SLOAN ACCUSES POLGAR OF COMPUTER

samsloan 11115292 · Joined: 08 Mar 2004 Posts: 1445 Location: Bronx, New York

The Mystery of the USCF Computer Taken by Miss P

On Frank Niro's new website which is the launching pad for his forthcoming book there is an interesting story at:

http://www.chesssafari.com/SusanPolgar.htm

He writes:

"Susan Polgar

"I don’t know what to say about Susan Polgar beyond the fact that I’m proud to call her my friend. Susan and her manager/best friend Paul Truong intervened on my behalf when I left the Chess Federation after my heart attack in 2003. I wanted my laptop because it had a number of personal files on it that were important to me. It seemed like a simple enough request. Not only did Susan and Paul approach the Board of Directors on my behalf, they offered to pay for it! Then they drove to New Windsor, picked up the computer, and transported it to me in Connecticut. I have many wonderful friends but I cannot think of any other who would have done that."

However, there is more to this story. That computer did not belong to the Frank Niro. It belonged to the USCF and the files on it belonged to the USCF.

More importantly, we now know something that we did not know at that time, which is that while he was Executive Director of the USCF, Frank Niro was also Director of the Susan Polgar Foundation. When he signed several contracts as Executive Director with the Susan Polgar Foundation, he was really signing a contract with himself. When he paid large checks to the Susan Polgar Foundation, he was paying large checks to himself.

None of this was known to the USCF Board or to John McCrary, the USCF President at the time.

This explains why Truong and Polgar would be so anxious to get the computer that Frank Niro had been using out of the USCF office. That computer no doubt contained incrimination evidence, evidence that they did not want the USCF to have. Frank Niro had abruptly disappeared and gone into hiding during the 2003 US Open in Los Angeles when simultaneously $300,000 had gone missing too. He was in no position to go to the USCF office and pick up the computer himself.

Do not expect the current USCF president, Bill Goichberg, to be investigating this. Goichberg has already specifically directed Joe Nanna, the new USCF CFO, not to investigate this.

It is important to note that Bill Goichberg specifically directed the new CFO, Joe Nanna, to stop investigating this matter. On November 30, 2006, in an email entitled "Re: The Golden Girls", Bill Goichberg wrote:

>I am not aware that any board members have asked that our CFO check the
>entire history of all payments to Polgar, and I suspect this would not be a
>productive use of his time.
>
>Bill Goichberg

However, the above statement was not true. Three board members had asked Joe Nanna to investigate this. There were Joel Channing, Beatriz Marinello and myself.

I have since realized that it was actually Bill Goichberg, while he was Executive Director, who paid the big checks totaling $13,538.36 to Miss Polgar. (Previously, I had mistakenly concluded that it was Grant Perks who made these payments.)

I find the story on the Frank Niro posting about the lengths that Paul Truong and Susan Polgar went to get the computer Frank Niro had been using from the USCF office after Niro has disappeared due to a claimed "heart attack" to be interesting. That computer no doubt contained correspondence between Niro and Truong and Polgar which would have provided incriminating evidence. This very likely explains why they would go to such lengths to get it away from the USCF. This was also theft. The computer belonged to the USCF, not to Frank Niro.

Sam Sloan

artichoke 10167825 · Joined: 13 Jul 2006 Posts: 1159 Location: Connecticut

I hope Bill Goichberg will comment on this. It certainly sounds like something that should have been investigated and should still be investigated.

Does Joe Nanna report to Bill Goichberg personally? Could the EB as a whole direct him to investigate this, or direct the ED to have it investigated?

jacklemoine 10509327 · Joined: 11 Dec 2006 Posts: 460 Location: Atlanta, GA

Another nasty, negative attack by Sam Sloan. But where is Sam on the issues? What spending cuts or revenue increases would he make to cover that $300,000?

chessoffice 10088887 · Joined: 26 Feb 2004 Posts: 379

chessoffice 10088887 · Joined: 26 Feb 2004 Posts: 379

MstrHyde 12551774 · Joined: 09 Mar 2004 Posts: 40

mnibb 12818435 · Joined: 03 Feb 2005 Posts: 716 Location: Illinois

artichoke 10167825 · Joined: 13 Jul 2006 Posts: 1159 Location: Connecticut

joelchanning 12560070 · Joined: 04 Oct 2005 Posts: 411

samsloan 11115292 · Joined: 08 Mar 2004 Posts: 1445 Location: Bronx, New York

artichoke 10167825 · Joined: 13 Jul 2006 Posts: 1159 Location: Connecticut

snits 12652674 · Joined: 03 Mar 2004 Posts: 132 Location: Tempe, AZ

Sam it sounds like from the post above that it was either given or sold to them, so what did Susan or Paul do wrong in this case? If Niro had any incriminating evidence as you say, it wouldn't have made any sense to put in on the USCF computer anyways. With all the money you think they have taken they should have had no problem securing a computer that had no connection to the USCF on which to store their devious plans.

