District 2. Is anybody minding the Store?

McLuvin · Post by **McLuvin** » Mon Dec 17, 2012 3:47 pm

Here is a link to the St. Paul Paper with better details on the District 2 embezzlement case.

A couple of thoughts.

How could nobody (D2) notice $384K missing? Is there not a redundant check or audit?
Are there more people involved?
Why has there been no communication from D2 or MN Hockey on this subject? Are they purposely keeping this quiet? Nobody wants to address the short comings of the organization.
Obviously with that much money missing and no one noticing but the bank, we are being charged way too much money from USA Hockey, MN Hockey and our Districts.

I know there is more to the story and I am being a little simplistic in my rhetorical questions, but they are still valid!

http://www.twincities.com/localnews/ci_ ... ssociation

YouthHockeyHub · Post by **YouthHockeyHub** » Mon Dec 17, 2012 6:23 pm

We caught wind of this in October and did not report because D2 expected to be reimbursed. We felt that it was a non-story and would be more of a smear.

It looks like the money never got paid back.

Interesting.

TS

old goalie85 · Post by **old goalie85** » Mon Dec 17, 2012 6:47 pm

No wonder they are soooooo interested in "taxen" the kids/coaches" !! I brought this up a year and a 1/2 ago. Someone should ask Mr./Ms Mearth !!!! What a joke !!! Last ?, Has this missing $ been "passed" along to the kids ??? If so I have FIVE on their watch!!! Thank you D2. Let us out D10 is where FL belongs anyway. Hudson/River falls/Somerset/ COME ON!!!!!!!!! !

old goalie85 · Post by **old goalie85** » Mon Dec 17, 2012 7:00 pm

Who in D2 is in charge of the shop// It took "The Feds" ???

McLuvin · Post by **McLuvin** » Tue Dec 18, 2012 9:58 am

When someone embezels $384K they are not planning on paying it back. There were rumors of this back in Oct/Nov 2011. This event should be publicized to increase the awareness of other organizations to keep an eye open for losers willing to take money from a kids organization or any organization.
So a year later and still no communication from MN or District 2 Hockey.

irish skater · Post by **irish skater** » Tue Dec 18, 2012 11:45 am

I guess my first thought was, if that much money was taken without anyone noticing, how much money is there? My second thought was, how much money does a youth sports organization need? These kind of numbers almost make it sound like D2 is the national headquarters. Any business would have to be pretty big to have that amount turn up missing and unnoticed.

How about being normal for a change? Quit charging for moving dates around. You've got your fingers in everything. Honestly, those kind of numbers are damn near unheard of. Now the guy is going to get a slap on the wrist? Then D2 keeps it quiet thinking they were going to be repaid by the person that stole it from them in the first place? No one -- I repeat, no one is that ignorant to buy that story. D2 was hoping/praying/planning on it getting swept under the rug. Most families are scratching together enough dough so their kids can play this f'ing sport, then some in-house accountant steals a boatload of it, and you want it quiet. How about opening the books to everyone right on the internet? What is the present balance in the books? What the hell are you doing to even generate that kind of money?

Just a thought. But, honestly, the cover up is almost as insulting as the theft itself. We get hosed twice.

YouthHockeyHub · Post by **YouthHockeyHub** » Tue Dec 18, 2012 11:55 am

IS: My thoughts exactly. I feel like I was lied to big time in October. The D2 official seemed very convincing when I asked him of their plans.

As you so appropriately stated...how in the world is there nearly $400K in fluff money anyway????

CHI-TOWN HOCKEYDAD · Post by **CHI-TOWN HOCKEYDAD** » Tue Dec 18, 2012 12:08 pm

That is correct, over a year has gone by since word of this was released to D2 Associations, and no communication has occurred from D2 or MNH. One would think now that there is public release of legal precedings they would address the situation. The answer to the question posed in the thread topic is no one is minding the store. Information given over a year ago confirmed that the guilty treasurer is a long-time personal friend of the district president who is now married to the district director following their affair during their tenure of office with D2. You just can't make this s**t up. One might wonder, considering these circumstances how are the president and director still in their positions. Well, the answer given is no one will step up to take their positions. I don't buy it, the time has come and past to step down. Once vacant someone will step up or MNH will have to take action. The district cannot continue to function under this type of leadership.

silentbutdeadly3139 · Tue Dec 18, 2012 12:58 pm

YouthHockeyHub wrote:We caught wind of this in October and did not report because D2 expected to be reimbursed. We felt that it was a non-story and would be more of a smear.

It looks like the money never got paid back.

Interesting.

TS

So you thought this was a non-stroy but coaches taping other teams was a story ? Reporting facts is a smear ? Holy Hanna.

This should be publicized as much as possible as a deterent to others, or at least remind other to be vigilant about who's minding the store.

surehockey · Post by **surehockey** » Tue Dec 18, 2012 10:21 pm

Very little information given during our association board meetings due to investigation. Questions couldn't be answered. Still haven't heard anything but what the paper has written. Will definitely bring up at next meeting. How do you approve treasurer reports, when no reports, hard copy, is supplied to review. Our association treasurer always supplies one for each of us to review before we approve.

old goalie85 · Post by **old goalie85** » Wed Dec 19, 2012 8:00 am

Someone needs to call The I Team !!!! Get them digging around.

