JAY MEYERS PASSES AWAY DOING WHAT HE ENJOYED – SHOWING HORSES
Sept. 5, 2014
Merle Jay Meyers
Merle Jay Meyers of Bannock Creek, Pocatello, Idaho unexpectedly passed away on Friday, Aug. 29, 2014 while enjoying one of his most treasured pastimes – showing horses at the Magic Valley Reined Cow Horse Association Futurity. He was 65.
Jay was the second child born to Merle and Dorothy Meyers on May 17, 1949. He attended school in American Falls and participated in wrestling and rodeo. After high school he attended Ricks College and Idaho State University before law school at the University of Idaho. He married Paula Liese in 1971 shortly before moving to Moscow for law school.
Jay’s successful law career included arguing more than 20 Idaho Supreme Court cases and serving on the Idaho State Bar Character and Fitness and Professional Responsibility Committees. He was also a past president of the Idaho Trial Lawyers Association and was recently awarded the Distinguished Lawyer Award by the Idaho State Bar.
In 1985, Jay’s son John was born. Jay taught him a strong work ethic and integrity through his example. Jay and John sent each other weekly emails titled “Weekend Reports” detailing their pursuits and activities which are a treasured store of wisdom and guidance from father to son.
Jay married Ranae Pumphrey in 1992 and together they worked to build a successful horse and cow operation and raise their family. Jay and Ranae welcomed the birth of their daughter Jamie in 1994. Jamie was the light of their home and filled each day with precious laughter and joy. She loved her horses, longhorn cow, kittens, and helping her parents around the ranch. Her tragic passing in 2003 left a huge scar on the hearts of everyone that loved her.
After Jamie’s passing and with John at college, Jay and Ranae became heavily involved with training and showing their horses in regional reined cow horse competitions. Jay’s goal was to win the National Reined Cow Horse Association Futurity at Reno on a horse he had bred, trained, and shown himself, and he won multiple year-end championships. In 2010 Jay was inducted into the Eastern Idaho Horseman’s Hall of Fame for his tireless efforts to promote equine pursuits in Idaho.
Jay is preceded in death by his daughter Jamie; his father Merle; beloved mentors Sherm Swim, Mr. Elwell, and Herman McDevitt. He is survived by his wife Ranae; mother Dorothy; son John; daughter in law,Courtney; grandson Porter; brother Jerry and sister Judy and a multitude of loving nieces and nephews.
A family view was held on Thursday, Sept. 4, 2014 at Colonial Funeral Home in Pocatello, ID 208-233-1500. A visitation and funeral will be held from 4-5 pm and then 5-6 pm respectively on Friday, Sept. 5, 2014 at Grace Lutheran Church, 1350 Baldy Ave. Pocatello, ID 83201, in Pocatello. Interment will follow at Falls View Cemetery in American Falls.
In lieu of flowers, the family requests that donations be made to the Jamie Meyers Memorial Fund at Grace Lutheran School, 1350 Baldy Ave., Pocatello, ID 83201.
FROM THE EDITOR
ALL-AMERICAN FUTURITY WINNER TRAILERED OFF THE TRACK AS WAS HIS STABLEMATE
By Glory Ann Kurtz
Sept. 3, 2014
If you watched this year’s $2.6 million All-American Futurity held Monday, Sept. 1 at Ruidoso Downs in Ruidoso, N.M., you wouldn’t have suspected that the winning horse, JM Miracle, had to be vanned off the race track in distress, as was his stablemate, Jm Specialwynn, only an hour earlier after winning the $100,000 All American Juvenile Stakes. Both horses were owned by Javier and Elsa Marquiez’s J&M Racing and Farm of Monahans, Texas, and trained by Umberto Belloc.
Also, if one would have read the Q-Racing Journal article from the American Quarter Horse Association, you would have learned a lot about the winning horse’s pedigree, his rider, his owner, his starts and wins, etc, but not a mention about the bad shape that both horses were in following their wins during their respective races.
