Cuccinelli announces settlement with Salahi’s Journey for the Cure charity

Charity made false statements, failed to keep true financial records, solicited without being registered with the state

RICHMOND (February 28, 2012) – Attorney General Ken Cuccinelli announced today that a settlement has been reached with the Journey for the Cure Foundation and its chairman, Tareq Salahi, for allegedly making false statements and submitting inaccurate financial statements to the commonwealth’s overseer of charities, among other offenses.

Journey for the Cure Foundation (JCF) is a Fauquier County-based fundraising organization that was formed to support individuals struggling with diseases such as multiple sclerosis, muscular dystrophy, leukemia, and lymphoma. JCF would conduct fund raisers to raise money for charities that helped individuals afflicted with those diseases.

According to the attorney general’s complaint filed with the settlement, JCF allegedly violated the Virginia Solicitation of Contributions (VSOC) law by:

• using misleading statements in connection with solicitations for charitable donations. Specifically, JCF claimed on its Internet web site that “[p]roudly, 100% of our financing goes directly to find the cure and we have no paid staff.” Based on bank records obtained through the Virginia Office of Consumer Affairs’ (OCA) investigation, the attorney general alleged that only 33% of JCF’s expenditures in 2007, and 0.6% of its expenditures in 2008 went directly to disease prevention-related charities. Significant amounts were instead spent on fund raising overhead;

• knowingly making false statements in a registration statement filed with the OCA, among other things, submitting inaccurate financial statements to OCA as part of its registration statement;

• soliciting charitable contributions from the general public from 2004 to 2009 without first being registered with OCA;

• failing to keep true fiscal records in accordance with the VSOC law; and

• failing to provide OCA with required financial statements when it ceased soliciting charitable contributions in the commonwealth in 2010.

The attorney general further alleged that Salahi himself violated the VSOC law by:

• certifying in a solicitation notice filed with OCA that JCF was registered with the state office when it was not;

• falsely certifying on JCF’s 2008 registration statement that JCF had no financial history; and

• certifying inaccurate numbers for charitable contributions on JCF’s 2009 registration statement.

The settlement includes the following key terms:

(1) The commonwealth is granted a permanent injunction prohibiting JCF and Salahi from engaging in any further violations of the VSOC law;

(2) The commonwealth is granted a monetary judgment against JCF in the amount of $25,000 for civil penalties for JCF’s violations of the VSOC law;

(3) The commonwealth is granted a monetary judgment against Salahi in the amount of $2,500 for civil penalties for Salahi’s alleged violations of the VSOC law; and

(4) The commonwealth is granted a monetary judgment against JCF in the amount of $7,500 to compensate the commonwealth for its attorneys’ fees and costs.

The attorney general was able to obtain injunctive relief directly against Salahi, not just the charity. If Salahi were to form another charitable organization and then commit similar violations, the injunction could make him subject to civil or criminal contempt of court charges, in addition to further civil penalties.

In December 2009, the OCA announced an investigation into the practices of JCF. In May 2011, OCA referred its investigative findings to the attorney general for potential enforcement action.

The settlement, which is in the form of a consent judgment, has been filed for approval with the Fauquier County Circuit Court.

A copy of this news release may be found on the attorney general’s web site here: http://goo.gl/UP9nr

Join the conversation about this on Google+ here: http://goo.gl/ftOBw

Angle pleas ‘no contest’ by proxy to reckless driving

Texting over pay, rather than alcohol cited as cause of erratic I-66 trip

By Roger Bianchini
Warren County Report

It ended not with a BANG, a body slam or even an appearance by TNA World Wrestling Champion Kurt Angle. Rather, if not exactly a whimper, the legendary wrestler’s reckless driving case ended with a $1500 fine but no jail time attached.

Angle’s attorney Todd Gilbert entered a plea of no contest to Reckless Driving on Nov. 8 in Warren County General District Court. After hearing the prosecution’s evidence presented by Assistant Commonwealth’s Attorney Michael Fleming and the defendant’s explanation of his erratic driving down I-66 following an appearance at the Shenandoah County Fair on Sept. 3rd, Judge W. Dale Houff imposed the maximum fine of $2,500, suspending $1,000 of that total. The judge agreed with the defense that the case did not bear any jail time.