57special · Post by **57special** » Wed Dec 19, 2012 8:50 am

surehockey wrote:Very little information given during our association board meetings due to investigation. Questions couldn't be answered. Still haven't heard anything but what the paper has written. Will definitely bring up at next meeting. How do you approve treasurer reports, when no reports, hard copy, is supplied to review. Our association treasurer always supplies one for each of us to review before we approve.

Hell, our team treasurer gives detailed reports!

irish skater · Post by **irish skater** » Wed Dec 19, 2012 11:42 am

Even now, this was posted on Monday and there's been moderate interest. If it doesn't involve someone's kid on the ice and how their team is doing, not that big of a deal. My son skates in an association in D2. How will that affect us? Why and how does D2 have an EXTRA 400K laying around? Let's open the books. Hookers & coke?

Night Train · Post by **Night Train** » Wed Dec 19, 2012 12:29 pm

Quite the unfortunate story. A case of the fox minding the hen house. Hopefully some significant jail time for the offender. Not much dirtier than stealing from youth sports organizations.

Most Districts audit their books every year or two and should get a regular treasurer report at every monthly meeting.

My guess is the money was built up over several years (more than 10?). Some Districts, and this should have happened here, return extra built up money to all the association members every few years to keep the balance at an appropriate level. They were obviously overcharging the member associations for team registration, etc. to have built up such a balance. I can see keeping 60-80k on the books as some Districts buy all the ice for all the District games at all the arenas each season prior to collecting that season's dues and expenses. But 400k?

C-dad · Post by **C-dad** » Wed Dec 19, 2012 12:35 pm

Night Train wrote:Quite the unfortunate story. A case of the fox minding the hen house. Hopefully some significant jail time for the offender. Not much dirtier than stealing from youth sports organizations.

Most Districts audit their books every year or two and should get a regular treasurer report at every monthly meeting.

My guess is the money was built up over several years (more than 10?). Some Districts, and this should have happened here, return extra built up money to all the association members every few years to keep the balance at an appropriate level. They were obviously overcharging the member associations for team registration, etc. to have built up such a balance. I can see keeping 60-80k on the books as some Districts buy all the ice for all the District games at all the arenas each season prior to collecting that season's dues and expenses. But 400k?

If you read the Strib story linked above, it didn't all go out at once, it was over the span of 6 years or so.

irish skater · Post by **irish skater** » Wed Dec 19, 2012 2:02 pm

C-dad wrote:
Night Train wrote:Quite the unfortunate story. A case of the fox minding the hen house. Hopefully some significant jail time for the offender. Not much dirtier than stealing from youth sports organizations.

Most Districts audit their books every year or two and should get a regular treasurer report at every monthly meeting.

My guess is the money was built up over several years (more than 10?). Some Districts, and this should have happened here, return extra built up money to all the association members every few years to keep the balance at an appropriate level. They were obviously overcharging the member associations for team registration, etc. to have built up such a balance. I can see keeping 60-80k on the books as some Districts buy all the ice for all the District games at all the arenas each season prior to collecting that season's dues and expenses. But 400k?
If you read the Strib story linked above, it didn't all go out at once, it was over the span of 6 years or so.

Can you spell c-l-a-s-s a-c-t-I-o-n?

edgeless2 · Post by **edgeless2** » Wed Dec 19, 2012 5:44 pm

Not to get off subject but on the behind the scenes handling of public monies, I am wondering why MNhock or D6 has never divulged the terms of the settlement with MM a few years back. It seems a public entity should have to disclose to paying members how much money was paid out on settlement/lawyer fees. Does this seem unreasonable? Or does it fall in the sweep it under the rug category and hope it goes away?

YouthHockeyHub · Post by **YouthHockeyHub** » Wed Dec 19, 2012 8:16 pm

silentbutdeadly3139 wrote:
YouthHockeyHub wrote:We caught wind of this in October and did not report because D2 expected to be reimbursed. We felt that it was a non-story and would be more of a smear.

It looks like the money never got paid back.

Interesting.

TS
So you thought this was a non-stroy but coaches taping other teams was a story ? Reporting facts is a smear ? Holy Hanna.

This should be publicized as much as possible as a deterent to others, or at least remind other to be vigilant about who's minding the store.

We (YHH) walk a fine line in this tiny community - District Directors run the show in MNH. Under no uncertain terms those 12 dictate all day to day policy of how youth hockey is run in MN. These leaders are always great sources of information to our publication.

In this case - I was lied to both on the phone and in writing. "...all monies will be paid back by December 31,2012..." Do you guys think I should re-purpose the same ST article on our site? It seems like I've been scooped and to post it now is sorta yesterday's news. Your thoughts?

