JimF-LowBari Posted January 20, 2009 Share Posted January 20, 2009 (edited) The articles say that there is a family divide, how can anyone outside of the family ever expect to really understand what went on with that and the board (which had a ton of family members on it)? So why bother asking about their personal buisness? The only thing that matters is how it affects the kids, and obviously there are kids in the corps, who are excited about it, they have a staff that most world class corps would kill for (just look at the bios on the website). If this was Harry and Mabels General Store you might have a point. But... this is a non-profit that has under age people under their protection for weeks at a time. As far as "family divide", when the BoD members worked on corps business they no longer were acting as family members. They became people responsible for the well being of the corps and it's young people, family or personal relationships mean nothing. IOW, this is NOT family or personal business, especially in the eyes of the law. The articles say that there is Why would all these people be coming if they weren't marching? Lot of things have happened in the last few weeks. Have there been any offical releases from the corps or state pertaining to the recent changes? At this point, I'd say we're not sure of the 2009 status. Just looked at the corps website and nothing is mentioned on the change of BoD or problems the corps is having. If I didn't know better it looks like everything is running as usual which is not the case. Edited January 20, 2009 by JimF-3rdBari Link to comment Share on other sites More sharing options...
bhs alumni Posted January 20, 2009 Share Posted January 20, 2009 Lot of things have happened in the last few weeks. Have there been any offical releases from the corps or state pertaining to the recent changes? At this point, I'd say we're not sure of the 2009 status. Just looked at the corps website and nothing is mentioned on the change of BoD or problems the corps is having. If I didn't know better it looks like everything is running as usual which is not the case. i don't know that i would expect something to address the BoD or specific problems, however i definitely agree that since this information is out there, i WOULD expect at least some kind of press release, vague or specific, the corps should be saying something to try to ease the thoughts of those involved with the organization. Link to comment Share on other sites More sharing options...
The Oz Posted January 20, 2009 Share Posted January 20, 2009 What does that mean, "the equipment is paid for and owned by a third party"? Is that like hiding assets?Smells fishy to me. [Disclaimer - I don't know the specifics of the situation under discussion, but I know some generalities of business.] Such an arrangement is a common, legal business practice. In fact, you may use the same practice. Let's say you want to buy new horns, but don't have the cash on hand. You arrange for someone else to buy the horns and lease them to you. The buyer of the horns, let's call it the Matczak Leasing Company, owns the horns and, in the event of bankruptcy, walks in and takes back the horns with the hopes of selling them or arranging a lease to another organization. The horns are not part of the bankrupt organization’s assets. Thus, “the equipment is paid for and owned by a third party” and the arrangement is entirely legal. The next time you rent a tool from Home Depot, you are participating in the same kind of arrangement. Now if the money used by Mr. Matczak to buy the horns came from the (now) bankrupt organization, then it may be that someone is playing games. Link to comment Share on other sites More sharing options...
gigiandjim Posted January 21, 2009 Share Posted January 21, 2009 From what I heard befor last season there was a power strugle in the corps and several instructors and Management left and went to the Citations of Mass leaving them with few members and a shell of staff Link to comment Share on other sites More sharing options...
Jeff Ream Posted January 21, 2009 Share Posted January 21, 2009 what exactly do open class corps get paid for appearing at shows? is it still the old "do our show we'll do yours" arrangement? if so, this has to be hurting all open class corps Link to comment Share on other sites More sharing options...
bhs alumni Posted January 21, 2009 Share Posted January 21, 2009 IIRC, they get paid for doing world class shows only...but i wouldn't quote me as a source right now, but i think that's what a former director told me Link to comment Share on other sites More sharing options...
Dave Posted January 21, 2009 Share Posted January 21, 2009 Are there still focus shows? When I was marching we actually had to pay money to be a part of those shows, which we had to do if we wanted a hope of a good placement at prelims. Link to comment Share on other sites More sharing options...
wickedpissah Posted January 21, 2009 Share Posted January 21, 2009 (edited) No, focus shows are gone. Those were removed either after 2002 or 2003 I think. Shortly before retreat was removed Edited January 21, 2009 by wickedpissah Link to comment Share on other sites More sharing options...
CasualFan Posted January 22, 2009 Share Posted January 22, 2009 what exactly do open class corps get paid for appearing at shows? is it still the old "do our show we'll do yours" arrangement?if so, this has to be hurting all open class corps In examining several Open Class corps 990 Tax Returns, it looks like the top Open Class corps report "performance fee" income of $20,000 to $40,000 per season. Some corps may include their home show revenue in that amount and, of course, parade income (which averages around $10,000 per season) is also included. Link to comment Share on other sites More sharing options...