chessoffice 10088887 · Joined: 26 Feb 2004 Posts: 379

JGoins 13492105 · Joined: 26 Dec 2006 Posts: 24 Location: Tennessee

Mr. Sloan,

You've been asked repeatedly to discuss some serious topics and answer to/defend yourself from some serious allegations. Instead of doing this it seems you're simply bouncing ideas for a trashy spy novel off the members of this forum.

I can see it now - Shocked

- Ms. Polgar and Mr. Truong (or their actor stand-ins) in black catsuits, sneaking through USCF headquarters some moonless night, evading guard dogs, weaving through laser beam alarm systems, hacking into the mainframe to delete incriminating evidence then deposit a super-killer virus just for spite.

Exclamation

Are you, Mr. Sloan, a convicted felon? Did you lie about your qualifications during the last election? Were you ever a Master - did you ever claim to be? Did you solicit under-age girls for sex?

Please, Mr. Sloan, before I bring my young nephews into the USCF, debunk some of these serious allegations or lose my vote.

Sincerely,

JGoins

irishspy 12422598 · Post:25618 Posted: Sun Dec 31, 2006 10:17 pm Post subject:

SteveTN 12467003 · Joined: 23 Jul 2006 Posts: 639 Location: Nashville, TN

Sam Sloan has posted complete untruths alleging criminal violations against at least two USCF members who are also candidates for the Executive Board in the upcoming elections.

I dare say there is no one here, not even the person who wrote the falsehoods in question, doubts that they were written for political purposes and to defame the targets of the falsehoods.

My question: When will the USCF put a stop to this behavior from this individual at least on these forums?

I recently wrote something far less objectionable (I referred to the person as a Sam Sloan supporter, a charge that has more evidence than does many of the charges that Sam Sloan posts) just to see what would happen. The posts and the post with which the person responded were deleted.

How is it that my unlikely but far more debatable attribution (which was also harmless) is deleted without notice or discussion while Sam Sloan is able to make completely false charges of criminal behavior and those prevarications remain on the server for all to see?

Question

_________________
Steve in Tennessee

http://sdo1.blogspot.com/

tanstaafl 11246770 · Joined: 18 Jun 2005 Posts: 1854

Steve, that entire thread was deleted because Sam Sloan had made use of a private e-mail from Ben Finegold (which wasn't written to Sam Sloan, so I wonder how he got it) without the author's permission. Normally, we wouldn't necessarily see an entire thread deleted because of one problem posting, but since the entire tread was ABOUT the Finegold e-mail...
_________________
There ain't no such thing as a free lunch.
---
I am the signature virus, please put me in your signature so I can spread. Smile

SteveTN 12467003 · Joined: 23 Jul 2006 Posts: 639 Location: Nashville, TN

Well, darn. The best laid plans of mice and men...
_________________
Steve in Tennessee

http://sdo1.blogspot.com/

nolan 10339324 · Joined: 20 Dec 2003 Posts: 5065

I think that thread got deleted because the Moderator who did it didn't know how to just move a thread to the hidden areas. (I was on the road returning from PA at the time.)

Unfortunately, once a thread is deleted in phpBB, it is gone forever.

samsloan 11115292 · Joined: 08 Mar 2004 Posts: 1445 Location: Bronx, New York

tanstaafl 11246770 · Joined: 18 Jun 2005 Posts: 1854

jacklemoine 10509327 · Joined: 11 Dec 2006 Posts: 460 Location: Atlanta, GA

All of this Polgar/Finegold stuff is well and good but a chess politician has to be about more than nasty, negative attacks. Where does Sam Sloan stand on the issues?

