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AprilRains
8/01/2016 6:12pm,
I type this with greater care because there is now a point to being clear. Don't expect it all the time. :)

Recently, a Bullshido user named "The Villain" made some shadowy allegations about matters related to Lynn Thursby's suit against USA Judo. Specifically, he hinted that Ms. Thursby or her daughter had been threatened with physical harm, death, and/or sexual assault.

I acted with Georgette Oden to contact Ms. Thursby and get her side of the story. It is generally better to hear directly from people rather than to rely on go-betweens, and in this case I felt there was reason to think that "The Villain" would distort or overstate what he had heard.

Here are the relevant excerpts from her two emails to Georgette and me:


As for threats against me or my family, you know how those go. It comes by way of a third party that doesn't want to disclose where it's coming from, which makes it unreliable and quite possibly just a rumor. I take threats against myself and family very seriously. I do believe this was generated as an intimidation factor but was unsuccessful.

I am not in fear for my safety and there is no sex tape that could be released of my daughter since one was never made. I find it troubling that anyone would resort to having third parties contact me with rumor or innuendo.

I am a very cautious person that lived overseas as a child and still travel extensively. I do live in Texas and with that being said, I am normally less than 20 feet away from a loaded weapon and that's only when I go to the mailbox. I truly believe these tactics were used to intimidate and there is no viable threat. You are more than welcome to repeat anything I say.

None of what I've done or am doing is confidential in any manner. I would be happy to send you all documentation on the complaint against USA judo starting tomorrow.
I post this in order to reassure Bullshido members that we are not suppressing Ms. Thursby's complaint by acting against "The Villain". Nor are we neglecting a viable investigation. However, it is worth noting that "The Villain" gave a dramatically exaggerated account of the certainty of what was happening. That and his initial focus on taking down USA Judo might have caused legal problems down the line, and we should not go that route.

We don't yet know if there is material here for an investigation. There might be something worth discussing on an ongoing basis, if we stick to facts and avoid innuendo and unsupported speculation.

BKR
8/01/2016 6:20pm,
I type this with greater care because there is now a point to being clear. Don't expect it all the time. :)

Recently, a Bullshido user named "The Villain" made some shadowy allegations about matters related to Lynn Thursby's suit against USA Judo. Specifically, he hinted that Ms. Thursby or her daughter had been threatened with physical harm, death, and/or sexual assault.

I acted with Georgette Oden to contact Ms. Thursby and get her side of the story. It is generally better to hear directly from people rather than to rely on go-betweens, and in this case I felt there was reason to think that "The Villain" would distort or overstate what he had heard.

Here are the relevant excerpts from her two emails to Georgette and me:



I post this in order to reassure Bullshido members that we are not suppressing Ms. Thursby's complaint by acting against "The Villain". Nor are we neglecting a viable investigation. However, it is worth noting that "The Villain" gave a dramatically exaggerated account of the certainty of what was happening. That and his initial focus on taking down USA Judo might have caused legal problems down the line, and we should not go that route.

We don't yet know if there is material here for an investigation. There might be something worth discussing on an ongoing basis, if we stick to facts and avoid innuendo and unsupported speculation.

That makes sense from what I know of the USA Judo situation. Lynn filed a complaint against USA Judo via the proper channels and in accordance with the organizing law (Ted Stevens Sports Act, which I posted earlier in Villain's thread).

She has posted links to all the documents (these are easily found via google foo).

goodlun
8/01/2016 6:23pm,
That makes sense from what I know of the USA Judo situation. Lynn filed a complaint against USA Judo via the proper channels and in accordance with the organizing law (Ted Stevens Sports Act, which I posted earlier in Villain's thread).

She has posted links to all the documents (these are easily found via google foo).

Would it be possible for you to give us a quick summary in layman's terms what the whole complaint is about?

AprilRains
8/01/2016 6:26pm,
That makes sense from what I know of the USA Judo situation. Lynn filed a complaint against USA Judo via the proper channels and in accordance with the organizing law (Ted Stevens Sports Act, which I posted earlier in Villain's thread).

