Formal Complaint Alleges Systemic Conflicts of Interest at The Assembly, DGI, and CFGG

GREENSBORO, N.C. June 28, 2025 — A detailed formal complaint filed by government watchdog George Hartzman accuses The Assembly, a North Carolina-based news outlet, of systemic conflicts of interest involving its Greensboro coverage, funders, and local institutions including Downtown Greensboro Inc. (DGI) and the Community Foundation of Greater Greensboro (CFGG).

The complaint names The Assembly’s Greensboro editor Joe Killian, his wife Amanda Lehmert Killian, and multiple institutions whose financial and professional entanglements allegedly compromise the outlet’s ability to report independently on local government and economic power players.

Allegations of Conflict: Marriage, Money, and Media

At the heart of the complaint is Joe Killian, a veteran journalist who previously worked for the News & Record. Killian is married to Amanda Lehmert Killian, who served as a Senior Communications Specialist for the City of Greensboro for eight years under Mayor Nancy Vaughan, who served on DGI's board of directors. Amandda also held a leadership position with the Guilford Green Foundation while Vaughan was Executive Director, a nonprofit that received a $2,500 sponsorship from DGI earlier this year, paid via CEO Zack Matheny’s taxpayer funded credit card.

DGI used taxpayer funds to provide gifts and favors to public officials and contractors, potentially violating N.C. Gen. Stat. § 133-32 (gifts and favors regulated) and N.C. Gen. Stat. § 138A-32 (State Ethics Act). These gifts were not reported, suggesting willful concealment and potential violations of 18 U.S.C. § 201 (federal bribery) and N.C. Gen. Stat. § 14-217 (state bribery).

Hartzman argues that these connections, combined with Killian’s relationships with city officials and prior affiliations with open government groups, create an environment ripe for bias—one in which scrutiny of DGI and city government is systematically avoided.

A Closed Loop of Influence?

More broadly, the complaint paints a troubling picture of a media ecosystem influenced by those it’s supposed to cover. The Assembly receives funding through the Greensboro Community Journalism Fund, hosted by CFGG. CFGG itself is a financial partner of DGI and is led by Walker Sanders, who appears on DGI’s internal expense records as the recipient of multiple meals purchased with public funds.

According to the 23-24 DGI ledger obtained by Hartzman on May 21, 2025, Matheny’s DGI credit cards were used three times between August 2023 and February 2024 to purchase meals labeled as meetings with Sanders—totaling $279.24. Meanwhile, CFGG funds both DGI and The Assembly's Greensboro coverage, raising serious concerns about journalistic independence and potential “excess benefit transactions” under IRS rules for nonprofits.

“This isn’t journalism, it’s a closed loop of mutual backscratching,” said Hartzman.

“Taxpayer money flows to DGI. DGI spends it on influencers like Sanders. Sanders' network funds The Assembly, and then The Assembly runs interference for DGI. The public is left misinformed.”

DGI’s expenditures, funded by city contracts, include questionable uses of taxpayer money, potentially constituting N.C. Gen. Stat. § 14-90 (embezzlement of public funds) and IRS Private Benefit Doctrine violations for 501(c)(6) organizations.

Questionable Reporting and Correction Requests

Hartzman also accuses The Assembly of misrepresentation and failure to meet basic journalistic standards in its coverage of his efforts to uncover irregularities at DGI. He specifically takes issue with statements in Joe Killian’s June 2025 article, “A Conflict Over Conflicts,” including a claim that “none of that was true” in reference to emerging allegations against DGI.

“That conclusion is not supported by facts and presumes the outcome of an unresolved situation,” Hartzman wrote in a June 27 letter to The Assembly. “The financial records are real. The program existed in secret. The lack of accountability is evident.”

Further, he alleges that The Assembly’s reporter Gale Melcher failed to contact him for comment despite referencing him directly in a recent article about DGI’s controversial homeless relocation program involving Greyhound bus tickets. Records show that 32 ticket purchases were made using DGI’s credit card—before the program had any public oversight.

Institutional Silence, Public Trust Eroded

Hartzman argues that The Assembly’s refusal to acknowledge or correct these issues is part of a broader pattern of journalism serving power rather than holding it accountable.

“This is how power protects itself—by attacking those who ask questions, dismissing evidence without examination, and manufacturing narratives to discredit critics,” he wrote.

The complaint also highlights The Assembly’s founder, Kyle Villemain, and his background in strategic communications. Hartzman argues that Villemain’s dependence on maintaining relationships with North Carolina’s nonprofit and political elites further undermines the outlet’s claim to editorial independence.

Demands for Accountability

Hartzman is requesting formal corrections to past reporting, transparency about funding sources, and a commitment from The Assembly to avoid conflicts of interest in its coverage of DGI, CFGG, and Greensboro’s city government.

The Assembly has not yet publicly responded to the complaint.

Hartzman says he has filed formal complaints with the City of Greensboro, The State Ethics Commission, Auditor, Local Government Commission, North Carolina Secretary of State’s Lobbying Compliance Division, IRS and FBI regarding the DGI ledger and related issues. He maintains that watchdog efforts like his are essential when traditional journalism fails.

“The public deserves better than sanitized press releases masquerading as news,” he said. “We need a press that investigates, not one that protects the powerful.”

Greensboro Officials Face Ethics Probe Over Alleged Lobbying Violations and Conflicts of Interest

Greensboro, NC – June 8, 2025 – Formal complaints have been filed by local resident George Hartzman with the Greensboro City Clerk, the State Ethics Commission and the Secretary of State’s Lobbying Compliance Division. The complaints allege serious violations of North Carolina’s lobbying laws, conflict-of-interest statutes, and ethics codes by Downtown Greensboro Inc. (DGI) President and City Councilmember Zack Matheny, Mayor Nancy Vaughan, Councilmember Nancy Hoffmann, City Attorney Chuck Watts and developer Roy Carroll.

Key Allegations;

Hartzman’s complaint, backed by financial records and public meeting footage, centers on undisclosed conflicts of interest, improper influence, and potential illegal lobbying activities.

Key claims include:

Conflicts of Interest in Bellemeade Property Deal

Matheny, who serves as both DGI President and a Greensboro City Councilmember, voted on February 18, 2025, to approve a $2.35 million contract for the demolition of the Bellemeade Street Parking Deck. On June 3, 2025, he voted to transfer the city-owned property to Roy Carroll’s company for $1.85 million, despite an appraisal valuing it at $2.42 million. This deal allegedly resulted in a $570,000 windfall for Carroll and a $504,000 loss for taxpayers, effectively transferring over half a million dollars in public value to a private developer.

Carroll and his wife each donated $5,000 to Matheny’s 2022 campaign.

Craig Carlock, a Carroll Companies executive, sits on DGI’s board, creating a financial and political tie.

DGI records show $4,313.53 in taxpayer-funded grants and expenses linked to Carroll, including a $2,500 façade grant and meals with Matheny.