My quest continues.

samsloan 11115292 · Joined: 08 Mar 2004 Posts: 1445 Location: Bronx, New York

samsloan 11115292 · Joined: 08 Mar 2004 Posts: 1445 Location: Bronx, New York

It is interesting and illuminating to read the posts by Paul Truong in August, 2003 under the heading "Niro's Back". This is one of the many posts where Truong claims that he and Susan are not paid anything and are doing all this for the good of chess. Now, we find that the USCF paid $13,538.36 for one of these "free" appearances.

http://groups.google.com/group/rec.games.chess.politics/msg/69b7fc7bb10ebe42?

> > As long as we are beating dead horses, we were led to believe
> > that Niro was working for nothing when he was interim ED. Was he in
> > fact not paid for his time as interim ED?

> Famous saying--You think it's expensive now, wait till it's free.

> Now only the board and committee folks are working for free. Oops, I forgot
> Paul Proung. He's working for free. If you don't believe me ask him how much
> the USCF has paid him or owes him for expenses and appearances for him and
> Susan Polgar (his client) and any other entities that he(she) are involved
> with. In fact ask him what we paid the GM volunteer of the year for her
> volunteer work.

> StanB

samsloan 11115292 · Joined: 08 Mar 2004 Posts: 1445 Location: Bronx, New York

Here is another Truong quote. From reading this, one would assume that Polgar works entirely for free and is never paid. However, we now know that Bill Goichberg, as Executive Director, paid Polgar $13,538.36 in December 2003 for these "free" appearances. He did this without informing the board or the president. At the Executive Board meeting on November 17, 2006, Beatriz Marinello, who was USCF President in 2003 at the time of the events in question, said that had have never known that this money was paid until I discovered this payment on the CD and made an issue over it.

This proves that Bill Goichberg was paying large amounts of money to his political allies without informing the board.

Sam Sloan

http://groups.google.com/group/rec.games.chess.politics/msg/69b7fc7bb10ebe42?

"Dear Stan:

"Thank you for bringing up this point. USCF does not pay me any cash
for my appearances. US Chess Trust also does not pay me any cash for
my appearances to help do fundraising for them. In fact, I have
fronted a lot of my own money for a number USCF activities including
the Women's Olympiad Program. Since January 2003, I have spent about
$100,000 of my own time and money for various activities to help US
Chess. I have also donated a lot of work for USCF for Chess Life
without charge. In some events, USCF paid for my airfare and hotel
and in some other events, I paid myself."

samsloan 11115292 · Joined: 08 Mar 2004 Posts: 1445 Location: Bronx, New York

Sorry, but I disagree. It was not "his" computer. Bill Goichberg agrees that the computer belonged to the USCF, not to Frank Niro. Niro claimed that he wanted the computer because it contained personal information. However, that is not a good thing either. Why was he using the USCF's computer for his personal business? I admit that everybody does it, but that does not make it right.

I do not think you were around then and I do not believe that you are familiar with this history. Frank Niro had reported that the USCF was very profitable and that he was on his was to the meetings in Los Angeles to present the financial report.

On August 1, 2003, Frank Niro wrote a check to himself for $2618.85. Check number 60170. You will find it on page 29 of the CD. It is right below his check for $1500.00 to John Hillary.

This was the final blow-out check. Usually, Frank Niro wrote checks to himself for about $1100, perhaps to avoid a two-signature requirement. This last time he went way over his normal limit.

Frank Niro was supposed to be flying directly from New Windsor to Los Angeles. However, he never showed up in Los Angeles. He simply disappeared. I do not know whether he ever submitted an official letter of resignation or not.

However, the financial report did arrive in Los Angeles, directly from the auditors. Rather than show a profit as Niro had said it would show, it showed a loss of over $300,000.

This threw the USCF into a crisis. Nobody knew who was in charge. USCF President John McCrary, who had been expecting to be re-elected, resigned instead. Everyone was shocked when Beatriz Marinello, who had been elected to the board primarily because it had been said that she was a nice young girl who would not cause any trouble, suddenly emerged as USCF President.

All #### broke loose. It was probably at about this time that Paul Truong and Susan Polgar simply walked into the USCF offices in New Windsor and took the computer. Nobody was in charge and therefore there was nobody to tell them "no".

Unless Paul Truong and Susan Polgar can produce some documents authorizing them to take the USCF's computer, I would say that they stole it.

Sam Sloan

Mulfish 10510376 · Joined: 29 Apr 2004 Posts: 492 Location: Atlanta GA

jacklemoine 10509327 · Joined: 11 Dec 2006 Posts: 460 Location: Atlanta, GA

Dear Sam Sloan,

Again with the nasty, negative attacks.

