. And this kind of behavior is a serious felony in Minnesota, calling for 48 months in prison if bodily harm was not caused, and 86 months if madame was physically hurt. About a month after Milligan was out of public office, drawing double his old salary in a fancy law firm, a deputy attorney general by the name of Tom Fabel reviewed the facts of the case and filed a memorandum about Milligan's escapade the previous autumn. Fabel stated he believed the facts were as related by madame, in which respect he agreed with two BCA agents and a deputy sheriff, -- that there was a physical struggle, resulting in an involuntary act of intercourse, and that the evidence fairly so showed. However, Fabel, observed, as even the lady conceded, she was not physically hurt. Indeed, Fabel remarked, Milligan had told her that it would not hurt, as if this fact were relevant, which it was not. Fabel noted that the lady had been an incest victim in youth, and that Milligan, a county attorney, should have known. Fabel found that Milligan's conduct was "highly inappropriate, exploitive, and, if I may say so, immoral." Obviously, then we should expect that Fabel had called a grand jury to examine the conduct of Milligan as a public officer, the same as every public officer under like circumstances, in order to determine whether he ought to be indicted or no billed. But Fabel found that there was no public offense as a matter of law, declined prosecution, and did not call a grand jury. Since there was carnal knowledge forcibly against the lady's will, but no physical harm, Fabel said that what Milligan did was immoral, even outrageous, but not a crime. Obviously, Fabel's act was an unprofessional abuse of prosecutorial discretion, broad as such discretion is and must be, and this abuse of discretion was permitted by Skip Humphrey, the Attorney General, because Milligan was, and still is, part of a privileged class. Major newspapers know about this story, but breathe not a word of it, because Milligan is part of the privileged class. Nothing can be done now. The statute of limitations was purposely allowed to run some years ago. The indignity against justice was not necessarily that Milligan was not finally forced to stand trial, but that he received special treatment, and that his conduct was not examined by a grand jury. It is interesting that it was none other than Fabel himself who argued, before the Supreme Court of this State, in support of the petition drafted by Milligan, accusing me, without specification, of abuse of prosecutorial discretion in felony sex crime cases. The Supreme Court threw out the petition against me, but the political harm was done, and so I have once again been elevated to the high status of a private citizen. I could mention others, but there is one other side scenario that needs to be mentioned, in connection with the death of William "Blue" Gast in early 1992. The whole ninth judicial district knows that Alexa Oxley, my office manager, accused me of sexual harrassment, then walked out of my office right in the middle of the petition campaign, under the direction of Ross and Gottsch, to remove me from public office. Early in the second month of 1993, Oxley was lobbied by Gottsch, who wanted her to terminate my inquiry into Gast's death. Oxley came to me, ridiculing my assistant who had dealt with Gast shortly before his death, for "playing Dick Tracy". Since it was contrary to my office rules for her to be having any such conversation, I admonished her in writing. She then threatened to accuse me of sexual harassment if I did not withdraw my admonition. I refused. She accused me of sexual harassment. It was a big story in the very newspapers which tremble to reveal the facts in Milligan's case. In the late winter of 1994, I took depositions of eye-and-ear witnesses, who have now conclusively established that Oakley's allegations were knowingly false, and concocted with the assistance of the county personnel coordinator, and, it so happens, the key public officer in county government whose spouse was named by Gast, before his death, as being financially involved with cocaine. These same depositions also prove that, for many months before she made this accusation, Oxley leaked confidential office documents to the personnel coordinator, who in turn handed them, or copies thereof, over to this key public officer in the courthouse. It so happens that a certain document, consisting of notes of my assistant of his impressions in speaking with Gast, and implicating the spouse of the key public officer in question, was specially entrusted for certain purposes to Oxley's care. When Oxley accused me of sexual harassment, and walked out of my office, this very sensitive paper ceased to be found in it's assigned place. So I know in this way that the key public officer and the spouse suspect had learned what we had been told by Gast shortly before his death. What Oxley did not know is that I retained a photocopy of this sensitive document in my files. The bottom line is that Oxley tried to help Gottsch sabotage an investigation into Gast's death. Gast, I fear, was murdered to induce his silence, because he knew who touted and sold cocaine. At least his family may take comfort that he did not commit suicide. He was a brave man, and tried to do right. My family and I have left Minnesota, and once again have taken refuge in Quebec. It should be obvious to anybody with any worldly wisdom that we should not remain in Minnesota while such out-of-control lawlessness prevails in state government. The responsibility for honest government ultimately rests upon the people as a whole. Respectfully Yours, John Remington Graham John Remington Graham is a former County Attorney for Crow Wing County and author of Principles of Confederacy. Graham graduated University of Minnesota Law School, and has been admitted to the Minnesota and United States Supreme Courts. He has served as a federal public defender and was co-founder, instructor and Associate Professor at Hamline University School of Law. ============================================================= From Vol. 1 No. 7 11/10/95 ----------------------------- Guest Column ------------ GRAHAM CHALLENGES REINVESTIGATION OF GAST DEATH by John Remington Graham Contributing Legal Writer On November 10th, 1995, Northern Herald ran a story on the death of William "Blue" Gast, which occurred on February 24th, 1992, in Crow Wing County. The story is of public interest because Gast advised public authorities of a large cocaine distribution network in Northern Minnesota, implicating prominent citizens, key public officers, powerful businessmen, and a hired assassin said to be skilled at arranging murder to appear as suicide; and identifying points of operation in two counties. Gast's story, if true, would explain the death of Tom Keyes, then Beltrami County Attorney, from cocaine toxicity, on November 30th, 1989. Two days after he met with a certain public prosecutor in Pillager, supplied more information, and agreed to work undercover, Gast showed up dead in his truck not far from the Brainerd International Raceway. He was found shot clean through the head, with a Remington 66 long rifle in his hands. Crow Wing County Sheriff Dick Ross and Chief Deputy Dan Gottsch have always said the death was a suicide. They blocked timely outside investigation requested by several public officers. They vilified all others who suspected murder. On December 3rd, 1995, in the wake of public interest arising from the story in Northern Herald, Ross announced in The Brainerd Daily Dispatch that he had asked the Minnesota Bureau of Criminal Apprehension to investigate the case, and that he was sure Gast's death would be confirmed as a suicide. As Ross foretold with uncanny accuracy, BCA returned a report, sure enough confirming suicide by self-inflicted gunshot wound to the head. In triumph, the Brainerd Daily Dispatch wrote an "I told you so" story, punctuated with editorial winking, as they informed the public with a sense of relief that the matter is closed. They refused to even breathe a word about the other side of the story as covered, for example, in the Northern Herald. They were offered public documents showing the BCA report as a veritable sham, but were unwilling even to read those documents. Such journalism does not win the Pulitzer prize. There are large business and political interests which do not want the public to know the truth about Gast's death. These are the rudimentary facts which can be discerned or inferred from the sheriff's transmission log on the day of Gast's death, the findings of the deputy coroner in the autopsy report, the death certificate, an autopsy photograph showing a critical measurement taken of Gast's body, a purported autopsy drawing by a senior investigator in the sheriff's department, and the sheriff's investigation summary: -- The first responding sheriff's deputy arrived at the death scene at 6:47 in the evening. At 6:50, three minutes later, he radioed into the Law Enforcement Center that the deceased had shot himself. It is absolutely impossible for a peace officer to make a reasonable finding of suicide in only three minutes. -- The head wound, as observed by the deputy coroner, was horizontal, with the bullet entering the right temple, and exiting from the left temple, straight across; -- Therefore, the firearm would have had to be held perpendicular to Gast's right temple. -- The distance from trigger to muzzle of the .22 long rifle was about 25 inches. -- The distance from the entry point of the head wound to the base of Gast's neck on the right side was about 8 inches. -- In order for Gast to have held the firearm perpendicular to his right temple, the distance required from the base of his neck on the right side to the base of his right thumb would be about 26.25 inches, as can be determined with a hand calculator, applying an elementary formula taught in high school mathematics. -- Gast had only 23 inches from the base of his neck to the base of his right thumb. -- Therefore, it was physically and mathematically impossible for Gast to have held the firearm perpendicular to his right temple, pulled the trigger, and thereby shot himself so as to inflict the head wound observed by the deputy coroner. -- This impossibility can be further demonstrated by appropriate empirical experiments done by a person of Gast's dimensions, (5' 6" in height, with 33 inches from his right temple to the first joint of his right index finger) using a wooden yardstick: If he takes a yardstick, places his right thumb across the 25 inch mark, then presses the stick at the zero point firmly against his right temple, he cannot, at any position, hold the stick perpendicular to his right temple. A person of larger dimensions can carry out this feat, but not a person of Gast's dimensions. -- Therefore, Gast did not pull the trigger, which means somebody else pulled the trigger. In other words, Gast was murdered. -- The only way Gast could have held the firearm to his right temple and pulled the trigger would have been by tilting his head at least 20 degrees to the left, which would have produced an upward angle in the bullet path of at least 20 degrees. -- Accordingly, the sheriff's investigation report introduced a fictitious 20-degree upward angle in Gast's head wound, portraying a point of exit in the hard parietal or frontal bone well above the left temple, thus falsifying the observations of the deputy coroner, and this creative writing was done, as the report expressly stipulates, in order to explain how Gast might have committed suicide. -- The death certificate indicating that Gast died from suicide was signed on the basis of the sheriff's investigation summary, which misrepresents the findings of the deputy coroner in order to create an appearance of suicide. The findings of the deputy coroner were not reduced to writing and signed until after the death certificate was filed. -- A standard text on gunshot wounds says, "In gunshot wounds of the head caused by .22 caliber lead bullets, the bullet will exit in only about 10% of the cases. These wounds are almost invariably contact and occur in the temple, with the exit in the opposite temple. -- Given these basic facts about head wounds caused by .22 caliber firearms, it is very unlikely that the fictitious head wound [angled upward] mentioned in the sheriff's investigation summary could have been caused by the .22 long rifle found at the death scene, even though it is quite possible that the said firearm might have caused the head wound [horizontal] observed by the deputy coroner. -- These basic facts about head wounds caused by .22 caliber firearms further illustrate that the sheriff's investigation report is radically and materially different from the findings of the deputy coroner. The theory that Gast shot himself presupposes a head wound which was fabricated, and was never observed. -- Why are public officers of The State of Minnesota so anxious to pretend that Blue Gast died of a self-inflicted gunshot wound to the head, when he obviously could not and did not pull the trigger? Editor's Note: John Remington Graham is a former County Attorney for Crow Wing County (Brainerd) and author of "Principles of Confederacy", a comprehensive treatise on the derivation and intent of the United States Constitution. His prosecutorial record is said to have resulted in more convictions and to have sent more offenders to prison than any other prosecutor in the history of Crow Wing County. Graham graduated University of Minnesota Law School, and has been admitted to the Minnesota and United States Supreme Courts. He has served as a federal public defender and was co-founder, instructor and Associate Professor at Hamline University School of Law. Graham with his wife, a member of the bar of the province of Quebec, is presently on writing sabbatical at their retreat there. His guest column, "Snow Not Just Outside", in the Northern Herald of November 10th, 1995, detailed the trail of cocaine traffic through Northern Minnesota, and the untimely death of informant William "Blue" Gast. =================================================================== From Vol. 3 No. 11 05/13/98 Letters to the Editor -- This Is Bemidji -- VISITOR GETS A TASTE OF BEMIDJI HOSPITALITY On a beautiful spring day last Sunday, three friends and myself were traveling back from Park Rapids MN. We had gone there for the appreciation meal hosted by a student group at the University of North Dakota's International Center. We were welcomed by the Methodist and Lutheran churches there. We were shown the best of what North Dakota/Minnesota has to offer. We were treated with kindness and graciousness. On our way back we stopped in Bemidji MN and were shown something quite different. Sunday at about 3:30 in the afternoon we stopped at [Morell's] Chippewa Trading Post in Bemidji MN [Note: This is NOT affiliated with the excellent Chippewa Trading Post at Red Lake -- Ed.] . If you've ever been there you might remember it. It is across from the Paul Bunyan / Babe the Blue Ox statues. We stopped to buy some beads for an art project that I have been working on for my daughter. Upon entering the store my friend Richard began looking at some shoes with his wife and I and my Cehiwa began looking at jewelry. Before we left I had been accused of stealing, and we had all been accused of being drunk and dirty by the owner. The disheartening thing is I don't know exactly how this happened. Among the four of us we included a social worker, a poet, a doctor and a mother who has been honored with three UND student leadership awards within the last two weeks. My friend Richard holds the traditions of his Tribe sacred, his commitment to his people demands humility and service to others as its most essential tenets. His wife has spent much of her adult life as a volunteer at The Highground, a memorial to veterans in Wisconsin. My Cehiwa has spent the better part of her life doing work in mediation and conflict resolution and has been in various campus leadership roles throughout her academic career. I have worked my way through Dartmouth College, Oklahoma City University and Stanford University. I hold a Ph.D. and am an educator. Strangely, for a time I was Executive Director of the Native American Preparatory School. We had a program in Bemidji and pumped hundreds of thousands of dollars into the local economy. As a group we fit no stereotype at all. We are diverse individuals from different states and different nations. However, we are all Native Americans. For the owner of ... [Morell's] Chippewa Trading post in Bemidji MN, everything else we were meant nothing. "You people just come in to dirty my bathroom." and "I support you people." the owner said for no reason I can figure out (he has never supported any of us and I wonder if the "you people" he kept referring to meant the Natchez of Oklahoma, the Tribes of North Dakota or just a group of Sunday travelers from Grand Forks). Then the owner became truly abusive. "I hate dealing with you drunks" (None of us drink, even socially). When I went to my car to get some money to buy something he told my friend Richard. "Your buddy just left and I don't know how many of my beads he stole." Richard told him he was mistaken. The owner once again accused us of being drunk. I came back into the store and explained that I did not have to steal. He said I must be different from the Indians who usually came into his store and reiterated that he supported them anyway. He then said that "we" created a disturbance and told his wife to call the police. We left the store and he followed us out the door screaming at us on the sidewalk. It could have been worse, my children could have been there, my grandmother could have been there, the man could have become physically violent. I don't know what this man's day or week or life have been like. Obviously they've been pretty hard. I don't think that excuses him. For me, I don't know what to do. A few years back I received the most significant honor of my life. I was chosen Meko Tvstanakke, Protector of the People by my Nation. It is my honor and my obligation to use all means at my disposal to protect our people. Unfortunately, I see few ways to protect them from this man. There are no laws against racial and spiritual abuse. We pray and we forgive and we heal. This is the way we were taught and the way we live, but that doesn't change the fact that the efforts of one man have helped make Bemidji, MN a smaller, darker place; a place where I would caution people about bringing your elders or children. William Harjo Bray Grand Forks, ND arbeka@aol.com Mr. Bray: It is understandable that you may be a little bewildered by what happened here. Let us assure you that this faux pas was most probably just a simple case of mistaken identity. Most likely, the owner of Morell's mistook your distinguished and well-credentialed group for just average Bemidjians, white or otherwise, or visitors to our area, who are, by much of the Bemidji business community, to be treated with rudeness and contempt (although if the businessman thinks they're going to buy something, he'll save the overt rudeness until after they've left and are out of earshot). And he figured that, like the average Bemidjian or visitor, you didn't have a voice. As it happened, he was wrong on both counts. His tough luck. Those who fail to respect the rights and dignity of others, no matter who they or the others may be, deserve none of it for themselves. Our best advice to travelers coming to our exquisite region this summer is to gas up at Che-Wa-Ka-E-Gon in Cass Lake, and not stop 'til they get to Solway, except maybe for a snack at one of Bemidji's few well-managed businesses like the Paul Bunyan Sub Shop, Hardee's, KFC or Country Kitchen. There are many marvelous places to stay here in the Northland. Whether scenic and picturesque Pike Bay, Cass Lake, Lake George, Hill City, Akeley, Grand Rapids, Park Rapids by Itasca, Lake Lomond at Bagley or Belle Taine at Nevis, you can save yourself a lot of headaches and avoid having your dollars fuel a town that breeds crime, uncivilized conduct and internal corruption. Why deal with proprietors who think they don't really need your business, and, except for the money their visiting customers might leave behind, couldn't care less for them, not even to the point of common civility and the degree of respect owing to any other human being. -- Ed. Morell's was given an opportunity to respond to this letter and declined to do so. =============================================================== From Vol. 1 No. 23 06/14/96 Auto Service Forum DEER RIVER ALLIANCE OWNER DISSATISFIED WITH CLUSIAU'S Don Taylor of Deer River writes: I have had some bizarre experiences in my life but the one I am having with Clusiau's Sales and Service is about the most bizarre one I have ever had. A year ago this past April, the Chrysler Corporation paid to have my 1983 Renault Alliance towed into Clusiau's to have the heater core replaced on a Chrysler recall notice. At this time I was experiencing starting problems. I told Clusiau's to fix what was wrong with the starting problem. First, I was told that the fuel pump had to be replaced at a cost of $300. Then I was told that the computer [ECU] had to be replaced at a cost of $400. I paid a bill of $753. The car did not start much better and after a week steadily got worse. I brought the car into Deer River Service for an oil change. They could not get the car started and towed it back to Clusiau's. This time the starter drive was replaced. The starter drive broke down after two days. After waiting about two months or more, the car was supposedly fixed [by Clusiau's] again. This time the car lasted about a week before the starter drive broke down. We are now getting into December.... The car spent the winter at Deer River Service. In March of 1996, Deer River Service replaced the starter drive and found that the alignment bushings were missing. Failure on the part of Clusiau's to install the alignment bushings led to the rapid failure of the [starter drive] ... and also also ruined the flywheel ring gear. About a week ago I found a replacement ring gear.... I hope this will work and finally get the car into drivable condition. Our investigation: In our opinion, This report shows the signs of Type A misservice. Type B is a misdiagnosis where the problem is incidentally fixed during a more major recommended repair. An example is the recommendation of a horn replacement. In the course of the costly replacement, the mechanic has to reattach the disconnected wire which caused the problem to begin with. The new horn works fine, but it didn't have to be replaced. Type A is simple misdiagnosis which doesn't fix the problem. It is common in the "replace parts 'til it runs" method of diagnosing and curing car trouble. Unfortunately, the owner gets nickeled and dimed a lot with this method. In Mr. Taylor's case, he had, prior to any of the above, and just before the heater core replacement, had a used gas tank and fuel pump installed in the car. The starting problem, at that time, was not related to the starter. The independent mechanic who installed the gas tank states that at that initial point, the car would run only when gas was poured into the carburetor. He says he "jumped the pump [directly] to the battery and it worked fine." But it would not work when reinstalled on the car. Larry Curtis, at Clusiau's service department, responded that they bench tested the fuel pump before recommending replacement. But the replacement didn't correct, or fully correct the problem. It was then that the replacement of the computer, which, per Curtis, regulates the fuel pump, was recommended. Curtis says they narrowed it down to the computer [ECU] because the ECU didn't indicate anything else was faulty, and since the computer can't diagnose itself, it was surmised that the computer must be faulty. But shortly thereafter, the car wouldn't start after the oil change at Deer River Service [there is no indication that anything was done wrong at the oil change]. That's when Clusiau's replaced the starter drive. One problem: Per Don Root, at Deer River Service, the starting problem had nothing to do with the starter! The car was "turning over" fine, and there was no problem with the starter or the drive engaging the flywheel. It just wouldn't run. Root wrote in his report, dated June 6, 1995, "The only way it would run is by pouring fuel in the carb." This is the same symptom that Taylor had paid Clusiau's $753. to fix! It is questionable whether there was any cause for replacement of the starter drive. But it was replaced at Taylor's cost. When it failed, Clusiau's replaced the entire starter without additional charge, but the new starter didn't last either. Curtis, at Clusiau's, said the alignment pins were originally missing, and he ordered them for the first starter drive replacement. He denies that that Clusiau's installed the starter, (second replacement) without them. But Root, at Deer River Service, is certain that when he subsequently got the car, after the second replacement failed, there were no alignment pins in it, and Root said the starter was "disintegrated". "There was nothing left to fix", said Root, adding, "it was because the alignment pins weren't put in." He stated that the pins might have been installed with the first starter drive, but when the whole starter was removed the second time, the pins come out with it, and the new starter may have been installed without them. Clusiau's has refused to make any adjustment on this matter. Curtis claims to have told Taylor at the outset that his ring gear was worn, but Taylor claims that Clusiau's had not informed him of any such diagnosis, "A Chrysler official from Highland, Michigan called one night several months ago and told me that Clusiau's had told me they would not work on the car anymore unless I approved replacing the ring gear. This was the first I knew anything about ring gear damage." states Taylor in his complaint. We note that many older cars have worn ring gears, and replacement is often recommended by a mechanic. With a properly aligned starter drive, however, these worn gears may work for quite a long time. The extra wear from an improper starter drive, however, will destroy an already worn ring gear in short order. Auto owners who use rebuilt or "after-market" parts should be aware that, even on cars that don't require alignment bushings, the drives on these non-factory starters are often just a little out of spec; if you hear any grinding noise when you start the car, especially shortly after a starter change, you should immediately take that starter back and demand another - it can take out your ring gear leading to very expensive repair. Root estimates that Taylor's cost, to replace the starter again, and the ring gear, will be about $400-500, plus the cost of a used ring gear. And, we observe, this may not correct the original problem, which caused the car to sometimes not run unless fuel was poured into the carb. Taylor contacted Chrysler but received no assistance from them in resolving the dispute with Clusiau's (this is not surprising, as auto manufacturers do not usually intervene in disputes between consumers and their dealers). At the very least, there appears to have been a miscommunication between Clusiau's and Mr. Taylor regarding the extent of repairs needed to get the car running. Giving Clusiau's every benefit of doubt, and assuming that all the repairs they recommended were needed, and that their starter drive and installation wasn't the cause of the ring gear damage, there is some question as to whether a car owner would reasonably have begun repairs had he known it would, in the end, take about $1,200 to get the '83 Alliance running. And a customer expects a good mechanic to be able to give him an accurate prognosis and cost estimate at the outset. The situation illustrates the need to deal with a firm with whom you can communicate without difficulty; with any auto dealer, this varies from person to person, and some people will find they have a better rapport with one dealer or mechanic than another. In Mr. Taylor's case, for example, he reports that he bought a 1991 Plymouth and a 1995 Dodge Caravan from Dave Walters in Bemidji and has been well satisfied with their service. --------------------------------------------------------- From Vol. 1 No. 24 06/28/96 Auto Service Forum CLUSIAU'S SUED FOR "GROSS MISREPRESENTATION" Allegedly "fixed" engine warning...By removing indicator bulb. GRAND RAPIDS --Clusiau's, Chrysler dealer in Grand Rapids, appeared in court Friday, June 21, to answer to a lawsuit charging that the dealership had sold a car, representing to the buyer that Clusiau's had fixed a problem causing the "check engine" light to come on, when in fact, the service department had simply removed the panel light so the engine would appear OK. The Plaintiff, Debra Whitedeer Eastman, of Deer River, however, recovered no damages in the action, as the Court ruled for Defendants (Clusiau's) notwithstanding that testimony and repair record evidence tended to show that Clusiau's removed the light to sell the car to Eastman and her husband. The case was filed and heard in Itasca County Conciliation (small claims) court, before Judge Forsythe. Eastman testified that when she and her husband originally looked at the 1984 Oldsmobile Cutlass, the salesman told them that it hadn't sold because the check engine light had been coming on, but that Clusiau's had fixed the problem - that it was in the light, not the engine. Eastman bought the car, on April 12, 1996 for $2,072. Then she and her husband attempted to drive the car from Deer River to Montana, where his job was located, and where they were in the process of moving. But the car broke down in Bismarck, North Dakota, on April 19th, after only 812 miles from purchase. Eastman reports that the engine was cutting out and "Gas was just pouring through it," she said. The mechanic in Bismarck diagnosed the problem as a clogged catalytic converter, and replaced same at a cost of $179.85 By April 26th, the car again broke down, in Montana. Eastman said it just "stopped dead". It was taken to Karl Tyler Chevrolet, a GM dealer in Missoula, Montana. Mr. Eastman had noticed that the check engine light had never come on before the breakdown and asked the mechanic to see if it was working. Tyler reports on the service record that they found the bulb to be missing from the check engine panel indicator. Tyler replaced the car's computer, fuel pump and the bulb, at a total cost of $457.69, which included $102.90 to open the dash and replace the bulb. The Montana breakdown inconvenienced Eastman in their househunting in Montana, and left them without a car while there. Mr. Eastman stayed on his job in Montana, while Mrs. Eastman returned to Deer River to complete the move. On the return trip, the car required two more servicings, once for emission system and a new plug wire ($167.67) and then a blown radiator hose ($19.60). The car continued to run rough, with the check engine light coming on intermittently. Clusiau's reimbursed Eastman, on June 3rd, for the $824.81 of expense, but Eastman just wanted to give the car