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Emerald Valley BMX � ' ' , <br /> y Y (J <br /> Re: Emerald Valley BMX / Snooks / ABA <br /> April 5, 2004 <br /> Page 2 <br /> 2. Undocumented Expenditures. As noted in the Department of Justice report, <br /> Finding 3, there are a number of inadequately documented payments that went to the Snooks. <br /> It appears some of these were for personal expenses, as suggested by the Department of <br /> Justice. Litigation could be commenced for recovery of those amounts. That litigation could <br /> be time consuming and expensive. The minimum expense would probably be around $5,000. <br /> The maximum expense could be much, much larger because of the necessity, in the event of <br /> a trial, to have experts reconstruct the entirely inadequate financial records kept by the <br /> Snooks. A total of $50,000 in such expenses would not be out of the question in such an <br /> event. <br /> 3. Funds Diverted to R & C Racing. The Department of Justice opinion found that <br /> Mr. Snook diverted Emerald Valley BMX funds to his other business, R & C Racing. These <br /> are Findings 4 and 5. Any litigation would certainly include these issues as well. Such <br /> diversion of Emerald Valley BMX funds for Mr. Snook's own use is clearly improper. <br /> 4. Conversion of Funds from U of 0 P kin . 1 reviewed the financial records for <br /> 1996 through 2001, both deposit slips and computer - generated records of deposits and <br /> checks written. I focused on records of deposits. <br /> I also reviewed a video tape made on December 1, 2001, which reflects a sign <br /> advertising parking at $15 per space. There is an audio portion of this tape as well. There <br /> are comments on the tape by the person operating it about the number of vehicles parked <br /> there and the spaces still open. That audio portion of the tape in which the operator voices <br /> his observations would be inadmissible in court because it is hearsay. The video, only a <br /> small portion of which is useful, would be admissible. The audio portion of the comments <br /> made by Mr. Snook would be admissible. <br /> There were some deposits in 2001 that roughly correspond to the dates of some U of 0 <br /> games. The difficulty is that registration fees and concession income for Emerald Valley <br /> BMX events were collected at the same time. The totals reflected in the deposits could not <br /> possibly be the totals for all of these events. The records are inadequate. There are no <br /> receipts. We do not know when the computer records were actually created, and we do not <br /> know when handwritten entries in the deposit book referring to parking proceeds were <br /> actually made. They were clearly made after the fact to at least some degree because they <br /> are written in ink on the carbon copies of the deposit slips. <br />