BTW auditing standards have become pretty stringent in recent years. This is particularly true in the area of fraud detection. If all this stolen computer stuff had any validity at all, it should have been addressed in the audit package the auditors presented to the Board. In addition to the audit report on the financial statements, the Board should have gotten a report in Internal Controls, as well as a Management Letter. This is why audits now cost so much money - all the additional work auditors must do and all the additional liabilities they must assume.

And don't forget: the auditing standards require auditors to be hired and fired by the BOARD, not the management of the company and to be responsible to the BOARD not to management. So don't go off on another round of personal attacks. If the auditors are not answering to the BOARD or and AUDIT COMMITTEE of the Board, then that's an audit deficiency right there Sam and that responsibility is one YOU share. Furthermore, those same standards now require that the AUDIT COMMITTEE consist of majority outside directors. And THAT means that BOARD members who are also in management can have only a minority on that committee.

Why doesn't Sam Sloan reference any of that? Probably because we had professional, independent CPA's look into all of this and they found NOTHING, that's why.

So, here's what, Sam. Show us the auditor's report on any of this. Put up or shut up.

Better yet, get back to the issues, Sam. Where's the Sam Sloan program better manage the Board's audit responsibilities?

Jack

My quest continues.

samsloan 11115292 · Joined: 08 Mar 2004 Posts: 1445 Location: Bronx, New York

Sorry. I made a mistake. I have found a subsequent check that Frank Niro paid to himself.

This is check number 48907 dated 8/7/03 for $1150.00. Note the difference in check number. This was from a different checkbook, a checkbook that was not often used. This may explain why I missed it previously.

I am fairly certain that Niro was no longer in the office by August 7. He was supposed to have been in Los Angeles to attend the USCF delegates meeting by that time. This tends to show that Frank Niro was not ill as he claims to have been.

On August 11, four days later, Beatriz Marinello was elected USCF President. On August 20, 2003, Beatriz Marinello walked into the USCF offices and fired 17 staff members. I believe that by then the computer had already been taken. I am absolutely certain that Beatriz Marinello, who was in charge by then, would never have allowed Polgar to remove that computer from the USCF office.

Sam Sloan

jonnybear 10098068 · Joined: 31 May 2006 Posts: 304 Location: Brooklyn, N.Y.

Jack, I'm not sure all (or even any) of those standards you just quoted apply to non-profits. I guess I'm supposed to know this, since I have a CFA charter, but frankly I'm not sure.

Some of the items you mentioned (such as an auditor's report having to include a section on Internal Controls) were added in the Sarbanes-Oxley legislation -- which would not yet have been in force for financial reports for the year 2003.

However, that law covers only for-profit, publicly held or "reporting" companies (a privately held company can be "reporting" if, for instance, its debt securities are publicly traded).

Since I don't follow the non-profit sector, I don't know whether any legislation or rulemakings similar to Sarbanes-Oxley may have been enacted for organizations like USCF, and when or if such rules would have gone into effect. What you said sounds correct for public, for-profit companies, for financial reports prepared after Sarbanes-Oxley went into effect. Even then, there are deferrals for "non-accelerated filers" (smaller public companies); some of the internal-control audit requirements still haven't gone into effect for such companies.

chessoffice 10088887 · Joined: 26 Feb 2004 Posts: 379

hmb 10062225 · Post:25662 Posted: Mon Jan 01, 2007 1:57 pm Post subject:

jacklemoine 10509327 · Joined: 11 Dec 2006 Posts: 460 Location: Atlanta, GA

johnnybear, I'm referring to SAS's not Sarbanes-Oxley. The subjects discussed herein should have been caught by the auditors. Indeed, all of these accusations of financial misconduct could have and should have been referred to the auditors. If SS was being responsible, then that's what he should have done.

If the Board blocked him from making enquiries of the auditors, then I think he would have a legitimate beef - but even then that would pertain to legitimate areas of concern. The problem is that he's dishing out blanket accusations with the worst possible interpertation placed on people's acts. So the Board's refusal to grant SS individual access to the auditors would be a defensible position.

My point with all of this is that the public should disregard ALL of Sam Sloan's allegations without support of the auditors.

--------
As for the technicalities, please refer to SAS 60 issued April 1988 titled "Communication of Internal Control Matters Noted in an Audit". This supersceded SAS 20 and does apply to non-profits. Especially note the standard's definition of reportable conditions.