She has posted links to all the documents (these are easily found via google foo).
allt he public ones yeah
might be more incoming, might not
more importantly theres no sexual abuse/death threat situation going on with any certainty

and whats the lesson?

https://cdn.meme.am/instances/500x/70213934.jpg

goodlun
8/01/2016 6:28pm,
more importantly theres no sexual abuse/death threat situation going on with any certainty


I think a better way to put it is that there are likely no credible threats, as threats where indeed made.

AprilRains
8/01/2016 6:31pm,
I think a better way to put it is that there are likely no credible threats, as threats where indeed made.
NO. rumors of threats.

cualltaigh
8/01/2016 6:39pm,
Would it be possible for you to give us a quick summary in layman's terms what the whole complaint is about?

According to her Facebook page, over a period of 9 years she contributed over $90,000 in grants and loaned USAj $100k. In the process of considering a further $500k loan she requested a review of financial information which uncovered (allegedly) questionable dealings with short term and related party loans.

She is essentially taking the current administration to task for misappropriation of funds and conflict of interest in their financial dealings.

Long version here:

USA JUDO PROBLEMS - Part one (simple overview)
Over the next couple of weeks I will be putting information and explanations on social media regarding the USOC complaint with USA Judo, please feel free to share. The hearing is September 23rd and 24th.
I. PARTIES AND RELEVANT BACKGROUND INFORMATION

Claimant Lynn Pearce Wooldridge-Thursby is a member and long-term supporter of USA Judo (hereinafter “USAJ”). Her initial financial contributions began in 2005 with restricted funding which has provided travel assistance for athletes. She has worked with USAJ in the promotion and hosting of events, and has worked with USAJ to develop fundraising programs. In addition to assisting in developing fundraising for USAJ, she (with her husband) has also been a significant contributor, including over $90,000 in grants to USAJ, as well as making a $100,000 loan to USAJ. In the process of considering an additional $500,000 loan to USAJ, Claimant requested the opportunity to review basic financial documentation to ensure that repayment would be forthcoming without hindering USAJ’s operations. It was during this review of documents that Claimant became aware of and deeply concerned with the financial, managerial, and ethical issues that became the subject of the Complaint process that she initiated in April 2014, which ultimately led to the filing of this Section 10 Complaint.
Ms. Thursby did everything that she could to try to resolve these issues without the need for filing this Complaint. However, USAJ appeared more interested in appeasing her than actually solving the myriad of financial and conflict of interest issues that she raised. Now that this Complaint has been filed, USAJ has claimed that Ms. Thursby is acting in bad faith and with ulterior motives with one hand, while at the same time continuing to accept her sponsorship dollars with the other.

The simple truth is that Claimant will not stand by idly while the current administration at USAJ continues to run the organization into the ground, and continues to allow its CEO to engage in outrageous self-dealing and conflict of interest situations. USAJ needs a clean slate of people, who are interested in the welfare of the sport and its participants first and foremost. Too many small NGB’s like USAJ are run by people who are primarily driven by self-interest and self-preservation. Too many small NGB’s like USAJ refuse to change because they do not believe that any of their members will go to the extraordinary trouble and expense of filing a Section 10 Complaint with the USOC. Claimant has gone to such extraordinary trouble and expense because she can no longer tolerate the status quo. The only possible resolution of this case is one that involves a radical change in the organization itself.

II. GENERAL SUMMARY OF FACTS
On or about April 24, 2014, Claimant submitted a 75-page Complaint to the USAJ Board of Directors [hereinafter referred to as “April 2014 Thursby Complaint”]. The April 2014 Thursby raised the following issues:

1) that USAJ’s Chief Executive Officer, Jose Rodriguez, owned or was a part owner in a number of other entities that were involved in the sport of judo and/or did business with USAJ, which evidenced an actual conflict of interest or at least the appearance of a conflict of interest;

2) that USAJ’s lack of managerial capability resulted in the loss of numerous sponsors and the loss of significant sponsor revenue;

3) that inaccuracies in USAJ’s financial documents raised serious issues regarding the managerial capability of USAJ, including, without limitation, (i) differing sets of accounts payable; and (ii) possible manipulation of financial statements to make USAJ appear in to be in a better financial situation than its actual financial situation; and

4) that business dealings between USAJ and entities in which Jose Rodriguez had an ownership stake violated USAJ’s internal Statement of Principles, Ethical Behavior, Non-Disclosure and Conflict of Interest policies, as well as the duty of loyalty and corporate opportunity contained in various applicable Texas statutes.