Only if you have read the Paulick Report.com, would you have heard the real story on these two horses, as well as the history of other incidents at the Ruidoso track. The stories range from the Zetas drug cartel horse, Mr Piloto, the winner of the 2010 All American Futurity, taking home $968,000. However, after convicting members of the drug cartel of laundering $20 million in the Quarter Horse business, the stallion was sold by the Treasury Department for only $85,000 at the Heritage Place Sale. It was reported by several media outlets that the reason Mr Piloto didn’t bring more money was because it had been testified in court that the All American Futurity had been “fixed” by bribing the people who held horses in the gates. See Good, Bad & Ugly link below.
Also, in July 2013, the Quarter Horse Cartel Quick was euthanized after being stricken with kidney failure after winning the $750,000 Ruidoso Futurity at Ruidoso Downs. No illegal drugs were found in his system.
The Paulick Report reported that both JM Miracle and JM Specialwynn were previously trained by Jose Luis Muela, who was suspended July 1-Aug. 30 for a medication violation after one of his horses tested positive for clenbuterol in April.
This year’s incidents at the track came after Lincoln County police arrested Jockey Raul Valenzuela as he was preparing to ride Apollitical Blood in the All American Futurity. Valenzuela had been suspended by the New Mexico Racing Commission stewards after allegedly being caught with an electrical device during the All American Futurity trials in August. Valenzuela obtained a temporary injunction from Lincoln County District Court Judge Karen Parsons, putting the suspension on hold which allowed him to ride in the All American – at least until the police got involved and arrested him. A substitute rider rode Apollitical Blood and finished fourth in the All American Futurity finals.
The only good news is that Tuesday morning, the New Mexico Racing Commission veterinarian reported that both horses seemed to be OK. They didn’t get any urine from JM Miracle but did take blood from him before the vets treated him. Testing is done at UC-Davis, New Mexico’s official testing lab as well as the AQHA’s official testing lab.
But what makes this article even more interesting are the comments to the article that are both educational and sickening. If you are at all interested in racing or racehorses and the future of both – or the drugging of horses – this article and the comments are a “must read.”
Click for the Good, Bad & Ugly>>
Click for AQHA Q-Racing Report>>
Click for All American Futurity Paulick Report>>
Click for All American Futurity Paulick Report Comments>>
OKLAHOMA PAINT HORSE CLUB’S BY-LAWS SAY THEY’RE A NON-PROFIT
THE IRS SAYS THEY’RE NOT
By Glory Ann Kurtz
Aug. 30, 2014
They were on the list of the American Paint Horse Association’s (APHA) President’s Gold Star Club, due to their “outstanding level of service they provided for members and their communities, while promoting the American Paint Horse through club activities and sponsorships. Only five APHA Regional Clubs worldwide are recognized for “Club of Distinction” status and three as Honorable Mention. The Oklahoma Paint Horse Club (OPHC) was one of those three associations who received an Honorable Mention in 2014.
However, recently, I received a packet of information pertaining to the Oklahoma Paint Horse Club (OPHC), a club sanctioned by the American Paint Horse Association (APHA), an international non-profit breed association located in Fort Worth, Texas. When I opened the packet, I realized the anonymous source had precisely unveiled a very concise historical outline of alleged corruption, lawlessness and opportunistic behavior among specific members of this association.
One of the anonymous source’s greatest concerns was the willful and deliberate “advertising for and solicitation of” donations by the OPHC, under the guise of it being a legal nonprofit when, in fact, it had lost this coveted Internal Revenue Service (IRS) distinction. Essentially, the anonymous source had outlined a very well orchestrated plan of deception used to “hood wink” unsuspecting donors into believing any donation of any type or kind would be tax deductible in accordance with applicable tax law.