Unregistered Lobbying by DGI

DGI’s January 30, 2025, bi-annual report details advocacy efforts with city officials on issues like the Bellemeade demolition and Carroll’s Marriott AC Hotel project. However, neither Matheny, DGI Vice President Rob Overman, nor DGI is registered as a lobbyist with the Secretary of State, potentially violating NCGS § 120C-101.

The complaint highlights that DGI’s IRS filings do not disclose lobbying activities, and searches of the Secretary of State’s database show no registrations for Matheny, DGI, or its vice president

DGI spent taxpayer funds on meals for city officials, including $62.49 for Vaughan, $55.53 for Hoffmann, and $64.17 for Watts, raising concerns about unregistered lobbying and gift ban violations under NCGS § 138A-32.

DGI's own reports describe "242 economic development and planning meetings" and serving as a "liaison" between developers and city departments, and meals with city officials and nonprofit leaders at upscale restaurants throughout Greensboro.

Under North Carolina law, public officials cannot accept gifts of any value from organizations that receive government funding or lobby the government.

Zack Matheny, who has served as both DGI President and a Greensboro City Councilman, previously resigned from council in 2015 to avoid conflicts of interest, only to return to public office while maintaining his leadership at DGI. The intertwined roles of city officials, DGI, and private developers have long raised concerns about transparency and ethics in Greensboro’s downtown redevelopment efforts.

"The repeated pattern of DGI funding meals for officials who later vote on Carroll's projects creates a strong appearance of quid pro quo corruption," the complaints state.

Improper Gifts and Potential Bribery

DGI’s financial records reveal taxpayer-funded perks, including meals, event tickets, and grants, provided to city officials and staff who later voted on or advised on Carroll-related projects.

Notable expenses include:

$43.08 for City Manager Taiwo Jaiyeoba.

$42.30 for Parks and Recreation’s Josh Sherrick.

$300 for a lunch with developers, including Carroll, at Undercurrent Restaurant.

An estimated $60,000 on event tickets over three years, potentially used to influence officials.

At Greensboro's City Council Meeting 6/3/2025, Hartzman said "Their ledger shows over $40,000 in spending on perks: Haunted House tickets, Oyster Roast tickets, Swarm, Tanger, Grasshoppers, and Wyndham events. Then there’s meals with city officials, nonprofit leaders and Matheny political donors at Green Valley Grill, B Christopher’s, Pura Vida, Natty Greene’s, Undercurrent, Lucky 32, Print Works, Sushi Republic, Postino, Inka Grill and more. All on the public’s dime, paid for with our tax dollars."

If Zack Matheny and DGI spent a total of $60,000 on event tickets over the last three years, with tickets averaging $65 each, they could have distributed approximately 923 tickets ($60,000 ÷ $65 = 923.08).

Matheny has been CEO of DGI since July, 2015.

These actions may violate NCGS § 14-234 (conflict of interest) and NCGS § 14-217 (bribery).

The complaint also alleges the city and DGI withheld financial records in response to public information requests, raising concerns about transparency and accountability.

Nonprofits must operate exclusively for exempt purposes (charitable, educational, etc.). They cannot allow their income or assets to unfairly benefit individuals or private interests, unless such benefits are incidental and necessary to the organization’s mission.

Taxpayer dollars are not meant to subsidize social perks for government insiders. Meals and tickets provided to City Council members or city employees without transparency or a legitimate, documented public interest, are a misuse of public funds and may violate both nonprofit law and government ethics standards.

City Attorney’s Conflict

Watts, who accepted a DGI-funded meal, advised Matheny on voting despite clear conflicts, raising concerns about obstruction of justice (NCGS § 14-221) and violations of NC State Bar ethics rules. Hartzman alleges Watts’ failure to recuse himself compromised impartiality.

Lack of Transparency

The Bellemeade property transfer was a no-bid deal, bypassing competitive processes and public oversight. DGI’s financial records, partially released by the city, lack detailed disclosures, and IRS Form 990s show no lobbying entries despite advocacy activities.

Hartzman demands:

A criminal investigation into violations of NCGS § 138A-32 (gift ban), § 163-278.12 (lobbying disclosure), § 14-234 (conflict of interest), and § 14-217 (bribery).

Immediate recusal of officials who accepted DGI-funded benefits from votes or discussions involving DGI or Carroll.

Full disclosure of DGI’s spending on officials and updated economic interest disclosures.

The complaint further notes that improper use of nonprofit funds and failure to report gifts could trigger IRS penalties and jeopardize DGI’s nonprofit status

An independent investigation by the City Clerk under Greensboro’s Code of Ethics, separate from the State Bureau of Investigation (SBI) referral made by the Greensboro Police Department (GPD).

City’s Response and Controversy

Mayor Vaughan confirmed the complaint was referred to the SBI due to the involvement of elected officials, per GPD protocol.

However, Hartzman alleges Vaughan’s disclosure of the complaint’s details violated confidentiality, potentially exposing him to retaliation and undermining the process. He claims this breach may constitute obstruction of justice under NCGS § 14-221.1 and has demanded a clear timeline for the city’s internal ethics investigation.

Hartzman further argues that the city’s failure to act promptly on its own ethics code risks perceptions of complicity or a cover-up, especially given Watts’ compromised role as legal advisor.

Broader Implications

The allegations highlight a pattern of alleged misconduct involving taxpayer funds, political donations, and favorable votes for private developers. If proven, the violations could lead to misdemeanor or felony charges, including bribery or misuse of public funds (NCGS § 14-254). The case also raises questions about the integrity of Greensboro’s governance, with Hartzman calling for transparency and accountability to restore public trust.

The State Ethics Commission, Secretary of State’s Lobbying Compliance Division and the the SBI are expected to review the potential criminal aspects of the complaints. Greensboro's City Council faces pressure to hire independent counsel and address the allegations swiftly to avoid further legal and public backlash.

Contacted for comment, city officials had not responded by press time.

STATE ETHICS COMMISSION AND THE SECRETARY OF STATE'S LOBBYING COMPLIANCE DIVISION COMPLAINTS ON LOBBYING LAW AND OTHER VIOLATIONS BY AT LEAST ZACK MATHENY, NANCY VAUGHAN, NANCY HOFFMANN, CITY ATTORNEY CHUCK WATTS AND ROY CARROLL

 "The State Ethics Commission has the authority to investigate complaints against those persons covered by Chapter 120C of the North Carolina General Statutes, “The Lobbying Law,” for alleged violations."

"Complaints involving allegations related only to potential reporting and registration violations should be reported to the Secretary of State’s Lobbying Compliance Division."  

Signed complaint form attached.

Key Allegations:

1. Undisclosed Conflicts of Interest & Improper Influence

DGI's 1/30/2025 Bi Annual report (attached) states;

"The Bellemeade Parking Deck is another area where DGI has been instrumental in working with all business owners impacted by its imminent removal. This includes relocating existing tenants and working to identify new development opportunities."

And;

"DGI engaged with City staff, Boards, Commissions, and City Council on issues that impact the BID area stakeholders, including Depot activation and renovation, public safety, road construction, Bellemeade Parking Deck demolition, persons experiencing homelessness, parking and transportation, GPD, BHART, city ordinances and codes, and items related to our 2030 Strategic Vision Plan."

