BritinUSA Posted September 8, 2023 Share Posted September 8, 2023 Link to Instagram story just published; LINK Joe Rutkowski is suing USPSA over his suspension. Part of the lawsuit indicates that USPSA is currently a voided Delaware corporation due to unpaid taxes. There's a policy here of not discussing politics, but I thought everyone should know. I suspect this will get closed if it does turn political. Link to comment Share on other sites More sharing options...
BMSMB Posted September 8, 2023 Share Posted September 8, 2023 It's been a rough week for USPSA... Link to comment Share on other sites More sharing options...
Maximis228 Posted September 8, 2023 Share Posted September 8, 2023 3 minutes ago, BMSMB said: It's been a rough week for USPSA... Week? More like half a decade. Link to comment Share on other sites More sharing options...
ltdmstr Posted September 8, 2023 Share Posted September 8, 2023 Wow! Highly unlikely they'd include the allegations about corporate status in the complaint if those weren't already verified as true. So, looks like the organisation and named individuals have a real problem on their hands. Same for their corporate counsel. That's pretty basic stuff. So, a real screw-up on their part. Link to comment Share on other sites More sharing options...
motosapiens Posted September 8, 2023 Share Posted September 8, 2023 15 minutes ago, ltdmstr said: Wow! Highly unlikely they'd include the allegations about corporate status in the complaint if those weren't already verified as true. Exactly, because dishonesty, BS and bad faith *never* occur in lawsuits, and no one ever uses our legal system just to harass people because they've got time on their hands. Link to comment Share on other sites More sharing options...
IVC Posted September 8, 2023 Share Posted September 8, 2023 What does the tax status or any corporations code violation have to do with a suspension of a member? There's a good reason this site doesn't allow distractions with legal and political systems. Link to comment Share on other sites More sharing options...
GrumpyOne Posted September 8, 2023 Share Posted September 8, 2023 We are watching this thread...closely. Link to comment Share on other sites More sharing options...
RJH Posted September 8, 2023 Share Posted September 8, 2023 So did he get suspended for saying having a match in Colorado was a bad idea? That's what it looks like I'm reading. Maybe I'm not clear on it though If so, I don't really understand his suspension, as having a match in Colorado was definitely a bad idea. I never understood why USPSA would have a match in a state that had any type of magazine ban law. I don't understand tax law, so I'm not sure what the Delaware stuff was or what it has to do with anything. Anybody that does understand it and wants to spell it out for me please do. I assume that since USPSA is a national organization it has to file some stuff in every state? That seems redundant but that could make sense because tax law doesn't need to make sense Link to comment Share on other sites More sharing options...
ltdmstr Posted September 8, 2023 Share Posted September 8, 2023 13 minutes ago, motosapiens said: Exactly, because dishonesty, BS and bad faith *never* occur in lawsuits, and no one ever uses our legal system just to harass people because they've got time on their hands. Not sure what that has to do with what I posted. Do you really think they put that in the complaint without checking first? If you really think it's BS, for $10 and about five minutes of your time you can find out for yourself on the DE SOS web site. 14 minutes ago, IVC said: What does the tax status or any corporations code violation have to do with a suspension of a member? There's a good reason this site doesn't allow distractions with legal and political systems. Failure to follow state filing requirements and/or articles of incorporation has legal implications for officers and directors of the corporation. Again, this is all basic corporate law. If the allegations are true, it's a pretty sad state of affairs. And that's just the corporate status part of it. What happened with the particular individual involved is a whole separate issue. Link to comment Share on other sites More sharing options...
ltdmstr Posted September 8, 2023 Share Posted September 8, 2023 3 minutes ago, RJH said: I don't understand tax law, so I'm not sure what the Delaware stuff was or what it has to do with anything. Anybody that does understand it and wants to spell it out for me please do. I assume that since USPSA is a national organization it has to file some stuff in every state? That seems redundant but that could make sense because tax law doesn't need to make sense They are a DE corporation, so they have to comply with DE law in terms of filing requirements, etc. Failure to comply with those requirements typically impacts the legal status of the corporation, which is what's being alleged here. Link to comment Share on other sites More sharing options...
BritinUSA Posted September 8, 2023 Author Share Posted September 8, 2023 I suspect that the lawyer found the org was delinquent when forming the lawsuit. If it's true that the status is due to tax payments then that may be indicative of a bigger issue. USPSA had a dedicated Financial Officer at that time, so there is no excuse. This is not the first tax issue though, the completed form 990 was supposed to be posted on the USPSA website each year but it was only done when the org was called out on it. If it goes to trial then the BOD will have to fully explain why the membership was terminated; This will open up the can of worms regarding the internal emails that were flying around at the time concerning the magazine issue. No matter the final verdict, this will be a huge black eye for the organization. Link to comment Share on other sites More sharing options...
mveto Posted September 8, 2023 Share Posted September 8, 2023 Here is the Delaware doc Link to comment Share on other sites More sharing options...