Those complaints – first raised some 15 months ago, still form the nucleus of the Section 10 complaint, and still remain unresolved today. This brief will not exhaustively address all of the issues raised in the Section 10 Complaint, but rather, will simply highlight the most egregious and serious issues.

III. SELF-DEALING AND CONFLICT OF INTEREST ISSUES
USAJ’s Chief Executive Officer, Jose Rodriguez, owned, was a part owner in, or was an executive for, a number of other entities that were involved in the sport of judo and/or did business with USAJ:

1) At all material times, Jose Rodriguez was Vice President of South Florida International Games Corp. USAJ promoted the South Florida International Games to its members through newsletters, without any disclosure that Jose Rodriguez was a principal in the organization that owned and operated the South Florida International Games.

2) At all material times, Jose Rodriguez was a principal of USA Sports Production Management, Inc., an organization that sold judo Gis to the Pan American Judo Confederation (hereinafter “PJC”) a regional organization within the International Judo Federation (hereinafter “IJF”), the recognized International Federation for the sport of judo. Mr. Rodriguez’s business relationship with the PJC creates a conflict of interest for him as the CEO of USAJ. Furthermore, Mr. Rodriguez’ ownership of USA Sports Production Management, Inc., violates USAJ’s own Statement of Principles, Ethical Behavior, Non-Disclosure and Conflict of Interest , as well as the ethical standards that the USOC expects of itself and its National Governing Bodies (hereinafter “NGB”).

3) Jose Rodriguez has been a business partner with Jhonny Prado in numerous judo-related entities, while at the same time serving as CEO of USAJ. Mr. Prado is a judo coach, and owner of the “Ki-Itsu-Sai National Training Center” in Florida and the “USA Judo National Training Site,” and has been allowed by Mr. Rodriguez and by USAJ to create a false and misleading association between his training centers and USAJ.

Many of these conflicts of interest continue to this day, despite Claimant’s repeated complaints. It is frankly stunning that Jose Rodriguez has been allowed to act as CEO of USAJ while at the same time being actively involved in several commercial judo-related ventures. This is not some theoretical conflict, or even a tangential conflict (if such a thing even exists in the context of an NGB). The fact that the USAJ Board of Directors has allowed such self-dealing by its CEO is clear evidence that the management and leadership of the organization must change.

While USAJ’s attorney may scoff at the comparison to the conflicts that led to Lloyd Ward’s ouster at the United States Olympic Committee, Claimant submits that the comparison is apt: in the wake of conflict of interest issues – which included allegations that Mr. Ward had directed a staff member to advance a plan by his brother and a friend to provide backup power to the upcoming Pan American Games in the Dominican Republic – Lloyd Ward was forced to resign, and the surrounding turmoil led the USOC to completely restructure and revamp its Board of Directors. Mr. Rodriguez’ conflicts here are much worse than those attributed to Mr. Ward, and the fact that the current USAJ Board of Directors cannot recognize this is as egregious as Mr. Rodriguez’ own transgressions.

IV. MANAGERIAL ISSUES AT USAJ
USAJ’s own financial documents raise serious issues regarding the managerial capability of USAJ's Board and its officers:

1) USAJ provided two different sets of accounts payable to Claimant within a short time-frame, which differed by $124,000;

2) The 2013 Financial Statements reported that USAJ’s total assets had decreased by over 40% in one year; its total current liabilities had increased by over 30% in one year; and that “Management has evaluated [USAJ’s] ability to continue as a going concern.”

3) USAJ’s own Draft 2013 Financial Statements reported that “[USAJ] obtained short term financing. Based on the effective interest rate charged on the short term advances and the nature of some of the related party transactions, there may be potential liabilities related to IRS, payroll tax, and state statute regulations. The Final 2013 Financial Statements confirmed that these short term financing transactions, in some instances, resulted in an effective APR of as much as 277%. Management has not accrued any liabilities relating to these contingencies as the likelihood of an adverse ruling and the costs associated with an adverse ruling cannot be reasonably calculated … As of December 31, 2013, [USAJ] is not in substantial compliance with the compensating balance requirements for temporarily restricted net assets.”