back to Clusiau's and get her money back; the car seemed to still have an obvious, but unknown recurrent problem, which is indicated by the check engine light, and Eastman said that had the light not been removed, and come on when they originally looked at the car, they would not have bought it. They relied on the salesman's representation that the problem had been fixed. "I'm afraid to take this car anywhere - it's just going to break down again and I don't have the money to put into it." Said Judge Forsythe, "Obviously, we've got a problem here; the engine light comes on, we don't know what the problem is." On June 4th, Eastman was having the brakes relined by another local mechanic. He test drove the car with diagnostic equipment connected. The check engine light would come on intermittently and the car would then run rough. The mechanic reported that the service code of "mismatched equipment" was being reported by the car's computer when the light would come on. On June 5th, Eastman drove to Blackduck, where the car stalled at a stop sign and would not restart. A mechanic there advised her that the car was undrivable; she had it towed back to Deer River. When informed of the continuing problem, Clusiau's picked the car up, and then reported to Eastman that it was "running better than ever," per Eastman. But when she drove the car home, the check engine light again came on and the car began running rough. Eastman reports that the car is drivable, but just barely, and seems to be doing the same thing as before the catalytic converter went out. As the court found against Eastman, she'll have to keep the car, on which she is still making payments, and hope it makes it to Montana. At trial, Larry Curtiss, of Clusiau's, told the judge, "We have been willing to work with [Eastman] and will continue to do so." But afterwards, when Eastman went to Clusiau's to try to work out a settlement, and told Tom Clusiau that the car was still not running, he said "Too bad." per Eastman, and told her that she was not welcome there. Said Eastman at trial, "I think the missing bulb speaks for itself." Legally, where a person relies on a salesman's misrepresentations in a purchase, this is termed fraud in the inducement. A contract, made under fraud in the inducement, is generally voidable. In this case, however, the Court chose to decide otherwise. Although Eastman may appeal the decision, it's going to be tough, from Montana. The best caveat to consumers is to try to avoid buying trouble, when possible. This column is not to be taken as legal advice. -------------------------------------------------------------- From Vol. 2 No. 13 - 04/07/97 NEWMAN PREVAILS IN AUTO REPAIR NEGLIGENCE SUIT BEMIDJI -- Turtle river resident, Thomas Newman, got his day in court February 27th, and won the lawsuit he'd brought against an auto mechanic who, through negligence, practically destroyed Newman's vehicle. The landmark decision, in in conciliation court (case no. S3-97-46) rendered by (retired) Judge Preece, March 7th, a few days after the hearing, effectively established that, in this jurisdiction, an automobile mechanic can be held liable for damage to a customer's vehicle, even where that damage occurs after the vehicle leaves the repair shop, if it is caused by the negligence of the mechanic in making repairs. In early January, 1997, Newman took his 1985 Ford Ranger to Randy's Repair, Blackduck, for substantial engine periodic maintenance, including engine seals, water pump, oil filter and antifreeze. Newman stated that after leaving the shop, with repairs represented as having been completed, he had driven the truck less than 25 miles when it lost all of it's oil and coolant, destroying the engine. Preece's decision in the court action against Randy's Repair, based upon breach of warranty, awarded Newman $1,000 in damages for the engine, or in the alternative, Randy's Repair could repair or replace the engine, at its cost, within 60 days. Contacted regarding the judgement, the owner of Randy's Repair (who refused to give his last name) said, "We checked it [the truck]. You can see that nothing's run out from where we repaired." But Randy's offered no explanation for why the fluid problem developed immediately after the truck left the shop, and Randy had worked on the rear engine seal and the oil filter. When asked, then, "from where did the oil run out?" Randy said, "I have no idea." Asked if this decision will have an effect on the way Randy's does business in the future, Randy said, "Yeah, I'll never work for Tom Newman ever again." As to the effect on performance of other customers' work, he said, "If we do something wrong we'll fix the problem." It remains to be seen if the establishment of this judicial standard of, and remedy for, negligence by auto mechanics will have a general effect on quality of service among other area repair shops. Alan Merschman, of Kenny's Amoco and Goodyear,* Bemidji, when asked whether the awarding of damages against negligent mechanics would change the way he does business, replied, "Nope." *Goodyear dealers were a subject of Barbara Walters' televised report on automotive repair fraud, about 1995. -------------------------------------------------------- From Vol. 3 No. 8 - 03/11/98 HOUSTON FORD CUSTOMER BLOWN AWAY BY "PRICE SHOOTOUT" Bena Man Claims Attempted Overcharge, Misrepresentation of Warranty PINE RIVER --In about a 1/3 page ad in Bemidji's By Line newspaper of February 11th, under the heading of "20 USED VEHICLES UNDER $4950!" Houston Ford, of Pine River, listed a 1992 Dodge Dynasty at $4,485. The ad was worded such as to appear to indicate that the prices were good February 9th - 14th: Above the auto descriptions and prices it said "Houston Ford and Osterloh Co. Are having a price shootout! Feb. 9-14" Lloyd Dahl and his wife Emily went shopping for a car the day before (February 10) at Houston. They saw the Dynasty on the lot and were interested, so they took it for a test drive. Dahl said they heard a "slight noise" in the front end which was of concern. They asked the salesman, Donny Bowman, the price. At that point, said Dahl, the salesman became evasive and seemed to stall. "We were uncomfortable at the very moment we sat down at his desk," Dahl later said, adding that Bowman finally quoted a price of $7,895. Dahl asked about the noise and whether Houston had checked it out; Dahl reported that Bowman told him it was either the CV joint or ball joints; the service manager then tested the car and said it was ball joints. According to Dahl, when he told Bowman he didn't want a car with those defects, Bowman offered to sell him, for $795 additional, a 12 month/12,000 mile warranty that Bowman represented could be used "anywhere." (Actually, the warranty was valid at any "Certified" mechanic, of which there are many.) In the course of the transaction, Dahl had occasion to speak with Bill Krassas, Finance Manager at Houston Ford. Per Dahl, Krassas told him that the warranty would cover both the CV and the ball joints. Dahl bought the car and the warranty, putting $800 down, along with a trade-in van (an '86 Aerostar) for which Houston allowed $500. The next morning, Dahl's brother showed him the ad listing the car for $3,410 less than the price charged Dahl. "We were upset," said Dahl, who, with his wife and father, Butch, drove back to Pine River (about 60 miles). At Houston Ford, Dahl claims, Krassas told him "There must be some mistake ... in the advertisement." But after some arguing, Krassas agreed to honor the price, and, at the same time, offered him $200 more for his trade-in. The contract was rewritten and Dahl took the car back to his home in Bena. Later in February, Dahl took the car to an authorized warranty repair shop in Bemidji to have the noise fixed. But he was told by the mechanic there that the problem was ball joints, and they weren't covered under the warranty Dahl had been sold. "He [Krassas] gave us false information" as to what the warranty covered, said Dahl, adding that it turned out to be a "Class B" warranty which doesn't cover ball joints. Dahl made another trip to Pine River to confront Krassas with this information and ask Houston Ford to honor the warranty as it had been explained. Per Dahl, Krassas refused to repair the car in Houston's shop, and offered Dahl $500 total to leave the car and escape the contract. At this point Dahl had put $800 (the down payment) plus his trade-in into the deal. Krassas told him that his trade-in had been wholesaled and was not available for return. Dahl said that when he recounted the facts, that the warranty had been represented as valid to fix the noise problem, and that's why he bought it and the car, "Everybody got memory loss" and that Krassas claimed he had, at the time of sale, no knowledge that the noise was ball joints, notwithstanding that Houston's service manager had seen the car and had diagnosed the problem as ball joints. Dahl took the Dynasty back home and contacted an attorney. Follow-Up: Houston Responds. On March 4th, Northern Herald interviewed Rick Smith, service manager at Houston Ford, who refused any comment, and Bill Krassas. Krassas may have, by that time, been contacted by Dahl's attorney as he had a written statement prepared. The statement recited the facts of the sale on February 10th, and recounts Dahl's return the next day after he saw the ad. Krassas's statement then recites, "I check to see if this is the same car we were advertising, and found that it was the same car & we had a misprint in the paper of $3,445." [There is a $35 error in the statement's figures -- Ed.]. The statement continues, "I offered to unwind the deal or to honor the advertised price that we had. They also stated that the car had a noise in the front end. I had Mr. Dahl and Steve, our technician, ride together to locate the problem. When Mr. Dahl got back, he told me the problem was in the constant velocity joints and wanted to know if we would fix them. I said, no Houston Ford wouldn't fix them because the vehicle had been sold as is. However, your extended warranty does cover constant velocity joints with a $60 deductible and since they were in a hurry they could get their vehicle fixed at any service facility that had a certified tech on hand." Krassas's statement continues, "02/23/98 Mr. Dahl called me and said that he had stopped into ... [a Certified shop] and they would not fix the ball joints under the warranty. And wanted me to call them & find out why. He then would call me between 11:00 and 11:15 the next morning. I spoke with our service department to confirm that ball joints are not covered but constant velocity joints are. (Mr. Dahl never called back.)" Krassas's statement continues, "02/25/98 Mr. Dahl and a friend [actually, this was his father, Butch] stop in [to] talk to me about the problem he had with the 92 Dodge Dynasty. I asked them what he exactly wanted. He said, 'I want the ball joints fixed on my car by Houston Ford for free because Bill [Krassas] told him that they were covered under the warranty. And if he had known that [they weren't covered,] he would not have purchased the car.'" The statement then recites that Krassas offered to "unwind the deal" by canceling the contract, and returning the down payment and trade-in van. The statement says, "[on 2/25] ... I checked with Lee to see if we still had the van. We did ...." Dahl denies that any such offer was made, by Krassas, to unwind the deal, but said that Houston Ford had offered to void the warranty and remove its cost from the contract price upon return of the warranty card. Dahl further said that he was told, when there, that Houston Ford didn't have the trade-in van anymore; that they'd wholesaled it. A happy ending. By the time we interviewed Mr. Krassas, however, Houston Ford had reacquired the trade-in van, "We actually went and got the trade," he said. We asked Krassas if Dahl were to bring back the Dynasty that day or within reasonable time if Houston Ford would unwind the deal and refund the down and the trade; Krassas said that they would. In the end, the customer was given the option of staying with the deal, and paying for the ball joint repair, with the additional option of voiding the warranty and its cost, or unwinding the deal with return of the full down payment and the trade-in. Consumer Corner Analysis. As with many consumer matters, there are clearly conflicting versions of what happened and what representations were made. There are two distinct elements of concern, 1) Was the customer initially overcharged for the car, and 2) Was the warranty misrepresented? In the first element, if we give Houston Ford the benefit of the doubt and accept their explanation that the advertised price of $4,485 was a misprint, we are left with the conclusion that Houston's actual price for the car was $7,895., the price initially quoted and charged. Per a local reputable auto salesman, the '92 Dodge Dynasty NADA books at $6,100., retail. And that's with good ball joints. But fair market value of a car sometimes differs from the national book - you have to check the local market, so we did. On March 4th & 5th, there were 5 Dodge Dynasties priced in the Minneapolis Star Tribune classifieds. The range on the 93s was $5,250 to $5,888. The '92 was priced at $4,700 or best offer; the 'two 91s were $1,800 obo & $4,700 obo. If it was, as Houston Ford says, a misprint, then it follows that the car, at $7,895., appears to be priced significantly above market. Misprinted prices, legally, do not generally have to be honored. In the event of a true misprint, we don't know many car lots or other businesses that would agree to take a $3,000+ loss on the error. The alternative explanation is that there was no misprint; the car was priced at $4,485 and the salesman just saw an opportunity to make a cool $3,000+ on it. We also note, in this, that the type for the ad was not set by the newspaper in which it was run - it was supplied by Houston Ford or their agents as camera-ready copy. So they had the opportunity to proofread it before it ran. The matter of what was said, and when, as to the warranty and as to what was wrong with the car, is somewhat more complicated. The statements of the consumer, and of Houston Ford are sharply conflicting - it depends on who you want to believe. After the consumer had contacted an attorney, and possibly under pressure, Houston said they'd unwind the deal. Krassas also said they'd offered to do that on 2/25. But the customer denies this and said he'd been told on 2/25 that the van had been wholesaled and was not on the lot. And the customer's version is supported by Krassas's having said, to Northern Herald, on March 4th, that "We actually went and got the trade." The Moral. In car trading, the rule is Caveat Emptor. Always: 1) Research the market before you buy; know what the competitve price is for the model in question. 2) Read the fine print as to what any warranty covers. 3) If a salesman says something specific (i.e. a defect in the car you're buying) is covered or will be repaired, get it in writing. Ink is cheap and it really improves peoples' memories. 4) And finally, if you don't want your car shopping trip to involve attorneys, etc., buy from a private party or reputable dealer. What you don't know will hurt you. If there are problems with the deal, well, they can sometimes be remedied, but why buy trouble? ============================================================== Consumer Corner - Follow-Up For further detail on this matter, see the initial report, "Houston Ford Customer Blown Away by Price Shootout" above From Vol. 3 No. 11 05/13/98 HOUSTON FORD RENEGES ON OFFERED REFUND A few issues back, our Consumer Corner reported that the problems Lloyd Dahl, of Bena, was having over a car he'd bought from Houston Ford, Pine River (and for which a salesman, there, tried to charge about $3,000 over the advertised price) had a happy ending. Following contact by Dahl's attorney, and in a taped interview, Bill Krassas, Finance Manager at Houston Ford, had offered to "unwind the deal", and return Dahl's trade-in and $800 down payment. Dahl was agreeable to this, but Northern Herald has been informed that that's not what happened. When Dahl took the car back, Houston subtracted $228.80 from the $800 down payment for "mileage." Emily Dahl claimed that they now could not get a car for what Houston refunded of the down they'd saved. "They really messed me up good," she said. For His Firm's Distinctive Business Practices, Northern Herald confers upon RICHARD HOUSTON recognition as an HONORARY BEMIDJIAN and we invite HOUSTON FORD to join the Bemidji Chamber of Commerce. ===================================================== EDITORIALS - OPINION Guest Column KAXE Radio Has Lost Its Compass by Richard Thomas, Northern Herald Grand Rapids Staff KAXE calls itself community radio and it's not. It's radio tightly controlled by a clique of people who have turned it into their personal little sandbox. They use the word "community" only to sell their product to the wider public. The only difference between it and commercial radio is commercial radio, at least, pays its disk jockeys. KAXE uses volunteers in cheap labor, but doesn't value them as members of the community it's supposed to serve. It hasn't always been the same clique in control. Since its birth in 1976, KAXE has seen a number of hair-raising internal power struggles. Yet no matter how the administrations change, KAXE is headed in one downhill direction. In its drive to become more profitable it has shed its original purpose, to give voice to all local people. This is part of a national trend. Similar radio stations throughout the country are chasing out their volunteers, to replace local programming with national feeds. The station still pays lip-service to the importance of volunteers and the community, especially around fundraising time. Once you get into the station, though, you find they don't mean it. Mission Lost. The station was founded with public access in mind. Any local person can go into the station, get training, and become a disk jockey. They can develop their own ideas for programs, and develop them with the staff's help. It sounds like the perfect form of electronic democracy. But freedom of speech belongs only to those who control the media. The KAXE staff is free to arbitrarily make decisions and impose them on volunteers, who have no voice in the process. Volunteers have no rights, unlike paying members. They used to get automatic membership, but the station ceased doing this years ago. There's a grievance procedure which basically amounts to "If you don't like the boss's decision, appeal to the boss." At a rare meeting for volunteers, program director Mark Tarner (who has referred to himself as "The Czar") cheerfully told the group, "This is your station; we [the staff] are just here to help you do what you want." He then took ideas from the group on how to improve the station, and proceeded to squelch everything with which he didn't agree. How much freedom the volunteer should have is open to debate. Long- time volunteers tell me the station used to be far more open than it is now. Staff and board members claim it's no different now than it's always been. "It's always been community access, but that never meant people can come in and do whatever they want," said Michael Goldberg, a former station manager. "The volunteer is not the key player. The listener is the key player." Therefore, it would follow, it's the staff's job to nurture volunteer efforts and organize them to best serve the listener. Unfortunately, the staff doesn't nurture and organize, it controls and censors. And the staff's idea of what the listener should hear is becoming increasingly narrow. Consistency: The Dreaded Buzzword. Maggie Montgomery, the current manager, once gave me an impressive speech about the station's need to be a grassroots operation. In the next breath, she told me that volunteers should not be allowed to air anything but music in time slots formatted as such. Consistency, she said, is important. And to think KAXE's favorite buzzword used to be diversity. Consistency means safe, predictable and controllable programming. And supposedly profitable, but that's a drastically misguided notion, on a station that's supposed to be for the listeners and not supposed to be subject to commercial control and suppression. Consistency was introduced to KAXE by Montgomery's predecessor, Pam Leschack. During her reign, a backlash movement arose against Leschack; as one volunteer told me, "she tried to take the 'community' out of 'community radio'." Under her administration, there was a complete turnover in staff. The weekday, volunteer-run, "Patchwork" show was replaced with with the national show "World Cafe". She brought in a national consultant to smooth out programming. Volunteer Jerry Bourbonnais spoke for many listeners when he wrote in a letter to the station: "I have lived in Northern Minnesota for 15 years.... In all that time, whenever the conversation has turned to KAXE, I have NEVER heard ANYONE comment about a need for "consistency." Conversely, I have heard many, many comments, all positive, about KAXE's diversity, eclecticness, etc. It has been clear to me for a long time that what KAXE listeners value is a diverse (sometimes unpred- ictable sound). Not once has anybody said to me 'I'd listen if I only knew what was going to be on this afternoon.'" Meet the new boss, same as the old boss. Leschack bitterly resigned in 1995 and the staff she had chased out mostly returned. Many listeners thought this was a restoration of KAXE's community emphasis. In retrospect it appears Leschack was simply another victim of the infighting. KAXE is firmly on the course she started. Tarner and Montgomery have no intention of bringing back "Patchwork". They insist on consistency and complete staff control. Bourbonnais's own show, the engaging "Brew Pot," was dropped last June. "There used to be a spirit of adventure and 'hey, let's try something new,'" he said. "That died with Pam and it hasn't come back." I once asked Tarner why the station doesn't bring back "Patchwork", and he said there aren't enough volunteers. I would think that's part of his job, to recruit volunteers. When I started at the station five years ago, there were so many volunteers it was hard to get a time slot on Patchwork. Considering staff practices now, it's not hard to see why volunteer numbers have dwindled. Perhaps that's the intended effect, so the staff has an excuse to replace local shows with national ones. No less ominous is the Board of Directors' current effort to rewrite the charter. Last spring, they voted unanimously to change the mission statement. All the key phrases that defined the station in the previous mission statement were removed; the commitment to "educational purposes... to be involved in the future, immediate issues and needs of the community"; to be "an agency of unity and change"; to create an "on-air aura of ecstasy and surprise." The new mission statement: "Northern Community Radio is a regional broadcaster building community through its programming and linkages with the people of Northern Minnesota." The new statement is so bland it's bizarre. Do you see a mission anywhere in it? KAXE could get rid of all community input and still be in accord with this new mission. Fortunately, the board has been slow in revising the rest of the charter and policies. But listeners and members would be well-advised to demand to see the rewrites before the Board passes them. Gutless Radio for Northern Minnesota. "Grand Rapids cries out for a local news program that pulls no punches," a listener once wrote the station, "You could fill the void". Not a chance under current management. The station's cowardice became embarrassingly obvious last year after two volunteers, Harry Hutchins and John Latimer, joked on the air about Newt Gingrich. An irate listener griped to local businesses that contribute to KAXE. So how did the station respond? Did it stand up to the Great American Right to joke about public figures? Did it invite the irate listener to come on the air with a rebuttal or to tell his own Bill Clinton jokes? No, Harry and John apologized, both on the air and in a letter to the Grand Rapids Herald Review. This came at a time when Gingrich was threatening to cut public radio's funds. KAXE's response was to run with its tail between its legs. KAXE can be real community radio only if people can use it for free speech. Listeners need to understand they have the right to go on the air and not be subject to restrictive formatting and gag rules. Restrictions against obscenity and slander are understandable, but not much else. If someone's offended, they should be encouraged to air a counter opinion. This way KAXE can be a forum for the exchange of ideas. Instead, it's become bland, harmless and irrelevant. A not-so-modest proposal. There would be no shortage of volunteers - or funds - if the community really considered the station its own, like it's supposed to. Last month, I wrote to the KAXE Board proposing that they adopt a volunteer Bill of Rights and make other changes in policy. This included the following: -- Staff will hereby cease to use the words "consistency" and "conformity" in regards to programming. Failure to conform consistently to this rule will result in thirty-nine lashes with a wet noodle. -- Volunteers who have logged on a certain amount of hours get automatic membership. -- Decisions on what to put on the air rests with the volunteers. Any restrictions must be written and approved by the Board. -- Members and volunteers will be notified of proposed changes in the policies and charter, at least a month before the Board decides on them. -- Volunteers are free to express their opinions on the air. Listeners will also be encouraged to do the same. -- Most KAXE records and files will be open to the public. -- The staff will bring back "Patchwork". -- The program director's job will be redefined so his/her role will be more like that of a community organizer. -- Reinstate the previous mission statement. The response from Board President Sarah Cohoes was flippant and rude. In defending the new mission statement, she wrote, "Does the idea of BUILDING COMMUNITY mean nothing to you?" Actually, it doesn't - it's too vague. Yet, in regards to the old mission statement, she wrote, "Unity and change is an ambiguous oxymoron, unmonitorable double speak. Orwellian indeed!" The most significant event of KAXE's recent history was the passing of staff member Bill McKeever, best known as host of the Saturday night Nova Express show and voice of the fictional Lester C. Moran (The Roadhog). In his shows, McKeever blended stories, comedy, and music ranging from rock to jazz. It was as good as radio gets: joyful, challenging, sometimes disturb- ing, sometimes mind-blowing. And never predictable. Tarner has told me such variety is no longer acceptable. He said, "People expected that of Bill's shows, but they don't expect that of other late night shows." That's just great. Let's stamp out McKeever's legacy in the name of consistency. Good luck with your mission, KAXE, such as it is. Richard Thomas has been a volunteer programmer at KAXE for five years. He is currently in exile from the station for "failure to conform" to the music-only format. ========================================================= From Vol. 1 No. 4 - 10/06/95 ---------------------------- JANOV TRIAL CONTINUED - WOMEN'S SHELTER MAY HAVE HARBORED FUGITIVE The Northwoods Coalition for Battered Women has been reputed to have provided, over the years, access to, and some say encouragement of the excessive use of the legal system by wives and cohabitants to procure court orders restraining their spouses, sometimes from occupying their own shared homes, and sometimes under questionable circumstances. The Women's Shelter and it's associated women's advocate are very familiar with the legal system and how to use it. Now, however, Karen Janov, Director of the Northwoods Coalition faces trial for obstructing legal process in an incident involving a Minnesota woman who may have used the shelter to avoid service of legal process, and to conceal custody of her son in violation of a court order. On October 3rd, her jury trial on the charge was continued to October 31st. Janov is represented by Susan Mc Kay, a Bemidji Attorney. The complaint alleges that Janov, and another employee of the shelter, Angela Cavett, removed items from the shelter while officers were conducting a search, by warrant, and that the removal was to conceal evidence from the officers, in violation of Minnesota Statute 609, Subd. 1 (1) (2). Per the police report and complaint dated July 20, 1995, Sgt. Sladky, Bemidji Police Department, was contacted by officer Gordon Vlasek of the Savage, Minnesota Police Department for assistance in serving a civil process. Savage is located in Scott County, near the metropolitan area. The subject of the service, Mary Jo Stickney, was thought to be located at the Women's shelter in Bemidji. It appears from the documents that, although she was subject to a court order obtained by her husband in Savage, Stickney obtained a contradictory order, against him, from the Hubbard County Court, Judge Holter presiding. Sgt. Sladky became aware of the contradictory orders and contacted the Hubbard County Court, which vacated the order issued on behalf of Mary Stickney. Sladky then went to the Women's shelter to serve Stickney with the order that her husband had obtained. Per the complaint, at the shelter, Janov would not admit the officers and refused any information as to Stickney's whereabouts. Janov was informed by the officers that they had legal process to serve and by not allowing service to take place Janov might be in violation of law; Janov still refused. On the basis of the belief that Stickney was at the shelter, a search warrant was obtained, signed by Judge James Preece. While obtaining the warrant, Sladky also received from Scott County, a warrant for the arrest of Stickney on a charge of depriving another of parental or custodial rights. Upon arriving at the Woman's shelter, the complaint alleges, officer were first detained by Phyllis DeClusin, an employee, who stated that she would "go get the Director." After a short time elapsed, Sgt. Gerald Johnson, Bemidji Police Department, who had accompanied Sladky to the shelter, stepped outside the door and observed Janov and Cavett "carrying boxes of documents out of the rear of the Women's shelter and placing them into a van." Sladky and Johnson then told Janov that she should not be removing evidence, but Janov resisted, states the complaint, "in my retrieval of the documents." Janov was asked if Stickney was in the building and she claimed not to know. Upon going back into the shelter, officers observed Cavett with a bottle of "white-out", attempting to mark out entries in the shelter's log book, which entries reflected the names of Stickney and her son. The complaint continues that Sladky did not find Stickney in the building, but located logs indicating that Stickney had been there with her son, Ryan. A review of the documents revealed that Stickney and her son had been admitted to the shelter June 8th, and further