Dutchman195 Posted September 8, 2023 Share Posted September 8, 2023 33 minutes ago, ltdmstr said: They are a DE corporation, so they have to comply with DE law in terms of filing requirements, etc. Failure to comply with those requirements typically impacts the legal status of the corporation, which is what's being alleged here. But the DE Corp filing is void in 2018 it says. See attached Link to comment Share on other sites More sharing options...
BritinUSA Posted September 8, 2023 Author Share Posted September 8, 2023 The doc that @mveto posted is from the Secretary of State while the @Dutchman195 doc is the results of a search on the Corporate Entity. Both clearly show that the org is delinquent, I'm not sure of the full ramifications of this but I'm fairly certain they do need to be registered as a corporation to get their 501(c)(3) status. Link to comment Share on other sites More sharing options...
BritinUSA Posted September 8, 2023 Author Share Posted September 8, 2023 Link to comment Share on other sites More sharing options...
CHA-LEE Posted September 8, 2023 Share Posted September 8, 2023 Yikes......... Link to comment Share on other sites More sharing options...
mreed911 Posted September 9, 2023 Share Posted September 9, 2023 3 hours ago, IVC said: What does the tax status or any corporations code violation have to do with a suspension of a member? There's a good reason this site doesn't allow distractions with legal and political systems. Because a void corporation may not have standing to act against a member of the organization. Link to comment Share on other sites More sharing options...
BritinUSA Posted September 9, 2023 Author Share Posted September 9, 2023 Additionally, I think that an active corporation in good standing is required for 501(c)(3) compliance. If correct then the orgs charitable status may have been in question since 2018. This in turn would impact any charitable donations (and tax payments) to/from the org over the last five years. I'm hoping the BOD will convene an emergency meeting to address the concerns over the corporate and charitable status of the organization and issue a prompt response. Link to comment Share on other sites More sharing options...
Nolan Posted September 9, 2023 Share Posted September 9, 2023 Hmmm, maybe that's why the auditors prefaced USPSA's 2022 financial statement with this and why material misstatement was mentioned so many times? Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. Nolan Link to comment Share on other sites More sharing options...
BritinUSA Posted September 9, 2023 Author Share Posted September 9, 2023 I'm not sure if a financial review would include a check of tax returns (specifically those applicable to Delaware). I think it was more of an internal review than a full-fledged audit. Link to comment Share on other sites More sharing options...
Llando88 Posted September 9, 2023 Share Posted September 9, 2023 Is there any additional information where this was filed, if I wanted to read the actual text of the lawsuit? Says "Ohio" but not sure which court? Link to comment Share on other sites More sharing options...
Braxton1 Posted September 9, 2023 Share Posted September 9, 2023 Slightly off-topic: I really want to know why so many folks incorporate in Delaware, despite having no real physical connection to the State. USPSA has been in Washington state its entire existence.... Link to comment Share on other sites More sharing options...
ltdmstr Posted September 9, 2023 Share Posted September 9, 2023 15 minutes ago, Braxton1 said: Slightly off-topic: I really want to know why so many folks incorporate in Delaware, despite having no real physical connection to the State. USPSA has been in Washington state its entire existence.... Mainly for tax and other benefits. Here's a summary: https://www.forbes.com/advisor/business/incorporating-in-delaware/ Link to comment Share on other sites More sharing options...
motosapiens Posted September 9, 2023 Share Posted September 9, 2023 (edited) 16 hours ago, ltdmstr said: Not sure what that has to do with what I posted. Do you really think they put that in the complaint without checking first? you seemed confident that no one would sue without being factually correct in their filings. I pointed out that the vast preponderance of evidence shows otherwise. Lawsuits are often used as bullying or harassment, or simply continued whining by people that didn't get their own way. That may not be the case here, but no reasonable person would assume that a statement was factually complete and correct just because it was included in a lawsuit. Edited September 9, 2023 by motosapiens Link to comment Share on other sites More sharing options...
ltdmstr Posted September 9, 2023 Share Posted September 9, 2023 (edited) 57 minutes ago, motosapiens said: you seemed confident that no one would sue without being factually correct in their filings. I pointed out that the vast preponderance of evidence shows otherwise. Lawsuits are often used as bullying or harassment, or simply continued whining by people that didn't get their own way. That may not be the case here, but no reasonable person would assume that a statement was factually complete and correct just because it was included in a lawsuit. Again, not sure what any of that has to do with what I posted. The corporate status alleged in the filing, which is what I commented on, has already been verified by numerous individuals on this board, with the results posted above. I don't know the facts of the dispute, so I never expressed an opinion as to the validity of the underlying claims. I'm not sure what you're beef is, but I don't see any "vast preponderance of evidence" that what the guy alleged is factually incorrect, or that his suit is intended to "bully, harass, [etc.]." The fact that you don't like it means nothing. And attacking me for things that have nothing to do with what I posted, is pointless. Edited September 9, 2023 by ltdmstr Link to comment Share on other sites More sharing options...
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