The main concern of any investigative journalist is to verify this type of information in order to bring credence to the topic before dissemination in a news release. I discovered a copy of the association’s by-laws from 2004 through 2013 and suggested by-laws for 2014. The first paragraph of all of the articles of incorporation and by-laws specifically and unequivocally state the following:
“Section 1. Club shall be known as the OKLAHOMA PAINT HORSE CLUB, INC., and at all times be operated and conducted as a non-profit club in accordance with the laws of the State of Oklahoma, and at no time shall such club operate so as to inure to the direct or pecuniary benefit of any individual or individual member. The Oklahoma Paint Horse Club shall encompass the State of Oklahoma with the state boundaries being the Club’s boundaries.”
VERIFYING THE INFORMATION:
To begin my verification process, I called the Oklahoma Secretary of State who revealed that the Oklahoma Paint Horse Club was organized as a “Domestic Not For Profit Corporation” in their Articles of Incorporation on Feb. 19, 1966.
It was interesting to note that when I searched the Oklahoma Secretary of State’s data base, for the Oklahoma Paint Horse Club (OPHC) another organization, the Greater Oklahoma Paint Horse Club (GOPHC), came up on the same screen listed with the Oklahoma Secretary of State as a For-Profit Business Corporation created on May 26, 2006.
Click for Oklahoma Secretary of State files>>
However, when I furthered my verification process by checking social media listings, Facebook.com revealed the “For Profit” Greater Oklahoma Paint Horse Club has a business listing page identifying them as a “Nonprofit Organization!”
Click for Facebook posting by GOPHC as a nonprofit>>
I next contacted Guidestar.org, a public information database provided by the Internal Revenue Service (IRS), pertaining to nonprofit IRS 990 tax filings. Upon entering the name of the Oklahoma Paint Horse Club into the system’s search database, Guidestar.org did not return any IRS 990 tax filings on behalf of the Oklahoma Paint Horse Club. There also were no IRS 990 tax filings on behalf of the Greater Oklahoma Paint Horse Club, which can only lend credence to the fact that their representation as a legal nonprofit on Facebook is deceptive and erroneous in nature.
I next e-mailed Guidestar.org, requesting any tax filing information on the Oklahoma Paint Horse Club, as well as verification on whether or not this entity ever had a nonprofit status or if the status had been revoked. The reply from Guidestar.org was astonishing! I was informed the association’s nonprofit status was revoked in 2012 for failure to file taxes for three consecutive years in a row.
Click for e-mail from Guidestar.org>>
However, further verification directed me to another section of Guidestar.org, with the Oklahoma Paint Horse Club coming up, stating “This organization has not appeared in IRS records for a number of months and may no longer exist. This organization’s exempt status was automatically revoked by the IRS for failure to file a Form 990, 990-EZ, 990-N, or 990-PF for 3 consecutive years. Further investigation and due diligence are warranted.” This information verified the allegations supplied by the anonymous source as factual.
It also gave the years from which the IRS Forms 990 had been filed with the IRS as well as links to them. The years were 2004, 2005 and 2011
The IRS 990 for 2011, signed by Mike Short, President, on May 15, 2012 had total revenue of $166,804 with $163,614 coming from “Show Fees.” Total expenses were $157,860, with the largest expense being “Other” for $47,455. Other expenses were arena rental, $46,399; show prizes and awards $28,649 and National Office fees $19,004. There is a loss of $19,822 for the year with assets or fund balances of $22,726.
Click for 2011 OPHC iRS 990>>
The 2004 and 2005 IRS 990s were signed by Pauline Parsons, Secretary-Treasurer of the OPHC. The 2004 IRS 990 showed total revenue of $87,345, with $71,041 coming from shows, $3,276 Youth, $5,663 Amateur and $2,700 Hospitality. Expenses totaled $85,431 and included Program Services – not individually listed – totaling $80,223, and management and general $5,208, for a profit of $1,914. Net assets or fund balance at the end of the year totaled $57,782.