Angle was initially charged with DUI by State Trooper Robert Scally after he judged the 6-foot, 240-pound, 42-year-old Pennsylvania resident to have failed a series of field sobriety tests, including an on-site breathalyzer test registering .091.

However the commonwealth’s attorney’s office later amended the charge to Reckless Driving because Angle blew only a .06 in a legally-admissible BAC test at Front Royal Police headquarters between 11:50 PM and 12:10 AM after being taken into custody and charged with DUI. The legal blood-alcohol limit is .08 or below.

The prosecution presented Angle’s driving record which showed a May 2010 reckless driving conviction in North Dakota and several dismissed driving charges in Angle’s native Pennsylvania.

At the time of the traffic stop following a citizen cell phone call from a motorist and passenger, who witnessed Angle’s driving erratically after they pulled onto the interstate behind him, Angle admitted to Trooper Scally to drinking three beers earlier that evening.

Fleming told the court the arresting officer found a 12-pack of beer in Angle’s vehicle, with two beers missing.

Gilbert told the court Angle admitted to driving poorly and inappropriately. However, rather than alcohol being an underlying cause, defense counsel said the cause was texting.

During the summary of the prosecution’s evidence Fleming told the court Angle was texting the promoter of the earlier wrestling show about his payment while driving eastbound on I-66 away from the Shenandoah County Fair appearance.

As for his client’s poor performance in the field sobriety tests, Gilbert pointed to Angle’s long wrestling career during which he has suffered several broken necks and multiple knee injuries.

Angle was a 1996 U.S. Olympic Gold Medalist in heavyweight freestyle and NCAA champion before launching his highly successful professional wrestling career. Wikipedia describes Angle as one of only four people to complete the amateur wrestling “grand slam” of winning the Junior National, the NCAAs, the World Championship, and Olympic title. He was named one of the top 15 college wrestlers of all time by USA Wrestling and has been named the “greatest shoot wrestler”. According to Wikipedia, after initially turning down offers to join the World Wrestling Federation, Angle signed a multi-year contract with the company in 1998. After leaving WWE, Angle joined Total Nonstop Action Wrestling (TNA), where he became the second wrestler in TNA to win TNA’s Triple Crown and the first man to hold all three TNA championships simultaneously.

Gilbert challenged the prosecution’s contention Angle’s offense was a particularly “egregious” example of bad driving in arguing against any imposition of jail time as part of the sentence for his client.

“Were this not a high-profile defendant it is to likely the prosecution would have produced the North Dakota abstract or have had out-of-county witnesses present for this hearing,” Gilbert told the court. “His insurance will be impacted – it will go up – and his license will be impacted in his home state. And there is a stigma to his career and public image … but ultimately it is a case of someone driving poorly while using a phone.”

Judge Houff called the case unusual in his experience due to the length of time and distance of cell phone or texting use causing erratic driving. However, in the end he agreed the offense and evidence did not meet a standard to require jail time as part of the sentencing of the defendant.

And those out-of-county witnesses – nah, they weren’t Angle’s arch-wrestling nemesis Jeff Jarrett and his wife and Angle ex, Karen. They were identified in court as Mr. Mallory and Ms. Knight, who were present but not called to testify. They are believed to be Loudoun County residents, and pretty snippy ones at that … Hey, maybe it was the Jarretts in disguise … NO, I’m just getting sucked into that wrestling soap opera scenario again … I think.

rogerb@warrencountyreport.com

A few minutes with Andy Rooney

By Dan McDermott
Warren County Report

A version of this story first appeared on Google Plus.

Like most journalists, I was saddened to hear of the passing of CBS legend Andy Rooney.

To most young people, Andy was simply that cranky old guy who read a short essay at the end of the news magazine your parents watched every Sunday night.

But he was so much more.

First and foremost a writer, Andy was never comfortable in the medium that made him so famous. But he was transparent about that, before ‘transparency’ was cool.

Andy didn’t like being recognized and he never signed autographs—except in his books, of course.

I never met Andy but like millions of Americans I knew him from his writing and television work. I know what he represented to American mass communications at a key time of change.

