To: All NCCA Members and Other North Carolina Chess Players
Concerning the 2009 NC Scholastics, after 3 months of gag orders, delays, postponements and continuations for various reasons, NCCA Attorney Wilder Wadford has made little progress in solving this serious matter. To some, his involvement seemed more like a stall tactic designed to hopefully sweep the matter under the rug. Though it was not sent directly to me, the resolution which Wadford authored concerning the 2009 Scholastic Championship is non-conclusive and completely unsatisfactory. (I seem to have been kept out of the loop during this investigation?! I am disappointed to report that in spite of our previously good personal relationship from years past, other than a few sketchy E-mails, Wilder has not even spoken with me by phone one time since this entire episode began, nor have I been afforded equal consideration in this process. However, one must bear in mind that "this is not a court of law; it's a chess organization.")
In the mean time, there is a cloak of darkness shrouding the NCCA. (See Letter to Victor Beaman) Upon his own admission of poor accounting, Wheeless has produced copies of receipts which do not match up with his originally reported numbers, no signatures of any representative of the Blake Hotel, absolutely no verification of the so called "banquet check" which was presented to Hoekstra in order to be paid over $4,000 of money which no one knows why was deposited into the NCCA bank account in the first place? It is now my understanding that most of the entry fee money was paid on-line through "PayPal" and the proceeds went to the address of Charles R. Wheeless. So, why can't we see those records? Furthermore, the only thing I can find in writing about any money to be shared with the NCCA from the proceeds of this tournament came directly from a flyer Wheeless published himself which indicated that "$4 of each entry goes toward the expenses of the candidates who will attend the Denker/Polgar events." There were over 500 entries into the Scholastic tournament. That amount equals to a little over $2,000? So, why was it necessary for Wheeless to write a check for over $8,000 to the NCCA in the first place? Why not just write them a check for the $2,000 and keep the rest?
That brings up the point that, though he told many different people otherwise, Wheeless has finally admitted to the fact that "he" organized and conducted the tournament himself. (After all, he did use his personal credit card for the hotel). I find it to be passively deceptive that in every advertisement which he posted, nowhere is that indicated. Instead, parents of "very young" chessplayers were lead to believe that they were paying a $35-$50 entry fee to the scholastic chess community, when in fact, the CMSCA received absolutely no money from the proceeds?? (It is my understanding they were given the use one of the "free" team rooms). Wheeless recently stated that though he had advertised that late entry fee at the door was $50, he decided to waive that decision and "did not charge anyone $50!?" A very kind gesture, indeed. However, no records have been submitted in order to substantiate this.
There is still some confusion regarding the "team rooms" whereby Wheeless originally reported specific amounts to me and others but has subsequently changed those figures? Considering the fact that the tournament generated over $17,000, and only $1,500 was given to the winner of the event, according to my math, every team room could have been given away for FREE and he still would have made a sizable profit. Why is it necessary to protect Randy Wheeless from the wrath of 9 or so team captains who were charged different amounts between $650 and $0?? After all, according to the receipt which he presented as evidence, he paid NOTHING for the team rooms. Furthermore, it is ludicrous to present as evidence a receipt stating "Room A", Room "B", Room "C", etc. without including the names of the team captains?! That proves absolutely nothing! The names of each captain and the amount paid should have already been entered into an accounting journal which he should have been maintaining all of the time! Not remembering the names of the 30 FREE ENTRIES which he claims he "gave away" amounting to approximately $1,000 is bad enough? But, unless each team captain is contacted and personally verifies the amount which he paid, no one can ever be certain of the amounts which he is now reporting. (His previous accounting of the team rooms totaled $2,300; now it totals $2,600? The problem is, other previously reported amounts have changed as well).
As a journalist, everything which I have reported was stated either by Randy Wheeless or people with whom he dealt. Producing some on-line bank statement at this late date does not exonerate him... I remember clearly what Sarah Foster of the Blake Hotel stated to me about "breaking even on the bill," (See Scholastic Championship Investigation), no organizer in the history of North Carolina chess has ever guaranteed 200 room nights, and the belated credit card receipts which he has now produced have different formats and are both unsigned??! And, why were there 2 credit card receipts instead of 1 as he had originally stated? Remember, "I think I gave "that" to Gerben Hoekstra." It must also be noted that our request to personally verify his on-line banking statement was denied...