4) USAJ’s own Final 2013 Financial Statements reported that “During fiscal year 2013 the American Judo Fund granted $170,000 to [USAJ] … The American Judo Fund represents a concentration risk to [USAJ].”

5) USAJ’s own Final 2013 Financial Statements reported that “The American Judo Fund provided a loan [to USAJ] for approximately $300,000 in fiscal year 2014. The funds were used to pay down accounts payable and effectively moved liabilities from short term to long term debt.”

6) A Draft CPA Letter provided by USAJ’s own CPA reported that there were issues with the manner in which USAJ engaged in short term loans with related parties.

7) A Draft CPA Letter provided by USAJ’s own CPA reported that “[USAJ] has a lack of controls, which are material to overall fiscal management.”

8) A Draft CPA Letter provided by USAJ’s own CPA reported that “[USAJ has] no systematic method of ensuring that timely and complete monthly reconciliation and closing procedures take place … This accounting function disorganization will ultimately cause significant errors in the financial records and financial statements as well as allow possible irregularities, including fraud, to exist and continue without notice.” [emphasis added]

9) A Draft CPA Letter provided by USAJ’s own CPA reported that “For the past few years, [USAJ] has incurred significant losses in its operations. This poor financial position has caused the financial statements to include a going-concern disclosure. The Organization does not appear to have enough cash/cash equivalents/current assets to meet its temporarily restricted obligations.”

10) A Draft CPA Letter provided by USAJ’s own CPA reported possible documentation issues with excess benefit transactions;

11) USAJ has failed to keep restricted funds segregated, and has failed to maintain sufficient funds to meet restricted fund commitments.

The depth and breadth of the management issues at USAJ, which have caused serious and numerous warnings to be issued regarding the ongoing viability of USAJ, reveal an ongoing, serious management issue that, it is respectfully submitted, can only be cured by either (i) decertifying USAJ as the NGB to allow a competent organization to be inserted in its place; or (ii) a complete overhaul of USAJ, such that the management and leadership that created or permitted the numerous financial and managerial deficiencies are no longer in such positions of leadership and/or control.

https://www.facebook.com/donnalynn.pearcewooldridge/posts/997992513576758

BKR
8/01/2016 6:48pm,
Would it be possible for you to give us a quick summary in layman's terms what the whole complaint is about?

LOL, you are smart enough to read this and figure it out. I'm no expert, and I could follow it with no problem.

I don't know if that action is a law suit, though.

http://www.thejuliagroup.com/documents/Complaint%20Agaiinst%20USA%20Judo%20-%20Feb%202015.pdf

BKR
8/01/2016 6:50pm,
allt he public ones yeah
might be more incoming, might not
more importantly theres no sexual abuse/death threat situation going on with any certainty

and whats the lesson?

https://cdn.meme.am/instances/500x/70213934.jpg

I listen to Jordan, however, as you read, but believing everything he says is another matter. I had some knowledge of which tree he was likely barking up...

hungryjoe
8/01/2016 6:59pm,
Did the USJA ever replace the executive board members? Those, all as I read, term limited but still serving?

AprilRains
8/01/2016 7:03pm,
I listen to Jordan

swell choice good luck

BKR
8/01/2016 7:05pm,
Did the USJA ever replace the executive board members? Those, all as I read, term limited but still serving?

You mean USAJ? Because this thead is about USAJ (USA Judo), not USJA (United State Judo Association, a Group A Member of USA Judo).

BKR
8/01/2016 7:06pm,
swell choice good luck

Listening and believing everything I hear or read are two different things.

AprilRains
8/01/2016 7:08pm,
its your time to lose

goodlun
8/01/2016 7:10pm,
its your time to lose

More like the tax payers time of what ever county he works in...

BKR
8/01/2016 7:11pm,
More like the tax payers time of what ever county he works in...

Ohhh, that hurt, Goodlun, that hurt...

If I ever get to San Diego I'll look you up and make you start standing up with me, LOL ! Then you can do your Myao brother imitiation.