I could go into other applicable standards but you get the idea. I don't want to get pendantic on you.

artichoke 10167825 · Joined: 13 Jul 2006 Posts: 1159 Location: Connecticut

artichoke 10167825 · Joined: 13 Jul 2006 Posts: 1159 Location: Connecticut

Sevan Muradian 12596003 · Joined: 04 Nov 2005 Posts: 176

As an Internal Auditor myself I'll tell you that primary oversight rests with the Board of Directors who in turn creates an auditee committee that reports to them and is outside of the power circle of the President/CEO.

The external auditors are nothing more than a tool of the Board.

To me it seems if a competent and strong enough Audit Committee existed within the USCF to carry out internal investigations then a number of issues could be assuaged.

However when the Audit Committee is potentially investigating Board members that's when this gets complicated.

It is the responsibility of every employee to abide by the Code of Ethics within an organization and the responsibility of the President/CEO and the Board to ensure that proper internal controls exist within the organization.

2007 and 2008 are going to bring a number of new internal control responsibilities to not-for-profit organizations. As best practices though I do not see why the USCF would not being to address internal control weaknesses. A number of for-profit organizations that are not bound and will not be bound by SOX proactively are doing SOX compliance as it positive for their customer base. The same thing goes when firms proactively seek SAS-70 compliance. It's a show of positive strength.

I would urge the USCF to look into their internal control weaknesses and addressing them. This would help rid us of a great deal of issues and non-sense that continues on today.

--Sevan

Mulfish 10510376 · Joined: 29 Apr 2004 Posts: 492 Location: Atlanta GA

jacklemoine 10509327 · Joined: 11 Dec 2006 Posts: 460 Location: Atlanta, GA

FYI Susan has posted her explanation of all of this on her blog. I suggest you look it up. (1st post of the new year.)

Now as for the main point: the proper way to handle all of this avalance of accusations is for responsible USCF leaders to refer to the auditors and ask them what they found. Stuff of this magnitude should have been addressed in some report even if only in a management letter.

Absent that, this whole thread and threads similar to this one are just so much nonsense. Let's get back to the issues, people.

Like that $70,000 Artichoke just referred to above. Sam Sloan did not propose $70,000 of spending reductions; he just gave us $70,000 worth of accusations. Even if he was right and $70,000 was misspent last year, then what spending reductions does he propose, to make up for that this year?

My quest continues.

irishspy 12422598 · Post:25672 Posted: Mon Jan 01, 2007 3:12 pm Post subject:

artichoke 10167825 · Joined: 13 Jul 2006 Posts: 1159 Location: Connecticut

hmb 10062225 · Post:25674 Posted: Mon Jan 01, 2007 3:25 pm Post subject:

jacklemoine 10509327 · Joined: 11 Dec 2006 Posts: 460 Location: Atlanta, GA

Yes, artichoke, you're right as far as you go but - what should the EB do?

If they can't rely upon the auditors they have now, then they should get new ones. If they are dissatisfied with the audit procedures the auditors follow, they should direct additional steps the auditors should take and specific areas they want the auditors to look into.

But perhaps you can see the drawback this would have to Sam Sloan's position. He would have to move past attacks and address issues.

My quest continues.

artichoke 10167825 · Joined: 13 Jul 2006 Posts: 1159 Location: Connecticut

samsloan 11115292 · Joined: 08 Mar 2004 Posts: 1445 Location: Bronx, New York

Here is the response Susan Polgar posted this morning on her Blog:

Monday, January 01, 2007 12:31:56 PM
SusanPolgar
SusanPolgar said...

Jack,

I will not bother to respond to liars and demented people. The laptop belong to Mr. Niro, not the USCF. He began his tenure of ED as a volunteer. As part of the agreement with that board, he received a laptop but no pay. He later became a paid ED but the laptop was already his.

When the new board took over in August 2003, they were not aware of the situation. I even offered to pay for it if they refused to honor the agreement of the previous board with Mr. Niro. However, that was not needed as they agreed to give him back his laptop.

I took the laptop to Mr. Niro who was recovering from a heart attack in Connecticut. It was the right thing to do.

In regards to personal info on the laptop, Mr. Niro had pictures of his children in it as well as the book that he is writing to his son.

It does not matter how many times I answer, more lies will surface.

