Rare Old Bird Still Has Questions
Because the answers never actually answer them.
The quest for answers concerning conflict of interest, lobbying, and private inurement relating to The 1982 Foundation continues. This article is in response to a Facebook post made by the President and Director of The 1982 Foundation, shown below for context. If you have missed this ongoing saga, you may want to visit these previous posts first:
Reply to Crystal Mersh’s FB response to “1982 Documents Raise Questions”
by Deirdre Purdy
1. The question I asked is whether the subsidiary for-profit corporations that Crystal Mersh has created comply with the law. Non-profit corporations like the 1982 Foundation may have subsidiary corporations. Those subsidiary corporations, however, must be separate from the non-profit, and have a separate board, bylaws, etc. This does not appear to be true of the subsidiary corporations Mersh has created, which have one officer – Crystal Mersh – except for the Calhoun Investment Fund which has two officers – Crystal and Robin Mersh.
2 & 3. Crystal says, “I PROVIDED THE LOAN FOR THE $7 MILLION. Do the Mershes own or control CV Appalachian Investments 12, a Kentucky LLC? Because that is the entity that provided the $7.275 million loan. The loan is secured by all the real property of the 1982 Foundation, land, building, and all improvements according to the Credit Line Deed of Trust, which anyone can read at Calhoun Deed Book 303 at 131 in the Calhoun County Clerk’s office.
3. Crystal’s response also does not answer the question – what part does the Calhoun Investment Fund play in these agreements? Is the plan that ultimately the Mershes will own the for-profit Avalon with its restaurants, schools, pool, etc? I have no problem with that if, indeed, it is largely their money that is funding it. My concern is with the lack of transparency that the for-profit corporations provide to the community. The 1982 Foundation is a non-profit, but its financial business is now obscured behind the for-profits, which are not open to public scrutiny.
Crystal suggests several times that maybe a lawyer could answer my questions. I am a retired federal criminal defense lawyer, not a corporations specialist. I do, though, know laws on non-profits as I have set up and run one.
As a retired lawyer, I am well-trained in reading documents and laws, which is what I have done as I raise these questions.
I fully support the plan to turn the old high school into the enterprise that The 1982 Foundation promises. My only concern is that it be done right and that the public, which has donated so generously to the project, understands the ramifications of the for-profit businesses, the loans, and so forth.
Presently, The 1982 Foundation is no longer registered with the WV Secretary of State, which is required for all WV non-profits. Any local lawyer would keep such filings up to date.
Please spell my name right as I do yours. It’s Deirdre Purdy. Thank you.