As for my story on video taping. My phone has rung off the hook the last two days in support of this document. Two of those calls came from parents of the kids on the video tape team that agree it is ridiculous...

greybeard58 · Post by **greybeard58** » Wed Dec 19, 2012 11:26 pm

YHH,
While it might appear that the 13 District Directors run the show,they are not in the majority to carry all votes, if all are present there are 28 voting board members. Please tell us who lied to you. If not public then in a pm.

irish skater · Post by **irish skater** » Wed Dec 19, 2012 11:28 pm

YouthHockeyHub wrote:
silentbutdeadly3139 wrote:
YouthHockeyHub wrote:We caught wind of this in October and did not report because D2 expected to be reimbursed. We felt that it was a non-story and would be more of a smear.

It looks like the money never got paid back.

Interesting.

TS
So you thought this was a non-stroy but coaches taping other teams was a story ? Reporting facts is a smear ? Holy Hanna.

This should be publicized as much as possible as a deterent to others, or at least remind other to be vigilant about who's minding the store.
We (YHH) walk a fine line in this tiny community - District Directors run the show in MNH. Under no uncertain terms those 12 dictate all day to day policy of how youth hockey is run in MN. These leaders are always great sources of information to our publication.

In this case - I was lied to both on the phone and in writing. "...all monies will be paid back by December 31,2012..." Do you guys think I should re-purpose the same ST article on our site? It seems like I've been scooped and to post it now is sorta yesterday's news. Your thoughts?

As for my story on video taping. My phone has rung off the hook the last two days in support of this document. Two of those calls came from parents of the kids on the video tape team that agree it is ridiculous...

I'm afraid that seeing is believing. Even if you/WE were repaid, how much operating capital do you need for youth sports? That is grossly over the top. Who do you/they answer to? It certainly isn't the membership. I sure hope someone neutral is able to dig around on the skaters' behalf.

InigoMontoya · Post by **InigoMontoya** » Thu Dec 20, 2012 6:51 am

I would think that would be grounds to investigate revoking 501(c)(3) status. Is the IRS and/or state's attorney general's office looking into it? I assume they didn't file appropriately over those 6 years.

old goalie85 · Post by **old goalie85** » Thu Dec 20, 2012 7:18 am

It was brought up at our[FL] board meeting last night. No one has any news. In fact it was said that it is because nobody from FL goes to the D2 meetings, so I guess it's our fault. Chi-town - may have a little more info on the matter.

Night Train · Post by **Night Train** » Thu Dec 20, 2012 7:57 am

In fact it was said that it is because nobody from FL goes to the D2 meetings

Because Districts are run by their member associations, and District leadership is voted in by association members, it's very important that each association has a District Rep and that they do attend every monthly meeting. Hopefully all the associations will take attendance more seriously in the future. I bet attendance at the next monthly meeting will be good. These things, Districts and MN Hockey too for that matter, don't just run themselves. They're run by members. I wouldn't necessarily blame the associations for lack of oversight but I will say had each association been present at every meeting in the last few years this wouldn't have happened. There would have been a professional audit done and excess money would have been distributed back to the associations. Annual fees would have been adjusted down. You association's District Rep is an important role.

CHI-TOWN HOCKEYDAD · Post by **CHI-TOWN HOCKEYDAD** » Thu Dec 20, 2012 10:15 am

A rep from FL was and is at every meeting. What OG meant is was stated other board members and parents needed to be there. The leadership of the district did not require treasures reports and did not institute an annual audit. In fact we were told the treasurer was rarely in attendance district meetings by our rep who was in attendance.

silentbutdeadly3139 · Thu Dec 20, 2012 10:22 am

YouthHockeyHub wrote:
silentbutdeadly3139 wrote:
YouthHockeyHub wrote:We caught wind of this in October and did not report because D2 expected to be reimbursed. We felt that it was a non-story and would be more of a smear.

It looks like the money never got paid back.

Interesting.

TS
So you thought this was a non-stroy but coaches taping other teams was a story ? Reporting facts is a smear ? Holy Hanna.

This should be publicized as much as possible as a deterent to others, or at least remind other to be vigilant about who's minding the store.
We (YHH) walk a fine line in this tiny community - District Directors run the show in MNH. Under no uncertain terms those 12 dictate all day to day policy of how youth hockey is run in MN. These leaders are always great sources of information to our publication.

Are you saying you are beholden to them or must only report what they like ?

I guess this is when you need to decide whether you and your site is going to be a source for news and opinions or just report the lighter side of hockey. With fredricks reporting you have already delved into the news and opinion side of reporting.

YouthHockeyHub wrote: In this case - I was lied to both on the phone and in writing. "...all monies will be paid back by December 31,2012..." Do you guys think I should re-purpose the same ST article on our site? It seems like I've been scooped and to post it now is sorta yesterday's news. Your thoughts?

My thoughts are report stories again. There are many sources for news and many, if not all duplicate stories. Just because one news source reports a story doesn't mean other news source do not report on the same story.

YouthHockeyHub wrote:As for my story on video taping. My phone has rung off the hook the last two days in support of this document. Two of those calls came from parents of the kids on the video tape team that agree it is ridiculous...

you can always find a fringe to agree with anything ... its the silent majority of practical, experienced people that has the valuable opinion.