revealed a directive to staff from Janov that if anyone came looking for Stickney, shelter staff were to "give no information, and to say that they knew nothing about any order out of Scott County against Mary Jo Stickney" From Vol. 1 No. 7 - 11/24/95 ---------------------------- JANOV TRIAL TAKEN OFF-CALENDAR The Bemidji Women's Shelter and the Women's Advocate have been reputed to have assisted many women in getting Orders for Protection (OFPs) against spouses or male cohabitants. But when police tried to serve an order on a woman believed to be at the shelter, Karen Janov, Director of Northwoods Coalition for Battered Women, is alleged to have obstructed that legal process. Janov's trial was set for October 31st, but has now been moved off- calendar at the request of attorney Susan McKay, who is representing Angela Cavett, a co-defendant in the incident. In a letter dated Oct. 12, 1995, from McKay to Judges Holter and Rasmussen, McKay requested that trial be continued (postponed) because defendants, through their attorneys, were working with the city attorney to resolve issues, along with "establishing policies and procedures that will eliminate future problems". From Vol. 1 No. 17 - 03/22/96 ----------------------------- FELIX CUTS JANOV SWEETHEART DEAL In obstruction of justice case, involving wrongful child custody, Bemidji City Attorney engineers sentence requiring only that Janov make, in effect, contribution to her "favorite charity". BEMIDJI-- On Friday, March 8, Karen Janov, former Executive Director of the Northwoods Coalition for Battered Women, appeared at a plea hearing before Judge Holter in Bemidji to enter her plea of guilty to the charge of obstructing justice by concealing evidence from officers during a search of the women's shelter. The search was to locate a woman who was sought, on warrant, for depriving another (her husband) of parental rights; Mary Jo Stickney had allegedly wrongfully taken a child from the lawful custody of the child's father, a Scott County (near the Twin Cities) man, and was believed to have sought refuge in the women's shelter at Bemidji. At the hearing Friday, Janov's attorney, Robert Wallner, of the Bemidji firm of Kief, Fuller, Baer and Wallner, Ltd. (see Bemidji Landmarks - issue of 2/9/96), asked for a stay of adjudication until June, 1996, with $250 costs to be paid by Janov. Alan Felix, Bemidji City Attorney concurred, and asked that the costs be designated for the Domesic Assault program. Judge Holter entered sentence accordingly. What this means is that assuming there are no similar offenses before June, at that time the case would be dismissed (treated as if the charge had never been brought). Janov's only penalty is to pay $250 into the Domestic Assault program, which is concerned with the prosecution of, primarily, men in connection with alleged assaults on their wives or out- of-wedlock cohabitants. The sentence appears to have been put together by Felix, who, per court records, in December, 1995, asked the Court to continue (postpone) the trial of Janov because "prosecution and defense counsel are working together on a resolution." Subsequently, Felix declined to comment on what the resolution was, or why it was reached. The charges were brought in mid-1995. Janov's attorney, Robert Wallner is also defending former Bemidji Police Chief Robert Tell, charged with 5 felonies and 3 misdemeanors in connection with allegedly having bilked the City in a double-billing scheme. Janov was removed from her position with the women's shelter in January. Per the filed complaint, officers Gerald Johnson and Sgt. Sladky had a search warrant for the shelter because Stickney and the child were believed to be there and Janov had earlier refused the officers admittance. While the officers, who returned with the warrant, were detained by Phyllis DeClusin at the front desk, Janov allegedly removed boxes of documents from the shelter to a van in back, while Angela Cavett, another shelter employee, "whited-out" sections of the shelter log containing entries regarding Stickney and her son. Sgt. Johnson stepped outside and observed Janov removing the documents, and upon going back into the shelter, observed Cavett with the bottle of "white-out", attempting to mark out the entries. The officers did not find Stickney or the child at the shelter, but log entries confirmed that she and the child had been there, the complaint alleges. The filed complaint further alleges that a review of the documents revealed that Stickney and her son had been admitted to the shelter June 8th [1995], and further revealed a directive to staff that if anyone came looking for Stickney, shelter staff were to "give no information, and to say that they knew nothing about any order out of Scott County against Mary Jo Stickney." ================================================================= From Vol. 1 No. 20 - 05/03/96 ----------------------------- WOMEN'S SHELTER RESIDENT CHARGED IN FALSE OFP Also annotation: Mille Lacs Kidnapping by women's shelter BEMIDJI --Each year, the Northwoods Coalition for Battered Women, and other women's shelters, encourage and assist in the filing of many Orders for Protection (OFP), which sometimes bar the husband or male cohabitant from his own home. Allegations of violation of an OFP can result in up to $700 fine, and up to 90 days in jail for the man; some abuses of the violation process, by the woman's claiming of violations that didn't occur, for possible motive ranging from simple nuisance to pressuring terms to a divorce settlement agreement, have been reported. In these instances, the man usually spends the night in jail, regardless of the veracity of the claimed violation. By state law, the OFP applications are filed and served at public expense, without the routine $152 charge for filing and serving an action. In Beltrami County alone, 146 of these orders were filed and served in 1995. The cost of these orders, at normal fees, would have been $22,192. It is not known how many of the orders were spurred by women's shelter intervention. Dean Anderson, in an appellate brief, said of OFPs, that the judges, "give them out like lollipops to kids," to almost any woman seeking one. Almost universally, the reasons given in the application for OFP, and affidavit, are, if taken as true, very compelling as to the immediate need to restrain the liberty of the man involved, for reasons of personal safety. They often list dates and specific alleged instances of abuse or assault. In Beltrami County, however, a 28-year old woman has been charged with perjury in connection with obtaining an Order for Protection under false pretenses and by falsifying the incidents listed on the application. Per court records, she was believed to have been residing at the Bemidji women's shelter. The perjury charge, Beltrami County case number K0-96-155, was filed on February 5th, 1996, and relates to an application for OFP, filed November 17th, 1995, by the woman, against the man with whom she was cohabiting. The original OFP file is case number F7-95-1356. The application for OFP alleges "physical and verbal abuse" upon the woman. She further alleged in the application and affidavit that on November 15th, 1995, the man "became controlling and started questioning me about my past and was emotionally abusive [emphasis added]. I waited until he fell asleep and called the woman's shelter and then a cab. The cab got lost. [The man] woke up and found out I was leaving.... He grabbed me by the coat and shook me up. He scratched my face and hand. He told me he would make my life a living hell... I and [her daughter] ran to a house, [and] called the shelter back. The police were called. They were to meet us at the bottom of the bridge. [The man] came and started harassing us. While with [the man] for 4 days, he kept bringing up some old pictures I took a long time ago. He said he would use them against me if I didn't do what he said." The application (Petition) asserts that "An emergency exists and I fear immediate and present danger...." At the hearing, held on December 4th, 1995, before Judge Terrance Holter, however, the woman recanted her previous allegations, testifying, "All the OFP's that I --that I did were false accusations." In subsequent court documents, the man involved stated that as recently as January 10th, 1996, the woman "filed false charges against me trying to have me thrown in jail after I forced her to leave. On many occasions [she] has filed false charges and false OFPs against me." The charge of perjury against the woman is set for omnibus hearing before Judge James Preece, on May 24th, 1996. It is prosecuted by Assistant County Attorney Randall Burg. The woman is represented by Bemidji attorney Paul Kief. The Bemidji women's shelter has been previously criticized for harboring a woman who had unlawful custody of a child in July, 1995; and obstructing officers trying to locate her. In other action in Minnesota regarding women's shelters, the St. Cloud Times reported, on August 23rd, 1995, that two advocates of the Mille Lacs Intervention/Battered Women's Advocacy Project had been charged with depriving another of parental rights. It is alleged that the two advocates, to prevent a woman's husband from finding the children, two boys, 7 and 12 years of age, placed them in a motel room and unplugged the phone, removing the cord. The boys were discovered when they flagged down a janitor who provided a telephone cord with which they called police. The case, assigned to Judge Landwehr, Stearns County, was prosecuted by Mille Lacs County Attorney, Jennifer Fahey, who appeared before the Mille Lacs County Board and successfully argued for them to withdraw funding for the Women's Advocacy Project based upon the allegedly illegal activities. As reported in the Times, said Fahey, "I believe the safety of the citizens of Mille Lacs County was in jeopardy because of their [the Women's Advocacy Project's] behavior," and Fahey said that she's heard strong allegations of wrongdoing that may not have amounted to criminal charges, but prompted her to approach the County Board. District Court officials also withdrew their funding from the Project. Per George Gilliland Sr., of Domestic Rights Coalition, the Director of Family Violence Network, a "battered" women's organization at Lake Elmo, was forced to resign as a result of lawsuits brought against the shelter by former employees, and charging abuse by the Director. From Vol. 2 No. 8 - 01/08/97 ---------------------------- FORMER WOMEN'S SHELTER FUGITIVE FAILS TO APPEAR BEMIDJI -- "I came to the shelter three weeks ago because Jeff had driven by my sister's and one day not long ago he drove by and pulled a gun on me - he told me 'If I can't have you, no one can' ... I ask the courts for help in obtaining this order. I fear for my life." These compelling statements were made by Bonita Jones, on September 8th, 1994 in a sworn application to the court for relief under the Domestic Abuse Act, specifically, an Order for Protection (OFP) against her cohabitant, Jeffrey Hubbard. The application was filed shortly after Karen Janov, of the Northwoods Coalition for Battered Women, Bemidji, helped her bring her belongings to the shelter, and take up residence there. Court files disclose that since 1994, Jones had applied for at least 3 such orders against Hubbard. All were filed at public cost, and some with the assistance of the women's shelter and advocate. Police records also contain criminal accusations by Jones against Hubbard. But on December 4, 1995, Jones said, before the Court, "All the OFP's that I --that I did were false accusations." Accordingly, charges of perjury were brought against Jones, who failed to appear in court for her last hearing on January 7th, 1997 before Judge Rasmussen. Addressing her attorney, Paul Kief, who had explained her absence as being due to her not having a ride to the courthouse, Rasmussen said that she would be required to appear at 9 a.m. the following morning, and that he would then consider issuance of a warrant should she again not appear. A fugitive warrant had previously issued on this charge when Jones did not appear for a hearing last June; she was arrested in October, when Hubbard spotted her at Hard Times Saloon, a favorite pickup bar in Downtown Bemidji, and he notified police. Although prosecutor Randall Burg had requested bail in the amount of 5,000., Judge Preece subsequently allowed her to be released without bail. If Jones appears on January 8th, trial of the matter is expected to be set for next week. Karen Janov, who assisted Jones in moving her belongings, is the former Executive Director of the Northwoods Coalition for Battered Women. In March, 1996, Janov pled guilty, in an unrelated matter, to obstructing justice, while Director of the shelter, by concealing evidence from Bemidji police officers. The officers were attempting to serve process on a woman who had unlawful custody of a child, and who, records later disclosed, had been admitted, with the child, to the women's shelter. Documents revealed a directive to shelter staff that if anyone came looking for [the woman], shelter staff were to "give no information and to say that they knew nothing about any order out of Scott County against [her]." In interview with Northern Herald, Jeffrey Hubbard spoke of his turbulent association with Miss Jones, since late 1993. "It was February of '94," he said, "when police were called for the first time to my residence. Bonita ripped the phone out of the wall and slammed it on the floor and I [had] told a friend if the phone disconnects again to call the police; she was striking me at the time." Following the arrival of police, Jones left the residence. The police report discloses that the argument began over the way Jones was raising her daughter, at the Hubbard residence. "The problem was abuse [by Jones] toward her daughter," said Hubbard, "Bonita has four children now, which, all of them, I understand, have been taken away from her custody. One of them, she almost killed." Hubbard said that Jones struck her daughter in his presence, and that "she would give her daughter, Jeannie, cough medicine in order to put her to sleep, so she wouldn't be bothering her." The perjury charge pending against Jones is unique in that it arises only because Jones voluntarily admitted the perjury in court. In most instances, these OFP applications, often assisted by the shelter, are accepted by the court on their face and there is little or no questioning of the allegations made. Northern Herald's investigation of this matter is continuing. From Vol. 2 No. 9 - 01/20/97 ---------------------------- * FAILED TO APPEAR ON OFP PERJURY * FUGITIVE WARRANT ORDERED FOR FORMER WOMEN'S SHELTER RESIDENT BEMIDJI -- Judge Rasmussen, on January 8th, ordered a warrant for the arrest of Bonita Jones, a former resident of the Northland Coalition for Battered Women's shelter, who failed to appear on charges of having filed a perjured application for Order for Protection. The application was for an order against Jeffrey Hubbard, of Tenstrike. Jones had filed at least 3 such applications since 1994, but on December 4th, 1995, told the Court, "All the OFP's that --that I did were false accusations." Jones had been assisted by the women's shelter and advocate in bringing the false applications, and also had lodged criminal complaints against Hubbard with police. One such complaint was made April 8, 1994, when Jones called police from the women's shelter and told Officer Charboneau, upon his arrival, that Hubbard had struck her child, per the filed report, "only one time." Police reports indicate that Charboneau then questioned the child, then 6, who said that Hubbard had hit her "in the hand and the head several times." This was inconsistent with Jones's statement. Charboneau observed no signs of abuse on the child; he spoke to two witnesses who told him, "Bonita was out of control and Jeffrey was just asking her to leave." Due to these and other inconsistencies, no charges were brought against Hubbard, who later passed a polygraph test to establish the groundlessness of the accusations. Apparently, the child had been induced, at the shelter, to make the statements to police acccusing Hubbard of abuse. Police are currently investigating a burglary of Hubbard's residence, in early 1996, which certain facts suggest may have been set up by Jones. From Vol. 2 No. 16 - 06/09/97 ------------------------------ BONITA JONES, WOMEN'S SHELTER RESIDENT, PERJURY SET FOR TRIAL BEMIDJI --Following a motion, May 12th, by Paul Kief, attorney for Bonita Jones, her case was set for the trial call calendar of June 24th, 1997. Kief moved, before the Honorable Judge Benshoof, for an order to compel discovery. The court ordered each side to produce, for the other, any evidence it had pursuant to the Order for Protection (OFP) that is the subject of the action. Jones is charged with perjury by way of having made false statements in applications for OFPs against her former cohabitant Jeffrey Hubbard (full report in NH of 5/3/96). Charged in early 1996, and released without bail, she had twice been a fugitive from justice when she failed to make required court appearances. (See NH of 1/8/97, 1/20/97). Following the first fugitive warrant, she was arrested when seen by Hubbard at Hard Times Saloon, a downtown Bemidji pickup bar frequented by female shelter, non-profits and Beltrami social services staff, as well as by some off-duty police officers. Bonita Jones's case drew controversy when, after her second fugitive arrest, she was allowed, with the assistance of the shelter, a furlough from jail to attend a birthday party for her daughter. From Vol. 2 No. 17 - 06/30/97 (delayed to 07/02/97) ---------------------------------------------------- WOMEN'S SHELTER RESIDENT FAILS TO APPEAR ON PERJURY Third Fugitive Warrant Issued BEMIDJI -- Bonita Jones, a former resident of the Northwoods Coalition for Battered Women's shelter at Bemidji, failed to appear June 24th and 25th for trial on charges of perjury, stemming from a false OFP application. On the 24th, Judge Rasmussen gave her attorney, Paul Kief, a day to try to locate the defendant, but when he reported on the 25th that he had not been able to reach her personally, Rasmussen ordered the warrant for her arrest with no bail specified. The charges stem from multiple applications for Orders for Protection (OFP) that Jones had brought against her former cohabitant, Jeffrey Hubbard. Jones had filed applications listing compelling reasons for the OFPs, including incidents and dates, and that "An emergency exists and I fear immediate and present danger." Before the Court, on December 4th, 1995, Jones said,(1) "All the OFPs that I --that I did were false accusations." The resultant perjury case is unique in that it stems from that admission in court. The women's shelter has assisted with a great many OFPs, and the facts behind the allegations are almost never scrutinized; it is not known how many other OFPs have been granted to women counseled by the shelter on similarly fabricated grounds. Jones had been assisted in moving belongings into the shelter by former shelter Executive Director, Karen Janov, who pled guilty in March, 1996, to obstructing justice, in connection with another (unrelated case) woman fugitive who had allegedly been harbored at the shelter. Janov had tried to remove and conceal evidence of the woman's having been there when officers came to the shelter with a warrant. Following the perjury charges, Jones was scheduled for trial in early 1996, but failed to appear and was arrested on a fugitive warrant in October when Hubbard spotted her at Hard Times Saloon, a downtown Bemidji pickup bar. Former Judge Preece allowed her to be released without bail, and she subsequently failed to appear on January 8, 1997 when another warrant was issued. Her case drew controversy recently, when, after her second fugitive arrest, she was, again with the assistance of the women's shelter, allowed to be furloughed from jail to attend her daughter's birthday party. Said Hubbard, at an previous interview, "Bonita has four children now... [all of which] have been taken away. One of them she almost killed." FOOTNOTES (1) Official transcript, Judge Holter's Court, 12/4/95 ================================================================ From Vol. 2 No. 16 - 06/09/97 (delayed to 06/11) ------------------------------------------------ ANOTHER KIDNAPPING BY SHELTER CLAIMED Bemidji Evergreen House, White Earth Reservation also Implicated BEMIDJI -- U.S. Army Staff Sergeant Randal E. Ruby, who is stationed at Ft. Stewart, Georgia, didn't know quite what to make of it when interviewed, by phone, at his home in nearby Hinesville. Due to his service career, he has only received sporadic reports of what has happened since his wife, Mindy, and step-daughter, Jessica Cottrell, 15, left the family's Georgia home on a routine trip, April 28th, to attend a funeral here. He said that there had been no particular history of friction, "...no more than any other teenage daughter and her mother," between his wife, Mindy, and her daughter, Jessica, until they arrived in Bemidji. "Mindy's a hell of a good mom - she's put the children's interests first." Now, Sgt. Ruby says that what has happened has devastated the family, emotionally, financially, and as concerns the kids' education. "It's driving us into bankruptcy," he said, "my wife hasn't been able to come back, so my son, Scott [13] ...[can finish the school year]. He's going to have to stay back [a grade] this year." Upon their arrival for the funeral, Mindy and Jessica stayed with Mindy's step-sister, Jacklyn Jones (also known as "Jaclyn" or "Jacqueline"), at the home of Jones and her daughter Wauban, in northern Hubbard County, just south of Bemidji. Jones is an employee of the Northwoods Coalition for Battered Women's shelter at Bemidji. Apparently, during the stay, Jones and her daughter tried to influence Jessica to disobey her mother, and possibly to remain in Bemidji. As they were packing to go back to Georgia, May 10th, an argument ensued between Mindy and Jessica over Jessica's staying out too late with Wauban, after they'd done some housecleaning. Per Mindy Ruby, Jessica swore at her, and Ruby slapped Jessica, whereupon Jessica "ran off". Although Jacklyn Jones maintained to Mindy Ruby that Jones didn't know where Jessica was, the next morning Jessica was taken to the Bemidji Evergreen House, a children's transient residential home. According to Mindy, her son, Scott, saw Jessica, on May 10th, following the argument, hiding in a car belonging to Ron Brown, a purported male companion of Jones. Ruby suspects that Brown took Jessica to Evergreen House at Jones's behest. Jessica was placed on a "72-hour hold" at Evergreen for investigation of child abuse. No evidence of same, however, was found. There have been no such charges brought in either Hubbard or Beltrami County, and Ruby says that she has yet "to get a straight story" as to what abuse is alleged or why her daughter has been held. Asked whether Mindy had previously been abusive toward Jessica, Sgt. Randal Ruby said definitively, "No - not at all. My wife doesn't even allow corporeal punishment in the home." Regarding Mindy's slapping of Jessica for speaking profanely to her mother, Sgt. Ruby said, "It would be very unusual, however, Jessica's [recent] actions have been very unusual," and he said that Jessica had made previous false claims of abuse when she's been upset. While Jessica was at Evergreen, and responding to the threat to their family security posed by Jacklyn Jones and Wauban, Mindy Ruby went before the court at Hubbard County and obtained an order restraining Jones and Wauban from having further contact with Jessica. Per Ruby, the court said they would fax a copy to Evergreen House to prevent Jones from interfering there with Ruby's parental rights to take her daughter back to Georgia. According to Mrs. Ruby, the court later acknowledged that they'd sent the fax to Evergreen on May 13th; the order was served on Jacklyn Jones May 15. On May 14, at the end of the 72-hour hold, Mindy Ruby went to Evergreen House to pick up her daughter. She said that when she arrived, the director would not allow her to enter until Jessica had left the house, whereupon the director told Mindy that Jessica had "run away" with Wauban Jones. Evergreen House claimed to know nothing of the restraining order preventing contact between Jessica and Wauban or Jacklyn Jones. Purportedly, the director told Mrs. Ruby that police had been notified of the runaway; then the director attempted to get Mrs. Ruby to sign a release saying she'd picked her daughter up, which Ruby refused to sign. Mrs. Ruby immediately went to Bemidji Police at the Law Enforcement Center to report the runaway and that Wauban Jones had violated the restraining order. There, she says, she was told that there had been no previous report on this by Evergreen House. While making the report, she overheard, on the police radio, that two squad cars were witnessing the two girls (Jessica and Wauban) running into the women's shelter. Mrs. Ruby said that two officers later reported that they then went into the shelter and searched for the girls, but couldn't find them. Per Mrs. Ruby, Jessica was not seen again until June 4th when she was found by police, with Wauban Jones, at Paul Bunyan Mall. Ruby believes that Jessica had been concealed by Jacklyn Jones, the women's shelter where Jones works, and by various male companions of Jones in the interim. When found at the mall, Jessica was taken by police back to the Evergreen House, which claimed to have another 72-hour hold on her, this time from Hubbard County. Asked about the restraining order, police purportedly told Mrs. Ruby that Wauban Jones was not in violation, even though she was apparently with Jessica at the mall. On June 5th, Jessica was taken to a foster home on the White Earth reservation. Northern Herald has learned that this was done because Jessica is a member of the White Earth Band of Chippewa, and the reservation social services had requested that she be taken there for White Earth's own investigation of the abuse allegations. Per Mrs. Ruby, when the attempt to detain Jessica under the earlier pretended charges of abuse failed, Jacklyn Jones had used her position at the shelter and connections with Hubbard County Social Services to encourage authorities to take Jessica to White Earth. The hold at White Earth was due to expire June 10th at 8 pm. Mrs. Ruby was prepared to pick up her daughter then. At 8:45 am, June 10th, Ruby, now staying in Cass Lake, received a phone call from Michelle Fischer, Hubbard County Social Services, notifying her that there would be a hearing in Park Rapids at 10:00 am. This was the only notice that she was given. She rushed to Park Rapids where, per her report, Penny King asked Judge Mondry for an additional 8-day hold for "psychiatric evaluation." Per Ruby, at the hearing King acknowledged that there were no allegations of abuse; the court had no file on Jessica or Mindy Ruby. Nonetheless, Mondry granted the request. Northern Herald has learned from official sources that there were no signs found of continuing abuse. Said Ruby, "I don't understand how they could have a hearing over nothing and my child is still sitting over at White Earth." Mrs. Ruby, and her son, Scott, have thusly been prevented from leaving, with her daughter, from May 10th, to this date, notwithstanding that, over this period, no charges of abuse, to which she might respond, have been brought against her. From May 10th through June 9th, Jessica was held twice, in violation of Ruby's parental rights, with no hearing having been convened. Claiming Data Privacy, Bemidji Police, the Evergreen House and Hubbard courts have refused comment. Calls to Jacklyn Jones, at the shelter, and White Earth Chairman Eugene "Bugger" McArthur were not returned. Penny King and Michelle Fischer have refused comment. EPILOGUE (annotation to above story - From Vol. 2 No. 16 - 06/09/97) In Bemidji, both begging, and crime, which sometimes go hand in hand, are well organized. There is a conspiratorial organization known as the Council of Non-Profits which is comprised of about 11 local begging organizations. One purpose of this Council is to help these non-profits, some of which, like the women's shelter, operate under a cloak of secrecy, coordinate their actions, work with public agencies and obtain public funding. The lesson of this story is that people from normal places like Georgia, where parental rights are upheld, should not bring their families to Bemidji - not even to attend a funeral - if they even suspect that they could have any sort of discord. Because these non-profits, who think they know, better than you, what is good for your family, will try to drive a wedge in it and split it up for their own economic gain. They're very effective at this, and, for whatever reason, Bemidji police will not intervene to prevent it, not even insofar as to enforce a valid restraining order that the parent has obtained to prevent the unwanted and disruptive contact. From Vol. 2 No. 17 - 06/30/97 (delayed to 07/02/97) ---------------------------------------------------- - Follow-up - RUBY HARRASSMENT CONTINUES VAN TOWED AT CASS LAKE. If you were an officer, and you wanted an excuse to ransack someone's vehicle and impound it, calling in a slightly altered VIN number would be one good way to do it. The number would come back registered to someone else, or "not on file." That's apparently what happened to Mindy Ruby's van at Cass Lake, June 21st when the van, driven by Paula Wilson, Cass Lake, was stopped by Cass Co. Deputy Robert Karbowski for having expired plates. Ruby's sister, Renee Judkins was a passenger, Ruby was not in the van. When Wilson and Judkins protested the stop, Judkins claims to have been hit with a flashlight and maced. Both women were jailed. Ruby arrived on the scene, but police refused to allow her to drive the van home, it was, per Ruby, "ransacked by police," impounded and remains impounded at presstime pending payment of tow charges of $40 and storage ($7/day) against it. The van license plates were renewed in April, but Ruby, a Georgia resident, had not received her new plates due to having to remain in Minnesota since May 10th, after coming here for a funeral, because of questionable detention of her daughter here. The registration, however, should be on Georgia's computers. But the Cass County tow report, prepared by Karbowski, indicates a VIN# of 1FMDA31XUOPZAO8449 The complaint against Wilson and Judkins recites that the number came back as "not on file." The correct VIN# of the vehicle, per Ruby's registration, however, is 1FMDA31XOPZAO8449. Ruby claims that Karbowski never tried calling in the plate number. Authorities could not be reached for comment on the incident. DAUGHTER REMAINS IN PUBLICLY-FUNDED FOSTER CARE. Ruby's daughter, Jessica Cottrell, 15, remains in foster care at White Earth, following her being held, without apparent cause, by Evergreen House, Bemidji, and her having been a "runaway" thereafter. (See "Another Kidnapping by Shelter Claimed" - NH of 6/9/97) Ruby believes that during the period when her whereabouts were unknown, she