On February 18, 2025, Zack Matheny moved, voted and signed for GENERAL BUSINESS AGENDA item I.1; "2025-130 Resolution Approving Bid in the Amount of $2,354,000 and Authorizing Execution of Contract 2024-0610 with D. H. Griffin Companies, LLC. for the Demolition of the Bellemeade St Parking Deck".

https://www.youtube.com/live/5KWl3t1ia1U?si=xc-NQJfwe6XK-cum&t=12041

Zack Matheny voted on June 3, 2025, to approve the transfer of city-owned Bellemeade property to Roy Carroll’s company, despite clear conflicts:

https://www.youtube.com/live/oc73M2bFEpg?si=iZzjqexaj2f_o3GA&t=11978

In the Bellemeade Street Deck deal, Roy Carroll's company essentially received a $570,000 windfall by purchasing property appraised at $2,420,000 for only $1,850,000, while simultaneously leaving taxpayers to absorb a $504,000 loss when the city paid $2,354,000 for demolition but only recovered $1,850,000 from the sale. This arrangement effectively transferred over half a million dollars in public value to a private developer while also forcing the city to eat additional costs, creating a double benefit for Carroll at the expense of Greensboro residents who saw their tax dollars used to subsidize a profitable real estate transaction.

Roy Carroll and his wife each donated $5,000 to Matheny’s 2022 campaign.

Craig Carlock, a Carroll Companies executive, sits on DGI’s Board, while Matheny serves as DGI’s President—creating a direct financial and political relationship.

https://www.downtowngreensboro.org/about-us/board-of-directors/

I was forwarded Downtown Greensboro Inc.’s FY 2023–2024 financial records released by the City on Greensboro May 21, 2025 (attached). I don't have FY 22-23 or 24-25. The City and DGI have not released the other information to date, in non-responses to information requests. It appears the ledger was released by mistake.

https://www.youtube.com/live/oc73M2bFEpg?t=3156s

Greensboro Public Records Request #29695 Ledger Attached.

DGI (under Matheny’s leadership) has Carroll affiliated expenditures of $4,313.53 in taxpayer-funded grants and expenses (FY 2023-24), attached, including:

$2,500 façade grant to Park View Development LLC (Carroll-owned).

$1,762.96 for a "Carroll meeting" at Postino.

$50.57 for "Lunch Roy Carroll" at Green Valley Grill.

2. Potential Bribery or Quid Pro Quo

The sequence of Carroll's campaign donations in 2022, followed by taxpayer funded DGI spending in return and favorable city council votes reveals a clear pattern of reciprocal influence that raises serious questions about money's role in municipal decision-making.

Matheny’s failure to recuse himself from Carroll related votes appears to violate NCGS § 14-234 (Conflict of Interest) and possibly NCGS § 14-217 (Bribery of Public Officials).

3. Unregistered Lobbying & Misuse of Public Funds

DGI (led by Matheny) used taxpayer money to wine and dine city officials who later voted on Carroll’s projects:

$43.08 for City Manager at Liberty Oak (9/27/23).

$62.49 for Mayor Nancy Vaughan at Car Bar (9/29/23).

$55.53 for Councilmember Nancy Hoffmann at Print Works Bistro (3/7/24).

Matheny, Rob Overman or Downtown Greensboro aren't registered as lobbyists, yet DGI actively shapes policy benefiting Carroll and other donors, violating NC lobbying disclosure laws.

There are no entries under lobbying within DGI's available IRS form 990s (attached).

4. No-Bid Contracts & Lack of Transparency

The Bellemeade property transfer handed Carroll a $570,000 windfall through a no-bid deal that bypassed competitive processes, violating public trust and procurement laws while forcing taxpayers to absorb an additional $504,000 loss on the demolition costs.

Requested Actions:

Criminal Investigation into potential violations of:

NCGS § 138A-32(e): Prohibited gifts to public officials.

NCGS § 163-278.12: Undisclosed lobbying. Secretary of State’s Database Confirms Noncompliance. Searches for "Matheny," "Downtown Greensboro," and "Overman" (DGI VP) return zero registrations

North Carolina law (N.C.G.S. § 14-234) prohibits public officials from voting on matters that financially benefit their associates.

NCGS § 14-234 (Public officials benefiting from contracts).

NCGS § 14-217 (Bribery of public officials).

NC lobbying disclosure laws (DGI/Matheny failed to register and report).

DGI's IRS form 990, attached, states; "FUNDS ARE USED TO POSITION THE DOWNTOWN BUSINESS IMPROVEMENT DISTRICT AS AN ATTRACTIVE, VIBRANT DESTINATION FOR THOSE WHO WORK, PLAY AND LIVE HERE THROUGH PUBLIC SPACE MANAGEMENT, ECONOMIC DEVELOPMENT INITIATIVES, MARKETING SERVICES, SPECIAL EVENTS AND ADVOCACY ACTIVITIES."

Misuse of public funds (DGI’s questionable expenses without explanation of who and why).

Attached;

DGI's 1/30/2025 Bi Annual report proving lobbying activities which states;

"DGI has been instrumental in assisting with the navigation of various City departments as this project has unfolded."

"Ongoing assistance with the Carroll Companies and the anticipated Marriott AC Hotel"

"Our Economic Development Staff-comprised of the President/CEO, Vice President and our Economic Development Analyst-held 242 economic development and planning meetings in Q1 and Q2."

"DGI is currently working in conjunction with the City Manager’s Office, Parks and Recreation, GDOT and various other city departments on a major placemaking project at the J. Douglas Gaylon Depot..."

"DGI is always working to recruit new businesses to downtown through various avenues, including ...advocacy, serving as a liaison with city departments... Currently, DGI is working with several developers to facilitate ongoing development in the center city."

"DGI continues to serve in an advocacy capacity for our downtown business owners. Most recently, we provided valuable feedback to GDOT on the proposed fee increase for downtown parking and cited potential concerns related to the impact of those increases."

"In our role as a connector, DGI serves as a liaison between builders, developers, and investors and the appropriate stakeholders and governmental departments, including Economic Development, Permitting, Water & Sewer, Planning, GPD, GDOT, and GFD. Our economic development staff continue to meet regularly with developers and investors, helping them navigate the development process and connecting them with critical resources to advance their projects."

It was made clear at the meeting that illegal gifts have been flowing to City staff and elected officials from DGI and Matheny;

Greensboro City Council Meeting 6/3/2025

I said; "Their ledger shows over $40,000 in spending on perks: Haunted House tickets, Oyster Roast tickets, Swarm, Tanger, Grasshoppers, and Wyndham events. Then there’s meals with city officials, nonprofit leaders and Matheny political donors at Green Valley Grill, B Christopher’s, Pura Vida, Natty Greene’s, Undercurrent, Lucky 32, Print Works, Sushi Republic, Postino, Inka Grill and more. All on the public’s dime, paid for with our tax dollars."

https://www.youtube.com/live/oc73M2bFEpg?t=13206s

https://www.youtube.com/live/oc73M2bFEpg?t=14655s

If Zack Matheny and DGI spent a total of $60,000 on event tickets over the last three years, with tickets averaging $65 each, they could have distributed approximately 923 tickets ($60,000 ÷ $65 = 923.08). This represents a significant volume of event access that could influence relationships and create networking opportunities between public officials and private interests.

