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Emerald Valley BMX <br /> . March 18, 2002 <br /> Page 3 <br /> (5) The new Board should request the Snooks to provide original receipts or vouchers and <br /> state the business purpose of each reimbursement made to them and for payments made with <br /> EVB funds for their personal credit cards. If they are unable to do so, the board should consider <br /> taking appropriate steps to obtain reimbursement to EVB for unsupported reimbursements. <br /> BACKGROUND <br /> EVB is a 501(c) 4 and was incorporated as a Public Benefit with members in August <br /> 1980. The registration information on file with the Corporate Division lists Scott Snook as the <br /> _ Registered Agent and President and Candy Snook as Secretary. The organization's purpose is to <br /> provide a BMX racing facility for youth in the Eugene /Springfield area for BMX racing. The <br /> organization is funded by fees paid by racers for each race and concession stand profits. Each <br /> racer must be a member of the ABA, which receives the membership fees from ABA. <br /> Since October 1996, the bylaws of EVB have been suspended, the EVB board has ceased <br /> anymeaningful function and Scott Snook has governed EVB virtually without oversight. <br /> Meetings of the EVB board and membership have been suspended. Scott Snook stated that he <br /> agreed to be EVB Track Operator only on the conditions that the bylaws be suspended and <br /> meetings would be cancelled. <br /> Beginning in October 1996, Scott and Candy Snook assumed control of EVB funds and <br /> have made virtually all spending decisions without oversight by the EVB board. The majority of <br /> expenditures are not supported by receipts. Scott Snook reported wages paid by EVB to three <br /> individuals on his business' payroll records. EVB has not kept adequate books and records in <br /> that records are incomplete and disorganized and there is no clearly discernible audit trail for <br /> many transactions. <br /> Subsequent information from EVB members reveals that Scott Snook voluntarily <br /> surrendered his position as EVB Track Operator. Mr. Snook turned his keys over to EVB <br /> member, Norman Marlborough and told Marlborough that he relinquishing his position as Track <br /> Operator. <br /> Following the departure of Mr. Snook, EVB reinstated their bylaws and are in the process <br /> of electing new directors. <br /> ATTORNEY GENERAL'S ROLE <br /> The Attorney General is responsible for supervising charitable organizations holding <br /> assets in Oregon. The authority is rooted in common law (see Wemme v. First Church of Christ, <br /> 110 Or 179, 217, 219 P 618, 223 P 250 (1924)) and has been supplemented by statute (see ORS <br /> 128.610 et seq. and ORS Chapter 65). In particular, the Attorney General is authorized to <br /> investigate whether the purposes of the charitable corporation are being advanced and whether <br /> any person has violated a fiduciary duty arising under the common law (see ORS 128.680). <br /> e)r__ „--- ,_-,> A '- <br />