may been harbored by Jacklyn Jones, an employee of the Bemidji women's shelter who has purportedly tried to prevent Cottrell from going back to Georgia with Ruby. Cottrell was found by police at Paul Bunyan Mall, with Waaban Jones, Jacklyn's daughter. (Jacklyn Jones is a 2nd cousin of Bonita Jones-see "WOMEN'S SHELTER RESIDENT FAILS TO APPEAR ON PERJURY", ante, this issue). Judge Mondry ordered that Cottrell be released to Georgia authorities, but per Ruby, Georgia has refused to assume jurisdiction and pay for the air travel. Ruby suspects that Jones may have made false allegations to Cass authorities to prompt the stopping and apparent weapons search of her van at Cass Lake. A court document signed by Jones recites, "they were suppose [sic] to shoot my children this weekend, but LEC intervened and towed Mindy's van." No weapons were found and Ruby stated she does not own a gun. ================================================================ From Vol. 2 No. 17 - 06/30/97 (delayed to 07/02/97) ---------------------------------------------------- Where Your Money Goes WOMEN'S SHELTER RECEIVES, SPENDS OVER $1/2 MILLION IN YEAR BEMIDJI -- Pursuant to an investigative request by Northern Herald, the Northwoods Coalition for Battered Women (NCBW), has released its IRS Form 990 for the fiscal year ended June 30th, 1996. The "battered" women's shelter at Bemidji, operated by the Northwoods Coalition, is only one of many such shelters throughout the state receiving public funding. For the year, NCBW reported, on the accrual method, total revenues of $663,279. Comprising this figure were contributions of $107,177, government grants of $155,200, county paid per-diems (see below)* of $383,717, reimbursements and speaking fees of $2,039, and interest of $15,146. Total expenses of $573,245 were reported, including $310,136 paid as salaries and wages. Miscellaneous adjustments were ($7,454), producing a net change in fund balance (equivalent to "net profit" for a business) of $82,580 for the year. Among its assets, the non-profit organization listed $203,173 in savings and other temporary cash investments. Itemized salary and contribution information was requested, but not provided. The shelter received contributions from United Way of Bemidji in 1996, but will not be so funded in '97 or '98. *The return contains the statement: "The main source of income for the shelter is from individual counties who pay a daily per diem for abused women and children who are provided safe shelter." ================================================================ From Vol. 1 No. 19 - 04/19/96 ----------------------------- NEVIS MAN WAS ARRESTED FOR DOMESTIC ASSAULT . . . ON HIM Studies have shown that domestic assault is as common by one spouse as by the other, both in terms of frequency and severity. It's less reported when it happens to the guy. And with good reason: If he reported it, he might have to spend the night in jail. That's what happened to Gregory Thomas of Nevis, when in September, 1994, he called 911 to report a domestic assault by his wife. The taped 911 calls tell the story. In the first call, made in the early morning of September 30th, all that can be heard are Thomas's words of "Help me" before the disconnect. Thomas explained that his wife, Tammy Thomas, grabbed the phone and hung it up before he could complete the call. At 911, there was an interlude of about 2 1/2 minutes before the second call came in. Thomas explains that during this period his wife was chasing him about the house. He ran outside and she followed him. He ran back in and locked the door. The second call was then made: Thomas: "My wife is trying to beat the ... out of me" 911: "O.K. Where do you live?" On the tape, Thomas tries to give directions, but they are not understood as there is some confusion over the number of the County Road where Thomas's house was located. He tries to clarify the directions. A minute and thirty-five seconds later, as Thomas is trying to give the directions and becoming more panicked, a loud repeated banging can be heard on the tape. It is heard for about 5 seconds, followed by Thomas: "Oh, she just broke the ... door in." Thomas tries again to give the directions but is interrupted as his wife grabs the phone. Shouting can be heard followed by a disconnect. Interviewed in Park Rapids, where Thomas now lives, he said "That's when she body-blocked me and hung up the phone again." The incident occurred after Thomas had found his wife, who was out for the evening, at a male friend's house. In her purse, he found birth control devices along with 2 bags of marijuana. After walking in on her, Thomas returned home. His wife, who frequently didn't return home until early morning, if at all, followed him in her car. "She came in like a whirlwind," said Thomas, adding, she "hit me, kicked me, and threw her whole body into me. Thomas says he was struck at least fifteen times, and denies that he struck her. Thomas relates that his wife, not wanting to talk to police, left about two minutes after the call to 911 and went to their business, Shenanigan's on Main, a restaurant in downtown Nevis. Hubbard County Deputy Roger Weaver arrived, per Thomas, after about 30 minutes. The Deputy took pictures of Thomas's injured leg, bruises and lacerations from the incident. Deputy Weaver then left to speak with Thomas's wife. After waiting about a half-hour, and Weaver not returning, Thomas walked to town to Shenanigan's "I walked into the restaurant and Mr. Weaver immediately puts me under arrest," for fifth degree assault, said Thomas. A review of the filed incident report shows that despite all of the evidence, including the context of the 911 call, that indicated that Mr. Thomas had been the victim of the assault, the Deputy chose to believe Tammy Thomas's allegation that Gregory has choked her. Mr. Thomas responded, at the recent interview, "I never choked her. She bruises very easily; if I would have choked her, she would have had a bruise on her neck." Thomas was taken to the Hubbard County jail; Judge Mondry set bail later that morning at $1,000 which Mr. Thomas's brother posted that evening. Attorney Steve Bolton was appointed to represent Thomas. While Thomas was in jail, an unusual thing happened. Park Rapids Attorney William Jones, who was Mr. Thomas's attorney on another matter, showed up at the jail, representing Thomas's wife, and served Thomas with an Order For Protection (OFP). Jones has since been admonished by the Office of Lawyer's Professional Responsibility (OLPR) for the obvious conflict of interest that this, and Jones's subsequent handling of Thomas's divorce, on behalf of Tammy Thomas, created. When interviewed, Jones claimed the admonishment was for giving the "appearance of conflict", but the admonishment letter from OLPR states that "There is no question that respondent's [Attorney Jones's] representation of complainant's [Gregory Thomas's] wife in the domestic abuse and marriage dissolution matters was directly adverse to the complainant." Mr. Thomas hired Attorney Craig Hunter to represent him on the 5th degree assault, and Hunter recommended, in late 1994, that Thomas pay $250 as a "fee", in a plea agreement, to have the charge dismissed. Thomas refused. About a week later, per Thomas, Hunter called him and said "They've dismissed the charges." "At which time I was irate," said Thomas, who wanted to go to court to disprove the charge. Thomas tried to bring an assault charge against Tammy for the same incident, but Greg Larson, Hubbard County Attorney, refused to prosecute it. "Attorneys treat people... and they get away with it. And unless a person knows the laws, knows the rules of conduct for lawyers, they can basically take advantage of you ...by the law," said Thomas, adding later, "I don't trust the county, I don't trust the system, and I've already seen repercussion." ========================================================= Leading Edge Journalism ----------------------- PR MAN FOUND NOT GUILTY IN UMMHC, WOMEN'S ADVOCATE-BACKED ASSAULT CASE But Pays Over $12,000 in Legal Costs Due to Accusation From Vol. 8 No. 2 - 12/30/02 PARK RAPIDS -- In a case which may have stemmed from a mistaken identification, Park Rapids resident Dwight D. Patterson, was fully acquitted by a jury, on October 17, 2002, of charges of first degree burglary and fifth degree criminal romantic conduct (Hubbard Co. case no. K7-02-501). But Patterson, who, since May, 2000, has owned and operated PAT'S SECURITY in Park Rapids, said that, in defending against the false accusation, he incurred over $12,000 in legal fees and associated costs. And Patterson is not sure that it was a matter of simple mistaken identity; he suggested that he has been subject to a continuing "pattern of [official] harassment", possibly in a vain attempt to discredit his security service. Records disclose that a therapist at Upper Mississippi Mental Health Center (UMMHC), Park Rapids, and Joy Torvinen, of Hubbard Co. Human Services, may have encouraged prosecution of the case against Patterson, and Patterson said that the Women's Advocate was present in the courtroom during the proceedings. Patterson, who said, "this case should never have been brought to court," is now considering suit against several local and county agencies, as well as Charlene Koons, who made the accusation, to recoup his expenses. Police interrogation reports disclosed that Joy Torvinen is also a personal friend of Koons, and one of only a few people who knew her address. Charlene Koons, presently unemployed, was, at the time of the alleged incident, an employee of Casey's convenience store, Park Rapids. Patterson said that prior to the accusation, he and Koons had spoken when he shopped there, and Koons had repeatedly invited him to her apartment, but he had declined. It is undisputed that in the evening of Tuesday, July 24, 2001, just prior to when the incident is alleged to have occurred (in the early morning of 7/25/01) Patterson was at the American Legion, Park Rapids, and Koons was also there, singing Karaoke. Her "boyfriend," Eric Olson was with her. Later, Patterson again saw Koons at J & B Foods, where they conversed socially; Patterson said that he complemented her on her singing, and Koons again invited him to her place, but Patterson, who is married, again declined. J & B security cameras confirmed that both were shopping at J & B at that time. In interview, Koons denied having invited Patterson to her apartment. The matter in controversy concerns what happened after they left the grocery store. Koons dropped Olson off at his residence and returned to her apartment. Per the filed complaint dated July 9, 2002 and signed by Park Rapids Police Chief David A. Volden, "On July 25th, 2001, at 1:30 am, Charlene Koons called the Law Enforcement Center and reported that she had been assaulted." Officers Parks and Masog responded. Koons told officers about having seen at the Legion, "a man there who was wearing a baseball cap with Pat's Security on it," and having seen the same person at J & B Foods. She told officers that after she "dropped her friend off" and returned to her apartment, "she opened the security door and went to her apartment. She then noticed the same man had gotten into the apartments. She said the man forced his way into her apartment, then forced his way on her and had his hands all over her body, including the ... [private] area. She kept telling the man to leave and to stop, and finally got him out of her apartment." The following day, Koons met with a therapist, L. Knutson, at UMMHC. The session notes disclose that, even then, Koons thought that police may have had concerns over the veracity of her report and her identification of Patterson. And the notes further disclose intervention in the police work by Koons's friend and County worker, Joy Torvinen. In her session notes, the therapist reported, "She [Koons] believes that the officers haven't believed her. She'd talked with Joy [Torvinen] about this. "Joy Torvinen called in session. Police Chief, according to Joy, wants more experienced people dealing w/case and he may do so himself. Release is signed to allow this office to talk with police. Chief is contacted. Charlene will meet w/ him immediately after this session. ... Charlene is distressed - both by reported events and feeling not believed." But Patterson, in interview, asked, if someone was going to force their way into someone's apartment, would they be wearing a cap with their business name on it? Further, the police interrogation report discloses that Koons described her assailant as having worn a "coat," Patterson said that the J & B security tape (presented at trial) disclosed that he wasn't wearing a coat that night, but there was another customer at J & B who was wearing a jacket. Patterson, who has friends who live in the same building, firmly denied having been in Koons's apartment building that night, and ever having been in her apartment. An initial charge against Patterson for gross misdemeanor 5th degree criminal romantic conduct was filed in 2001, but as trial approached with Patterson's refusal to plead guilty, it was upgraded to a felony with the burglary charge (max. penalty 20 yrs. and/or $35,000) added. Patterson was represented by Todd Peterson, Esq. of St. Cloud at trial, October 17, 2002, before the Honourable Judge John Smith. The prosecutor was Hubbard Co. Attorney Greg Larson. Having heard all of the evidence, the jury took, per Patterson, about an hour to return a Not Guilty verdict on both charges. Diogenes's Lantern. Northern Herald's version of voice stress analysis (VSA) software is experimental and has not been statistically evaluated as to accuracy and performance. Additionally, Northern Herald staff do not have expert training in the use of VSA for truth verification. Given this, Mr. Patterson's interview responses were analyzed using our implementation of VSA at an 85% threshold of stress. The results indicate that Patterson was being truthful in his denial of having committed the alleged acts, as well as his denials of being in Koons's apartment building, at all, that night, and of ever having been in her apartment. Further, the VSA results indicate that Patterson was also being truthful in his statements regarding Koons's previous invitations to her apartment, including the one made that night when they were at J & B; and his declining of those invitations. =========================================================== From Vol. 8 No. 6 - 06/30/03 ------------------------------ Leading Edge Journalism ANOTHER ITASCA CO. MAN CHARGED IN LIKELY FALSE ACCUSATION BY STEP-DAUGHTER Incurs $25,000 in Legal Costs; Charge Assisted by Women's Advocate GRAND RAPIDS -- Since practically the beginning of time, children have had disputes with the parents that raise and support them. It is not doubtful that Cain and Abel had a few spats and tantrums with Adam and Eve. But now, under current law and the way it is administered, when children, in an effort to get out of the house, make up stories about their parents, it can be extremely expensive, and the parents can actually be criminally charged and face prison time. A national newsmagazine recently asked, on it's cover, if children, nowadays, have too much power. Sheenah Choe Yoo Jin Paquin, a 16 yr. old adopted Korean child of Tom Paquin, of Coleraine, and Mrs. Jeffery Borash (formerly married to Tom Paquin), Grand Rapids, decided she wanted to live with her father, rather than her mother and stepfather, and didn't want to visit them anymore. So now her stepfather (married to Sheenah's adoptive mother), Jeffery Borash, 39, a Grand Rapids tile & flooring contractor, finds himself accused of unlawfully fondling her, accusations he adamantly denies. The six separate criminal charges, all stemming from the same accusation, carry up to 135 years in prison and/or fines totalling $185,000. The complaint, dated 03/28/03, and signed by Grand Rapids Police (GRPD) Officer Stephen Valley and prosecuting attorney Heidi Chandler, states that Sheenah Paquin told GRPD officer Brent Bradley, that when Borash would wake Sheenah up in the morning for school, he would give "her a back rub, then progressed to three or four occasions of him touching or rubbing her ... [private areas] ... on top of her clothing, and then multiple acts of touching and rubbing her ... [private areas] ... underneath her clothing by pulling up her shirt and pulling down her pants. She stated that he also attempted to French kiss her on multiple occasions. She stated that on one occasion he attempted to penetrate her [private area] with his finger." From this allegation, the complaint cites 3 counts of Criminal Sexual Conduct in the first degree under M.S. 609.342 Subd. 1(b), 1(g), 1(h)(iii) and 609.17; and 3 in the second degree under 609.343 Subd. 1(b), 1(g), 1(h)(iii). The charges, based on the girl's statements, without other corroborating evidence, and which do not specify any date, except for "May 2001 through approximately mid-July 2001" when the acts allegedly occurred; were brought by the office of Jack Muhar, Itasca County Attorney, with the assistance of an advocate believed to be from Grand Rapids' misnamed Itasca Alliance Against Sexual Assault, a women's advocacy organization which receives state funding for developing such cases, and are being prosecuted by Heidi Chandler of Muhar's office. Borash said that he had incurred, thus far, about $25,000 in legal fees, for two attorneys, to defend himself against the likely false accusations. The matter goes to trial in Grand Rapids before Judge Hawkinson September 9th, 2003. Sheenah Paquin is presently living with her (adoptive) father, Tom Paquin, and his wife, Melanie, in Coleraine. Tom procured, on 02/20/03, an order for protection which prevents visitation with her mother at the Borash home (case no. 31-F6-03-350). Tom Paquin, believed to be employed as a District Coordinator for American Family Life Assurance Co. (AFLAC), refused to comment on the facts of the case, and refused to permit Sheenah to do so. Jeffery Borash described Sheenah as a disciplinary problem child at times, particularly after her mother's divorce from Tom Paquin and remarriage to Borash. "[My wife and I] talked and I think a lot of this was Sheenah seeing her mother so happy; it's a sad thing to say that a daughter would do this to, you know, a stepfather and a mother," he said. He said that she had a history, at home, of making up stories for attention when she felt neglected. Court transcripts, as well as police interrogation reports, disclose disciplinary matters as a prime reason why Sheenah didn't want to be in the home of Borash and her mother (Borash's wife). In police interview, Sheenah's mother said, "she started getting in a lot of trouble at home ... I'm glad she's in therapy ... I've intercepted many of Sheenah's notes that she's written [to schoolmates, and others] since sixth grade [approx. 1999] ... that have been very alarming. My daughter has a tendency to sensationalize and she's done it for many years...." In an involved police interview, Sheenah reiterated her accusations, but inspecting the record, for the only one to which there was an independent witness (her mother, who happened to walk by Sheenah's room that morning), the record discloses a pronounced contrast between what Sheenah said and what her mother saw: Per Sheenah (from police investigation reports): "And I remember laying there and he's like on top of me trying to kiss me and I remember looking up and I saw my mom - like behind him - like her head in my doorway...." But Mrs. Borash told police that Jeff was just sitting on the side of the bed; "I went down to talk to Jeff ... the door was wide open ... Sheenah was there wide awake and clothes on and everything...." and Mrs. Borash reported no conduct that would be unusual where a stepfather has stopped by the room to make sure his stepdaughter was awake. Both Mr. and Mrs. Borash have said that Jeff had a good family association with Sheenah, with few conflicts except when guidance and discipline was needed. Sheenah's mother said that, during the time period when the acts allegedly occurred, "My daughter has never shown any discomfort or fear of Jeff whatsoever." And records disclose that Sheenah first began to accuse Borash, in speaking with schoolmates, much later, during a period, in late 2001, when she was having arguments and behavioural conflicts (teenage things, like whether she was old enough to be permitted to wear makeup) in the Borash household. Sheenah told the accusation to her father (Tom Paquin), over a year later, on the evening of February 19, 2003, immediately after her brother, a gifted child, for whom she had previously indicated a normal sibling rivalry, had broken two school records for athletic achievement. "... all this [the accusation] is very shocking to me because my daughter initiates - would initiate hugs in the morning and initiate wrestling - and - you know - goofing around," said Mrs. Borash. Jeffery Borash said that Sheenah's grandparents, Robert and Gladys Paquin, of Bigfork, seldom even visited the children, but he's heard that they're now spreading false rumours about him. Borash, in taped interview, indicated only fatherly interest, and no romantic affection for, his stepdaughter, "I love my wife," he said. He strongly denied what his stepdaughter had said: Northern Herald: "Would it be correct to say that at no time did you ever have any intentionally romantic contact with your daughter?" Borash: That would be correct. NH: Were there times when you would wake her up in the morning and ... massage her when there was contact with her endowments or private area? Borash: I never touched her endowments or private area, as you call them; there were times when, [in the evening, she'd ask] 'Jeff, you going to work tomorrow? Could you wake me up on the way out?' [I'd say,] 'I'll wake you up.' [The next morning] I'd open the door, I kneel down on the bed, I'd maybe rub her back ... her upper shoulders, [and say,] 'Sheenah, I'm going to work - you wanted to get up,' [she'd say] 'Thanks Jeff,' and out the door I'd go." Borash acknowledged that, at some time, unintended contact might have occurred, "when giving her hugs ... I felt uncomfortable giving her hugs ... I felt like she was pressing her [chest area] into my body ... at times she would straddle the side of my leg with both of her legs, you know, and I'd have to set a space limit there." As to the part of the complaint which alleges pulling up Sheenah's shirt and pulling down her pants and touching her private areas, Borash said that it was "totally" a lie, and was "probably written by the advocates." Borash said that the allegations that he tried to French kiss her were, "Totally a lie," and that he never did that. Reciting the part of the complaint that alleges that Borash tried to put his finger into Sheenah's private area, NH asked: "Did this ever happen?" Borash: "No, it did not." NH: "Did anything like it happen?" Borash: "No. ... I never attempted to put my finger inside her [private area.]" and Borash called that accusation an "outright lie." NH: "Nothing even remotely like that, or that could have been mistaken for that, ever happened?" Borash: "No." Diogenes's Lantern. Routinely, Northern Herald verifies credibility of statements using Voice Stress Analysis (VSA) - a kind of lie detector now used by many law enforcement agencies. Our version of VSA is experimental and has not been statistically evaluated as to accuracy and performance. Additionally, Northern Herald staff do not have expert training in the use of VSA for truth verification. Given that, from experience, we have found it to be an effective tool, even when used by Northern Minnesotans like us. Jeffery Borash's VSA analysis was one of the cleanest we've seen. At an 85% stress threshold, it showed no abnormal stress in his denial of each of the accusations, in several different samplings, with varied wording of the questions. The test indicated that Borash was being truthful when he said that has never French kissed Sheenah or had other romantic contact with her; that he never tried, intentionally, to put his finger in Sheenah's private area, and, further, that nothing like that, or which could even have been mistaken for that, has ever happened. ================================================================ From Vol. 9 No. 1 - 09/29/03 ------------------------------ AUDITOR'S REPORT DISCLOSES MAJOR MISSPENDING BY WOMEN'S SHELTER ST. PAUL -- A recent Legislative Auditor's report uncovered severe misappropriations of money contributed (including, largely, state grants), to the "charitable" and "non-profit" St. Paul-based Women's Advocates, Inc., which operates both shelter and advocacy services, and received almost $5 million in state dollars during the 2001 through 2003 fiscal years. The report states that the Women's Advocates Executive Director, during that period, was allowed to set her own compensation at $170,000/yr., and additionally misappropriated $20,000 to her retirement account, $30,000 for a loan, and $200 for contributions to the political fund of the late Sen. Paul Wellstone. She also gave herself 13 weeks of paid vacation (over $23,000), and a "bonus" of approximately $17,000. For this complete Associated Press story, readers are directed to "Audit finds state-funded charity misspent money" in the 9/7/03 issue of The [Bemidji] Pioneer; or online [St. Paul Pioneer-Press version] at http://www.twincities.com/mld/pioneerpress/news/local/6703836.htm ================================================================== From Vol. 8 No. 6 - 06/30/03 ------------------------------ MEN LOBBY AT CAPITOL ST. PAUL -- In the final days of the budget, a number of men gathered at the Capitol, May 28th, 2003 to encourage further future cuts to funding of the women's advocates and shelters, which have become known for using their tax-supported grant funding to suborn perjury before the courts, and to house women who have not been "battered," including ones who had kidnapped children from the custodial father, and where the shelter was used to harbour them when police were seeking their whereabouts. The men held a public awareness rally on the Capitol steps, and then went inside to speak, one-on-one, to legislators. Judiciary Finance Committee Chairman, Rep. Steve Smith, said that the advocates and shelters will see about a 3% reduction in funding this year; his committee had recommended a larger cut, but it was vetoed by Governor Pawlenty. The men will continue to push for greater cuts next session. For information, or to present your representative case to, or give testimony before legislators, affected men may call this newspaper at 218-759-1162, or email norher@uslink.net Photo Captions (photos are not included in The Library edition): Thomas Miller, of Grand Rapids, and Charles Aldrich of R-Kids, a men's and father's rights organization based in St. Paul. Brian Affeldt, also of R-Kids, came from Alexandria to attend the rally and lobby. Knute Gladen holds the Bear False Witness Bear. The Bear False Witness Bear, as interpreted by artist Kendra Mirabal, (then) 6th grade, Grand Rapids, was inspired by the practice of Grand Rapids' "ADVOCATES For Family Peace" and other courtroom travesties. ============================================================ From Vol. 2 No. 11 - 02/24/97 ------------------------------ Letters to the Editor BLACKDUCK MAN, FORECLOSED, TELLS OF MISREPRESENTATION BY BEMIDJI FIRST FED. Commerce Dept. Concurs; but Local Courts, Federal Regulators Offer No Relief To the people of Northern Minnesota who deal with the group that operates the chain of lending institutions that calls itself FIRST FEDERAL BANKING AND SAVINGS, of Bemidji, Bagley, Walker and Baudette, Minnesota: You would probably do yourself a favor and probably save yourself a lot of GRIEF and MONEY if you were to walk into First Federal and ask, point blank, of their head officers, if they HONOR THE CONTRACTS THEY WRITE? Should they tell you, yes, they do, ask why they foreclosed on a contract with Jerome and Charolette Dirkes of Blackduck, who bought 96 months of insurance coverage, both life and disability, through the lending system. When Mr. Dirkes was disabled, [it turned out] the lending institution in truth had only provided 24 months of coverage, without permission [to substitute for the policy purchased] or rebate. And that is only 25% of the coverage called for in the written contract. Then ask these same officers how the attorney they use [Ralph T. Smith] passed this contract through Judge Paul Rasmussen and got a foreclosure on property supposedly protected by the insurance paid for in advance by the Dirkeses at the rate set by the bank itself! You have to know this: you have no protection through the State. The Attorney General [Skip Humphrey] will tell you it's a civil matter, and the Federal officials that license these lending institutions will tell you the same. You have no protection. The legal system is on their side, they have the money. I believe the people of Northern Minnesota should think twice about a contract with First Fed. Sincerely, Jerome Dirkes Blackduck, Minnesota Editorial Note by Northern Herald: Background: Upon taking out a mortgage with First Fed, July 20, 1993, Mr. Dirkes purchased from First Fed, as agents for US Credit Life Insurance Company, a policy for the 96 month term of the mortgage, covering the payments in the event that Mr. Dirkes became disabled. We have reviewed the documents, and in fact, the contract Mr. Dirkes signed at First Federal, and for which he was charged ($1,557.21), by inclusion in mortgage principal, calls for 96 months of coverage, having a total stated "Initial Amount of Insurance" of $36,298.56 (also the amount of the mortgage). Claiming an error, on their part, at the time of writing the policy agreement, First Fed substituted a policy which only covered payments for a maximum of 24 months. First Fed has since claimed that they sent Dirkes notice of the substitution, but he states that he never received same, and assumed that the terms of the policy he had agreed to, and paid for, were protecting his mortgage through its term. During the term of the mortgage, Mr. Dirkes became disabled and could not make the payments. It was then that he learned of the policy substitution. Dirkes says he paid $1,100. in legal fees to stop the foreclosure and enforce his insurance contract, but without result. He was foreclosed in 1996. In a letter to the Office of Thrift [Savings & Loan] Supervision, Greg Schaefer, Investigator for the Enforcement Division of the Minnesota Dept. of Commerce, having reviewed the documents, listed his findings: "It seems deceptive to represent $36,298.56 as the 'Initial Amount of Insurance' when it would be extremely unlikely the insured/debtor could ever collect more than $9,074.64 (24 months x 378.11);" and "The loan agreement authorizes the purchase of credit disability insurance for a 96-month term, but the debtor ultimately was issued a 24-month benefit period." Schaefer also noted the following concerns: "If insured/debtors were required to sign credit insurance certificates, it would be easier to determine whether the parties agreed to a change in coverage;" "When