Matheny has been CEO of DGI since July, 2015.

https://www.linkedin.com/in/zack-matheny-27473613/

Zack Matheny has been a City Councilman since for the second time after resigning in 2015 to take his DGI position in 2015 to avoid a conflict of interest;

"A few months ago, I expressed interest in leading Downtown Greensboro Incorporated and have interviewed to become the organization's next President and CEO. Due to the nature of the discussions and my desire to avoid any perceived conflicts of interest, as of today, I plan to resign from City Council at the June 16 meeting."

https://www.wfmynews2.com/article/news/local/greensboro-councilman-zack-matheny-resigning-wants-to-be-head-of-dgi/83-223918723

And then;

"At the time, Matheny was advised by the city attorney that he could not serve on the City Council and as president of a nonprofit organization that received funding from the city."

"Chip Roth has announced he is running for the District 3 seat, and when it was rumored that Matheny was going to run for his old seat, Roth sent out a press release attacking Matheny for having a conflict of interest as the head of DGI."  

https://www.rhinotimes.com/news/zack-wants-his-old-city-council-seat-back/

Meaning;

Violation of North Carolina Gift & Ethics Laws

A. NCGS § 138A-32 (Gift Ban for Public Officials & Employees)

Prohibition: Public officials and employees (including city council members and staff) cannot knowingly accept gifts from a "person" (including organizations like DGI) that:

Do business with the city (e.g., DGI receives taxpayer funding).

Lobby the city (if DGI advocates for policies benefiting specific developers).

Have financial interests affected by the official’s duties (e.g., Carroll’s property deals).

B. NCGS § 14-234 (Conflict of Interest for Public Officials)

Prohibition: Officials cannot participate in votes or decisions that financially benefit themselves, family, or business associates (e.g., Matheny voting as a Councilman on Carroll projects while a Carroll employee sat on DGI's board, while DGI funds Carroll’s ventures with taxpayer money after accepting campaign contributions).

Penalties: Class 1 misdemeanor (up to 120 days jail) or felony charges if corruption is proven.

C. NC Lobbying Laws (Unregistered Lobbying)

If DGI (under Matheny) is influencing city policy without registering as a lobbyist, it could violate NCGS § 120C-101.

Gifts to officials from unregistered lobbyists are explicitly banned.

If DGI is a city contractor (receiving taxpayer funded grants or managing downtown projects with public money), its meals for officials could be expressly forbidden.

3. Potential Criminal Implications

A. Bribery (NCGS § 14-218)

If gifts were given to influence official actions (e.g., DGI wining/dining officials coincident with Carroll-related votes), this could constitute bribery (a Class F felony).

On December 5, 2023, Zack Matheny charged a $300 lunch at Undercurrent Restaurant to his DGI American Express card for a meeting with powerful real estate developers and city contractors including Samet, Dick, Carroll, Hoyle, Baxter, Waldeck, and Smith, suggesting DGI was facilitating access between these private interests and the city councilman who votes on their projects.  

B. Misuse of Public Funds (NCGS § 14-254)

If DGI used taxpayer money (e.g., city grants) to pay for officials’ meals, this could be embezzlement or fraud.

Zack Matheny misused taxpayer-funded DGI resources to wine and dine key city employees - spending $42.30 on December 21, 2023, to take Parks and Recreation's Josh Sherrick to Mellow Mushroom, and $44.30 on February 22, 2024, for a meal with Parks and Recreation Director Phil Flieshman at Cille & Scoe, essentially using public money to cultivate relationships with the very city staff who implement policies he votes on as a councilman.  

Key Takeaway:

The repeated pattern of DGI (led by Matheny) funding meals for officials who later vote on Carroll’s projects creates a strong appearance of quid pro quo corruption. At minimum, this violates ethics laws; at worst, it could justify criminal charges.

If DGI staff, friends, or family members used event tickets purchased with taxpayer or organizational funds;

A. Misuse of Public Funds (NCGS § 14-254)

If DGI receives city funding (taxpayer money) and uses it to buy tickets for personal use (e.g., staff, friends, family), this could be considered embezzlement or misappropriation of public funds.

Example: If DGI used a city grant to buy concert/sports tickets and gave them to employees’ relatives instead of for official business, this could be illegal.

B. Violation of IRS Rules (Taxable Income)

Gifts of tickets to employees/friends may count as taxable income (IRS "fringe benefit" rules).

If DGI didn’t report these as income on W-2s/1099s, it could face IRS penalties.

Nonprofit Compliance Issues (If DGI is a 501(c)(3) or (c)(6))

Private Benefit Doctrine: Nonprofits cannot use funds for private gain (e.g., giving tickets to board members’ friends without a valid business reason).

IRS Form 990 Reporting: DGI must disclose related-party transactions (e.g., tickets given to insiders), which appears to not have happened if so.

If City Attorney Chuck Watts (who accepted at least $64.17 DGI-funded meal on 11/9/2023) advised Zack Matheny that he could vote on a Carroll-related matter—despite clear conflicts—this raises serious concerns about:

If Watts knew Matheny had a conflict (due to DGI’s financial ties to Carroll) but still approved his vote, this could be obstruction.

Obstruction of Justice (NCGS § 14-221)

Violation of NC State Bar Rules (Legal Ethics)

Rule 1.7 (Conflict of Interest): Watts had a personal conflict (he took DGI gifts) but still advised Matheny—a clear ethical breach.

Rule 8.4 (Misconduct): Knowingly giving bad legal advice to enable corruption violates attorney ethics.

Conspiracy to Violate Ethics Laws (NCGS § 14-223)

If Watts and Matheny colluded to bypass ethics rules, they could face felony conspiracy charges.

DGI’s Financial Ties to Carroll = Clear Conflict

DGI (led by Matheny) gave Carroll $4,313.53 in grants/meals.

Carroll donated $5,000 to Matheny’s campaign.

Carroll’s employee sits on DGI’s board.

Matheny voted to give Carroll city property (Bellemeade) at a loss to taxpayers.

NCGS § 138A-32 prohibits officials from voting on matters benefiting donors/business associates.

.

.

Watts' inaccurate comments at the end of the meeting;

https://www.youtube.com/live/oc73M2bFEpg?t=18028s

Watts’ Own Conflict (DGI Meal) Disqualifies Him

He cannot impartially advise on DGI/Matheny ethics issues because he took taxpayer funded gifts from the same organization.

He should have recused himself and let an independent attorney review the matter.

The Greensboro City Council should have hired an outside attorney (not Watts) to investigate.

