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On July 30th, 2015 Austin Poets International filed a motion for a temporary restraining order (“TRO”) stripping James of his powers as Executive Director. He didn’t learn of this hearing until 35 minutes before it began. The judge refused to allow him time to even read the motion prior to the hearing. That day API filed a lawsuit against him under a plethora of legal theories, all based on the false allegation that he embezzled more than $20,000 from API over a 4-year period. The suit also falsely alleged that he forged checks and bank documents as part of the embezzlement scheme. All this was done without an external 3rd party audit and a load of assumptions.
James did not embezzle a penny from API. He did not “forge” any checks – he had authority to sign the board chair’s signature for several years– which was common knowledge amongst the board members and several individuals are willing to testify to – he does not dispute signing her name, and did so on dozens of checks, all of which went to legitimate expenses. API had not begun a financial audit when it filed suit, and does not have any evidence of improprieties despite its sweeping allegations. $3,000 of the funds that are considered embezzled by this lawsuit are James's payment for work bringing funds into the organization, which he was entitled to as commissions. His compensation as Executive Director per his employment contract. The memo line on the checks to James state they were for commissions, and any audit would have verified that he was entitled to the amount on the checks. In four months as ED, his compensation was less than the federal minimum wage. In addition, James personally loaned $20,000 to API over the past year to keep the organization afloat during a cash-flow crisis. The lesson here seems to be no good deed goes unpunished, let’s not let that happen.
The TRO effectively terminated James as ED, something the rogue board members behind this coup could not have done. Because he was working for almost no compensation and loaned API money, his employment contract ensured that he would be afforded ample time to turn API’s finances around, enabling him to take a proper salary and have his loans repaid. To remove him as ED, the two-thirds of the full board of directors should have had to agree to terminate him, and that termination was only effective if API repaid his loan in full at the time of termination. The rogue board members lacked the two-third vote, and API lacked the funds to repay his loan, in part due to the fact that these same board members would not meet with sponsors wanting to donate over $10, 000. The false allegation of embezzlement, however, enabled these board members to get a judge to do their dirty work and avoid the terms of the employment agreement.
The motion for the TRO and the lawsuit were also filed without authorization by the API board, breaking their bylaws. Only the full board has the power to initiate lawsuits, and there was no such resolution. In fact, the majority of the board members were unaware that the legal actions were going to be filed, nor were they aware of the false allegations of embezzlement until they read it in a web-based news article days after the legal actions were filed.
"The reason the two rogue board members wanted me fired is a mystery. When I started as Treasurer about four years ago, API’s annual budget was $16,000. Now it’s nearly $70,000. The increase was primarily due to my efforts of writing more grant proposals and getting API organized and ready for the next phase in its lifecycle."
The lawsuit claims that it’s the last hope for API’s survival. We disagree. The best hope for API’s survival is successfully funding the new Poetic Justice Legal Defense Fund. This fund is being established to provide for James' defense, which is costing $250 per hour. After his case is resolved the fund will go on to defend poets across the globe for any legal defense that can be awarded through the fund. Through this dark time in our history, we are happy to launch a new nonprofit organization to help keep neutrality in the dispensing of justice.
Please contact us with questions or concerns about the lawsuit or the founding of PJLDF. Volunteer opportunities are available, please let us know if you want to work with us towards justice for James.
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