creditors and insurance companies are selling credit disability policies for maximum benefit terms that are substantially less than the length of the loan, prominent disclosures should be made to prevent similar misunder- standings from reoccurring in the future;" and "USLife Credit Life permits disability periods up to five years on loans with terms up to 60 months; however, in loans which exceed 60 months, it reduces the maximum benefit period to 24 months. It does not appear that the premium rate for the two-year benefit period reflects an actuarial equivalent of the five-year benefit period." Notwithstanding the findings of the Department of Commerce, neither the Office of Thrift Supervision (OTS), at Dallas, nor any other agency has, as yet, afforded the Dirkeses relief from the misrepresented insurance contract, and subse- quent actions of First Federal. Paul Lockwood, with OTS press office, Washington, D.C. said, Feb. 21st, that OTS could not take action in the matter because it had gone into litigation, and further, "If it's an alleged breach of contract, ... that comes under state law... the only time we can take action against an institution is if it's a violation of Federal law or regulation." Lockwood indicated that OTS would not be acting on this matter. The question of whether fraud by a Federally- chartered lending institution constitutes a violation of Federal law was not discussed. The Dirkeses, however, may find relief from the Minnesota Dept. of Commerce (DOC), which informed Northern Herald, Feb. 21st, that they had not closed the file when they referred it to OTS. "The matter is under investigation," said Denise Dimmler, DOC press spokeswoman. DOC cannot act against the bank, because it's Federally chartered, Dimmler explained, but it can act against the insurer to enforce the policy that was written through their agent, First Federal. Dimmler said that, if a violation is proven, enforcement action could range from a civil penalty or fine, to pulling the Minnesota license of the insurer, US Credit Life. Meanwhile, under threat of foreclosure sale to have been held August 20, 1996, the Dirkeses redeemed the property, selling off personal assets to make the continuing mortgage payment. But Mr. Dirkes said, "I'm getting down to the end of the line," as he stated he gets $463 per month as disability to live on, and $417 of that goes to First Federal so he can keep his home. We have attempted to contact First Federal for their statement on this, but have been unable to speak with the proper person by presstime. This is not the first time there have been questionable dealings by First Federal Banking and Savings. We have knowledge of another incident, a few years back, where said bank foreclosed on another customer's land by way of what appears to be a forged mortgage instrument. In this matter, the landowner, who did not dispute that he had mortgaged his home, claimed that certain other property he owned, (hereinafter referred to as the "additional security") worth about $55,000, had been typed into the mortgage instrument, as security, after he had signed it and without his knowledge. In this matter, we have had cause to inspect the mortgage document, on file with the Clearwater County recorder, and that document, in fact, does show signs of forgery in that, where the "additional security" is listed, the margins (old-style typewriter as would have then been used) are different from the rest of the document, as would be the case if the document was first prepared, signed, and later reinserted into the typewriter for the addition of that paragraph. In this case, there may also have been collusion by another area bank, as First Federal came into possession of the abstract for the "additional security" without the landowner's knowledge. He had given that abstract to another lending institution which had held an earlier mortgage on it. As with the Dirkeses, in this earlier case, the landowner was unable to obtain assistance, of local attorneys, or otherwise within the legal system here, to prevent foreclosure by First Federal. In this case, they lost the land by foreclosure sale. As the reader might understand, the banks themselves are pretty much immune from regulation. If customers contact Federal regulators, they may be told it's a state matter. But the state authority does not have jurisdiction over Federal banks. The only remedy is then in the courts and their officer/ attorneys, which, up here, is sometimes no remedy. Given the lack of regulatory action, and of judicial remedy, the consumer is best advised to act with extreme caution, and to be aware of the integrity of the financial institutions with which he may do business. -- Ed. From Vol. 2 No. 12 3/17/97 ----------------------------- FIRST FEDERAL BANKING AND SAVINGS INSURER ORDERED TO SHOW CAUSE BEMIDJI -In a notice alleging five separate incidents of misconduct in regard to a mortgage policy sold to Jerome Dirkes of Blackduck, the Minnesota Commissioner of Commerce has ordered USLife Credit Life Insurance Company (USLife) to show cause why they should not be subject to discipline or civil penalty. The subject mortgage was written through First Federal Banking and Savings, Bemidji, which, as agent for USLife, sold the policy to Mr. Dirkes in connection with making the mortgage. The notice and order was issued on February 27th. [Initial coverage of this matter may be found in NH of 2/24/97.] USLife's response to the order, issued under the Authority of the Minnesota Attorney General, and prosecuted by Assistant A.G. Fabian Hoffner, St. Paul (612-296-9412), will be heard at 9:30 a.m., May 5, 1997 before Administrative Law Judge Jon Lunde, in Minneapolis. Possible sanctions against USLife, as cited in the notice and order, include revocation or suspension of their Certificate of Authority (insurer's authorization to do business in Minnesota), and/or imposition of a civil penalty. The controversy originates from a transaction on July 20, 1993, when Dirkes mortgaged his home with First Federal Banking and Savings, Bemidji (FirstFed). At the time, he was sold, and was charged for what was purported to be a 96-month credit disability policy, which would make the mortgage payments for the full term of the loan if Dirkes became disabled. But, claiming an error, FirstFed later substituted a lesser policy which would only make payments for 24 months. Dirkes claims he never agreed to the substitution nor received notice of same, until he, in fact, became disabled. In 1996, with payments ended under the 24-month policy, FirstFed began foreclosure proceedings against Dirkes. Dirkes was able to redeem the property prior to scheduled sale, selling off personal assets to make the continuing mortgage payments. But Mr. Dirkes said, "I'm getting down to the end of the line," as he stated he gets $463 per month as disability to live on, and $417 of that goes to First Federal so he can keep his home. Dirkes says he paid $1,100. in legal fees to stop the foreclosure and enforce his insurance contract, but without result. The Office of Thrift Supervision, Washington, declined to take action in the matter. The Commissioner of Commerce's Notice of Hearing and Order to show cause, alleges that USLife, in violation of Minnesota law: 1) "Has engaged in unfair or deceptive acts and practices by reducing coverage without having been given affirmative consent in writing...."; 2) "Has engaged in an unfair and deceptive act by... [making untrue, deceptive or misleading statements with regard to insurance.]"; 3) "Has misrepresented pertinent facts or insurance policy provisions relating to coverages at issue...."; 4) "Has refused to pay claims without conducting a reasonable investigation...."; and 5) "Has compelled insureds to institute litigation to recover amounts due under an insurance policy by offering substantially less...." This matter was investigated by Gary Schaefer, of the Minnesota Dept. of Commerce. Public (press) information furnished through Denise Dimler, of that office. [Consumer note: Although credit life and disability insurance, as a matter of convenience, are frequently sold by a lender, at the point of closing a mortgage or loan, some people recommend that such coverage never be purchased through the same entity that has an interest in the mortgage (i.e. that stands to benefit in the event of foreclosure, e.g., the lender). These policies are generally available also through independent insurance agents, so a borrower may often procure coverage at his own usual insurance agent, rather than through the bank or S&L. This coverage may not be required as a condition of the loan or mortgage. -- Ed.] [PICTURE CAPTION - PHOTO IN PRINT EDITION ONLY] What Dirkes signed at First Fed. Despite the poor copy quality, the 96 month term (more clearly visible on the original) of the insurance contract is shown in the two instruments, above and below. [PICTURE CAPTION - PHOTO IN PRINT EDITION ONLY] The Dirkes matter is not the only time practices of First Federal Banking and Savings have been questioned. At left is a mortgage, in an unrelated matter, where the landowner has claimed that FirstFed altered (forged) the mortgage instrument after he signed it. By FirstFed's filing of the allegedly altered instrument, they were able to foreclose on land, worth over $50,000, which the owner had not pledged as security. The mortgage instrument, at left, bears signs of alteration in that the margins of the center paragraph are different than those of the top, and of the typed landowner's name (not shown here, appears in the recorded copy where the small black rectangle is) at the bottom, as if it was reinserted into the typewriter after signing, for insertion of the middle paragraph, which describes the additional land. (The vertical line, depicting original margin, has been added for clarity.) From Vol. 2 No. 14 04/28/97 ----------------------------- NEWS COVER-UP ATTEMPTED IN FIRST FEDERAL BANKING AND SAVINGS MARKETS HEARINGS SET MAY 5TH, 21ST Yep, someone just doesn't want you to be able to read the news. Two issues back, we carried the report of the Minnesota Dept. of Commerce and the Minnesota Attorney General having issued an Order to Show Cause against US Life Credit Life Insurance Company, in conjunction with public dealings by it's agent, First Federal Banking and Savings (First Fed) (located in Bemidji, Bagley, Blackduck and Walker), under the headline: FIRST FEDERAL BANKING AND SAVINGS INSURER ORDERED TO SHOW CAUSE. It was an important story, because it detailed how First Fed, acting with US Life, has (allegedly) tried to defraud a Blackduck man out of his home. And it was important because it was an exclusive - although the information is public record and freely available through the Department of Commerce (DOC), we haven't seen it in any other paper. Of course, First Federal has a lot to spend on advertising. So if you didn't read it here, you didn't get to read it. And some people didn't want you to read it. At several locations in Blackduck and Walker, with isolated incidents elsewhere, someone apparently went into our sales, as well as complimentary, locations and turned that issue upside-down, so the headline wasn't visible, or in some cases, dropped a folded paper over the headline, with the same effect. The number of similar instances indicate a concerted effort. It illustrates a basic lack of respect for property - whether it's a newspaper, a retailer's store and inventory or your home. Fortunately, there are enough locations in these cities that the news could not be successfully suppressed. And we thank our retailers in Bemidji, Bagley and elsewhere who wouldn't tolerate these kinds of shenanigans. We will continue to report this story, as it develops, including Mr. Dirkes' suit against First Fed, and the DOC action which comes to court in Minneapolis, on May 5th. And we will continue to provide straight news reporting for the Northland no matter how much the crooks (our opinion) at First Fed, or anyone else, has to spend on advertising to suppress it. The news will get out. We are prepared, if necessary, to have the next issue, with results of the DOC action, dropped from airplanes in those First Federal markets where the attempted suppression of the March 17th issue occurred. Finally, we are intrigued with First Fed's intensive new ad campaign - when you hear them say "First Federal wants you to own your own home." Well, from what we've seen, in two instances, they should say, "First Federal wants to own your home." In the Dirkes' civil action against First Federal and US Life, trial has been reset for May 21, 1997 at 9:15 am, before Judge Mondry, at the Beltrami County Courthouse. From Vol. 2 No. 15 05/19/97 ----------------------------- FIRST FEDERAL - USLIFE CASE CONTINUED MINNEAPOLIS --Hearing before Administrative Law Judge Jon Lunde, previously set for May 5, 1997, in the matter of the Order to Show Cause served by the Minnesota Department of Commerce on USLife Credit Life Insurance Company (USLife) has been continued (postponed) to May 20th. The order, directing USLife to show cause why disciplinary action should not be taken, results from First Federal Banking and Savings (FirstFed), Bemidji, as agent for USLife, having sold Jerome Dirkes, of Blackduck, a disability policy in connection with a mortgage. It was represented as covering the full 96 month term of the mortgage. (See NH of 03/17/97.) But subsequently, FirstFed, claiming an error, substituted a policy that would only make payments for 24 months. Following Dirkes' becoming disabled, and the lapse of the 24 month payment period, FirstFed began foreclosure proceedings. At issue is whether Dirkes was properly notified, and agreed to the policy change. He claims he was not, and did not. Per the deposition of Dirkes' wife, Charolotte, FirstFed officer Warren Meissner, at one time, gave her a new policy certificate, requesting the old one back with the explanation, "I made a mistake." But he told her of no change to the policy. She said, "I had no idea why he was replacing the papers." From Vol. 2 No. 16 06/09/97 ----------------------------- MONDRY ISSUES SUMMARY JUDGEMENT FOR FIRST FEDERAL BEMIDJI --Judge Mondry, sitting in Bemidji, issued summary judgment May 16th in favor of Defendants First Federal Banking and Savings (First Fed), Warren Meissner and USLife Credit Life Insurance Co., in a suit brought against them by Jerome Dirkes of Blackduck. Dirkes claimed that First Fed, as agent for USLife, had sold him a 96 month term mortgage disability policy, and then, claiming a mistake, changed it to a 24-month benefit policy without his notice or consent. Dirkes said he became aware of the substitution when he, in fact, became disabled and the payments were to stop. Under law, summary judgment may only be entered where there is no genuine issue of material fact contested. In practice, however, courts often use summary judgment to prevent the facts from going before a jury. In a separate action stemming from this incident, USLife is presently subject to an order to show cause, issued by the Minnesota Department of Commerce (See NH of 3/17/97). In the order, the Commissioner of Commerce alleges that USLife "Has engaged in unfair or deceptive acts and practices by reducing coverage without having been given affirmative consent in writing...." This matter is expected to be heard in Minneapolis, June 17th. From Vol. 2 No. 17 06/30/97 ----------------------------- DIRKES/DOC-FIRST FED/US LIFE CASE "EVAPORATES" BEMIDJI -- The case brought by the Minnesota Dept. of Commerce (DOC) against First Federal Banking and Savings (First Fed) Insurer, US LIFE Credit Life Insurance Company, scheduled for hearing before Administrative Law Judge Jon Lunde, at Minneapolis, has been taken off-calendar with no reason given. The Dept. of Commerce, which first provided details of this action, said "It's still an open investigation, I can't comment on it," per their spokesman, Jay Haig. DOC had issued an order to show cause why sanctions should not be imposed on US LIFE due to their having sold to Jerome Dirkes, of Blackduck, through First Fed, as their agent, a credit disability policy represented as having a 96 month term. Another policy, with a 24 month term was substituted. Dirkes said he did not consent to the substitution, and did not know of it until he, in fact, became disabled. ================================================================== From Vol. 2 No. 1 09/23/96 ---------------------------- AAKHUS SENTENCED BEMIDJI -- Robert John William Aakhus, 18 year old son of Jeff Aakhus, District 4A legislative candidate, of 9665 Power Dam Road, Bemidji, was sentenced on September 13th, before Judge Preece, on a charge of having set a negligent fire. At the sentencing, a 3rd degree burglary charge, relating to an attempted break-in at Video City, was dismissed. Aakhus was ordered to pay a $1,000 fine for having set the $150,000. fire. A 3 year stay of imposition of sentence was ordered. The stay of imposition means that no jail or prison time was imposed, and will likely not be imposed if Aakhus remains law-abiding for the next 3 years. Aakhus was allowed time to pay the fine. Additionally, restitution in the amount of $41,578 to Joseph and Sherry Day, and $110,001.95 to their insurer was ordered. It is not known how Aakhus, who was represented by Kristine Kolar, state public defender, will be able to pay the restitution for the damage done. According to the filed complaint, at about 6:00 am, April 11, 1996, Aakhus had entered the garage of neighbors Joseph and Sherry Day, 5025 Power Dam Road, and lit a match to look around. He put the matches down on a shelf and left, going from there to Video City video store, Bemidji, where he attempted to pry at a window to gain entry. The prying triggered an alarm. Sgt. Jerry Johnson (BPD) arrived shortly and reports in the filed complaint, "Aakhus explained that he wanted to get inside to obtain money". Aakhus's purpose in having been at the Day garage, earlier, is not disclosed in the complaint. After Aakhus left the Days' detached garage, the matches apparently ignited a fire which spread to the Day residence doing about $150,000 damage. In their Victim Impact Statement, filed with the Court on August 26th, the days state, "The defendant ransacked 3 of our vehicles, entered our garage and caused [it] to completely burn... down, and cause[d] our house to catch fire and burn. whereby destroying the dwelling. "The fire caused two of our vehicles to be damaged - a 1956 Willis Wagoneer, destroyed beyond repair, and a 1965 classic Mustang to be damaged. "The crime caused our family to lose all of our personal effects, and displaced us from our home and did cause our family emotional distress. "The defendant, when apprehended, was told to me by the investigating police officer, that Robert Aakhus had a .27 blood alcohol count. The defendant is 18 years old. Where did he get the alcohol?" [legally intoxicated is .10 --Ed.] The Days' statement continues, "Just because his father is in politics doesn't mean he should be spared the MAXIMUM sentence, ...[with or without]... medical conditions." The prescribed sentence for the fire offense is up to 3 years and/or up to $5,000. fine. Court documents disclose that the agreement to recommend a stay of imposition of sentence, as well as the prosecutor's dismissal of the burglary charge, was arrived at, between prosecutor Sheri Schluchter of Tim Faver's (Beltrami County Attorney's) office and the defendant, in plea-bargain negotiations. Judges are not required to, but usually sentence per these plea-bargain arrangements. Said Beltrami resident Tom Newman, of the action by the County Attorney's office, and his subsequent involvement in a community crime program, "I can't believe that a guy burns down a $100,000 building and the the guy that lets him out [referring to Faver] sits on a committee that says 'We've got to stop that!'" In a statement not related to this incident, Judge Preece announced last week that he will be retiring at the end of the year. ========================================================== From Vol. 1 No. 19 - 04/22/96 ------------------------------ CONSUMER CORNER Readers are invited to submit consumer complaints or compliments to this column, and to our Auto Service Forum. Send info c/o this paper, P.O. Box 1535, Bemidji, MN 56601 LATE-NIGHT SECURITIES HUSTLING Consumer Caution! An out-of-state brokerage firm is now mass-marketing futures options on Unleaded Gas in Northern Minnesota. Before you consider investing in Unleaded Gas, or any other mass-advertised market securities, read this. by Adam Steele, Editor A number of years ago, when my accounting practice was in Minnenoplace, I noticed that, within a relatively close time frame, several different clients were reporting tax losses from a sophisticated investment known as commodity futures options. What was particularly unusual was that these clients were not people who normally traded these types of investments. For a person who doesn't invest in the market to "jump in" to commodities options, is a little like someone who doesn't swim taking his first lesson in the middle of Lake Michigan without an instructor and without a life jacket. As it turns out, an out-of-state securities firm had mass marketed, in Minnesota, a very questionable investment product and a few of my clients were among many Twin Citians and others, who had each been induced to invest $5,000 in options contracts on either silver or foreign currency futures. They lost it all. A review of the contracts sold them revealed that it would have been highly unlikely that they could have ever been profitable, given the commissions and the striking prices. (If these terms are already foreign to you, you have no business dealing in futures options unless you just like to lose money fast.) This would have been obvious to any experienced investor. But apparently the brokerage firms involved had advertised these instruments to ordinary people who did not understand this investment vehicle, were interested in "getting rich quick", and were unsuspecting. Legitimate contracts are always a gamble, but the ones we just discussed were written to be almost a sure loss for the investor. The firm that had sold them was later subject to SEC investigation. Commodity futures options are a legitimate investment that can result in profit, sometimes very substantial, if you know what you're doing, and if the market goes with you. They are highly volatile, and speculative, and differ from the stock market in that they can also result in loss of your entire investment in a relatively short time. No matter how much in demand the commodity, they are by no means the sure thing that some, less than reputable, brokers make them out to be. In the past few weeks, a new "infomercial" (30-60 minute commercial program) has been airing on late night TV in Northern Minnesota. It's in the time slot where you might expect to find ads for psychotic friends network, and other such products we can't live without. Except this one advertises, yep, you guessed it, commodity futures options on unleaded gasoline. The ad speaks mainly of the upside potential of these investment products and highlights that the market price of unleaded gas has a tendency to go higher in the coming "driving months", accentuating the possibility of quick profit. The ad gives an 800 number to call for more info. A call to the number, with follow-up the next day, revealed that the advertiser is Cromwell Financial Services, Fort Lauderdale, Florida. They require $5,000. to open an account and offered to send a packet detailing the investment. We took them up on it. The packet sent included a form to open an account with Cromwell, some general information on unleaded gas futures, and some general information on leveraged investments. In this, it is my considered opinion that the information provided was calculated to accentuate the profit potential without sufficient information on the loss potential. In other words, what they sent was not a prospectus, it was a sales tool. It also included a prepaid Federal Express Airbill so that we could get our check for $5,000 to Cromwell immediately. No specifics of the options Cromwell was offering (striking prices, premiums, etc.) were included in the packet; these matters were left to telephone negotiation (as is not uncommon in securities transactions). So we called the firm and spoke to a broker. He offered 5 August options, about 8 cents out of the money, for a premium of about $940 plus $200 commission each; for a total of $5700. He did allow that the options might be had cheaper the following day. Shortly thereafter we checked the listed premium for the options described, per a major clearing house; it was $819. The premium discrepancy could have just been due to momentary market fluctuation; what is more important is that the broker used "boiler-room" hard sell tactics that might work on someone who doesn't know the market and is lured in by the ad. Only 8 cents out of the money sounds attractive if you don't know the market; this was nowhere near the "sure-thing" it was made out to be. For these options to be profitable at expiration, the market would have had to move by about 17%. This is a very substantial move, particularly considering the market was already near it's seasonal high for the year to date. To avoid losing all of the investment, at expiration, the market would have had to move by about 13%. Also very speculative, and not recommended by other brokers, with major firms, who we contacted. The options could have become profitable on less movement prior to expiration, but this, too, is highly speculative. We are not by any means saying that Cromwell is not a 100% legitimate firm, or that this is not a 100% legitimate offering. We certainly question their sales techniques; most legitimate brokers don't employ a boiler-room type hard-sell, and don't try to panic clients to "send the money now" to avoid "missing the market". People who are considering this type of investment should be aware of the following: 1) Commodity futures are a highly sophisticated leveraged investment which entails opportunities for large profits, and substantial risk of loss of your entire investment. It's big stakes gambling. If you don't understand this market thoroughly, you don't belong in it (our opinion). 2) Commodity futures options are an even more sophisticated strategy. If you are unfamiliar with these, you probably should not experiment with $5,000. at first. Because these investments are promoted as "limited risk" with understatement of probability of loss, newcomers have been easily lured into attractive- looking trades which lose their entire investment. Even with "limited risk", $5,000 is a lot to lose. 3) The nature of options is such that, depending upon the terms of the contract, you can lose money even if the market goes in your direction (i.e. up, in the case of a call option). You still can lose your entire investment. 4) Options are a zero-sum game. This means that for any position taken, someone has to be willing to take the opposite position (i.e. for you to buy, someone has to be willing to sell). Cromwell seems to be promoting the "buy" side of "call" options, and accentuating why (they say) these are a very good deal. Bear in mind that someone is taking the other side of these options and "banking on" the prospect that they will not be profitable for you. The entity taking the other side (the "writing" side) of these options may be the broker, or an associate of the broker who is selling them to you. 5) The commissions quoted ($200 per "round-turn" contract) by Cromwell are not particularly attractive. A different, major, firm quoted a maximum commission of only $90. The higher the commission, the lower your profit potential. 6) Although the pump price for gasoline has gone up markedly, the day-to-day market movement often does not coincide with the retail trend, and that trend is not necessarily of value in predicting future market movement - in English, you can lose your entire investment in your gasoline security, even though you're paying more at the pump for gas when you fill up your car. 7) These contracts on unleaded gasoline are being marketed on the supposition that the price of gas will go up during the "driving months", which they define as April through August. Market reports do indicate this past seasonality of this market. But the fact that, in the past, most highs have occurred between April and August, is no guarantee that the market has not already reached its peak or that it will peak during any specific month; some highs have occurred in April with the price going down from there, some have occurred in August, and some in between. Future performance cannot necessarily be inferred from past data. Also, and very importantly, because options contracts do not become profitable unless the striking price is reached before the contract expires, the profitability of a futures options contract is not only dependent on market movement, it is dependent upon the terms of the contract. 8) Although there are many perfectly legitimate businesses in those states, it has been our experience that firms which mass-market products, and have had questionable dealings with the public, often tend to be found to operate out of Texas or Florida. This may be due to more lenient laws in those states as concerns collectabilty of claims (as, for instance, from lawsuits). 