Sunday, July 29, 2018

The Community Foundation of Greater Greensboro's Walker Sanders violated his fiduciary duty to his clients and donors

"Directors, trustees and managers of foundations and endowments owe fiduciary duties to the organizations they oversee, similar to the fiduciary duties of directors at for-profit companies or pension trusts...

Unlike fiduciaries of for-profit companies or pension trusts, fiduciaries of foundations and endowments owe legal duties of obedience to both the organization’s charitable mission and the social benefit purposes required of nonprofits..."

Walker Sanders knowingly participated in a scheme to defraud Greensboro's taxpayers;

Walker Sanders enabled a misleading proposal voted on by Greensboro's City Council 
while acting as a fiduciary for donors of The Community Foundation of Greater Greensboro

with full knowledge of the risks involving Foundation assets being used as collateral.

There was no mention of the interest expenses
in Matt Brown's presentation to council on December 19, 2017, 
and Walker Sanders knew it and said nothing, 
not for the benefit of his clients at The Community Foundation of Greater Greensboro, 
but to get the vote and the financing done at any cost,
including "unrestricted reserves of the Foundation";

As of November 14, 2017, only $20 million of the $40 plus million in private donations had actually been "raised", not counting expected interest payments on the loan CFGG took out to make up the difference;

Manning and Walker Sanders, the president of the Community Foundation,
also announced that they had met their goal
of raising $38.5 million from private donors.

Dawn DeCwikiel-Kane
Financially Illiterate News and Record reporter who lied to her readers

Walker purposefully misled our community and his clients
at The Community Foundation of Greater Greensboro 
and knowingly conspired against those he bears a fiduciary responsibility,
with their "unrestricted reserves of the Foundation".

Walker Sanders did not act in good faith, and did not exercise the same care that an ordinarily prudent person in a like position would exercise under similar circumstances with his clients at The Community Foundation of Greater Greensboro.

Walker Sanders did not avoid self-dealing, misuse of funds and other misconduct.

Walker Sanders did not perform duties with loyalty to the entity’s mission and obedience to The Community Foundation of Greater Greensboro's non-profit purposes.
"The fiduciary duties of foundations and endowments are most similar to the fiduciary duties of pension and other trust funds. However, fiduciaries of foundations and endowments have an additional duty of obedience to the unique charitable mission of the organization...

Foundations and endowments are granted tax-exempt status on the basis of their providing a public benefit that will reduce the burdens on government and benefit society."
Walker Sanders betrayed our community

On December 19, 2017, Greensboro Coliseum Director Matt Brown, the City's highest paid employee, told City Council the Steven Tanger Center for the Performing Arts (STPAC) would be paid for in part by patrons paying $18 a piece for 330 VIP parking spaces 150 times per year.

The same math was sent by Brown to Walker Sanders, president of The Community Foundation of Greater Greensboro which is charging fees on some of the $20 million in private pledges actually received for the project as of November, 2017, with the rest covered by debt until the rest of the money is supposed to appear through 2023.

There is no information presented by these players to date showing how the interest on the debt borrowed by Walker Sanders' Community Foundation is to be paid for, other than a guarantee by the Foundation colateralized by the entirety of hundreds of its patrons gifts meant for charity, not a performing arts center for our upper crust.
Our local news industry has been compromised.

Our local news industry is in the business of thought, and therefore public behavior control, directly affecting local elections, by misleading the public via lies of omission.

The City of Greensboro lied on an application to North Carolina's Local Government Commission, and Walker Sanders knew.

City Council members voted on a fraudulent representation of revenues to pay for STPAC, authored and presented by Matt Brown, and Walker Sanders knew before the vote.

Walker Sanders enganged in control fraud, when he used his position of responsibility to subvert an organization for personal gain.

Walker Sanders is uniquely placed to remove the checks and balances on fraud upon the public.

Walker Sanders hid shortfalls and defrauded his clients and the public at large.

Walker Sanders knowingly let the City leave out $23,108,494.98 in interest costs when Greensboro's City Council voted on the debt, in violation of his fiduciary duties to his clients at The Community Foundation of Greater Greensboro.

Walker Sanders knowingly let the City vote on bogus arithmetic to pass the performing arts finance plan, in violation of his fiduciary duties to his clients at The Community Foundation of Greater Greensboro.
18 U.S. Code § 1341 - Frauds and swindles

Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, or to sell, dispose of, loan, exchange, alter, give away, distribute, supply, or furnish or procure for unlawful use any counterfeit or spurious coin, obligation, security, or other article, or anything represented to be or intimated or held out to be such counterfeit or spurious article, for the purpose of executing such scheme or artifice or attempting so to do, places in any post office or authorized depository for mail matter, any matter or thing whatever to be sent or delivered by the Postal Service, or deposits or causes to be deposited any matter or thing whatever to be sent or delivered by any private or commercial interstate carrier, or takes or receives therefrom, any such matter or thing, or knowingly causes to be delivered by mail or such carrier according to the direction thereon, or at the place at which it is directed to be delivered by the person to whom it is addressed, any such matter or thing, shall be fined under this title or imprisoned not more than 20 years, or both. If the violation occurs in relation to, or ... affects a financial institution, such person shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both.
"Mail and Wire Fraud

The federal government makes it a crime to use the mail or any wire communications technology, including the Internet, as part of a scheme to defraud. Because of the broad nature of these laws, mail fraud and wire fraud are commonly charged in a wide range of cases. For example, people who pay a bribe or kickback to government officials typically use the phone or mail a letter at some point in the process. Because of this, federal prosecutors can charge the person with wire fraud or mail fraud in addition to bribery, corruption, or any other charges that may apply."
"The most authoritative treatise on federal jury instructions advises judges to instruct juries in securities fraud cases that fraud is “a general term which embraces all ingenious efforts and means that individuals devise to take advantage of others.”
"The courts’ reluctance to define the term “fraud” with specificity gives prosecutors, judges and juries wide latitude to criminalize behavior which offends their personal sense of right and wrong.   For what does it mean in the law to “take advantage of others”?   It is not difficult to define what a false statement means.  Similarly, failing to make a disclosure when there is fiduciary obligation to make a disclosure is something that can be clearly understood (although sometimes it is difficult to know when one has a fiduciary duty to another)."