March 17, 2000
from Judge Cunningham to Stan Myrda:
[KWE Note: Advisory letter from Judge Cunningham to Myrda regarding
KWVA President Coon’s letter to Myrda.]
In your response to Pre. Coon’s letter of 9/20/99 a written
contract is mentioned and you said that you would not sign a contract.
Your agreement with KWVA is an oral contract, and Pres. Coon knows
that. Pres. Coon made the motion to hire you for investigating
this issue of missing funds and to proceed with the insurance claim.
The rate you quoted is far below that standard rate for a CPA in
97 and 98. I am assuming that Pres. Coon signed the tax returns.
Pres. Coon’s letter of 2/7/2000 interprets the hiring of
CPA Scholes as your termination. Wrong motions made at a meeting
of a Non-Profit Corp. must be specific. Scholes was hired as their
accountant purpose not stated, but unless hiring is specific he
will handle regular business of the KWVA. Stan your job was specific
and may have required tax returns during the investigation and
in some respect file amended returns. Pres. Coon’s interpretation
is own and not logical. Unless otherwise mentioned Scholes was
hired to work with the present treasurer and nothing else. Pres.
Coon’s letter to the IRS indicated that Scholes would be
given the authority and a power of attorney later if necessary.
Coon’s letter to N. Pappas on 2/25 concerning the IRS Form
2848 and the letter to IRS makes the same claim. Coon is begging
the question he signed the document. The IRS has not questioned
the document nor has the FBI the investigation continues. What
is this man afraid of or is trying to hide something. (We now know
that he was informed in Sept. 99 that the file was closed.)
I agree with N. Pappas letter to Coon on 3/1. In almost all organizations
particularly non-profit corp., the Past President is and Office
and a member of the Board of Directors. N. Pappas is right in the
event the Board of Directors meeting on 3//25 votes to remove you
and Pappas from this quest for reimbursement and dealing with the
FBI and IRS. Both should be held harmless from any and all matters
that might arise in the future from the beginning date to the date
of termination. This should include any dealing with the insurance
The question of reimbursement for your charges by the insurance
company, there would not be a letter indicating that the insurance
company would pay there is a clause in the insurance contract that
provides for reimbursement upon submitting a claim that is document.
Coon as President has access to all of the document for KWVA,
including minutes of meeting of the Board and the Executive Committee.
The letter from Coon questioning the fees listed for 97 and 98,
his inference is on the edges of slander, he has accomplished the
publication by sending the correspondence to all Board members,
and only God knows to how many others.
Stan have on numerous occasions that your business demands your
attention that after you will have time to make detail statements
as requested by the insurance company and to KWVA.
Stan it appears to me that Coon is pressing the issues at this
time because he knows that from 1/1/2000 to April all CPA and Accountants
are busy. It is a form of harassment. Coon made the motion for
you to proceed. He now realizes that his motion was inadequate
for his purposes. He knows that his motion did not contain specifics
that he now demands. He is accountable to KWVA Board of Directors
for his omissions.
Only KWV has standing to sue the insurance company. You would
have to sue KWVA and the President, Treasurer of KWVA and the individual
that you contacted during the past years. The person at the insurance
company for failure to notify you or at least send you a copy of
the correspondence that indicated closing date.
Stan no one can come in new and replace you or N. Pappas. The
time required to get up to speed would be too long. Both you and
Pappas would be required to spend time with the individual or individuals
that would replace you and Pappas. Remember the statute of limitations
is 10 years. The insurance would most likely call a halt on future
payments, and wait to be sued.
Since Pappas called insurance company, this is the first notice
that the file was closed. Settlement so far was only partial. There
shouldn’t be any problem for them to open the file.