HardCorp Posted January 22, 2009 Author Share Posted January 22, 2009 from this morning's Nashua Telegraph...http://www.nashuatelegraph.com/apps/pbcs.dll/article?AID=/20090122/NEWS01/301229834 Spartans looking for buyer By ANDREW WOLFE Staff Writer awolfe@nashuatelegraph.com MANCHESTER – The Spartans Drum & Bugle Corps hopes to find a buyer for its headquarters building in the next week, and may also sell off uniforms and other equipment to pay its debts, the group's bankruptcy lawyer said Wednesday. Director Peter LaFlamme blames the economy for the group's downfall, but a lawyer representing one of the Spartans directors said that LaFlamme's nephew, Paul LaFlamme, and two other directors suspect that Peter LaFlamme himself may be to blame. "They have a litany of complaints against Peter LaFlamme . . . and they don't believe he should be running the organization," attorney Leonard Deming of Nashua told Bankruptcy Judge Michael Deasy during a hearing in federal court Wednesday. Paul LaFlamme and some other directors accuse LaFlamme of mismanaging the group and failing to provide adequate information for the board to oversee the group and its finances."We have no idea why they're in bankruptcy, except that they had a lot of money and it's not there anymore," Deming said. Meanwhile, LaFlamme said after Wednesday's hearing that he hopes to keep the decades-old Nashua institution alive, though he has no firm plans for how he might do so. For more information: Read the bank's request to foreclose. Read the Attorney General's petition to put Spartans in receivership, and report by receiver. Read the Spartan's objection. For now, the organization has been shut down completely and only the bookkeeper is being paid, said the Spartan's lawyer, Eleanor Dahar of Manchester. The only debts still accumulating are mortgage payments and property taxes, she told Deasy. If LaFlamme enrolls any members this year, Deasy said any money the organization takes from individuals must be put into escrow and kept separate from any other accounts. Spartan members pay $1,000 or more in tuition to belong to the group, Dahar said. A hearing is scheduled next week on a request by Bank of New England to foreclose on the Spartans' Hall at 73 E. Hollis St., but the Spartans hope to negotiate with the bank to sell the property beforehand, Dahar said. The group has two offers, though both fall short of the $815,000 owed on its mortgage, she said. The Spartans could sell off various equipment and other assets to cover the rest, she said. The Spartans bought the building in 2005, with a mortgage of more than $1 million, court records show. The property is now assessed by the city at $936,500, but the Bank of New England estimates its current market value at around $800,000, court records show. The Spartans were trying to sell the building before the bank foreclosed and got some interest from a local church, a Manchester lawyer, and an abutting property owner – but had no definite offers, according to a Nov. 13 report by Concord lawyer Todd Fahey. Fahey was appointed to temporarily oversee the Spartans at the request of the state attorney general's charitable trust division. The attorney general's office has since dropped its oversight of the organization, lawyers in the bankruptcy case said, in part because the Spartans can't pay the receiver and in part because of the bankruptcy. "They're content at this point, so long as there's a court overseeing things, to let this proceed," Dahar said. In addition to the drum and bugle corps, the Spartans used to run a charter bus company and a popular bingo game, but both have been shut down. Last year's public smoking ban helped snuff bingo revenues, LaFlamme said, and the economy took a toll on the bus and corps business. According to Fahey's report, only one of the group's five busses still runs, and bingo revenues had been falling for two years. The bank and the City of Nashua are the Spartans' largest creditors, owed for the mortgage and property taxes, but both can be paid through the sale of the Spartans Hall and other assets, Dahar said. There are some 20 to 30 other creditors, all owed only small sums, with the exception of Citizens Bank, she said. According to court documents the Spartans owe Citizens $88,754, which Dahar said is credit card debt. Peter LaFlamme himself hasn't drawn a salary from the Spartans since October, he said after the hearing. How much he was paid before that point is unclear. Deming said there are records showing LaFlamme was taking $700 a week in salary during a time when the Spartans were reporting to the IRS that he got no income. There are also indications that Spartan funds were used to pay individual credit card debt, he said, but it's not clear whose. "We don't feel that he has been forthcoming," Deming said, adding, "We're trying to get the U.S. Trustee's office to take a good, long look at this." The U.S. Trustee is an arm of the Department of Justice, assigned to represent the public interests in bankruptcy court by monitoring the process and investigating potential fraud. Nonprofit groups are required to publicly disclose some documents, including IRS 990 forms. The Spartans' 990 forms available online show that LaFlamme received $2,100 in compensation in 2004; $7,700 in 2005; $1,518 in 2006; and nothing in 2007. The group's 2008 form is not available, and may not have been filed as yet. Andrew Wolfe can be reached at 594-6410 or awolfe@nashuatelegraph.com. Link to comment Share on other sites More sharing options...
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