Best wishes,
Susan Polgar
www.PolgarChess.com

Monday, January 01, 2007 12:40:18 PM

samsloan 11115292 · Joined: 08 Mar 2004 Posts: 1445 Location: Bronx, New York

I have made a few calls around the country this morning to people who were involved in the events in question in August, 2003. I have determined the following facts:

1. The newly elected Executive Board took office at the conclusion of the delegate's meeting on Sunday August 10, 2003 and on August 11 the newly elected officers took office, with Beatriz Marinello as President, Tim Hanke as VP of Finance and Don Schultz as Secretary.

2. Paul Truong was made Director of Marketing. As Director of Marketing, he could probably have just walked in to the USCF's office in New Windsor and taken the computer with no questions asked.

3. Mike Nolan was made Executive Director. However, Mike Nolan only held that position for about a week until his house burned down and he had to return to Nebraska.

4. The newly elected officers, Beatriz Marinello, Tim Hanke and Don Schultz, arived in the New Windsor offices on Wednesday, August 20. The first thing they did was look for that computer. It was already missing.

5. None of the newly elected board members have any recollection of being asked by Susan Polgar or Paul Truong for permission to take that computer. Also, they would not have given that permission, if asked.

6. As to the claim that Frank Niro was given that computer by the previous board as employee compensation, nobody has been able to confirm this. If true, why was it in the USCF office rather than in Frank Niro's home?

7. As to the claim that Frank Niro was in a hospital in Connecticut, nobody has been able to confirm this either, as Frank Niro never contacted the board to inform them of his whereabouts.

8. Susan Polgar, in her posting to her Blog, has failed to provide the name of any board member who was contacted with a request for the computer. None of the board members can recall being contacted. Until she comes up with the name of a person, her claim lacks credulity and does not even make sense.

9. Since it was Mike Nolan who was most likely in charge of the office when the computer went missing, he should be contacted and asked what he remembers about this incident.

Moderator intervention please?

Sam Sloan

nolan 10339324 · Joined: 20 Dec 2003 Posts: 5065

Sam, Please revise your post to reflect the following corrections to easily verifiable facts:

1. I was named Chief Operating Office, not Executive Director.

2. My house did not burn down, though it did sustain quite a bit of damage to electrical systems when it was struck by lightning.

I don't recall anything involving Susan or Paul and Niro's computer while I was in New Windsor, and I think it was still sitting on the table in the ED's office when I left to return to Nebraska. Susan and Paul were just arriving at the USCF office for the first time since the US Open as I was leaving for the airport that day. (Had such a request been made to me, I would not have turned it over without at least making a copy of all files on it first.)

jacklemoine 10509327 · Joined: 11 Dec 2006 Posts: 460 Location: Atlanta, GA

One does wonder how the independent, outside auditors addressed the whole issue in the part of their audit of the fixed assets. The risk of missing laptops has been a big risk factor in audits for many years now.

I note that you inquired (how thoroughly, we wonder) but you STILL didn't reference the audit findings. Is that because the audit did not support your conclusions?

But enough of the nasty, negative attacks. Back to the issues.

In the area of fixed assets, what new policy would you propose to safeguard laptops in the future?

Mulfish 10510376 · Joined: 29 Apr 2004 Posts: 492 Location: Atlanta GA

I've been in corporate accounting for 30 years and thus have been involved in many audits. I've never seen the independent auditors go so deep as to do a fixed asset inventory at the level of material a laptop represents. The auditors I've dealt with are familiar with the principle of materiality, and there were definitely bigger fish to fry at the time. I don't think the absence of comment from the auditors means anything at all.

Susan's response was helpful, but it would be more helpful if she specifically identified who authorized removal of the computer. If not on the forums, at least to the EB privately.

nolan 10339324 · Joined: 20 Dec 2003 Posts: 5065

I suspec they'd be willing to do it if PAID to do it, Mike, but the audit fee is already rather substantial.

As to 'safeguarding laptops', I doubt there's much on any USCF staffer's laptop that would cause a huge problem if it got into the wrong hands, since the member addresses, birthdates, credit card numbers, etc. are on the database server. (Those are the types of things that cause problems when corporate laptops go missing.)

I doubt Bill Hall has anything more interesting on his laptop than some confidential email and maybe some financial reports.