When a city attorney has a conflict of interest due to receiving gifts from an organization under ethical scrutiny, yet fails to recuse himself and instead provides legal advice that clears that organization, it raises serious questions about;

Article 30 - Obstructing Justice (N.C.G.S. Chapter 14)

Various obstruction statutes could apply if Watts knowingly provided biased legal advice to impede proper investigation of ethics violations.

https://www.youtube.com/live/oc73M2bFEpg?t=8994s

https://www.youtube.com/live/oc73M2bFEpg?si=L-yfOdA-yZsShc1v&t=9926

The second link covers items G.11 and G.12.

N.C. General Statute 14-234 (Self-Dealing/Conflicts of Interest)

If Watts received gifts from DGI while providing legal advice that benefited them, this could apply.

N.C. General Statute Chapter 138A (State Ethics Act)

The Ethics Act establishes conflict of interest standards, a ban against the acceptance of certain gifts by covered officials, and restricts the use of official positions for private gain. This would cover the gift acceptance and potential misuse of official position.

Article 31 - Misconduct in Public Office (N.C.G.S. Chapter 14)

This covers misconduct in public office Chapter 14 - Article 31 and could apply to a city attorney failing to perform duties impartially due to personal interests.

Professional Conduct Rules

North Carolina has special conflicts of interest rules for current government officers and employees Special Conflicts of Interest for Former and Current Government Officers and Employees that could create attorney disciplinary issues for Watts.

The most directly applicable would likely be N.C.G.S. 14-234 for deriving benefit while administering government matters, and the State Ethics Act for gift acceptance and misuse of position.

The Pattern of Misconduct;

Watts received gifts from DGI, then provided legal advice clearing DGI and Matheny of ethical violations, while failing to disclose his conflict or recusing himself. This creates an appearance that he used his official position to protect an organization that provided him personal benefits, potentially obstructing proper oversight of public officials.

The city council's failure to recognize this obvious conflict and hire independent counsel suggests either negligence or complicity in allowing a compromised attorney to clear his own benefactors.

If the less detailed DGI meeting minutes show Zack knew he was lobbying, it suggests he deliberately began concealing his activities to avoid documentation that could expose illegal lobbying conduct. The sudden reduction in detail after his reelection indicates consciousness of guilt - he recognized that his dual role as both councilman and DGI leader created lobbying violations, so he started hiding the specifics of DGI's interactions with city government to avoid creating a paper trail of evidence. This pattern of concealment actually strengthens the case that he was aware his conduct violated lobbying laws and was attempting to cover his tracks.  

Thanks,

g

"DGI Board Members Face Mounting Pressure to Recuse Themselves or Resign Amid Deepening Compliance Investigation involving Greensboro's City Council"

Greensboro, NC — Downtown Greensboro Inc. (DGI), a nonprofit organization that receives significant taxpayer funding from both City and Guilford County tax revenues, is facing intensifying scrutiny over potential violations of federal tax-exempt rules, misuse of public funds, and systemic conflicts of interest among its board members, City Council and Greensboro employees, all from one expense report provided to the City covering FY 23-24 DGI spending. 

Watchdog groups, legal experts, and government transparency advocates are now demanding that multiple DGI board members immediately recuse themselves from all decision making as an independent investigation into the organization’s financial and lobbying activities unfolds.

Board members, City Council, campaign donors and Greensboro employees have reportedly accepted complimentary tickets to sporting events, gala's, concerts, and high-dollar meals, all funded by DGI’s budget financed by Greensboro and Guilford County taxpayers.

Examples include two dinners for DGI board member Andy Zimmerman paid for by DGI CEO and City Councilman Zack Matheny in Wilson, Wyoming, one for $181.76 and another for $281.26.

IRS rules strictly prohibit tax-exempt organizations from providing private benefits to insiders. Violations can result in personal excise taxes, fines, or even revocation of DGI’s nonprofit status.

Zimmerman, while serving on DGI's board with Greensboro Mayor Nancy Vaughan, secured a $150,000 city loan modification in 2021, shortly before donating $1,000 to Mayor Nancy Vaughan’s campaign.

North Carolina law (N.C.G.S. § 14-234) prohibits public officials from voting on matters that financially benefit their associates.

Vaughan, Greensboro's City Manager and Councilmember Nancy Hoffmann also had lunch paid for by taxpayers via Matheny in 23-4, among other Greensboro officials and employees.

N.C. Gen. Stat. § 138A-32 prohibits public officials from accepting gifts from entities that:

Receive government funding (DGI gets money from the City of Greensboro and Guilford County).

Lobby or do business with the city (DGI advocates for downtown projects).

DGI’s meals for Vaughan, the City Manager and Hoffmann were not disclosed as gifts in ethics filings.

Since DGI is funded by the city and lobbies the city, these meals appear to be attempts to influence officials.

North Carolina’s ethics laws require officials to recuse themselves from decisions involving entities that give them gifts.

Under 18 U.S.C. § 201 (Federal Bribery Statute) and N.C. Gen. Stat. § 14-217 (State Bribery Law), it is illegal for:

A public official to accept anything of value in exchange for official action.

A third party (like DGI) to provide benefits to officials who control their funding.

DGI’s budget is approved by the Greensboro City Council, the same body that Vaughan and Hoffmann sit on with Matheny.

If DGI used public funds to pay for meals for city officials, it may violate:

N.C. Gen. Stat. § 14-90 (Embezzlement of Public Funds)

IRS rules banning private benefit from 501(c)(3) nonprofits.

Zack Matheny (DGI President/City Councilmember) may have violated:

N.C. Gen. Stat. § 120C (Lobbying Law) – Requires registration for paid lobbying.

IRS rules – Nonprofits cannot engage in undisclosed political lobbying.

Several of DGI’s expenditures, particularly meals, event tickets, and hospitality provided to public officials, likely violate North Carolina’s gift prohibition laws.

N.C.G.S. § 138A-32 bans public servants (elected officials, city managers, etc.) from accepting gifts from:

Lobbyists (if unregistered, like Zack Matheny).

Organizations that employ lobbyists (DGI).

Entities that do business with or receive funding from their government (DGI gets city money).

DGI is funded by the city and lobbies the city (via Matheny).

These meals were not reported as gifts on ethics forms.

No exception applies—officials cannot accept anything from DGI under § 138A-32.

Greensboro City Council faces pressure to freeze DGI funding until the investigation concludes.

Quote from a Government Ethics Attorney:

“This isn’t just about bad optics—this is about potential felonies. If board members don’t recuse now, they’re inviting legal disaster.”

What Should Happen Now?

Independent investigation by the NC Ethics Commission or State Bureau of Investigation (SBI).

Full disclosure of all meals/gifts between DGI and city officials.

Criminal referrals if evidence of bribery or embezzlement exists.

The public deserves answers.