Aside from the fact that he was classy, smart and a great writer, what really made Andy special to me was that he was one of the last of the people who were part of the beginning of television. He was part of that group of journalists and writers who had to figure out how to take their long-form radio programs and perform them under a camera and lights.

In a lot of ways, those of us in internet programming are going through the same transition.

Leo Laporte’s TWiT network started out as a group of former Tech TV hosts sitting around a few microphones and chatting about technology news.

People listened and the show became a hit. Then Leo added cameras and some lights and recently a million dollar studio. But it is still largely an audio show that happens to be available on video.

Many decades ago, when radio was king, a young writer for CBS named Andy Rooney went through the same technology shift. He spoke about it during a lengthy 1999 interview with Don Carleton for the Archive of American Television.

This was a period during which television was born. I wake up some mornings and I say I am old enough to have been in on the beginning of television…

At CBS, [Arthur] Godfrey was radio, an hour and a half of radio five days a week. And then CBS started fooling with television, and quite early on color television too.

But it was black and white [then] so they talked Godfrey into letting cameras into the radio studio. It was nothing. It was [a money] loss. They figured, ‘Well we might as well broadcast this radio show.’

Well gradually, of course, television crept in and the income from it rose and they put lights in the studio specifically designed for television and gradually the radio disappeared and the television came to the fore and the first thing you know it was Arthur Godfrey’s television show.

Enjoy a few minutes with the late, great Andy Rooney:

Video: Thoughts on the late great Steve Jobs

An impromptu discussion on the legacy that is Steve Jobs and the company that he built. And rebuilt. Dan McDermott is joined by former Apple senior advisor Glen Jones and long-time Apple observer Mike Phillips.

FBI enters investigation as Michaele Salahi runs off with Journey guitarist

Warren County, Va. Sheriff Daniel McEathron discusses the allegation that Michaele Salahi had been kidnapped prior to learning that she had apparently instead run off with the lead guitar player for Journey, according to TMZ.

By Dan McDermott
Publisher
Warren County Report

Front Royal, VA – FBI agents (and TV crews) descended this afternoon on the Warren County home of Tareq and Michaele Salahi to investigate allegations that Mrs. Salahi had been kidnapped.

Rather than being held against her will, Mrs. Salahi had instead run off with Journey lead guitarist Neal Schon, according to the Hollywood gossip site TMZ.com which reported tonight that Michaele was in Memphis where the band is set for a concert with Foreigner.

Separate Ways

The first hint of potential domestic trouble in the Salahi home came on Sept. 7 when Tareq sent this writer a Facebook add request with a message saying he had set up his own profile, sans Michaele. This seemed very odd since they usually do everything together.

Then according to Warren County Sheriff Daniel T. McEathron, Mr. Salahi called the Sheriff’s office Tuesday at 11:50 pm to report that his wife was missing. Deputy Mike Glavis called him back at 11:55 pm to get the details. Shortly afterward, the sheriff’s office got in touch with Mrs. Salahi who “seemed calm, was engaged in conversation and assured the deputy that she had left the residence with a good friend and was where she wanted to be,” according to the Sheriff who said Mrs. Salahi indicated she did not want Mr. Salahi to know where she was.

After midnight, Deputy Glavis called Mr. Salahi to tell him his wife was safe but didn’t want to come home.

Don’t Stop Believing

12 hours after the sheriff’s office told Tareq they had spoken with his wife and she was safe, TMZ ran a story saying they “just spoke with Tareq” and that he believed “his wife was abducted but he doesn’t feel the cops are taking the situation seriously.”

According to TMZ, “he believes Michaele had been FORCED to make the phone calls [to the Warren County Sheriff's office] by her abductor … and believes she is in very real danger … especially because the Salahis have received death threats in the past.”

Faithfully

Tareq Salahi gave interviews to a skeptical cadre of media who had camped out in front of his house for the first time since the White House State Dinner fiasco. One tear jerker was with a reporter for WRC-4 who literally asked Tareq to “swear to God” his story was true. He did.