Click for 2004 IRS 990>>
The 2005 IRS 990 showed total revenue of $69,336. All of the income was called “related or exempt function income,” with the only items identified being $2,955 for membership dues or assessments and interest on savings, temporary cash investments $73 and $13 for Medicare and Medicaid payments. Total expenses were $62,594, resulting in a $6,742 profit. Net assets or fund balances at the end of the year were $64,524.
Click for 2005 IRS 990>>
My source’s additional concern involved the submission of by-laws to the American Paint Horse Association by members of OPHC, stating that the Oklahoma Paint Horse Club was, in fact, a nonprofit organization. They were, in fact, providing false or fraudulent documents to the APHA. The President of the Oklahoma Paint Horse Club, Mike Short, Guthrie, Okla., had signed their by-laws and sent them to the American Paint Horse Association. The information received from Guidestar.org, pertaining to the loss of their nonprofit status, substantiated that concern.
According to the APHA web site, Short is a member of the APHA Executive Committee and is in line to become President of the APHA. He is also an APHA judge and as such has agreed to uphold the rules of the Association. I have been informed that in a situation of this nature, the Internal Revenue Service (IRS) would have notified the OPHC of the loss of its nonprofit status immediately following the nonprofit revocation.
Prior to Mr. Short signing and submitting the by-laws to the APHA; a requirement of APHA, the OPHC by-laws were submitted by their prior six-term President Kevin Hardcastle, Owasso, Okla., who is also a National Director of the APHA and the Chairman for many years of The Holiday Classic Horse Show, a very large and profitable Paint Horse show sanctioned by the APHA. He is also the person who allegedly said the “financial records were lost” when they attempted to regain their nonprofit status. According to my source, Hardcastle is also heavily involved with the basically defunct Greater Oklahoma Paint Horse Club (GOPHC).
There are two other APHA National Directors from the OPHC, including Brad Perkins, Thomas, Okla., and Jerry Butler, Guthrie, Okla., along with Alternate Dean Myers.
Click for APHA Board of Directors>>
Click for APHA Executive Committee>>
Also, it was reported in a 2011 APHA press release that Kevin Hardcastle became the chairman of the APHA Therapeutic Riding Program after he donated $25,000 to the APHA from the Oklahoma Paint Horse Club to start a therapeutic riding fund.
APHA receives $25,000 from Hardcastle>>
Click for information on Kevin Hardcastle>>
OPHC WEB SITE:
Following is a link to the OPHC web site prior to when I started investigating the OPHC. They changed the front page of the web site just after they discovered I was writing an article on them.
Click for OLD OPHC web site>>
Click for NEW OPHC web site>>
CURRENT OPHC OFFICERS & BOARD MEMBERS:
OPHC officers include Mike Short, President; Jarrod Rees, Vice President; Jo Long,Secretary; Treasurer, Tonya Gralla; Past President Kevin Hardcastle and Co-Youth Director Kathi Sappington. OPHC Board members currently include Stella Biller, El Reno, Okla; Todd Gralla, Norman, OK; Dean Myers, Crescent, Okla; Hardcastle; Tonya Gralla, Norman, Okla. and Kathi Sappington, Mustang, Okla.
Click for Oklahoma Paint Horse Club officers>>
INDIVIDUALS INVOLVED WITH MORE THAN ONE ASSOCIATION:
The above links reveal that the Oklahoma Paint Horse Club’s president, Mike Short is also a Vice President of the American Paint Horse Association (APHA). Kevin Hardcastle is also an (APHA) director, as well as being heavily involved with the running of the Greater Oklahoma Paint Horse Club – the for-profit association whose listing on facebook.com identifies this club as a nonprofit organization.
Jo Long, Sapulpa, Okla., is the secretary of both the Oklahoma Paint Horse Club and the Greater Oklahoma Paint Horse Club and is also the web master for both clubs. She is also paid by the association to manage several horse shows and horse barns, including the Holiday Classic, one of the largest APHA-sanctioned shows in the country, produced by both Clubs. It is not known if these paid jobs were sent out for bids, as they should have been since Long is an officer of the not-for-profit OPHC.