REVELATION: Greensboro Accused of Busing Unhoused Individuals Out of City Using Taxpayer Funds via DGI

 GREENSBORO, N.C. — May 30, 2025 — Newly uncovered financial records released on Tuesday, May 20, 2025 by the City of Greensboro reveal that Downtown Greensboro, Inc. (DGI), a nonprofit run by City Councilman Zack Matheny and largely funded by the City of Greensboro and Guilford County, has spent thousands of dollars on Greyhound bus tickets for unhoused individuals, raising allegations of a coordinated effort to remove them from downtown.

Matheny resigned from his city council position in 2015 citing a conflict of interest as he negotiated to become CEO of DGI, but later decided it was ok, and was re-elected to the city council in 2022 while serving as President/CEO of DGI.

The controversy erupted after local activists and journalists obtained DGI’s 2023–2024 financial records, which show $3,214.70 in Greyhound bus ticket purchases under the publicly funded "4115 Downtown Ambassador Program BBB" and Program DMSD" account. The expenses, charged to a DGI city funded credit card, all noting "2045-0 American Express (Zack)", were logged between July 2023 and June 2024, with no clear documentation or purpose.

If DGI’s Ambassador Program offered bus tickets as an alternative to enforcement ordinance banning sitting or sleeping on sidewalks, systematically removes unhoused individuals from public spaces, for any of the 32 instances between July 03, 2023 and June 6, 2024, all charged to Zack's DGI taxpayer funded credit card, the actions could be construed as coercive, particularly if the program lacks documentation showing a legitimate, non-discriminatory purpose for the bus tickets.

The ACLU of North Carolina previously warned Greensboro in 2023 about policies targeting the unhoused.

The bus ticket revelations follow a series of aggressive measures against Greensboro’s unhoused population, including:

Defunding the Interactive Resource Center (IRC), a 24/7 shelter, reducing its hours to 8 AM–3 PM on weekdays.

Banning food distributions in downtown parks.

Installing hostile architecture (e.g., benches designed to prevent sleeping).

Emails obtained by the A&T Register show downtown business owners, including DGI board members, pushing for increased policing of unhoused individuals in Matheny's downtown domain.

DGI, which receives $195,000 in city funds for its "Ambassador Program," is led by Zack Matheny, a City Council member who voted for the anti-homeless ordinance.

The Ambassador Program’s bus ticket spending may be part of this strategy, raising ethical questions about whether DGI is prioritizing downtown aesthetics over human rights. Using taxpayer funds to bus people out of town may not align with the program’s stated goals, potentially constituting embezzlement or fraud if the expenditures knowingly violated the contract, risking termination of city funding or a claw back of misspent funds.

Mayor’s Response Sparks Backlash

When questioned by resident Jason Hicks, Mayor Nancy Vaughan initially claimed the funds were privately raised, inadvertently confirming the existence of the bussing, stating;

"When an unhoused individual in Guilford County cannot access services locally, the nonprofit may offer no-cost transportation." and "the funds used to purchase the bus tickets were raised privately and outside of the city’s contracts".

However, Hicks and local political activist George Hartzman later verified that the expenses were tied to the Business Improvement District (BID) cash account—public money approved by the City Council.

Hartzman fired back;

"If the program was truly private, why were expenses logged under a publicly funded line item?"

Mayor Vaughan acknowledged bus tickets were provided to unhoused individuals, but insisted funds were private, despite ledger entries tying expenses to public accounts (4115/DMSD), meaning unhoused people were transported out of Greensboro using taxpayer linked funds without public disclosure, and the Mayor of Greensboro misled/obstructed the investigation.

Fungibility undermines Nancy's argument. The Mayor’s ‘private funds’ claim is mathematically impossible to prove while the DGI ledger shows public money was used.

Hicks wrote "Upon further review, your claim that the Greyhound bus ticket expenses were privately funded appears to be inaccurate. The 2023–2024 ledger from Downtown Greensboro, Incorporated (DGI) lists these charges under the BID cash account — which is publicly funded through the City of Greensboro."

Hartzman has asked the City and DGI to produce the private donation records, expense reports and communications explicitly calling for and paying for busing vagrants out of town.

The City nor DGI have yet to comment after the Mayor's erroneous confessional confirmation.

Legal and Ethical Concerns;

Critics argue the bus tickets appear to have been used to pressure unhoused individuals into leaving Greensboro.

Greensboro’s Dec. 3, 2024, ordinance banning sitting, lying, or sleeping in public spaces, was passed unanimously by the City Council, including Zack Matheny.

DGI played a significant lobbying role in pressuring the City Council to pass the anti-houseless ordinances.

DGI gave grants to The Forge, a non-profit created by DGI board member Andy Zimmerman. The Forge's Tiffany Jacobs sits on DGI's board with Zimmerman, and both sit on the board of The Forge.

During the December 3 city council meeting, Zimmerman and a Forge representative thanked the city council for passing the bans and spoke on how positive an effect these bans will have on local businesses. Zimmerman made a point to give special thanks to Mayor Nancy Vaughn, former member of the Board of Directors for DGI, for proposing the ordinance.

Legal experts warn the Ambassador Program's bussing could violate;

False Imprisonment or Kidnapping (N.C.G.S. § 14-43.3): If unhoused individuals are transported against their will; e.g., under threat of arrest or without informed consent, could constitute false imprisonment or, in extreme cases, kidnapping. If ambassadors pressured individuals to leave town without ensuring they had a safe destination and didn't follow up, this could be legally actionable.

Misuse of Public Funds (N.C.G.S. § 14-90): DGI received $195,000 for the Ambassador Program to provide hospitality, social service outreach, and public assistance, which Zack Matheny voted for as a City Council member, after which DGI received the money, after which Matheny spent some of the questionably utilized taxpayer monies on bussing out the unwanted.

As both DGI CEO and Council member, Matheny voted to fund the program, oversaw its implementation and personally authorized and paid for the disputed expenses.

"When you vote to fund a program, then run the organization spending those funds, the ethical lines disappear," said Hartzman. "This isn't just poor oversight, it's potential malfeasance."

While cities can regulate public spaces, bussing people out of town against their will or under coercive circumstances (e.g., threatening arrest under Greensboro’s new anti-homeless ordinances) could violate their due process rights. For example, if DGI’s Ambassador Program offered bus tickets as an alternative to enforcement of the Dec. 3, 2024, ordinance banning sitting or sleeping on sidewalks, this could be construed as coercive.

Targeting unhoused people as a group for removal could be seen as discriminatory, especially if the policy disproportionately affects a protected class (e.g., based on race or disability, as many unhoused individuals have mental health issues).

If the Ambassador Program systematically removes unhoused individuals from public spaces, it could be challenged as discriminatory, particularly if the program lacks documentation showing a legitimate, non-discriminatory purpose for the bus tickets and follow up safety checks.

According to data released by Partners Ending Homelessness, over half of those considered unsheltered in Greensboro identify as African American. People who identify as white make up about 20% of those unsheltered in Greensboro, and all other ethnic groups make up about 10%.

If DGI cannot show that these expenditures were part of a legitimate social service effort (e.g., reuniting someone with family), it risks reinforcing the narrative of displacement.

If bussing leads to harm; e.g., an unhoused person is sent to an unsafe location and suffers injury or death, DGI and the city could face tort claims for negligence or intentional infliction of emotional distress.

