February 23, 2000
Myrda’s letter to the KWVA:
[KWE Note: Myrda response to Coon’s comments]
Harley Coon, President
Korean War Veterans Association
RE: Your Letter February 4, 2000
Dear Mr. Coon;
In reading your letter, a number of questions have arisen which
must be addressed. Our office on January 6, 2000 filed a follow
up claim with the insurance company for the amount of $60,848.82
and mailed your office an invoice in the amount of $16,870.00).
The Second issue addressed in your letter is the return of all
records. Upon the payment of all of the fees outstanding ($16,870),
my office will forward your office ONLY the 1998 records. All the
other records relate to the insurance claim will remain in my possession
until the claim is completely filed and settled with the insurance
company, including all legal matters relating thereto, including
investigation by the FBI and the IRS.
Results of the investigation may require the amending of Federal
Reporting forms 990 for the calendar years 1994 thru 1997.
Mr. Pappas’ name and my name are on file with FBI and the
IRS as individuals knowledgeable and authorized to provide information
relating to the defalcation.
The point regarding consultation with Mr. Pappas regarding any
audit matters, I will continue to discuss the questions and issues
that arise with Mr. Nick Pappas. This is based on the fact that
Mr. Pappas was the President during Mr. John Maison’s tenure
as KWVA’s treasurer. Mr. Pappas has provided knowledge and
information regarding many issues, payees, travel records and other
data pertinent to the claim.
Your statement regarding any costs which I may incur for consulting
with Mr. Pappas, be paid by Mr. Pappas is out of order. Mr. Pappas
is NOT obligating the Korean War Veterans Association, Inc. This
occurred when the Board of Directors approved your motion to authorize
my office to handle the investigation of Mr. John Maison’s
tenure as Treasurer. This included the filing of any claims relating
thereto, and follow up with the insurance company on any questions
or follow up information the insurance may need regarding the alleged
defalcation by Mr. John Maison and to consult with Mr. Pappas in
Mr. Pappas as President during this period has personal knowledge
and information relating to the financial information which has
been helpful in the claim process. No other person, except John
Maison, could be more helpful in this claim process. Mr. Maison,
unfortunately, has not volunteered to do so. Therefor, I will continue
to discuss the issues and matters relating to the claim with Mr.
In addition, the IRS has Mr. Pappas and myself on record as authorized
to discuss these matters. Based on a telephone call recently from
the IRS and the FBI it appears they are just getting into the matter.
A copy of this letter is being sent to all the Board of Directors
to make them aware of my position. This is being done to give the
Board my side of the issue.
Your office has ask for a break down of the fees charged to date
for the audit. Originally all time for services to the KWVA, whether
it was audit matters, accounting matters, bookkeeping, filing of
Federal Informational reports and returns was billed on one invoice.
This will require time to research the time sheets and try to allocate
the time by function, this will be prepared after tax season.
Upon the completion of the claim work the time related to the
claim work is billed to KWVA and a claim for the time billed the
KWVA for the claim work is filed with the insurance company. Therefore
the insurance company will reimburses KWVA for the fees KWVA pays
my firm for the claim. The insurance company has also asked for
a detail report on the work performed. The detail time sheets are
only kept on open computer file for one year, each year is closed
out except for unbilled time. The files will be recreated for the
insurance company and your office. Our office is busy with tax
season and audits through June 30th.
Our office has originally filed a claim on behalf of the KWVA
relating to my time and billing in the amount of $24,000. Subsequent
claims will be filed upon the completion. The insurance company
has no paid the amount originally filed and has requested more
detail and description of the work performed. This will be filed
later this spring as stated above.
If you have any additional questions, please provide them to my
office in writing and I will address them as soon as possible.
Stan Myrda, CPA
cc: Executive Council