Click for Greater Oklahoma Paint Horse Club web site>>
Click for Facebook posting of GOPHC>>
It is also not known how the individuals were paid – as an employee or contract laborer – and if the appropriate tax filings were prepared and submitted pertaining to either employee deductions IRS 941 deposits or IRS 1099s, contract labor payments, and if they were filed at yearend.
TIME FOR A RISK ANALYST TO TAKE A LOOK:
After receiving the above information from an anonymous source, I met with Rick Dennis, an experienced Risk Analyst and Managing Member of the Wind River Company LLC, who is a freelance writer and author who also writes articles for my publication www.allaboutcutting.com.
I asked him to dissect the information into its many parts to determine whether or not the possibility of violations of the law had occurred in this matter. He informed me that the risk analyst’s job description strictly deals with the projection or identification of perceived risks to an individual, association, corporation or company.
Even though perceived risks of possible law violations are included in a final risk report, the final outcome of application is up to a criminal attorney-at-law, (i.e.), a U.S. or District Attorney and based on the rule of law and evidentiary findings.
JOINT EFFORTS OF OPHC/GOPHC:
My source explained that in 2013, the OPHC added two horse shows as a “joint effort” with the Greater Oklahoma Paint Horse Club, a stand-alone defunct organization that is FOR PROFIT. Its members are Jo Long, OPHC secretary, and Kevin Hardcastle, the past president of OPHC. All proceeds from these shows are alleged to be split in half between the Oklahoma Paint Horse Club and the Greater Oklahoma Paint Horse Club, which basically consists of the Past President and Secretary of the OPHC.
The question here is “Does the GOPHC file taxes showing this income, since they are a For Profit Association?” Also anyone in the horse show business knows that most of the entry fees are received in cash and a few checks, with the writer usually not taking them off of their income tax, so there is no way of tracing where the money goes.
The Risk Analyst informed me that according to the above findings and anonymous source report, it appears that individuals from OPHC may have either organized or are engaged with another organization of a similar name (Greater Oklahoma Paint Horse Club) for the purpose of individual financial gain, which is contrary to the by-laws of the OPHC, which specifically states: “and at no time shall such club operate so as to inure to the direct or pecuniary benefit of any individual or individual member.”
A forensic audit of both clubs should prove or disprove this allegation. Also, since the “for-profit” Greater Oklahoma Paint Horse Association (GOPHC) lists itself on its facebook.com page as a nonprofit, does this lend credence to this projected theory and just another example of unscrupulous behavior on behalf of its participants?
The Risk Analyst also said the factual information from the Oklahoma Secretary of State and GuideStar.org, plus the information from the anonymous source, could lead an investigative agency or tax agency to conduct a forensic audit of the Oklahoma Paint Horse Club (OPHC) and include the “for profit” Greater Oklahoma Paint Horse Club (GOPHC), since its alleged members are also actively engaged in both clubs, as well as the APHA, and are alleged to be receiving monetary gain from the splitting of horse show revenue between the two clubs: OPHC and GOPHC.
The Risk Analyst further stated that it’s not uncommon for a forensic auditor, in a matter such as this, and based on the already substantiated facts, to project or list possible criminal and civil violations of the law – Risks, as a focal point of exploration, during the audit – especially when documented evidence has already revealed fraud, (i.e.) OPHC representing a nonprofit status in lieu of a revoked nonprofit status while soliciting donations under fraudulent terms and conditions (if applicable) and document verification by Guidestar.org, (i.e.) criminal wrongdoing, conspiracy, Tax Fraud, tax evasion, failure of fiduciary obligation, Culpable Liability on behalf of officers, directors, IRS audit (fines and penalties), mail and wire fraud, Theft by Deception
Essentially, these projected items are merely focal points of exploration to either prove or disprove the focal points, by the results of the forensic audit or investigation, and may be applied or withdrawn as well as the application of other civil or criminal violations as the evidence is revealed in the case.