City Council’s Silence

No one at DGI including Matheny responded to requests for comment. Mayor Vaughan has not addressed the discrepancies in her initial statement. Calls for comment from the City and Guilford County, which also funds DGI, have gone unanswered.

As the controversy grows, the human cost of displacing vulnerable residents with taxpayer monies needs to be thoroughly investigated.

Hartzman and other activists are now demanding:

Full transparency on how bus ticket funds were used.

Proof that recipients consented to relocation.

Documentation of following up with those transported elsewhere.

An independent audit of DGI’s spending.

Related;

"DGI Board Members Face Mounting Pressure to Recuse Themselves or Resign Amid Deepening Compliance Investigation involving Greensboro's City Council"

https://georgehartzman.substack.com/p/dgi-board-members-face-mounting-pressure

EXCLUSIVE: DGI Scandal Deepens; FY23-24 Records Just "Tip of the Iceberg," Investigators Say

https://x.com/antzmrah/status/1928116128708186493

Controversy Erupts Over Greensboro City Council Seat Appointment

A potential conflict of interest and allegations of election manipulation have surfaced surrounding the appointment of a successor to the late Yvonne Johnson's at-large City Council seat in Greensboro, North Carolina.

Key Details

The controversy centers on Vernon Johnson, son of the recently deceased Mayor Pro-Tem Yvonne Johnson, who has announced his intention to run for the vacant seat. Complicating the situation is the involvement of former mayor Robbie Perkins, who was president of Yvonne Johnson's taxpayer-funded nonprofit.

Allegations of Political Maneuvering

A local activist has raised concerns about the appointment process, arguing that:

The seat's appointment appears predetermined

The move potentially benefits Robbie Perkins' mayoral campaign

Vernon Johnson could help bring East Greensboro votes for Perkins

The process may discourage other qualified candidates

Background Connections

Several interconnected political relationships have been highlighted:

Robbie Perkins was president of Yvonne Johnson's "One Step Further Greensboro" nonprofit

Vernon Johnson claims his mother gave him her blessing to seek public office

Both Perkins and Vernon Johnson are seen as likely to receive endorsement from the influential Simkins PAC

Public Request for Transparency

The activist has called on the City Council to:

Ensure a fair and open election

Require appointees to pledge not to run in subsequent elections

Increase transparency in the appointment process

City Council's Response

As of the latest information, the City Council plans to review over 40 applications and make a decision at a meeting on January 28, 2025, with each applicant allowed a five-minute presentation.

The situation continues to develop, raising questions about local political processes and potential conflicts of interest.

The Big Short; Hartzman Edition; Some of my 2007-2009 Great Financial Crisis History

In 1999, after working at J. C. Bradford on the corner of Elm and Cornwallis in Greensboro, North Carolina, George Hartzman, the son a Phd. Nuclear Engineer who taught him what a normal Price to Earnings ratio was supposed to be for a publicly traded stock, found the US financial markets way out of whack.

The top of the stock market topped in 2000 after the world survived the Y2K scare, which ended up a relatively non-event, he set up stop loss triggers in many of the most overstretched names in his book of business at Merrill Lynch, which ended up working out very well for most of his clients. 

It's documented.

Hartzman got recruited by IJL/Wachovia in early 2001, which later became Wells Fargo.

On 3/13/2007, Hartzman purchased shares of SDS in his personal account.  SDS is a leveraged inverse Exchange Traded Fund (ETF), whose objective is to rise 2% for every 1% the S&P 500 falls.  In the fourth quarter of 2008 he sold SDS in two blocks, realizing a total gain of about 51%.

 To “Short” is to invest, usually as a hedge, to profit when other “long” or traditional investments, like shares in the stock market fall.

In July, 2007, he shorted Bear Stearns and closed the position with a 97% profit on 3/7/2008.  He shorted Pulte Homes, KB Homes and Lennar, and realized about a 65% gain.  During 2008, he executed short trades in Goldman Sachs, Capital One, MBIA, Merrill Lynch, Moody’s and State Street Corporation, as well as buying and selling inverse ETF’s covering financials and real estate.

The solid blue lines on the performance report charts, which are now public records, show how much more these clients made and\or lost compared to the dotted lines below which represent selected indices at the time;

He was one of the only advisors at Wells Fargo who did well in the downturn.

Many of his clients entered into many similar trades at relatively the same time as the account performance reports show, which illustrate some of the best un-audited Asset Advisor performance reports in his book of business as of June, 2010.

Hartzman began working as a financial advisor in 1993 and taught CPA and attorney financial ethics in North Carolina for 10 years.

On 3/31/2009, total assets under management in Aenbr's book of business was $35,595,572.83, including both fiduciary and non fiduciary accounts.  He had more than 60 Asset Advisor accounts, where financial advisers are legally obligated to act in the best interest of clients.

These accounts were governed by the Investment Advisers Act of 1940, which requires stock brokers be held to fiduciary standards for advisory accounts, requiring financial advisers to act solely in the best interest of their clients.

Advisers must disclose any conflict, or potential conflict to their clients prior to and during a business engagement.

Both Wachovia and Wells Fargo borrowed from the Federal Reserve's Term Auction Facility (TAF), whose loans were not disclosed to the public until December 1, 2010, subsequent to congressionally mandated legislation and civil legal action.

Wachovia, Wells Fargo, KPMG, the Securities and Exchange Commission (SEC), The Financial Industry Regulatory Authority (FINRA) and the Federal Reserve amongst others illegally misled Wachovia’s shareholders.  Hartzman disseminated inaccurate advice to clients whose accounts were governed by the Investment Advisors Act of 1940, based on information audited by KPMG and withheld by Wachovia and Wells Fargo’s executive management.  His clients and Wachovia shareholders lost or could have made more as insiders profited from material undisclosed information.

According to Bloomberg News, on March 27, 2008, Wachovia borrowed $3.5 billion from the Federal Reserve’s Term Auction Facility (TAF) which was not disclosed to the firm’s shareholders and not reported in the company’s legally required SEC securities filings.

Bloomberg compiled and reported “21,000 transactions” from 2008 and 2009, ...obtained under the Freedom of Information Act” from the Federal Reserve, on August 22, 2011, including undisclosed loans to Wachovia and Wells Fargo amongst others which appears to include BB&T and Ally Financial, formerly GMAC.

The information has been taken down by Bloomberg

Not reporting Federal Reserve material borrowings, credit lines, terms and interest rates is a violation of Sarbanes/Oxley laws, and not informing employees who managed advisory accounts was a violation of fiduciary duties described in the Investment Advisers Act of 1940.

KPMG was/is the auditor for both Wachovia and Wells Fargo.

