Court documents filed today, including a declaration from a University of Washington accounting professor, suggest the Building Industry Association may have illegally skimmed millions of dollars from retro-rebate beneficiary accounts over the past several years, and ask for a court order requiring BIAW to retain an independent third party to prepare a “comprehensive trust accounting.”
Professor Stephen Sefcik is a distinguished professor of accounting in the UW School of Business, and currently serves as the Associate Dean of Undergradate Programs at the Michael G. Foster School of Business. He was retained by plaintiffs to review financial documents provided by the BIAW and its associated organizations, and to identify and estimate economic losses sustained due to mismanagement and other practices.
At this stage of my work, I have completed a sufficient financial analysis to support my general conclusions that a thorough independent accounting is necessary and that substantial interest has been skimmed from the Trust. However, due to the opacity of the Trust’s bookkeeping, a sigificant additional work would be necessary to precisely quantify values.
How much money are talking about? Between $600,000 and $1.3 million in skimmed interest over the past four to five years, plus an additional $3.6 million in principal and interest since 2003 due to an improperly calculated and paid “marketing assistance fee.” That’s a lot of money. And how did the BIAW accomplish this?
I have found that the Trust has allowed trust assets to be repeatedly placed in the interest-bearing accounts fo its for-profit affiliate, BIAW Member Services Corporation (“MSC). While in such accounts, trust funds were repeatedly commingled with assets of MSC.
Huh. How very Tim Eyman of them.
BIAW has long argued that its diversion of funds for political purposes is legal, an assertion contested by plaintiffs in this ongoing lawsuit, but skimmed (ie, stolen) funds are illegal no matter how you spend them. If a third party accounting confirms Prof. Sefcik’s findings, the BIAW may have a lot more to worry about than a mere civil suit.
Which brings us to SB 6035, a bill which would require increased oversight and transparency for the retro-rebate, and which only narrowly passed the Senate on a 25-24 vote. The bill is scheduled for a hearing in the House Committee on Commerce & Labor tomorrow morning, but despite known BIAW shenanigans, and recent revelations that retro has been overpaying participants by as much as $15 million a year since 1994 (due to a programming error), many Olympia observers don’t expect the House Democratic leadership to let it even come to the floor for a vote.
Why? Well, I guess you’d have to ask the House Democratic leadership.
Commingling, eh? When that word is used in connection with lawyers’ trust accounts, it’s synonymous with “disbarment.” In my profession, this is known as “stealing.” I guess BIAW operates at a lower standard.
If Tom McCabe goes to jail will that mean Kevin Carns won’t be paid $90K a year to post on HA under 30 different screen names anymore?
@2
I always wondered where all the trolls here found the time.
Perhaps Mr. Carns will finally get the psychological help he so obviously needs.
Frank Chopp had best not hold up the retro legislation. The current retro system is antagonistic to both Democratic political interests and to a constituency that Democrats need to protect–injured workers. Moreover, the current retro system is simply wrong (although Republican management-side lawyers are fond of it). Enough, Frank, is enough.
@4
The problem is Frank appears to be in the BIAW’s pocket.
I suspect he’ll do their bidding.
2/3 That would sure go a long way towards explaining why the heckler comments posted lately under a plethora of “handles” have shown a similar pattern of deterioration in spelling, grammar, punctuation, capitalization and general coherence.
Maybe some of the BIAW’s purloined loot has been financing someone’s substance-abuse meltdown.
6 – That might be the HNMT – the hateful name-morphing troll.
Apparently some old habits from the sixties are very difficult to break.
AF @ 6: “That would sure go a long way towards explaining why the heckler comments posted lately under a plethora of ‘handles’ have shown a similar pattern of deterioration in spelling, grammar, punctuation, capitalization and general coherence.”
The sad irony, of course, is that the vote of manoftruth or The Truth counts as much as yours. Oh, and you just know that, despite an inability to express themselves in the mother tongue, those two would support legislation, or even a constitutional amendment, to make English our nation’s official language.
I wonder if Carns posted under Doofus that coprophagous mutt. What a loon that fool was!
That sock puppet really died with the election of Obama.
Thats small potatoes’ compared to the 220 million King County skimmed off of builders and homeowners. FUCK ALL CROOKED COCKSUCKERS OF EITHER PARTY!
9,
Jane’s Dog did disappear, didn’t he? Marvie’s gone now, too, and where the hell is Puddy? Is it possible that we’ll soon be able to have a rational discussion among adults?
Am I the only one hoping that many of our Democratic “leaders” will be ex-Democratic leaders in the near future?
Tom McCabe, BIAW Mafia Don is on the record stating Frank “sellout” Chopp should be governor. Does anybody really think Chopp will turn on his populist shadow puppet master?
Hey, when do we hear from that BIAW spokesmodel with those DUI charges?
You’re not alone, Michael.
People wonder how it is the BIAW has been able to operate on their own (sleazy) terms in recent years. Even while Democrats ran the show.
Frank “the populist” Chopp can answer that question.
Sadly.
And don’t forget our esteemed Fakeocrat representatives Judy Cibborn (husband is a developer) and Deb Eddy. Are they still licking the BIAW’s boots in the house? Hopefully, Fred Jarrett voted the right way this time.
Next thing we’ll find out that BIAW leaders
got sweetheart mortgage deals from Countrywide!
What a crock of shit these charges. You libs are
a rotten bunch.