Dan McDermott dan@mcdermottreport.com
Circle Dan on Google+ gplus.to/mcdermott

Earlier today I spoke with Salahi attorney David Silek.

Salahi attorney discusses TMZ kidnapping allegations

By Dan McDermott
Publisher
Warren County Report

Manassas, Va. attorney David Silek did not share his client’s apparent disdain for the Warren County Sheriff’s Office in an interview with Warren County Report today.

Silek has represented Tareq and Michaele Salahi for years.

TMZ is reporting that Tareq Salahi says his wife has been kidnapped and charges that local authorities aren’t doing enough to investigate. TMZ said the Sheriff’s office told them that Mrs. Salahi had called them prior to Mr. Salahi’s kidnapping report and that all was well with Mrs. Salahi.

Sheriff Daniel McEathron has a press conference scheduled at 4:45 p.m. We will cover it and post.

dan@mcdermottreport.com

Illinois man facing life in jail for recording police (Video)

The unbelievable case of Michael Allison, an Illinois mechanic facing multiple felony counts for recording on-duty police is analyzed by attorney Thomas H. Sayre, Lynchburg Times political writer Emily Williams and newspaper publisher Dan McDermott.

It is another disturbing example of police using wiretap laws to stop citizens from using camera phones to record their behavior.

Other topics include:

- Netflix losing some content
- U.S. car sales up. Signal for rosier future?

Video: Hrbek talks Bachmann, Palin, town politics on McDermott Report

Former Front Royal, Va. Vice Mayor Bret Hrbek appeared on McDermott Report Tuesday, discussing Michelle Bachmann’s recent surge in the Republican presidential field and his thoughts on her chances.

Hrbek discussed a variety of other topics in a wide ranging discussion. McDermott Report is streamed live nightly at 8 p.m. Eastern, 5 p.m. Pacific on Ustream and blogtalkradio.

Topics:

- Michelle Bachmann surging in the polls
- Is the media picking on women candidates like Bachmann and Sarah Palin or is the criticism fair?
- Controversy in Egypt over a cartoon depicting Mickey Mouse in a beard and Minnie in a veil. Not going over well.
- Should the feds leave Google alone?
- Is Larry Sabato right? If the economy is good Obama wins and if it isn’t he doesn’t?
- Prince Charles has a staff of 159?
- Bret is NOT a fan of the monarchy.
- Some Canadians want Prince Harry to be King of Canada!
- Felix Krusch of RichWP.com says you shouldn’t originate your content on social networks because sites like Myspace and facebook come and go but your site is your home base.
- Looks like Myspace is going down in flames.
- A top Russian scientist says we’ll encounter extraterrestrial civilizations within 20 years. Dan wonders if the little green guys still use Myspace?
- Hot trend: overnight stays at zoos
- The Anthony Weiner story rears its head. Bret says not to Google the picture. Dan remembers Bill O’Reilly’s reaction. “It’s him! Come on! The picture is him!!”
- Bret and Dan disagree on whether Bill Clinton should have been impeached.
- 300 new species discovered in the Philippines.
- Hrbek offers his opinion on Front Royal’s current leadership.

McDermott Report streams live nightly at 8 p.m. Eastern, 5 p.m. Pacific.

Video streamed live on Ustream: http://ustream.tv/channel/danmcdermott

Audio streamed live on blogtalkradio: http://www.blogtalkradio.com/dan-mcdermott

Video versions of these episodes are available on YouTube: http://YouTube.com/user/danielpmcdermott

What are YOUR thoughts on 9-11 and the death of Osama bin Laden?

By Dan McDermott
Publisher

Warren County Report and The Sherando Times are interested in your thoughts as we reflect on an awful Sept. day almost a decade ago and the news of the death of Al-Qaeda leader Osama bin Laden by U.S. forces in Pakistan.

Where were you when you heard about the 9-11 attacks? And what went through your mind as you learned last night or this morning that the man responsible had finally met his fate?

Please leave your comments below.  All will be considered for publication.  Your real name and town are encouraged.

Please keep it clean.

Note: White House Press Secretary Jay Carney and members of the President’s National Security team will hold a press briefing scheduled for 1:45 p.m. today. It will be streamed live at LynchburgTimes.com.