An SEC interpretation states: "Many financial institutions, such as thrifts and banks, are receiving financial assistance in connection with federally assisted acquisitions or restructurings...If these or any other types of federal financial assistance have materially affected, or are reasonably likely to have a material future effect upon, financial condition or results of operations, the [Management Discussion and Analysis] should provide disclosure of the nature, amounts, and effects of such assistance..." http://www.sec.gov/rules/interp/33-6835.htm

On July 22, 2008, Wachovia’s new CEO Robert Steel purchased 1,000,000 shares of Wachovia’s stock as the company’s TAF borrowing reached $12.5 billion, which appears not to have been disclosed in securities filings.

If Mr. Steel was “the principal adviser…on matters of domestic finance and led the [U.S. Treasury] department's activities regarding the U.S. financial system, fiscal policy and operations” before becoming Wachovia’s CEO in July, 2008, how could he not have known and acted on undisclosed material information?

Mr. Steel was at least aware of Wachovia’s Federal Reserve loans since July, 2012, if not undisclosed loans to multiples of other firms.

The Federal Reserve approved Wachovia’s merger with Wells Fargo on October 12, knowing of unreported Fed loans to both companies.

Wells Fargo's purchase of Wachovia closed on December 31, 2008.  The Wall Street Journal reported "about $100 billion in wealth disappeared from the Carolinas alone when Wachovia collapsed."

Wachovia’s shareholders were misled by Wachovia and Wells Fargo’s management, KPMG, and at least the Federal Reserve and the U.S. Treasury Department.  The Sarbanes-Oxley Act of 2002, which he have taught in ethics courses for CPAs and others over the last 10 years, requires executive officers and directors to personally attest that SEC securities filings have been personally reviewed and financial statements fairly present, in all material respects, a company’s financial condition.

Financial information in press releases or other public disclosures must not “contain an untrue statement” or omit a statement of  material fact necessary to make statements not misleading.

After not reporting Federal Reserve loans and purchasing Wachovia’s shares while in possession of undisclosed material inside information, the CEO wrote "I, Robert K. Steel, certify that:  I have reviewed this Quarterly Report ...for the quarter ended September 30, 2008 of Wachovia  ...this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report..."

Wachovia stock price on date of first TAF loan: 3/27/2008 - Last Trade: 27.07

Wachovia price on date of completed merger with Wells: 12/31/2008 - Last Trade: 5.54

As of January 31, 2008, there were 1,981,983,990 Wachovia shares outstanding.

27.07 - 5.54 = 21.53 x 1,981,983,990 = $42,672,115,304.70 Wachovia market capitalization lost between the first undisclosed TAF loan and Wells merger.

After most of Wachovia’s shareholders were locked into losses on completion of the merger, Mr. Steel ended up far better off knowing what most didn’t.  On June 22, 2010, Robert Steel was appointed Deputy Mayor for Economic Development by New York City Mayor Michael Bloomberg.  According to Morningstar data, Mr. Steel owned 601,903 shares of Wells Fargo in 2010, which would be worth $20,446,644.91 as of October 26, 2012.

The CEOs and CFOs of America’s largest banks certified their reports didn’t contain any material misstatements or omissions.  External auditors attested to the assessments.

Some banks which received Federal Reserve loans disclosed details in their securities filings, like Union Bank & Trust and Peoples Bank of North Carolina.

Wachovia’s, Wells Fargo’s and multiples of other firm's securities filings did not account for the loans, total credit lines, interest rates, collateral pledged or amounts of loans outstanding as other banks did.

Wachovia shareholders lost money as a select few profited from material insider information illegally provided, enabled and consented to by US taxpayer funded government regulatory authorities, elected officials, political appointees and employees.

Bloomberg estimated the profits from the undisclosed Federal Reserve Loans was $878.2 million for Wells Fargo, and $149.4 million for Wachovia.

Wachovia and Wells Fargo’s executive management misled taxpayers, shareholders and Congress concerning material information.  In doing so, executives violated fiduciary duties to the firms financial advisers and their clients while gaming executive compensation at the expense of Wachovia shareholders.

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George Hartzman

Saturday, February 21, 2015; News and Record's Allen Johnson; "Matheny and DGI" stated;

"In what comes as only a mild surprise (at best), City Councilman Zack Matheny wants to head Downtown Greensboro Inc.

...One thing should be certain, though: If he gets the DGI job, no way in the world should Matheny be on the council as well.

It would be an obvious and blatant conflict of interest.

The City Council funds DGI and has had an increasing voice in its mission and its operations. In fact, the council almost has come to regard DGI as an extension of the city..."

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This showed up in my Facebook memories from May 18, 2016.

Zack Matheny announced running for City Council again after resigning before taking a Greensboro taxpayer funded DGI CEO job.

Notice soon to be former City Manager David Parrish was knee deep in this deal.

Zack Matheny cheated with David Parish's help

DGI used David Parish as a reference in the proposal;

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"Assistant City Manager David Parrish explained that the modification didn’t change the substance of DGI’s bid."

Margaret Moffett

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David Parish was listed as Zack Matheny's reference in DGI's proposal.  Now David Parish is involved with explaining something about a modification of DGI's bid?
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"Councilman Mike Barber then asked for a recess... Barber told council members they needed to stop the discussion until the city’s legal staff could investigate the matter... Barber said afterward that he stopped the meeting after “hearing an allegation from one of the legal bidders that completely put the process in another context...”

Margaret Moffett

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As I recall, these are conflicts of interests;

Mayor and Council:

...Direct or indirect benefits are considered under the City’s conflict of interest policy and typically involve financial interests for the Councilmember, his or her immediate family, their partner, or an organization which employs or is about to employ the member, family member or partner...

Mujeeb

S. Mujeeb Shah-Khan
CITY ATTORNEY
OFFICE OF THE CITY ATTORNEY
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Mike Barber lobbied for Matheny's DGI job while involved in deliberations concerning the organization's funding while setting up Zack's successor for the benefit of Jim Melvin and the Bryan Foundation.

Greensboro’s Ethics Code says that if there is an actual or possible financial interest, a Council Member is supposed to publicly disclose the interest, and the remaining Council members are supposed to decide if a conflict of interest exists, which should happen in the case of Mike Barber and David Parish on anything to do with Zack Matheny and DGI.

Mike Barber just abused his position as a council member to advocate for taxpayer monies be allocated to Zack, a fellow council member who was positioned to compete for the same council spot under Trudy Wade's redistricting plan.

Mike Barber Lied On First Tee Federal Form 990s three times. Barber signed First Tee's 990's, which omitted Greensboro taxpayer subsidies on the tax returns.

Zack Matheny, then a sitting Greensboro City Councilman, an elected official who voted to fund DGI, placed himself in a position where his future employment became dependent on taxpayer money and permission from his collegues.

Then interim DGI CEO Cyndy Hayworth publicly accused City Council member Mike Barber of extortion over the job for Zack.

Matheny didn't end public comment and/or Council deliberations and votes on his announcement of going after a position Zack helped create by conspiring to get rid of Jason Cannon and killing Cyndy Hayworth's chance at the job by leaking information about her education credentials to the press.

City of Greensboro Information Request; Legal opinion

 Please provide the legal department's opinion of Zack Matheny's need to resign before taking the DGI CEO job.

Thanks, 

g