Regardless, whether he was foolish enough to pay $4,000+ in addition to guaranteeing 200 room nights for a ballroom with very poor lighting which was used sparingly, there are thousands of dollars out of the $17+ thousands generated from this event which have still not been properly accounted for.
And, after working with and knowing Thad Rogers for so many years, I seriously question whether he would have left that tournament site without having been paid first!? The very idea that a "new" receipt for the trophies has curiously surfaced for over $1,800 is confusing; particulaly since Wheeless told me months ago that "the trophy bill came to between $1,100 -1,200?" And that was before subtracting an 11% commission of over $500 due from the sale of books and equipment!? By the way, has that $1,800 actually been paid to Rogers? Who knows? In addition, venders were allowed to use 2 other rooms which were occupied by the caterers who sold food exclusively to chess players and their families, and mychessphotos.com who sold photographic portraits of chess players. Since Rogers paid a 11% commission for the rights to sell books and equipment, why shouldn't they? Or, did they?
And on, and on, and on... I made two informative statements on the CCC website. The first was that over "$8,000 was deposited into the NCCA's bank account and no one even acknowledged it;" and the second was that "Wheeless claims that he made no money." The fact is, after many publications and controversial revelations by me and others, to this day neither Randy Wheeless nor any officer of the NCCA nor their legal advisor has ever publicly answered a single question raised about the Scholastic event?
Worse was Vice President Gary Newsom's answer, "NO COMMENT," after this matter had already taken on a serious complexion. Because, by that time, Wheeless had absolutely no affiliation with the NCCA other than being a regular member. Nor can he produce any written agreement with any officer of the NCCA which would sanction such a deposit. And finally, it is my understanding that Wheeless now admits that maybe he did make some money after all, rendering everything which was insinuated in both articles true.
As I have already indicated, it was the responsibility of the Presidents of the NCCA and the CMSCA to author and endorse a "relationship agreement" with Randy Wheeless regarding the conduct of the annual Scholastic tournament, which they totally neglected to do. (See Investigation of the Investigators). Furthermore, considering the total amount of money involved, wasn't Wheeless required by law to maintain an exact accounting of all of the receipts and expenditures of the event from the beginning in a standard accounting journal or electronic spreadsheet? This, he did not do.
This is a non-profit organization; every member has the right to observe the books, period. To prevent anyone from viewing them now only causes members to believe that someone has something to hide. This is not about NM Leland Fuerstman or Tom Hales. It is about Randy Wheeless and his nebulous accounting of a very expensive scholastic event.
I hereby officially call for the NCCA to conduct a complete and thorough audit of all books and check registers of the past 10 years as well as the 2009 NC Scholastic Championship; prepared by an independent professional accountant.
Whether the reader believes it or not, I insist that what Tom Hales and NM Leland Fuerstman are doing is for the good of the future of the entire NC chess community. I know I speak for Tom when I say that neither of us derive any pleasure whatsoever from dealing with this matter. This present vindictive political chess environment stinks... The current "illegal" administration is the most secretive, divisive, covert and negligent in history. When I was president of the NCCA in 1985, a treasures report was prepared by hand and published in the "Gambit" for all to observe. Now, in the age of computers when it is far easier to generate, that information seems to have become "classified." Does any member have any idea how much money we have in the bank or how that money is spent? That should be public information.
I realize that "this is not a court of law, it's a chess organization." Well, where is the transparency in this chess organization when members such as the honorable Tom Hales are denied the right to observe the books and even threatened with censure for asking? Until a thorough audit has been properly executed and the results have been published, I will continue to exercise my First Amendment Right to Free Speech. Finally, regardless of the determination of Mr. Wheeless' situation, I maintain that the reputations of NM Leland Fuerstman and the Charlotte Chess Club and Tom Hales and the Asheboro Chess Club have been unfairly damaged. A retraction must be made and we must each be completely exonerated from any wrongdoing.
"as an American citizen,
I have the right to free speech; and I have chosen to exercise it."
I remain,
NM Leland Fuerstman
Past NCCA President 1985
Member of NCCA Hall of Fame
Life Member
"Those who are believed to be most abject and humble are usually most ambitious and envious... "Whatsoever is contrary to nature is contrary to reason, and whatsoever is contrary to reason is absurd." - Baruch Spinoza