The Risk Analyst also stated that the following legal definitions and rule of law could also be explored in this matter, based on the information received and evidentiary findings: breach of fiduciary duty, fraud and violation of state corporation law – operating an illegal corporation. This is especially important when their by-laws and articles of incorporation state “they will operate in accordance with the laws of the State of Oklahoma.” Also, falsely representing a club to have an intact legal nonprofit status when in fact this status has been revoked due to violating tax laws, but not made public by the officers of the club, and a failure to file appropriate taxes is not operating within the law.
The Risk Analyst further stated the projected risks, exploration process and evidentiary findings could, in a hypothetical context of reference (only), could possibly “At the least indicate a conflict of interest, and at the worst the evidence could indicate tax evasion, money laundering, fraud and a conspiracy to commit fraud, as well as the civil violation of Failure of Fiduciary Duty. The revealed evidence and the rule of law will be the deciding factor in a case such as this.
SUGGESTION: NONPROFIT VERIFICATION PROCESS
The Risk Analyst went on to state that it would be in the best interest of a nonprofit to have its affiliates or sanctioned clubs execute a “verification process” of required and submitted documents which would indicate any and/or all submitted documents are true and correct as well as indicating this organization is operating within the full letter of Federal and State law. The notarized verification process would insulate or protect the nonprofit against claims of liability as well as any inference of collusion (a secret cooperation in order to cheat or deceive) between a nonprofit and an affiliate.
SPONSORS & DONATORS:
As mentioned previously, the source was concerned that the Oklahoma Paint Horse Club advertises for sponsors and donations, all the while indicating they are a non-profit and receive some very large donations. The anonymous source was also concerned about the injurious position this deception had caused donors who believed they were, in fact, donating to a nonprofit association, when indeed they weren’t, and had taken this deduction on their individual, company, or corporate tax returns and possibly requiring amended tax returns, payment of back taxes, as well as fines and penalties imposed by a taxing agency. In a scenario such as this, will the officers of the Oklahoma Paint Horse Club be subjected to “culpable liability” claims?
The packet revealed that one couple has donated a horse annually to OPHC to be auctioned off and the club retains all proceeds. The couple is disturbed as they have written the donations off on their income taxes since they have a copy of the OPHC bylaws stating the club was a nonprofit. There are other donators from Texas and Florida, including a large horse publication that generously donated annually to OPHC, that are possibly written off as business expenses on their tax returns. Other names of sponsors and donators would be forthcoming.
Also, one particiular horse publication Equine Chronicle, Ocala, Fla., was a large donator to the Club; however, after a phone call to the publication, owner Tom Grabe did not seem surprised when I told him that the OPHC had had their nonprofit status revoked and he immediately informed me that he did donate to the Club, but he didn’t donate to the Club because they were a nonprofit, but because he was a sponsor and he was provided advertising for the money he gave them. However, it seemed strange that after looking through the entire web site of the Oklahoma Paint Horse Club, there was not one mention of the Equine Chronicle. In fact, there were no ads for advertisers or sponsors on the entire web site. Also the IRS 990s that they did file had no section dedicated to income from advertisers or sponsors.
Click for OPHC web site>>
IN RETROSPECT …
In retrospect, this article clearly illustrates the results of the absence of transparency in a lot of nonprofit or even for-profit horse organizations – no matter how large they are or how long they have been in existence. The lack of transparency, as evidenced by the above two clubs, restrain the number of members who want to become involved and work toward making the association grow and even restrain directors from serving, due to the chance of culpable liability if management is not playing “above board.”
Glory Ann Kurtz – AllAboutCutting.com
940-433-5232, 719-748-5229 or 940-393-1865 (cell)