9) This investment is nothing new, nor is it peculiar to the firm advertising it. Regulated futures contracts and options on commodity futures, including unleaded gas, are exchange-listed options available from many brokers. If this investment is of interest, you don't have to deal with a firm in Florida to get it, you can discuss it with a local or Twin Cities brokerage firm, or any broker whom you trust, and who can fully apprise you of what is available in this market, as well as the inherent risks and the profit potential of leveraged commodity trading. Once again, commodity futures and options should not be traded by persons unfamiliar with these markets. New traders are advised to never act "blind" on any broker's recommendation but to watch and study the market before investing. These investments are always highly speculative and volatile. They are always a gamble. Never invest more than you can afford to lose. In the case of futures (not options), you should know how much you stand to make or lose from each "point" of movement, and when you could be subject to a margin call. In options, you need to know the break-even point, in other words, the price the underlying commodity would have to attain, within the specified term, in order for you to avoid losing the amount you have invested in the contract, and the realistic likelihood of it attaining that price. Most importantly, you should be familiar with the way the commodity you're trading moves. This will fool you as things which "should" move the market often don't. Let's face it, if they did, we'd all be millionaires. So would the people trying to sell them to you. In initial transactions, these matters should be discussed with someone who is familiar with these markets, and who is someone other than the person trying to sell the investment to you. ===================================================== From Vol. 6 No. 2 11/08/00 ---------------------------- LACK OF WILLING WORKERS CITED FOR SHORTENED BEMIDJI GROCERY HOURS BEMIDJI -- Bemidji consumers will no longer be able to get needed supermarket items in the small hours of the morning. The Johannesons' 24-hour Food For Less at Paul Bunyan Mall has been replaced by the newer Marketplace (also a Johanneson store) on the west end. But that Marketplace has gone to a 12 midnight closing. People wanting certain tobacco items face even shorter hours -those items are carried only at Marketplace's "convenience store" which is in the same building as the main store, but closes earlier. Interviewed, Rich Johanneson said that the store now had "winter hours," although the predecessor Food For Less store operated 24 hours, year-around. Johanneson cited area labor shortage and a lack of persons willing to work as a reason, in part, for the shortened hours. "Employment in this area is very difficult to fill. There is definitely a lack of available people for employment in all positions," he said, and mentioned the many help wanted signs that can often be observed on Bemidji's Paul Bunyan Drive. Beltrami County, of which Bemidji is the county seat, has one of the highest welfare rates in the state. With federal time guidelines approaching, some want to qualify cases here for longer duration under the federal hardship provision, and there has also been a political movement to continue funding persistent welfare cases with state dollars when the federal funds run out. Last year, Anderson Fabrics of Blackduck had planned to establish a factory operation at Red Lake which would have provided employment to persons with child care or transportation considerations that would have precluded them from working at the main plant. The plan was soon scuttled however; owner Ron Anderson cited, as the reason, a lack of interested, dependable workers to make up the small workforce needed to run the proposed satellite plant. ================================================== HIGH CORRUPTION ERUPTS AT NEVIS - ANTHOLOGY A compilation of the many reports, from various issues of Volume 7, as this saga at the small town of Nevis, Minnesota evolved. From Vol. 7 No. 2 11/03/01 ---------------------------- Leading Edge Journalism City Council Deposes Lawfully Elected Mayor HIGH CORRUPTION ERUPTS AT NEVIS NEVIS -- In the peaceful and picturesque city of Nevis, in rural Hubbard County, a war now rages over control of civic government. Apparently spurred by an effort of Maureen Cirks, long-time City Administrator, and certain council members, to invalidate last year's lawful election of Phillip J. Harris as mayor, the Nevis City Council voted, on August 23rd, 2001, to strip the duly-elected mayor of his duties to preside over city council meetings, and to bar him from the council chambers; and Cirks has gone farther, bringing before Judge Kracker, at Park Rapids, under the guise of "harassment," an action for a restraining order in an attempt to physically remove him from Nevis City Hall where Harris attends his other mayoral functions. The minutes of the August 23rd special meeting, which Harris contends was called without proper notice, reflect that the Council, comprised of Pam Brown, Al Huesman, Marlin Winters and Bob Wambolt voted, on a motion by Huesman and seconded by Winters, to appoint councilwoman Pam Brown to conduct future meetings. The motion carried 2-1 with Wambolt voting "no", and Brown and Harris abstaining. Brown then offered a resolution, seconded by Winters, to appoint Al Huesman as acting mayor after October 1st. Pam Brown resigned from the Council, effective Sept. 30th, 2001. Per Harris, following the votes, Cirks chastised Wambolt, shaking her finger at him and challenging, "How can you vote like that?" In interview, Cirks failed to deny that interchange. The action of the City Council appears to have been beyond its scope of authority. Nothing in the Minnesota Municipal Codes authorizes such an action; and in response to an inquiry by Nevis councilman Bob Wambolt, Jeanette Behr, attorney for the League of Minnesota Cities (LMC) advised, on November 2nd, 2001, "I am not aware of any legal authority for a city council to remove an elected official's duties." Accordingly, it is Harris's intent to reassume his chair at the November 13th Nevis City Council meeting. As to the action for harassment by Cirks, who, before Harris, has pretty much had a free-hand in running the City government, Harris admitted that they have had political disputes at City Hall sometimes leading to raised voices on both sides. Harris, who is partially disabled, however, firmly denied any attempt to intimidate Cirks or cause her to fear for her safety, as is generally required for a restraining order to issue, and as sworn to in the allegations of her affidavit and petition. Cirks is, reputedly, a karate expert. Harris said that some of the disputes arose as a result of Cirks's withholding of requested and necessary city information from the mayor, including a letter from City Attorney John Masog, and the formulas used by Cirks to apportion funds; Cirks denied this. Said Harris, the disputes, essentially political, resulted from "different opinions on what the purpose and goals of government [are] ...." Harris stated that one dispute arose because Cirks refused to comply with Harris's request, as early as January, 2001, to have handicapped access to City Hall installed, as required by federal law. At the hearing, October 17th, on issuance of a Harassment Restraining Order, Harris, although disagreeing with the premises under which the order was sought, without representation by counsel, and not knowing exactly how to proceed, consented in chambers to not contest the order. At the hearing, Cirks was represented by Nevis City Attorney John Masog. It is not known why the City failed to obtain disinterested counsel for Harris's defense, as civic functions were at issue. The order specifies that Harris may be in the "administrative work area" of City Hall only when accompanied by a police officer. Harris said that that wouldn't pose a problem - a Nevis officer could be present when Harris had to be there. The order recites that it is not "to preclude respondent [Harris] from being in the city council chambers." 350 people, a full-time administrator and a clerk? The 350 or so residents of Nevis pay an exorbitant sewage fee; each of the 202 households pays a minimum of $24 per month, much of which goes to pay Cirks's salary and benefits of about $35,000, in 2000, and the salary and benefits of the City Clerk, about $17,000 per year. The clerk, Carol Fridgen, was added to the payroll in 2000. One of Mayor Harris's priorities has been scrutinizing unnecessary city expense and ensuring that lawful municipal procedure, including council approval of bills before payment, is followed; this may have made him unpopular with some at the newly reconstructed, almost $100,000 City Hall. City Hall is predominantly occupied now by Cirks; when Northern Herald inspected the premises, the clerk was not to be found; we were informed that she was off for the week. The hiring of the clerk was approved by the council at their February 8, 2000 meeting on motion of councilwoman Brown, and second by Huesman. Administrator Cirks was interviewed as to why she supported the hiring of the clerk: Cirks: "I was working Saturdays and Sundays trying to get the work done, and it was more work than I could handle." Northern Herald: "What was taking all the administrative time, aside from sending out about 200 sewer bills?" Cirks: "Operation of the City." NH: "Can you tell me what an average day's work entails here, administering the City of Nevis?" Cirks: I'd just as soon not be taped." Public Reaction. In 2000, Harris was elected by a margin of 108 to 92 votes. He ran against former Mayor Melander, who had made public apologies for severe cost overruns during his term. Harris was determined to see that the buck, and unauthorized flow of taxpayer's bucks, stopped. Harris severely objected to the practice, which may have contributed to Melander's overruns, of the City Administrator issuing checks for expenses that had not yet been approved by the Council, seeking approval retroactively, and Harris refused to countersign the checks. Following Harris's unlawful removal from his duties of office, signs saying, "We want Maureen Cirks audited - We want our mayor back" have cropped up around Nevis, on City Hall, and on the landmark Nevis Muskie at the City Park. In fact, the books of Nevis currently are under audit at the Minnesota State Auditor's office. For that reason, certain documents which Northern Herald has requested in it's investigation, including itemized 2000 general fund disbursements, were not immediately available. Harris now faces a charge, requested by council members Brown, Winters and Huesman, of disorderly conduct by way of Harris's having made an allegedly obscene gesture to a city employee, police officer Bob Potter, at a heated Council meeting on August 14th. The misdemeanor charge is not one for which he can be removed from office, and Harris has defended his action saying that the gesture, taken in the context in which it was made, did not have obscene or romantic overtones, and given the circumstances, it was a valid communication and the only way he could adequately communicate his outrage for Potter's actions at the meeting; that the gesture was the only way of conveying "the same degree of ... [contempt] that he [Potter] did, by implying [that] I was a liar," Harris said. Photo caption (photos are not included in this Library Edition): Duly elected Nevis Mayor Phil Harris, center, is accompanied by former Nevis Mayor James Hukki, left, and advocate Frank Solchaga, right, on October 17th, 2001, at the courthouse at Park Rapids where he defended his right to perform his civic duties at City Hall, in the face of Administrator Maureen Cirks' attempt, under the guise of "harassment" (non-romantic) to have him barred from the city offices. From Vol. 7 No. 3 12/08/01 ---------------------------- Leading Edge Journalism NEVIS COUNCIL REFUSES TO FOLLOW LAWFUL PROCEDURE NEVIS -- The Nevis City Council continued to refuse to abide by the Minnesota municipal statutes, holding a meeting November 13th but refusing to allow Nevis mayor Phillip Harris to preside over the meeting as required by law. Shortly after the meeting convened, the council took up the matter of whether it should proceed with Harris presiding. Councilman Wambolt presented a letter from attorney Jeanette Behr, of the League of Minnesota Cities (LMC), indicating that the attorney could find no authority for the Council's removal of the duties of the mayor, as was done at their August 23rd meeting. But other councilmen also produced a letter from City Attorney John Masog and contended that, per that letter, Masog believed that the actions of the council, in removing Harris from his duties as mayor, were proper. Masog was not present at the meeting. Wambolt, however, examined the letter and said, "this letter doesn't state that the City [Council] had the authority [to remove the mayor's duties]." In advising the council in his letter, Masog had relied on the general provision of Minnesota Statutes (M.S.) 412.191 that, "The council shall have power to regulate its own procedure," apparently interpreting that to extend to a power to define the duties of the mayor and acting mayor, notwithstanding that those duties are specifically addressed by other state law. (see The Law, post) Don't confuse me with the law, let's just do what we're going to do. City Administrator Maureen Cirks replied to Wambolt, apparently angered by his attempts to follow legal procedure, asking, "Why are you making so much out of this? Why are you going on and on and on about this?" Wambolt replied, "Because I want the laws to be obeyed." Addressing the matter of the signing of City checks, which, since August 23rd, has been performed by the Council-appointed acting mayor Al Huesman as the City has not presented such checks to Harris for proper signature, Wambolt also read from the LMC letter "to prevent an elected official [i.e. Harris] from signing checks could, in itself, be a violation of state law. Minnesota statutes require the mayor to sign certain documents. Every contract, ... license, or other written instrument shall be executed on behalf of the City by the mayor and the clerk." It was asserted that the authority of the acting mayor to perform these functions was limited to existing only in the absence of the mayor. It came out, at the meeting, that former councilwoman Pam Brown also has a signature card, on the City account, on file at the bank, and so can sign City checks. Councilman Wambolt asserted that, in addition to the action of the council in removing the mayor's duties, August 23rd, being, per the LMC letter, without authority, he believed that it may also have been procedurally incorrect because it was deemed passed on a vote of 2-1 with a quorum of five present. Wambolt argued that even if it had been a proper matter for the Council to consider, it would have required at least 3 "yes" votes to constitute a majority of the quorum for passage. Minnesota state law requires ordinances to be passed by at least a majority of the total number of councilmembers, including those absent or abstaining; generally, per the LMC Handbook, resolutions can be passed by a simple majority of votes cast. Other councilmen chastised Wambolt for making the inquiry of LMC to ascertain if the August 23rd actions were proper, and Councilman Huesman objected to being constrained by the law. "Well, I don't go home and read amendments and all this stuff," he said. "That's what we [as a council] do, though," replied Wambolt. Kelly Cirks, a strong opponent of Harris, and husband of City Administrator Maureen Cirks, addressed the Council, loudly propounding, "In ... two months, Al [Huesman], you've done a tremendous job as the acting mayor. ... we got more accomplished. ... if we did something illegal, that's fine.... the Council ... was elected to get stuff done, not controversy continuously." Notwithstanding the LMC determination that the city council did not have authority to affect the duties of the mayor, Councilman Winters moved that the Council again proceed as they had for the past two months, with Huesman presiding, and that the matter of Harris resuming his function as mayor be tabled until the December meeting. The vote was 2-1, with Winters and Huesman voting "yes"; Harris voting "no" and Wambolt abstaining. The Council proceeded as if the motion and passage were proper. Because of the possible illegality of the meeting procedure, and of those since August 23rd, future legal questions may be raised as to the validity of business done at those meetings, and also whether any contacts entered into pursuant to those meetings are binding under law. Later in the meeting, the Council discussed the current audit of the City's books being conducted by the Minnesota State Auditor, as well as a special investigation into Nevis city procedures, which, according to information presented at the meeting, has been launched by the office of the Minnesota Attorney General. Maureen Cirks said that the special investigator at the State Auditor's office told her that "once a week, they get a call from a [Nevis] resident" with new allegations of impropriety for the Auditor to investigate. Councilman Winters suggested that the Council take action to stop Nevis citizens from calling the State Auditor and Attorney General; Councilman Wambolt had to remind Winters that, in America, that can't be done. Following the November 13th meeting, Harris, who has considered legal action to restore his duties and prevent the Council from acting beyond it's authority said that he would prefer to resolve the matter without filing suit against the councilmen; that he believed that resolving the matter out of court, if possible, would be better for the City of Nevis. In this, on Dec. 3rd, Harris attempted to call a special meeting of the City Council for Dec. 6th to discuss the matter, as well as the issue of the procedure that the city will use for filling a council seat vacancy, but was thwarted as City Clerk Maureen Cirks did not receive the notice of the meeting sent to her by certified mail until Dec. 4th, when inadequate time remained to properly give the 3-day public notice of the meeting required under M. S., Sec. 13D.04, Subd. 2. Harris has sought the assistance of legal scholar and author, former Crow Wing County (Brainerd) Attorney John Remington Graham, who, last week, said that he would consider bringing the matter to the attention of the Minnesota Attorney General for possible action by the State in the nature of quo warranto [you're not supposed to know what that means -- Ed.] against the council-members who exceeded their authority by refusing to allow Mayor Harris to exercise his duties. The council's action attempting to depose Harris came shortly after their August 14th meeting at which Harris made an allegedly obscene gesture directed toward Nevis police officer Bob Potter. Pursuant to a request from the council, (then) City Attorney John Masog brought charges against Harris, for disorderly conduct. The offense which, when prosecuted, normally carries only a small fine, probably does not rise to the level of official malfeasance for which an official could be removed from office by legal action, and no legal action has been commenced to remove Harris from office. Harris has maintained that his gesture, though an unusual method at a public meeting, was communicative, not obscene; that it was without romantic or obscene overtones and it communicated to Potter the same degree of contempt that Potter had directed toward Harris at the meeting. He described how he was trying to conduct an orderly meeting when the exchange occurred. Said Harris, "My gesture to Bob Potter was warranted and appropriate, and childish. Bob Potter diverted the subject and made an issue out of nothing. "I had received two reports (one from Bob Potter on 11 August, and one from Marlin Winters on 6 August) of an unnamed council member telling the (then) police chief that 'he could not back-up the Akeley cop,' so I tried to close the council meeting to the public (with the allegation of a crime, I felt I was required to). But Bob Potter wanted the meeting kept open, then stated 'you asked me to resign ....' He was referring to a conversation between us on 12 August. "I did not ask him to resign, but even if I had, it is not a matter of public debate with nothing to substantiate it. When and if I ask him to resign, I will do so in writing, citing specific reasons, after consulting our policy manual and M.S. Chapter 419. "A gesture is worth a thousand words." s/ Phillip J. Harris Harris, who was elected 108-92, has also maintained that the gesture is a red herring being used by city officials who oppose his efforts to reduce runaway city spending and his insistance that Nevis municipal procedures be in compliance with state law. The Law. Nevis is a "Plan A" statutory city. Plan A cities appoint, rather than elect, their clerks. Minnesota Statutes (M.S.) 412.02 provides that the mayor shall be elected. M.S. 412.121 directs the council to, each year, select an acting mayor from among its members; the duties and powers of the acting mayor, however are limited, by the statute, to performing "the duties of mayor during the disability or absence of the mayor from the city or, in case of vacancy in the office of mayor ...." M.S. 412.191, Subd. 2. states that at council meetings, "The mayor or, in the mayor's absence, the acting mayor, shall preside." As to when and how the council may exercise power over the office of the mayor, M.S. 412.02, Subd. 2b is specific: "A vacancy in the office of mayor or council member may be declared by the council when the officeholder is unable to serve in the office or attend council meetings for a 90-day period because of illness, or because of absence from or refusal to attend council meetings for a 90-day period." The statute permits no other action, and also provides that if the office is declared vacant and the vacancy is filled, then "When the person is again able to resume duties and attend council meetings, the council shall by resolution remove the temporary officeholder and restore the original officeholder." It is clear from the statutes that any replacement, by the council, of an absent mayor is intended to be only temporary; there appears to be no authority whatsoever, in the law, authorizing the acting mayor to assume mayoral functions when the mayor is present, as has been the case at Nevis. M.S. 412.191, Subd. 4 requires that, as regards ordinances, they shall be enacted by not less than a "majority vote of all the members of the council...." rather than by a simple majority of those present and voting. M.S. 412.201 provides, "Every contract, conveyance, license or other written instrument shall be executed on behalf of the city by the mayor and clerk, with the corporate seal affixed, and only pursuant to authority from the council." Generally, checks are considered written instruments. Photo captions (photos are not included in Library edition): The Nevis City Council at their November 13th, 2001 meeting at council chambers in the Nevis Fire Hall The Honorable Mayor Phillip Harris, not allowed by the Council to preside, but still seated as a voting councilman, studies an item of business before the Council. Councilman Bob Wambolt Long-time Nevis City Administrator Maureen Cirks, and husband, Kelly Cirks, at the Nov. 13th meeting. Kelly is employed by Reed's Sporting Goods, Walker. TAXPAYERS' COST OF ADMINISTRATION - MINNESOTA CITIES This table compares estimated annual costs of random cities, both with and without a municipal liquor store. Shown are type (full or part time) of city clerk or administrator, and the assistant or deputy clerk, or trasurer; salary of each, estimated benefits cost, total and per capita tax cost. The per capita computation is not the cost per tax-paying household, but, rather, is the average cost to each individual counted in the population, regardless of age. MINNESOTA 2000 LIQ. CLK/ ANNUAL ASST/ ANNUAL EST. EST TOT PER CITY POP. STR? ADMN SALARY DPTY SALARY BNFITS COST CAPITA Nevis 364 Y F/T $35,000 F/T $17,000 incldd $52,000 $142.86 Kelliher 290 Y F/T 25,800 P/T 4,500 $5,151 35,341 122.24 Herman 497 Y F/T 30,451 P/T 8,060 6,547 45,058 90.65 Remer 372 Y F/T 24,232 none 4,119 28,351 76.21 Sebeka 710 Y F/T 28,680 F/T 11,815 6,884 47,379 66.73 Deerwood 590 N F/T 32,760 none 5,569 38,329 64.96 Akeley 385 Y P/T 900 F/T 20,134 3,423 24,457 63.52 Raymond 803 N P/T 11,040 none 845 11,885 14.80 Statistical Notes: 30 hours or more per week is regarded here as full time. Some salary amounts are estimates where hours per week varies. Benefit costs are generally estimated at 17% of salary, unless a different amount is known, and may vary somewhat. Estimated Nevis benefits, per the 2000 payroll, as furnished by the City Administrator, are included in the salary columns. From Vol. 7 No. 3 12/08/01 ---------------------------- CIRKS IDENTIFIED AS THIEF But Nevis City Attorney John Masog Refuses to Prosecute Theft NEVIS -- Eleanor Cirks has been identified by an eyewitness as one of two people who, on Nov. 13th & 15th, shoplifted all copies of the Northern Herald from a coin rack at Danny's restaurant in Nevis. The issue stolen contained reporting regarding Cirks's daughter in law, Nevis City Administrator, Maureen Cirks. Elinore is the mother of Kelly Cirks, Maureen's husband. The Nevis police chief found 49 copies, of approximately 70 stolen, in Cirks' possession; the 49 copies have retail value of $24.50. Although the information was turned over to Nevis City Attorney and Asst. Hubbard Co. Attorney John Masog, Masog, on November 22nd, refused to prosecute the theft, giving as his reason that limited numbers of Northern Herald are sometimes available free in other locations; notwithstanding that the rack and the copies stolen were sale copies, clearly marked with their price, and a box was provided on the self-service rack for coin deposit. Nevis loves thieves. Following the incidents, Danny's acceded to the thieves' wishes, and refused to further sell the Northern Herald. Danny said that "house" copies, which could be stolen without repercussion, could still be left there. Claim made. As shoplifting offenses are normally and routinely prosecuted, following Masog's refusal, Northern Herald made claim, in the amount of $200 billion, against Hubbard County for damages due to denial of equal protection under the laws, under the 14th Amendment to the United States Constitution. Although, regardless of the outrageousness of their actions, prosecutors generally claim a common law defense of "absolute immunity" from suit, the issue of whether a corrupt prosecutor should be able to hide behind that defense in cases of willful misconduct, discrimination and nonperformance of his duties is currently before the United States Supreme Court in a similar case brought by Northern Herald against Beltrami prosecutor Tim Faver. Prior to the Northern Herald being available there, Nevis's only source of local news was the Northwoods Press, located next door to City Hall, and which has, in its past reporting, appeared to be particularly friendly to City Administrator Cirks's clique. Editor's Note: Priorities. It is interesting that Masog chose to prosecute Mayor Harris for a hand gesture ( elsewhere, this issue), a petty crime which disrupted order but ultimately didn't injure anyone or cost them anything; but then, refused to prosecute a deliberate theft, which did. -- Ed. From Vol. 7 No. 3 12/08/01 ---------------------------- MASOG RESIGNS NEVIS -- In the face of at least two separate complaints, filed before the Lawyers Professional Responsibility Board, of conflict of interest and misconduct, John Masog, on November 27th, resigned as Nevis City Attorney, sending his resignation, effective Dec. 11th, to City Administrator Maureen Cirks. From Vol. 7 No. 4 01/15/02 ---------------------------- Leading Edge Journalism CORRUPTION TO RULE NEVIS 'TIL 2003 Rural Hubbard Co. City May Surpass Bemidji as State's Laughingstock NEVIS -- The statement of the last election was clear, voters wanted changes in Nevis, so they ousted the incumbent Mayor Melander, known for cost overruns so exorbitant that a public apology was necessary, and elected, as mayor, Phil Harris 108-92 - a 17% margin in this city of about 350 people. At a recent city council meeting it was said by a councilman, as a possible budget shortfall was eyed, that in light of this year's levy increase, if the City was broke, something is very wrong. And so it is at Nevis, where the City Council, guided by City Administrator Maureen Cirks, who has for many years maintained a stranglehold on Nevis civic operation, has, for the past year, prevented the Mayor from implementing sound budgetary measures. Mayor Harris has many times expressed a need to ensure that all expenses are properly authorized and for a bona fide public purpose as required by law. With the resignation last September, of Pam Brown from the council; and Councilman Bob Wambolt agreeing with the Mayor that the City, now under audit by the State Auditor and under investigation by the Attorney General, must be brought into legal compliance, there was a possibility, last month, with one council seat (Brown's) to be filled, that the council could have seated a majority with a view to sound policy measures.. Had Wambolt waited until the vacant seat was filled before resigning, his vote, along with that of the Mayor, would have tied the votes of Marlin Winters and Al Huesman in selecting the new councilperson; in that case, the Mayor has the prerogative to break the tie and appoint the new councilmember. This could have brought voter-desired change to this city inhabited by many quiet seniors and retired persons, where over $140 per person per year goes to salaries and benefits of its City Administrator, Maureen Cirks ($35,000) and her assistant, City Clerk Carol Fridgen ($17,000). But Wambolt's resignation, which may have come under pressure from the corrupt sector of this close-knit community, at the December, 2001 council meeting, afforded Huesman and Winters the opportunity to pack the council, outvoting the Mayor 2-1 on the appointments to fill Brown's and Wambolt's council seats. Their appointees will be in office until the elections this fall. Appointed at the January 14th Nevis council meeting, to fill the two vacant seats, were LaVonne Lindow, and Steven Erickson, proprietor of The Goose Crossing - a country restaurant at Nevis where vacationers go when they want to pay prices as if they were back in the big city, and to deal with a host who is, reputedly, every bit as decorous in guest relations as was Jerry Seinfeld's soup nazi. Mayor charged. For the remainder of the year, Mayor Harris would appear to be put in the same type of quandary as was Jesse Ventura in his first term as mayor of Brooklyn Park, forced to watch as his council, with its own agenda, passed items not necessarily in the public interest on votes of 4 to 1. But the forces of the office of the two entrenched administrators (Cirks and Fridgen), along with recently resigned Nevis City Attorney (he remains Asst. Co. Atty., however) John Masog, who has refused to prosecute theft in Nevis when it would have involved charging a relative of Cirks, seem determined to get Harris out of their way. Mayor Harris had been facing a petty misdemeanor charge of Disorderly Conduct (case no. T3-01-2039) for countering policeman Bob Potter's contemptuous remarks at the August 14th council meeting by displaying to Potter a particular one of Harris's ten fingers. When it occurs in public, the exhibition of an improper finger is routinely charged, in these parts, as disorderly conduct, carrying a small fine. The infraction is not the type of offense that would normally result in loss of office. But in the case of Harris, Masog recently trumped up the charge, and brought, on December 20, 2001, an additional prosecution (case no. K2-01-914) for the gross misdemeanor of Misconduct of a Public Official apparently designed to, without fail, meet the muster of provisions under which a person, say a mayor, may be lawfully removed from office. Masog appears to have been aided in this quest by Hubbard Co. Sheriff's Investigator Jerry Tatro, who along with Masog, signed the sworn papers, and also City Administrator Maureen Cirks and Councilman Marlin Winters whose statements comprise, in large part, the charging instrument. And in their efforts and frenzy to concoct a sufficiently infamous charge as to warrant and serve the purpose, these people aggrieved by Phillip Harris's lawful service as Mayor devised a complaint which restates the finger incident, but is further embellished with several other sworn allegations which do not seem at all to noticeably tax the stockpiles of honest words contained in the storehouses of the English language. This complaint, filed in the gross