Mulfish 10510376 · Joined: 29 Apr 2004 Posts: 492 Location: Atlanta GA

Yes, I think the EB and ED are also familiar, if not with the principle of materiality, at least with common sense.

snits 12652674 · Joined: 03 Mar 2004 Posts: 132 Location: Tempe, AZ

jacklemoine 10509327 · Joined: 11 Dec 2006 Posts: 460 Location: Atlanta, GA

Mike, I respect your 30 years in corporate accounting and will certify from personal acquaintance that you definetly know more than I do. However, you are looking at the facts in your world; we are looking at facts in Sloan World.

Here, the facts are: (1) $3 million is missing; (2) the ED disappeared; and (3) his laptop's gone, too. These are the facts in Sloan World.

Now, if the $3 million is missing and the auditor failed to discover it, then the USCF has a cause for action right there. Faced with the other facts, how could any auditor not address them in the audit?

Materiality does not count in this case. The auditor would be required to look into this matter.

Now back to Mulfish and the real world.

Mulfish 10510376 · Joined: 29 Apr 2004 Posts: 492 Location: Atlanta GA

I think we're misunderstanding each other, Jack. My point is that with the large gaps on the books, the laptop wouldn't have hit their radar screen. Challenging the quality of the audit on the big picture is rational. I was interpreting some of your comments to apply it to the laptop question as well, and that makes less sense. If you weren't intending that, I apologize.

As to the suggestion to change auditors, I'm not so sure we didn't do just that already. Perhaps someone with better information and confirm or contradict that.

nolan 10339324 · Joined: 20 Dec 2003 Posts: 5065

We've had at least 5 different sets of auditors since 1987, including one 'Big 8' firm. The most recent change was the result of moving USCF headquarters from NY to TN in 2005.

samsloan 11115292 · Joined: 08 Mar 2004 Posts: 1445 Location: Bronx, New York

Mike Nolan wrote the following today.

"I don't recall anything involving Susan or Paul and Niro's computer while I was in New Windsor, and I think it was still sitting on the table in the ED's office when I left to return to Nebraska. Susan and Paul were just arriving at the USCF office for the first time since the US Open as I was leaving for the airport that day. (Had such a request been made to me, I would not have turned it over without at least making a copy of all files on it first.)"

This occurred on August 20, 2003. Later that same day, the three newly elected members of the board arrived. They report that when they got there, the laptop was already missing.

So, it seems that it was during that short period of time of not more than a few hours after Mike Nolan left and before the new board arrived, that Susan Polgar and Paul Truong grabbed the laptop off the ED's desk and made off with it.

Sam Sloan

jacklemoine 10509327 · Joined: 11 Dec 2006 Posts: 460 Location: Atlanta, GA

Still with the laptop, Sam? What new rules would you institute for laptops in the future?

rfeditor 10010250 · Joined: 14 Apr 2004 Posts: 1657

mnibb 12818435 · Joined: 03 Feb 2005 Posts: 716 Location: Illinois

artichoke 10167825 · Joined: 13 Jul 2006 Posts: 1159 Location: Connecticut

nolan 10339324 · Joined: 20 Dec 2003 Posts: 5065

That's a complete fabrication of what happened, Sam.

Don, Beatriz, Tim and I were there on Monday, August 18th. Beatriz and Tim had already been there a few days by then, Don arrived on Monday. We all went out to dinner at a local Italian restaurant. (Al Lawrence was at that dinner, too.)

Paul and Susan didn't get there until some time around noon on Tuesday.

Mulfish 10510376 · Joined: 29 Apr 2004 Posts: 492 Location: Atlanta GA

tanstaafl 11246770 · Joined: 18 Jun 2005 Posts: 1854

artichoke 10167825 · Joined: 13 Jul 2006 Posts: 1159 Location: Connecticut

Paul has been VP of the SPF (don't know for sure if he is now because I haven't seen a current 990) and they maintain a close association. I believe that Susan has called Paul her business manager. Paul co-writes her CL column Paul is a member of Susan's slate of announced EB candidates. It's not as if they have nothing to do with each other.

lblair 12454599 · Joined: 03 Mar 2006 Posts: 1034

___"... will you name those you contacted to receive the above
___information Sam?" - Jerry Snitselaar (Mon Jan 01, 2007 5:46 pm)

It is worth remembering that we are still waiting for an answer.

tanstaafl 11246770 · Joined: 18 Jun 2005 Posts: 1854

irishspy 12422598 · Post:25814 Posted: Tue Jan 02, 2007 2:03 am Post subject:

artichoke 10167825 · Joined: 13 Jul 2006 Posts: 1159 Location: Connecticut