misdemeanor case, straightfacedly recites," ... [Cirks] was told by Council member Marlin Winters that Defendant [Mayor Harris] had called ... Winters informing him that Defendant was going to come after ... [Mrs.] Cirks 'with both barrels loaded.'" But, in the making of this charge, Sheriff's Investigator Tatro had occasion to interview Winters on September 4th, 2001 at 2:15 pm. The official transcription of the investigation interview discloses Winters's response when Tatro asked him about the "both barrels loaded" accusation: Marlin Winters: "You know I remember - I remember having a- a- a- discussion with her [Cirks] but I- I don't know if I should honestly say I- I stated it exactly that way, but it was probably to that." Jerry Tatro: "So where is this coming from that Phil [Harris] is making these accusations?" Marlin Winters: "Probably from Phil, I- I- ... I don't know." Mayor Harris said that last spring he may have made a statement, either literal or figurative, to the effect that he was going to hold Cirks's work and handling of funds (now under audit by the State Auditor) to legal accountability, but denies that he ever said "both barrels loaded," and said that that phrase isn't among the figurative phrases he uses. Harris, incidentally, when asked, said that he does not own any firearms. The complaint alleges that Harris improperly offered a police job to an applicant, something that Harris adamantly denies. The complaint seeks to support this claim of excessive use of authority by stating that Harris had to be admonished by Cirks at the August 14th council meeting and recites, "Under [council] meeting on ... [August 14th, 2001] M[r]s. Cirks told Defendant that only the council can hire someone." But when asked to play those words on the official tape of the Council proceedings of August 14th, and given a weekend to find them, Nevis Deputy Clerk Carol Fridgen said, on January 7th, "I cannot find that on the tape." The complaint further charges that Harris, at that meeting, "continued yelling at M[r]s. Cirks telling her to 'shut up' and to get out of the meeting ..." A review of the audio tape discloses that a speaker, possibly Harris, seems to be asking someone who was apparently disrupting the meeting to leave, but it is not at all clear to whom the speaker is talking. Interviewed on this, Harris said that it was not Maureen Cirks, but rather her husband, Kelly Cirks, who is not a city employee and did not have city business, whom Harris asked to leave the council chambers in order to maintain order at the heated meeting. The complaint alleges that, last spring, Cirks took medical leave and sought doctor's care. It has not been disputed that she needs it. Harris attended his Rule 5 hearing at Park Rapids on January 10th before the Honourable Judge John Smith, and entered a plea of not guilty on both the petty, and gross misdemeanor charges. Smith appointed Bemidji attorney Darrell Carter to represent Harris and, due to conflict of interest, assigned the cases to the Honorable Paul Benshoof who will hear the cases either at Park Rapids or Bemidji. The next hearing date was not specified and left to Judge Benshoof's scheduling. Mayor Fights Back. Meanwhile, the Honourable Phillip Harris, mayor, has brought an action of his own to invalidate the unlawful actions of the Council and the City Administrator, on August 23rd, 2001, and at subsequent meetings, in refusing to allow him to preside over the City Council meetings; failing to present City checks to him for signature, having them unlawfully signed by another person; and denying him access to City Hall and the records and equipment contained therein. The action, filed as a Complaint for Injunction, for Declaratory Relief and for Temporary Restraining Order (TRO) (case no. C4-02-21) seeks, to prevent irreparable damage, an immediate order restraining the City and Council from conducting illegal meetings at which he is not permitted to preside as provided by law; from unlawfully issuing checks which he has not signed for the City; from withholding documents and access from him; and from otherwise interfering with his lawful performance of his duties as mayor of Nevis. Copies of the Complaint and an amendment thereto have been served upon the City of Nevis, Administrator Maureen Cirks, Deputy Clerk Carol Fridgen, and councilpeople and former councilpeople Pam Brown, Albert Huesman, and Marlin Winters; except that Councilman Winters has evaded service of the Amended Complaint, refusing to accept it and telling the process server that he was trespassing and to get off of his property. The matter is presently scheduled to be heard before the Honourable Judge Casey, at Brainerd, January 24th, 2002 at 1 p.m. The City of Nevis will be represented by its new City Attorney, John Valen of Walker. Highlights of the January 14th Meeting. The meeting of the Nevis City Council, scheduled for 6 p.m. at the Fire Hall, got off to a slightly late start as Mayor Harris tried to ascertain whether the Council and new City Attorney Valen, present, would allow him to proceed to conduct the meeting. In the foray that followed, Councilman Marlin Winters verbally accosted Mayor Harris saying, "You are not the mayor." At about 6:10 p.m., Valen indicated to the Council that Al Huesman, the "acting mayor" might open the meeting and preside, notwithstanding that the actual mayor was present, and contrary to Minnesota law which provides that the "acting mayor" may preside only in the absence of the actual mayor (see The Law, NH of 12/08/01). Accordingly, Huesman opened the meeting and began to call the agenda. Huesman first called for the appointment of an "acting mayor" for 2002. Councilman Marlin Winters moved to reappoint Huesman, who then seconded his nomination. Huesman was voted in as acting mayor, 2-1 with Winters and Huesman voting "Aye" and Harris voting "Nay". Huesman said, "The next thing is to appoint two individuals to fill the two vacancies on the City Council." Filing for the appointment had been June Sather, David Luedke, LaVonne Lindow and Steven Erickson. Harris moved to appoint candidate David Luedke, with the reservation, "I'd like to interview a little first," to be sure that the candidates possessed requisite qualifications and understanding of law. "I want to know if they understand the Constitution of the United States" as they would be swearing an oath to uphold it. "Everybody in this room has rights guaranteed by the United States Constitution, by the Minnesota Constitution, and we cannot step on those constitutional rights." Huesman said, "Go ahead, do your interview." Harris asked Luedke, "Do you know what the First, Fifth and Fourteenth Amendments are, Dave?" Luedke responded, "No, I don't." Speaking out of order, Erickson, from the audience, and as if he had somehow been assured of the appointment aforehand, began to argue with the mayor's interview process, saying to the mayor, "Use the resumes as your decision factor," Erickson said, "without going through a grade-school bunch of phony questions." City Administrator Maureen Cirks, sitting in the front row of the audience, began frantically waving her arms about as a signal to Huesman to cut off the discussion. Huesman declared that Harris's motion to appoint Luedke died for lack of a second. Councilman Winters moved that Lindow and Erickson be appointed. Huesman seconded. By way of discussion, Mayor Harris asked Erickson, "Do you know the Constitution, Steve? What's the First Amendment?" Erickson responded, "I haven't a clue." During the discussion, particularly with Erickson, Harris stressed the need for fiscal responsibility and not foisting well-meaning but unnecessary costs onto the taxpayers or burdening liquor store profits, which belong to everybody, by same. Mayor Harris said, "We cannot overcharge for all this stuff. Our administrative fees are supposed to just cover exactly that - they're not supposed to be for profit. We're supposed to plan and live on our tax base and not depend on the profits of the liquor store to do things. We don't live month-by-month, depending on the liquor store, we plan a year ahead when we set our budget." Responding to Erickson's questions, "How do you plan to grow, Mr. Mayor? What's your agenda for this town?" Harris responded, "First, I've got to get it to act in a statutory ... [manner], obeying all the laws. When we budgeted, we should have had a budget reserve in there - we don't talk about that stuff. It takes forethought to grow - we can't just think about today or tomorrow...." Erickson verbally attacked the mayor on his legal action against other councilmen to bring the City into statutory compliance, but was told that that matter would be discussed later in the meeting. The Council voted 2-1 to appoint Lindow and Erickson to the two vacant Council seats. Later in the meeting, in a discussion involving fiscal policy, Erickson told Harris, "You're stuck with me, Mr. Mayor" In approving the payment of bills, Mayor Harris objected to one for $100, incurred by the municipal liquor store, for advertising on the Trailblazers snowmobile club's flyers, as not being for a public purpose. Administrator Cirks, a Trailblazers member, countered that the liquor store manager is authorized to place advertising [of under $500, per an informal Nevis policy] that she deems appropriate, and said, "I would imagine ... she [the manager] would figure that she would possibly get a lot of snowmobilers in there ...." But liquor store manager Kathy Plumley then spoke, saying no, it's "basically just a contribution" to the snomo club. Cirks quickly disclaimed, "Yeah, it's not my decision, it's Kathy's." With that, the Council approved payment of all of the bills. At one point in the meeting, newly-appointed Councilman Erickson asked Cirks what issues were involved in Mayor Harris's action for injunction against the city. Cirks read the list of items on the complaint, pausing at the matter of Harris's request for access to City Hall and saying, "I did check with the City of Park Rapids, ... the past mayor did not have a key to the office...." Harris's Complaint does not seek a key, per se, but seeks access at whatever times he has lawful business, or "need, in conjunction with the discharge of his duties as Mayor for documents or equipment," at City Hall. In fact, all employees who work in the Park Rapids City Hall have a key, per City Clerk Margie Vik, the Mayor, however, does not. If he requires access after hours, he can call the City Administrator or Clerk to be let in - this, however, cannot be done in Nevis, as Cirks and Fridgen have, in an effort which impeded the Mayor's function, procured orders preventing Harris from contacting them and, generally, barring him from City Hall when they are there (see NH of 11/03/01). The allegations in Cirk's and Fridgen's complaint, essentially that Harris "harassed" them by arguing with them over city-related matters, leading to the orders, have never been proven in court as Harris, for expediency, had agreed to the orders being issued. Although the council discussion was, presumably, at this point, preparation for the City's defense next week, Erickson used the opportunity to address the access matter, and moved that the Nevis Council then adopt a policy that keys to City Hall would be had only by administration (Cirks and Fridgen) and the Police Chief, who required use of the fax machine at times other than business hours. In a voice sounding a little like TV's Mr. Rogers's, but with the condescending stress and intonation that one would expect of an elementary school teacher, Erickson said, "An elected official is temporary, administrative people are responsible, and so administrative people cannot have electorial people, at their discretion, running in and out at off-hours .... no one needs a key." Contacted, later, regarding the issue, former Nevis Mayor James Hukki said, "That's absolute nonsense - I was a mayor for 6 years and the first thing, I was given a key to City Hall." Hukki said that upon completion of his term he gave the keys back to Cirks to be given to successor Ray Melander. Melander could not be contacted for comment and didn't return calls. Newly-appointed councilwoman Lindow seconded Erickson's motion and it was passed 4-1, Mayor Harris dissenting. End justifies the means? In speaking on his nomination for appointment as councilman, and also again, after appointment and towards the end of the meeting, Steven Erickson gave lengthy speeches encouraging that "Fantasy is much better than legality" with a clear implication that he objected to the actions of the Council being subject to law, and strongly objecting to anyone, including the Mayor, challenging the actions of the Council in court. He spoke at length focusing on topics such as enhancing the beauty and progressiveness of Nevis to the end of bringing more tourists there (which would, of course, directly benefit his restaurant, The Goose Crossing), and spoke discouragingly of any dissent or attempts to uphold and maintain human rights and the law, should that differ from what the Council might decide. He decried these things using terms like, "negativity," and "by being critical, by being narrow, by being small." All in all, it was a great speech and one that was worthy of a famous statesman. It was reminiscent of the massive promises of good times, at the expense of equitable law, access to the courts, restraint of power, civil liberties, and everything that we know as human rights, that might have been promised to Europeans, by Adolph Hitler, as he rose to power, in the 1930s, in Germany. Erickson criticized Harris for having his TRO hearing in Brainerd, although that decision was made not by Harris, but by Judge Smith - Harris had had no say in the selection of judge or of venue. Regarding his lawful and orderly efforts to have the court determine if the Nevis Council was acting in violation of Minnesota law, Erickson contemptuously and with the air of a one-man government, told Harris to "Stop it!" Erickson followed this by saying "I will run on an agenda to stop it, OK ... the purpose of this City is to provide a healthy atmosphere, in positive nature, for the citizens to grow with benefit into the future so that businesses can come here and thrive, and grant the tourism and the visiting people here a wonderful place to find happiness, to find things to do, to find good attitudes, and to find things to want to return to. That's what a town is for." At the end of the meeting, Lindow said, and Erickson agreed, "We've spent way too long on lawsuits." It was an easy thing to say when the only lawsuit in progress is the one against that council, which still refused to recognize the office of the mayor, conducting that meeting, as many before, unlawfully, with another councilman presiding. In making the statement, Lindow made no mention of withdrawing the pending, groundless, and apparently, perjuriously attested, charges against Harris, nor was there any mention of causing Cirks and Fridgen to withdraw their baseless action for restraining order, which has impeded the functioning of the City of Nevis, has cost it money, and which will cost it more. It is easy to say one doesn't want to spend time on lawsuits, when the speaker happens to be the tortfeasor (this is a lawyers' term for the guy who brings the desserts at a fancy restaurant like The Goose Crossing.) Usually when people speak of too much time being spent on legal action, they're only addressing the legal action against them. It would be like saying one doesn't believe in spending too much money on law enforcement, where the speaker is in the business of selling heroin. Diogenes's Lantern. In cases of one person's word against another's, Northern Herald routinely subjects the statements of the parties, as available, to Voice Stress Analysis (VSA), which, although not generally admissible in court, is thought by some to be a method of determining the truthfulness of the statements made. Northern Herald's version of VSA software is experimental and has not been statistically evaluated as to accuracy and performance. Additionally, Northern Herald staff do not have expert training in the use of VSA for truth verification. Given this, our VSA analysis, at an 80% (relatively strong) threshold, generally indicated that Mayor Harris is being truthful in his denial of the accusations against him. Specifically, his flat denial of ever verbally abusing or threatening Cirks or Fridgen showed no abnormal stress whatsoever, indicating that he does not believe that he did so. Although there was some occasional general stress when the accusation that he used the figurative phrase "both barrels loaded" was discussed, his direct answer, when questioned as to whether he said this, of "No, I never said it; it's not in my vocabulary" produced no abnormal stress. A $35,000 administrator for 364 people - Cirks's VSA. Maureen Cirks's statements, reported in our Nov. 8th, 2001 issue, were also subjected to VSA at the same 80% threshold. She would make no comment as to her accusations against Harris, but when asked why she supported the hiring of Fridgen, her $17,000/yr. assistant (Clerk), Cirks said, "I was working Saturday and Sunday trying to get the work done. It was more work than I could handle." This response produced peak stress as the words "trying to get the work done" were said, and also produced two indications of stress above the threshold on the words "more work." Photo captions (photos are not included in The Library edition): LaVonne Lindow Steven Erickson: "Fantasy is much better than legality." From Vol. 7 No. 4 01/15/02 ---------------------------- NEVIS MAYOR TO PRESENT STATE OF THE CITY NEVIS -- The Honourable Phillip Harris, mayor of Nevis, will present his 2002 State of the City message at the Nevis Senior Center, Friday, January 25th. Public is invited. From Vol. 7 No. 4 01/15/02 ---------------------------- NEVIS RETAILERS HALT HERALD Following Northern Herald's extensive coverage of blatant civic corruption at Nevis, two of our three retailers there have discontinued carrying it and Nevis readers who want be sure to receive every issue are now encouraged to subscribe. Our past two issues carried reports of the Nevis City Council unlawfully interfering with the duties of its Mayor; the City Administrator, Maureen Cirks, and her assistant (the Deputy City Clerk) receiving salaries and benefits that average about $140 per capita, for this community of 364; the audit of Nevis's books by the Minnesota State Auditor; an investigation by the Attorney General; the theft of retail copies of NH by Eleanor Cirks; and the refusal of City Attorney John Masog to prosecute the theft, shortly prior to his resignation. Following these stories, Danny's and Sather's Store terminated this paper. NH readers will still find the paper on sale at Nell Rae's Cafe. Good food too! From Vol. 7 No. 5 02/16/02 ---------------------------- Leading Edge Journalism NEVIS: ATTORNEY GENERAL ACTS Council Rescinds Illegal Acts, Restores Mayor After Hatch Inquiry; Graham Asks Grand Jury Investigation of John Masog NEVIS -- Under pressure of investigation by Minnesota State Attorney General Mike Hatch, and with suit by their mayor, the Honourable Phillip J. Harris pending; the Nevis City Council, at their meeting of February 11th, 2001, voted to rescind their previous unlawful actions dating back to last August, and to acknowledge the powers and duties of Mayor Harris. The action has been termed a restoring of those powers, but this term is incorrect, as they were never lawfully removed. No effort was made, this time, to usurp the duty of the mayor to conduct and preside over that meeting, which passed the resolution on a 3-0 vote, with Harris abstaining. Following the vote, Erickson attempted to procure the consent of Harris to drop his pending action against the councilmembers, but Harris, still impeded by the pendency of a highly questionable charge of improper action by a public official, and a restraining order, the grounds for which have never been proven, procured by City Administrator Maureen Cirks and Deputy Clerk Carol Fridgen; refused to commit to drop his suit. Regarding Harris's suit against the council, the Honourable Judge Frederick J. Casey, at Brainerd, said, on February 1st, that he was "unaware of any law" that would permit the city council to take the action that they had taken last August. It is not known whether Harris will now amend his complaint to ask monetary damages against the council members. In asking Harris to drop the suit, Erickson made no mention of the City also supporting the dismissal of the other pending matters against Harris. The matter of the illegality of the Nevis council actions, in attempting to depose Harris, was called to attention of the Attorney General by legal author and scholar, and former Crow Wing County Attorney, John Remington Graham, who asked Hatch to take action in the nature of quo warranto to restore lawful operation of the City. In a letter to Atty. Gen. Hatch, Graham said, of the council's unlawful actions, that they were predicated upon "petty politics of small town mediocrities ... [which are] ... painfully insignificant in every sense and have no legal relevance whatever." But of the council's August, 2001, vote to, unlawfully, strip the mayor of the powers and duties of his office, Graham said, "most people may not care that lawlessness has been allowed to run riot in the City of Nevis, but no patriot and statesman will countenance such a situation for a moment." Heading the Attorney General's investigation, Deputy Atty. Gen. Kristine L. Eiden sent the council members a questionnaire to which they were to respond by February 11th, the day of the council meeting. In a second letter, to Eiden, Graham said, " ... I find even more troubling the misconduct of the old [since resigned] city attorney, John Masog, who guided the city council" in it's unlawful actions of last fall. In addition to suggesting conflict of interest of Masog, for his multiple roles in Nevis, Hubbard County and civil litigation, Graham now recommended that the Attorney General consider calling a grand jury to investigate Masog for possible charges of unlawful usurpation of public office, aiding and abetting same, and willful misuse and excess of office, contrary to the Minnesota Statutes. Photo caption (photos are not included in the Library edition): Seated at the Feb. 11th Nevis City Council meeting, are councilmembers Al Huesman, Mayor Phillip Harris, presiding, Lavonne Lindow, and Steven Erickson, who asked Harris to agree to withdraw his legal action against other councilmembers. Councilman Marlin Winters did not attend. From Vol. 7 No. 5 02/16/02 ---------------------------- NEVIS MAYOR RECEIVES SPHERES NEVIS -- John Adams spoke of "A government of laws, and not of men." And so it is. It is our unique compilation of laws that sets our great nation apart from all others. A melting pot of ethnicity, there's no other distinguishing characteristic between an American and, say, a Frenchman. It is the laws of this nation, its corpus juris, that have established and maintained a system of order that has endured for longer than most; that have made it the mightiest nation in the world, ensuring liberty, restraint of power, prosperity and opportunities so vast that people from all over are still clamoring to come here. Put simply, it is law that gives one the liberty to drive from LaPorte to Akeley, and it is also confidence in and respect for the law that keeps him from having a head-on with every car coming the opposite way. It is law that gives people day-to-day security. When it starts to break down, confusion results. That's what's happened in Nevis for the past few months. Each year, Northern Herald awards the Steele Spheres to a person who has shown exceptional valor both within and beyond the call of duty, and particularly in the face of adversity. For his fine work to keep Nevis government in compliance with Minnesota law, the year 2001 Steele Spheres were awarded February 11th, 2002 to Nevis Mayor Phillip J. Harris. From Vol. 7 No. 5 02/16/02 ---------------------------- Editorials - Opinion GETTING BACK TO NORMAL AT NEVIS With their actions of February 11th, the Nevis City Council made major inroads toward restoring order and proper civic functioning at Nevis. Still impeding and distracting from City business remain the small matters of the pendency of an ill-founded (see NH of 01/15/02) charge of wrongful action, against the mayor, and the effects of a baseless restraining order, agreed to by the mayor (because he lacked representation - petitioners, City administrative staff Maureen Cirks and Carol Fridgen were represented by John Masog), the grounds for which have never been proven in court. The order, effectively, temporarily bars the mayor from City Hall. The order denies the mayor access to space, documents and equipment he needs to perform his duties; and Harris has suggested that he'd like to have space there where he might meet with constituents who have issues with the City. He is the only councilmember who could be available to citizens on an essentially full-time basis. Although political differences exist, the council's and staff's animosity toward Harris stem, primarily, from an incident last August, when, at a council meeting, responding to policeman Bob Potter's contempt, Mayor Harris displayed to him one of his ten fingers. This act must be redressed. Wouldn't it be a fine thing if, instead of causing all of this legal expense and impediment to the City and County, the council simply set a time and place, preferably in public, at a meeting, where the Mayor could receive, from Potter, the same sign? This would make more sense. From Vol. 7 No. 6 03/23/02 ---------------------------- Leading Edge Journalism STATE AUDITOR CITES IRREGULARITIES AT NEVIS NEVIS -- Cars lined the parking lanes of the streets leading to the Nevis Fire Hall wherein the City Council Chambers were packed with spectators and even standing room was hard to come by. On March 11th, at a regularly scheduled meeting of their City Council, Wayne Parson of the Minnesota State Auditor's Office presented the long- awaited audit report of the year 2000 financial statements of the City of Nevis. The City's books are routinely maintained by City Administrator Maureen Cirks, and audited annually by the CPA firm of Pederson, Smith, Roehl and Co., Walker. The special State audit, to ensure that the books were in compliance, was requested by the Nevis City Council in December of 2000 in response to citizen concern over the finances, procedures, and accounting of the City of Nevis; certain issues relating to year 1999 were also asked to be evaluated by the state auditor. In audits of this type, the costs of same are charged by the State Auditor to the requesting City. In this instance, the audit report states that those costs were increased somewhat due to the manner in which the books were kept and the availability of the City's financial information. Qualified Opinion. After performing an audit, the auditor issues his opinion on the accuracy of the financial statements. In accounting terminology, a qualified opinion is not as clean as an unqualified opinion, but better than an adverse opinion. In issuing it's qualified opinion on the financial statements, although the State Auditor found that, excepting for the lack of a General Fixed Assets Account Group, to account for buildings, fixtures, and equipment (as a practical matter, this enables a City to depreciate the assets and plan for their replacement), the 2000 financial statements present fairly the financial position of the City of Nevis; the Auditor noted numerous procedural and compliance errors in the operations and bookkeeping of the City. The auditor also noted, in the 1999 statements, a $10,000 understatement in general obligation bonds payable; and, in the January 1, 2000 fund cash balances, a $10,554 understatement in the General Fund, with corresponding overstatements in the Fire and Sewer funds. Low Balances, Deficits. The financials disclose the City's tenuous financial position which could result in the need for further tax levies or assessments. As of December 31, 2000, the Sewer Fund had deficit retained earnings of $282,648. During 2000, General Fund and Fire Fund expenditures exceeded budget by $54,026 and $16,259, respectively. Most of the General Fund overrun was in the type of expenditures designated as General Government. The largest expenditure in this category was $60,449 listed as "City Clerk/Administration". Mr. Parson called the Council's attention to a dangerously low level of the undesignated fund balance, $2,614, in the General Fund as of Dec. 31, 2000, and recommended that a larger reserve be maintained. During 2000, General Fund and Fire fund expenditures exceeded revenues and other financing sources (including the transfer from the liquor store fund, post) by $20,490, and $10,729 respectively. Despite high sewer fees charged to residents, the sewer fund lost $75,299, and the water fund, $8,241 for the year. Of the three enterprise funds, only the liquor store produced a profit of $86,386 of which $76,578 was transferred to the General Fund. Compliance Issues. The Audit Report cited 24 irregularities in City of Nevis accounting, policy and procedures, including 3 material weaknesses in it's internal controls. 11 of the irregularities constituted material noncompliance with applicable Minnesota law. Nevis Mayor Harris has repeatedly attempted to have enacted policies of better internal control over money and transactions, but at each juncture the matter has been tabled or stalled by the Council. Internal controls. An audit should always include an evaluation of internal controls. Per the report, "the objectives of internal controls are to provide management with reasonable, but not absolute, assurance that [1] assets are safeguarded against loss from unauthorized use or disposition, [2] transactions are executed in accordance with management's [i.e. the City Council's] authorization, and [3] transactions are recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles [GAAP]." The auditor found the following material weaknesses in internal controls: 1) The City of Nevis does not maintain general fixed asset records which show cost or historical cost. 2) Segregation of duties. The duties of processing transactions are concentrated in a limited number of people, which is not desirable from an accounting point of view. Ideally, the Report states, no single individual should be able to a) authorize a transaction; b) record the transaction; and c) have custody of assets. 3) The Report found that the City of Nevis does not have written policies or procedures for accounting functions in the areas of a) disbursements, b) imprest (petty cash) funds, c) contracting, d) receipts and utility billings, e) payroll and personnel, and f) EDP. Noncompliance. The report found the following to not be materially in compliance with state law: 1) An item of unclaimed property was not properly reported and turned over to the State Dept. of Commerce; 2) The City did not publish a summary budget statement; 3) An authorization for check signers on file at Northwoods Bank did not appear to have been formally approved by resolution of the Council; 4) There were irregularities concerning assignments for pledged collateral at Northwoods Bank; 5) The dollar amount of claims to be paid was not recorded in the Council's minutes, nor were the claim listings signed by the Mayor or Councilpeople, making it difficult to ascertain which claims had actually been approved, by the Council, for payment; 6) There were irregularities concerning claims for disbursements, and written claims had not been prepared for all of them. Additionally, a claim in the amount of $40,643, on a contract, paid to Bob Lindow Construction prior to council approval, was not endorsed by a majority of the Council as required by M.S. 412.271 Subd. 4; 7) As regards imprest (petty cash) funds, the Auditor found: a) it is uncertain whether they were ever formally established, b) claims for reimbursements were not prepared on a timely basis, c) a reimbursement included costs for a travel claim submitted by the City Administrator, and d) reimbursements for liquor store costs did not contain any supporting documentation; 8) A conflict of interest existed in a $132 payment to a councilmember for construction and installation of a bulletin board; 9) No amounts were deposited into the sewer replacement fund for 2000, and the Auditor could not verify the existence of a sewer extension fund; 10) Two contracts violated the state bid law. One, awarded to Robert Lindow Construction (Robert Lindow is the brother-in-law of current councilwoman Lavonne Lindow) for rehabilitation of the City administration building, should have been awarded on sealed bids, as the amount exceeded $25,000. On another, bonding requirements were not met. The auditor noted that the written contracts were not available for inspection; and 11) Oath of Office statements, by public officers, were not file with the City Administrator. Other Irregularities. State Auditor Judith H. Dutcher also disclosed the following in her Report: 1) The City budget a) does not contain estimates for revenues, b) is not entered into the City's accounting system, and c) is not used for monitoring expenditure of City funds; 2) As regards monetary transfers, a) none of them were formally approved by the City Council, b) written documentation explaining the purposes was not prepared, c) transfers for administrative services were based on estimates and supporting documentation was not available, and d) supporting documentation was not available for a $20,000 transfer from the cemetery account to the General Fund checking account. 3) As regards Cash Receipts, a) a collection for pool league fees had been held, during accumulation, by the liquor store manager prior to deposit, rather than being contemporaneously deposited as they were collected, b) pre-numbered cash receipt forms (a control to make cash more accountable and verifiable) were not used for all collections, and liquor store receipts are not deposited intact - some cash is retained for a change fund, and for other purposes. These accounting and control irregularities appear to be the result of City policy or lack of same as regards the operation of the liquor store, and there was nothing in the report indicating wrongdoing by the liquor store manager. 4) The Auditor was not provided with any written policy or procedures allowing a payment to the City Administrator of $2,160 for unused vacation, and $2,190 for health insurance; further, review of time cards of the City Administrator and Deputy Clerk disclosed discrepancies between hours worked and hours paid. (The City (presumably by Maureen Cirks, Administrator) responded that the vacation pay was allowed by a January 19, 1987 resolution of the Council, and that "past City Councils have approved" the cash payment for health insurance. The City also responded that the Administrator's and Deputy Clerk's pay was based upon an "average" of how many hours they are supposed to work, and the actual hours worked in any payroll period may vary.) 5) Cash balances in the city's accounting system did not agree with it's financial statements. Specifically the General Fund was understated by $10,554, with corresponding overstatements of $330 and $10,224 in the Fire and Sewer Funds, respectively; 6) Assessments for water and sewer projects were not properly reported as receivables; 7) Although a year-end physical inventory of the liquor store was taken, with report made to the City Administrator, a permanent record of that inventory was not maintained, preventing the examination of supporting documentation for the year-end inventory; 8) the 1999 financial statements understated the City's long-term debt, in the Water Fund, by $10,000. The State Audit Report recites, "We could not determine what caused the error." (The City responded that the debt amount was correct in the Administrator's records, but "was understated in the annual audit," (performed by the Pederson CPA firm)); 9) The Report noted certain limitations in the utility billing system, including that they are recorded when cash is collected rather than when billed; this condition increased audit time and the charges therefor in determining accounts receivable balances and associated revenues; and 10) Proprietary Fund fixed assets depreciation had not been updated for year 2000. Other Issues. 1) Under the Governmental Accounting Standards Board (GASB) Statements No. 33 & 34, new reporting standards will be required of the City of Nevis with years ending 12/31/01, and 12/31/04, respectively. The Auditor recommended that the City evaluate the procedure necessary to implement the statements and develop an action plan. 2) Although, per the City (presumably by it's administrator) a $20,000 transfer, in 1999, from the Sewer Fund into the general fund, and presumably paid to the City Administrator, was for back pay of 3 years' administrative services at $6,500 per year, as approved in the budget as "City Clerk Wages" (the City Administrator has said that her total salary is $35,000 per year, including benefits; additionally, the Deputy Clerk is at $17,000 per year, for this city of 364 people), with an adjustment for the extra $500 in 2000, the Auditor notes that $10,000 of the transfer, from the Sewer Replacement Fund Savings Account is not in compliance with Nevis City Ordinance No. 30, and the Auditor recommended that the City review said ordinance before approving and transfer of dedicated sewer funds. The City responded to this by saying that the balance of the fund, after the transfer, exceeded what was required, and the Auditor replied that the City Attorney should make a determination as to whether "the balance in the fund satisfies ordinance provisions." Absence of malice? There have been allegations made by Nevis citizens that the present financial woes of the City are due to collusion and misappropriation of funds, rather than just due to excessive salaries and disbursements and general mismanagement. The Auditor responded to these concerns: 1) Investigating an allegation that the severe cost overruns in the City Hall renovation in 1999 resulted in an improper transfer to then-Mayor Melander for renovations to an apartment building he owned, the Auditor, after reviewing 1999 disbursements, found no evidence of a transfer for that purpose; 2) The Auditor stated that she did "not have sufficient information to determine whether the former Mayor [Melander] and the City Administrator may have been involved in an alleged collusion and conspiracy;" 3) The Auditor stated that "We have no evidence to conclude that there was collusion and conspiracy between the former Mayor and the Hubbard County HRA to divert funds or resources for the former mayor's personal goals;" 4) The Report states, "We do not have sufficient information to determine whether the former Mayor and the private auditing firm [the Pederson CPA firm] may have been involved in an alleged collusion and conspiracy. The Report notes that Melander had previously stated that "the accounting firm had issued a private audit that commended the City's finances." Editor's Note: It is a well-established concept of auditing that, where collusion is involved, financial wrongdoing becomes very difficult, and sometimes impossible, to detect. That is one reason why the integrity of management is a very important factor in assessing control risk. -- Adam Steele, CPA, Editor Photo Captions (photos are not included in The Library edition): Citizens concerned for where their money went pore over the State Auditor's Report, which Wayne Parson supplied to the packed chambers from the box of bound reports. Nevis Mayor Phillip Harris has many times tried to implement internal controls, but has been thwarted by a stonewall Council. Nevis City Administrator Maureen Cirks handled the City's bookkeeping. From Vol. 7 No. 6 03/23/02 ---------------------------- Editorials - Opinion HOW HIGH SHOULD PHILLIP HARRIS HANG? In the court proceedings, it has been uncontested, and it is undisputed, that at an August, 2001 Nevis City Council meeting, following what the Mayor perceived as a show of contempt by Nevis police officer Bob Potter, the Honourable Phillip Harris, Mayor of Nevis, displayed to Potter a particular one of Harris's ten fingers. This upset a lot of people including two councilmembers who walked out, of their own volition, for their own reasons; perhaps the meeting had gotten too heated, anyway, for business to be conducted. If Harris had displayed a different finger, or a toe, the results might have been different. But this is the forbidden finger (actually, you have two of them). This is the finger that offends community values, to where you never see it displayed by itself (there's usually a person attached to it) in public. Even kids are cautioned never to display that finger alone; and they never do - they'd get thrown out of school for that. If anyone, in these parts, displayed that finger in public, they'd likely be charged with disorderly conduct. But no one would do that. But Harris, in an effort to throw back some of the contempt he felt had been dished out by Potter, displayed that finger, believing it to be a protected and lawful expression. Since then, His Honour's political adversaries in Nevis, with the help of former City Attorney Masog, filed a charge of disorderly conduct against Harris, but additionally, later and perhaps realizing that disorderly conduct would not warrant removal from office, concocted (this is not a dirty word) a charge of Misconduct of a Public Official under Minnesota Statutes (M.S.) 609.43. This complaint, in addition to reciting the finger incident, also contained various allegations that Harris had raised his voice, intimidated and threatened city staff and exceeded his authority as mayor. As we earlier reported, upon investigation, these additional embellished allegations did not seem at all to noticeably tax the stockpiles of honest words in the English language (for investigation report, VSA analysis, and other pertinent information, see Corruption to Rule Nevis 'til 2003 -NH of 01/15/02 at northernherald.com). A credit to the Ninth Judicial District bench lies in the Honourable Judge Paul Benshoof. One of the most fair, just and impartial jurists on that bench, His Honour is known for taking the time to analyze and fully consider the cases before him, research as necessary, decide the case under law, and deliver a detailed opinion that would be worthy of the higher courts (where he'll probably end up - but when that happens, it will be a loss to the Ninth District). Accordingly, in his Order and Memorandum of February 8th, 2002, following Omnibus, Judge Benshoof found that the alleged arguments with staff, if they occurred, do not constitute misconduct. Further, in response to other trumped-up allegations, the memorandum recites, "There is no evidence ... that Defendant threatened the employees with physical harm ...I find no support in the record that Defendant threatened to fire the city administrator in a way that would constitute misconduct ...." And with that order the Court defined the finger incident as the sole issue which could constitute misconduct, under M.S. 609.43(2). Trial on that issue is set for June 11th, 2002 at Park Rapids. The Law. M.S. 609.43 states, in pertinent part, that it is unlawful if a public officer " ... (2) In the capacity of such officer or employee, does an act knowing it is in excess of lawful authority or knowing it is forbidden by law to be done in that capacity; ...." The key phrase here is "knowing it is forbidden by law." Except for that requirement, if the mayor turned out to be guilty of the simple offense of disorderly conduct, his having committed the act while acting in his official capacity (at a council meeting) might also render it the higher crime of Misconduct of a Public Officer. But, by that phrase, the statute requires that, to sustain a conviction, Harris would have had to have known that his hand gesture was illegal. There is no evidence in the record that he knew this; in fact, and quite to the contrary, Harris believed it to be a lawful expression. And the burden of proof, at trial, will be on the State to prove that Harris knew his gesture to be illegal, something that, under these circumstances, will be very difficult for the State to do. Whether the gesture constitutes 1) disorderly conduct or 2) protected expression, is another matter, which will also have to be decided at trial. If it is found to be disorderly conduct, and if Harris did it again, then he would probably be doing it with knowledge; it is then that M.S. 609.43 could apply. Good law? Generally, for most offenses, the maxim holds that "ignorance of the law is no excuse." But M.S. 609.43, Misconduct of a Public Official or Employee, is a crime of intent. Although an officer might be sentenced for the lesser crime (here, disorderly conduct), to be convicted of this greater charge and face possible removal from office, the officer has to know that what he's doing is illegal when he does it. The effect of this law is to prevent officials from being convicted under this, more severe, statute for lesser infractions that were without malice; those that were simply mistakes or errors of judgment. From Vol. 7 No. 7 05/04/02 ---------------------------- Leading Edge Journalism NEVIS COUNCIL CALLS SPECIAL MEETING TO INSULT MAYOR NEVIS -- Members of the Nevis City Council called a special meeting the morning of April 15th, 2002, primarily to insult their Mayor, the Honourable Phillip Harris, by, in word, banning him from the Nevis City Hall. In the civic feud that has been raging at Nevis, possibly over the mayor's cost-cutting positions, and his stated need for internal controls over money and assets, in this charming, but deficit-ridden, community (see State Auditor Cites Irregularities at Nevis, NH of 03/23/02, at northernherald .com), and in an apparent attempt to impede the Mayor's function, City Administrator Maureen Cirks had procured, last fall, a temporary order (HRO) barring Harris from City Hall. Cirks, who draws salary and benefits of about $35,000, in this city of 364, (she also has a Deputy Clerk who receives another $17,000 or so, per year) has long been reputed to "run" the city. At the hearing on the HRO, Cirks was represented by attorney John Masog. Masog, as former Nevis City Attorney, had advised the Council, last summer, to try to strip the mayor of his duties. That action was recently rescinded following an investigation by the Minnesota Attorney General into the unlawful actions of the Council, pursuant to Masog's advice. Harris, conversely, did not have an attorney, and felt compelled to agree to the order without any evidence being presented. But, in ruling on another matter, an attempt to remove Harris from office on allegations of Misconduct of a Public Official, the Honourable Judge Benshoof had cause to look into these circumstances, and stated in a recent memorandum, "There is no evidence ... that Defendant [Harris] threatened the employees with physical harm ...I find no support in the record that Defendant threatened to fire the city administrator in a way that would constitute misconduct ...." The HRO was due to expire on April 17th, at which time the Mayor could again enter City Hall to meet with constituents, and have access to documents, records and equipment of the City of Nevis, as necessary to perform his mayoral function. At the April 15th meeting, the Council first discussed joining with Cirks to seek an extension of the HRO. As this type of order is generally issued only to prevent personal harm, harassment, and irreparable injury, and the City had not even allegedly been threatened, an audience member (your Editor) suggested that the Council consult with the City Attorney, John Valen, to see if the City's becoming party to a personal HRO was proper. Valen, however, was out-of-town. The Council recessed for a few minutes to try to contact Hubbard County Attorney Greg Larson who was also unavailable, so John Masog, of Larson's office, took the call, advising the Council to, rather than joining in the HRO action, pass a resolution banning Harris from City Hall. The council, on councilmembers Pam Lindow's motion and Steve Ericksons's second, passed the resolution on a 4-1 vote with Harris dissenting. A resolution, however, does not have the force of law, as does an ordinance. (An ordinance must be heard and read three times, on notice, to allow for public input and fuller discussion.) As a result, it is not believed that the resolution could result in any type of enforcement, were Harris to enter City Hall; the action by the Council, as well as their earlier reprimand, amounted to, primarily, an insult to their Mayor, further impeding teamwork and progress in Nevis. Earlier in the meeting, councilman Erickson, who also operates The Goose Crossing restaurant at Nevis, spoke of "layering" on additional accusations against Harris, probably to the end of trying to pressure him out of office, or giving a further appearance of impropriety on Harris's part. None of the many accusations heretofore made, however, have ever been proven, excepting that Harris admits that he made a controversial hand gesture to a contemptuous city employee at a heated August, 2001 council meeting. Harris has said that he did not intend the gesture to be taken as obscene, that he was simply returning the contempt shown to him at that meeting by the employee, Bob Potter. As to the pending misconduct charge against Harris, which now is limited, in scope, to whether the impropriety of that hand gesture rises to the offense of Misconduct of a Public Official under Minnesota Statutes (M.S.) 609.43, for which Harris could, conceivably, be removed from office, as well as face criminal penalties, a motion hearing will be conducted at 3 pm, May 21, 2001, before the Honourable Judge Benshoof at Bemidji. At that time, Harris's attorney, legal scholar and former Crow Wing (Brainerd) County Attorney John Remington Graham, will argue motions, 1) to disqualify the judge on grounds of alleged prejudice; 2) to strike the Complaint as duplicitous and non-specific; 3) to dismiss the Complaint because it was filed by an Assistant County Attorney (Masog) who had a conflict of interest; and 4) to dismiss the Complaint because there is no probable cause that a crime, as defined by M.S. 609.43, has been committed. From Vol. 7 No. 8 06/01/02 ---------------------------- MISCONDUCT CHARGE AGAINST NEVIS MAYOR DISMISSED BEMIDJI -- The potentially office-threatening charge of Misconduct of a Public Official (MPO) (Hubbard Co. case no. K2-01-914) against Nevis Mayor Phillip Harris was dismissed May 21st, 2002 before the Honourable Judge Benshoof, at Bemidji. Many allegations, by Nevis city staff politically opposed to the Mayor, and contributing to the charge, had been previously found by Judge Benshoof to be without merit, and the case rested, at this point, on whether Harris's displaying his finger to a contemptuous city employee, at a council meeting, rose to the level of the gross misdemeanor charged. A display of the wrong finger is usually charged as simple disorderly conduct, if at all, but former Nevis City Attorney John Masog, who had advised the Nevis City Council last fall to take unlawful action usurping the Mayor's powers, filed the more severe, although possibly unfounded, gross misdemeanor MPO charge, for conviction of which the Mayor might have been removed from office. Former defense attorney Darrell Carter, of Bemidji, acting as public defender, rather than to vigourously defend the Mayor against the questionable charge, had suggested, to Harris, that he resign to quell the controversy. It was then that Harris fired Carter. The dismissal was by agreement between Harris's attorney, legal scholar and author John Remington Graham, and the prosecutor, Mark Hanson, who is the Wadena City Attorney, handling this case due to conflict of interest by former prosecutor John Masog, who was, earlier, removed from the case. The agreement to dismiss came moments before Graham was to have argued for a court-ordered dismissal. As part of the agreement, Harris pled guilty to the lesser offense of Disorderly Conduct and was sentenced to pay $243 as fines and costs, with 30 days jail time stayed. Said Graham, after the hearing, "This case was never more than a simple matter of Disorderly Conduct at worst; and if it had been a normal case would never ... [have been charged as more than that]. But they [Masog and the Nevis Council and Administrator] tried to frame it into a larger statute that raised very serious Constitutional questions; and was going to become the basis of removing the Mayor from office, and all of which was based on political motives that were quite transparent." Harris has claimed from the start that the display of his finger, given the heated context of the situation, was a lawful expression, but Graham said, "It would have been a rather heated and unpleasant trial, and it will be a lot cheaper to dispose of it this way, ... a small fine and the matter will be done...." Harris said that he was satisfied with the outcome of the long matter which can no longer distract from his mayoral duties on behalf of the people of Nevis who elected him, "Yes, it's over and done with and I'll settle for that." (For earlier detailed reporting on this matter, including the Attorney General's action against the Nevis Council, and the State Auditor's Audit Report re: Nevis; see NH, Vol. 7, Nos. 2, 3, 4, 5, 6 & 7, ante, on this Library web page.) Photo captions (photos are not included in The Library edition): Nevis Mayor, the Honourable Phillip Harris, left, with attorney John Remington Graham, emerge from the Beltrami County Courthouse after dismissal of charge, May 21, 2002. From Vol. 7 No. 9 07/27/02 ---------------------------- NEVIS ADMINISTRATOR MAUREEN CIRKS RESIGNS NEVIS -- After 30 years as City Clerk/Administrator, Maureen Cirks has resigned, effective August 6th. Reportedly, she will be taking a job as Administrator for the City of East Gull Lake, near Brainerd. In recent years, under Cirks's administration, and under former Mayor Melander, Nevis has suffered severe cost overruns, and its General Fund, this year, has had a deficit balance. A recent State Auditor's report cited 24 deficiencies in Nevis's financials and accounting procedures (NH of 03/23/02, available at The Library at northernherald.com). Cirks, who asked for, and got, a deputy clerk to work under her, drew a salary, with benefits, of $35,000 a year, in this city of 364 people. It's total administrative cost for 2000 was $60,449, or about $166.07 per resident - one of the highest in the state. In October, 2001, after newly elected Mayor Phillip Harris tried to study city documents in an effort to put the city on sounder financial footing, Cirks sought a Harassment Restraining Order against him, on grounds which later proved to be baseless, barring the Mayor from City Hall. At Nevis, Cirks is expected to be succeeded by Nevis Deputy Clerk Carol Fridgen. Note: For earlier, detailed reports on recent corruption at Nevis, see High Corruption Erupts at Nevis, Northern Herald of 11/03/01, (vol. 7 no. 2) with follow-ups in vol. 7 nos. 3-8, on this Library page. See also related story, "Graham, Benshoof to Joust," this issue, ante. From Vol. 8 No. 5 05/12/03 ---------------------------- 2002 Steele Spheres Awarded GRAHAM HAS SPHERES Danny DeVito, portraying a lawyer, once asked, "What do you call 1,000 attorneys at the bottom of the ocean? ... A good start." A clear exception, though, to the mediocrity of contemporary legal practice is found in John Remington ("Jack") Graham, Esq. We live in an era where it's hard to find, at all, a competent attorney to take a meritorious case for a reasonable fee, and present it competently, in the spirit of the law, representing the interests of the client and not selling those interests out for the sake of expediency or of the lawyer's own benefit. This speaks of the current state of the legal profession. But when John Remington Graham, a true patriot and officer of the Court, in the spirit of the Constitution and laws of the land, heard that Nevis Mayor, the Honourable Phil Harris, had come under unjust and unlawful attack from a corrupt City Council, Administrator, and City Attorney (see High Corruption Erupts at Nevis, in Living on the Edge, at northernherald.com), who tried to usurp Harris's mayoral duties, bar him from City Hall, and bring criminal charges in an attempt to remove Harris, Nevis's lawfully elected mayor, from office; and upon request by Harris, who did not have the funds to retain an attorney, Graham volunteered to take the case without charge to Harris, and even paid his own expenses to come from his office abroad to Northern Minnesota. Graham pursued the matter comprehensively, obtaining an investigation by the Minnesota Attorney General that brought a halt to the Council's unlawful usurping of the mayor's office; and then did the work necessary to the elimination of the corrupt, office-threatening, and unfounded criminal charges against Harris. Harris completed his term as mayor, without further incident, in fall of 2002. Each year, the Steele Spheres are awarded for Exceptional Performance and Valour in the Public Service both Within and Beyond the Call of Duty; and particularly in the face of adversity. Clearly, the 2002 spheres should go to this knight of the courtroom and defender of the common man, and of the Constitution, law, and justice in America. Mr. Graham exemplifies what a patriot and attorney, at best, can be. Said Graham, upon taking the Harris case, without fee, and as he wrote in a letter to the Minnesota Attorney General, "most people may not care that lawlessness has been allowed to run riot in the City of Nevis, but no patriot and statesman will countenance such a situation for a moment." Note: Graham, who was admitted to the bar of the Minnesota Supreme Court in 1967, and of the United States Supreme Court in 1971, is a former Crow Wing (at Brainerd) County Attorney, federal public defender, and Founding Professor of Hamline University School of Law. Graham is currently specializing in British, American and Canadian Constitutional law and history. He is the author of numerous published works, including his most recent, The Constitutional History of Secession, (Pelican Publishing Company, Gretna, Louisiana (2002)) which can be obtained at better bookstores. Photo Caption (photos are not included in The Library edition): Above, Graham, with Mayor Harris (at left), at courthouse after dismissal of false charge. =============================================================== From Vol. 7 No. 7 - 05/04/02 ---------------------------- Consumer Corner THE OFFICE MAX REBATE SCAM - INVESTIGATION RESULTS The Northern Herald investigation of Office Max's practices in advertising many manufacturers' rebates has disclosed that a number of people have purchased merchandise relying on said advertised rebates, but have not received them after complying with the rebate terms. Office Max management may try to pass the buck by indicating that if a customer doesn't get his rebate, the responsibility lies with the manufacturer, not Office Max. But Northern Herald's legal consultant has advised to the contrary: that Office Max is, in fact, still responsible. A manager also said that the rebates are just "slow," perhaps hoping that another few weeks and the customer would forget about it. In these circumstances, it is Office Max that advertised the rebate, sold the goods, and directly benefitted from the transaction. Specifically, counsel said, "If Office Max has been offering rebates and the conditions of the rebate have been met, then Office Max is liable for the rebate. Office Max may have recourse against the manufacturer, but is still liable to the customer for the rebate." WHAT TO DO: Customers who did not get their rebates within the time specified should first notify the manager of the store where the goods were purchased. If the manager refuses to immediately refund the amount that the rebate was to be, for a small filing fee (which is generally includable in the final judgement), the customer may sue Office Max in conciliation court. Of course, the problem can be avoided to begin with by not relying on the advertised rebate in deciding whether or not the price is a good deal. If a manufacturer wants to legitimately promote their product by rebating, we see no reason why the rebate is not simply given at the point of sale, when the goods are purchased. Otherwise, postage and certified mail costs can reduce the savings anyway. As a side issue, many of the rebate offers, in the fine print, state that they will not be sent to post office boxes, which, of course, is onerous to people who live in rural areas, such as Northern Minnesota. ================================================================= **************************************************************** Copyright (c) 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005 by Northern Herald and Northern Herald Publications, Inc. Limited Permission to Use Material: I. 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As pertains to these materials, a short excerpt of not more than a single paragraph, from any such feature or column, may be quoted and used in keeping with the terms of paragraph II. (occasional use in regular publications the bulk of which is other than Northern Herald material), and of subparagraphs 2-4, above, without further permission; except that b. Certain columns, particularly those which appear with the WRITER'S OWN notice of copyright, may be proprietary to the writer, in which case their permission would also be required for ANY use; and 6. As used herein, "occasional use" means, with respect to any single type of material (e.g. hard news stories, editorial by the Editor, a portion of particular captioned column, et. al.) not more than one use of such type of material within any 6 month period. III. INDIVIDUAL END-USERS may, for their own non-commercial purposes, print or reproduce this material (Like we're going to track you down and sue you for printing it out on your home computer ?!!?) Any and all of these Limited Permissions may be withdrawn at any time. p205-080105