Snyder v. Phelps et al

Filing 262

Correspondence re: financial statements. (Attachments: # 1 Exhibit Pro se defendants' letter to court.)(Katz, Jonathan)

S n y d e r v. Phelps et al

D o c . 262 Att. 1

February 27,2008 D. H o n o r a b lRichard Bennett e United StatesDistrict Judge U . S .Courthouse Chambers 5D 1 0 1W. Lombard Street B a l t i m o r e , 21201 MD Sentvia e-mailto Ms. SusanParker Re: Snyderv. Phelps, al.;CaseNo.06-CV-1389 et

D e a rJudge Bennett: T h e purpose this letteris to advise Courtof difficulties obtaining "certified of the in the f i n a n c i astatement" eachdefendant the Courthas ordered; request Court l for as to the w i t h d r a w requirement; to offera planto maintain status ihat quo of defendants' and the pending assets appeal support to defendants' motion stay. for I n a Letter Orderof February 2008,the Courtordered 8, defendants bringdeeds, to titles t o property whichthey havean interest, bankaccount in and information a March6 to h e a r i n gso the Courtcouldaddress proposed in support defendants' , plan a of motion for s t a ypending appeal.In a Letter Order February of 21,2008, following conference a call, i h e Courtordered defendants alsoproduce returns the pastfive years,and a to tax for " c e r t i f i efinancial d prepared an independent statement by account," reflecting assets all a n dliabilities. l m m e d i a t e lfollowing y that hearing, sel aboutto find a Certified we Public Accountant i h a t couldassistus withthis new requirement, within two weeksallowed.The only the C P Awithwhichwe havehadany professional relationship, learned, in the hospital we is w i t h pneumonia, following long illness.We learned officestaff are struggling a his to k e e pupwithhiscurrent workload during season. tax S i n c enoneof the defendants haveuseda CPA in the past,thereafter contacted we or c a u s e dto be contacted of the CPAs in Topekalistedin the yellowpages. After all a t t e m p t i ncontact g withall 40 of them,andtalking withrepresentatives 29 of them from ( t w oothersare no longerin service), whichrepresented totalof 87 individual a CPAs, w e havelearned: 1 . lt is unclear theseaccounting professionals the Courtis requiring.Some to what h a v esuggested sounds ihe Courtis requiring audit; it like an somesaidperhaps wasa it t y p e of review; nonewere certain, but and saidthey wouldneedgreaterclariiyabout w h a tihe Courtexpects order do thework. in to 2 - Assuming is somekindof audit, advised it all theycan notdo thisworkat all (they do n o t have the license/insurance required such work, or have made the business for d e c i s i o n to do that type of work);or, they cannotdo the work by March6. One not r e p o r t e d if theydid nothing that elsebut this between now and March6, theywerenoi s u r eit couldbe done. Besides timethe project the wouldtake in general, theyall have intense workloads andthrough now April15,because is tax season. it

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Honorable Richard Bennett D. v. et No. l n re Phelps Snyder, al., Case 06-CV-1389 February 27,2008 Page2

3 . Assuming is somekindof auditor similar it requirement, estimated willbe in the cost t h e rangeof $12,000 $24,000, and the worktime needed be in the rangeof 3-6 will for m o n t h s a corooration 2-4weeks eachindividual. and for A tablesetting the details all the phone out of contacts madeis enclosed. The names of t h e entities included are should Courtwishto verifyany of the information have the we provided. (Theshaded boxesare places havenotgotten answer we an from.)We also g o i a similar response fromtwo instructors accounting Washburn in at University in here ToDeka. G i v e nthis information, are asking we thatthe Courtreconsider requirement set this as f o r t h in the LetterOrder of February 2OO8. This information 21, suggests that the r e q u i r e m e n t , unclear, while appears be excessive termsof timeandmoney order to in in t o certifyor attestto financial information Court has alreadybeen provided the by d e f e n d a n t s , whichis included the additional and in information Courthas ordered. the F u r t h e rthe valueof our realty- whichis the bulk of our assets- is foundin public , i n f o r m a t i oon the Shawnee n County Web page.Theresimply no hidden are assets, and spending thousands dollars(to try io provea negative, wit, that no otherassets of to e x i s t ) notchange fact. will thai D e f e n d a n task that the Courtreviewihe information s previously produced, alongwith t h e tax returns and bank information defendants have been ordered produce. to and c o n f i r m thatmanner in thatthe financial provided the Courtis accurate. worthalready to F u r t h e rdefendants , request the Courtaccept planby defendants maintain that ihe to the quo of existing property an adequate status planpending as appeal.Defendants submit t h a tgiven unusual the nature thiscase,andthe consiitutional of presented the issues by d e c i s i o nand verdict this case,a planto preserve statusquo pending s in the appeal is a p p r o p r i a t e Finally, the Courtstill concludes the "certified . if that financial statement' s h o u l dbe required, defendants request that the Courtclarifywhat this meansto the C o u r tthatthe Courtcontinue March hearing 2-4 months ; the 6 to afterApril15;andthat the Courtfind that defendants shouldnot be required bearthe cost of these"certified to financial giventhereis no evidence any hidden statements" of assetsor inaccuracies in t h efinancial information provided. already

3 6 4 0Churchill Road T o p e k aKS 66604 , 785.640.6334 [e-mail] D e f e n d a n t Se Pro

12'16 Cambridge T o p e k aKS 66604 , 785.845.5938 D ef endanPro Se t

Enclos u re Excelfile reflecting contacts with CPAs cc Jon Katz,Esq.(bye-mail) S e a nSummers, Esq.(bye-mail) C r a i gTrebilcock, (bye-mait) Esq.

#of CPA p e r S a m # as Name fromphone e (company phone (other book or F i r s t

# CPAs here

Entrv #

last name)

name b o o k entrv #)

Notes reqardinq outcome call of
Nowaytogetit done within time that frame; sounds anaudit like

per call 4

& 1 KnudtsonCo Accounting 2 Consulting &Tax

3 # nolonger service in

3 Actlll
4 AndersonEldridqe &

They very are busy - taxseason; now this sounds anaudit, does like which r e q u i r e licensed even CPA todo; if dropped everything and only else did t h i snotlikely bedone 3/6/08. , to by E v e n simple would a audit cost e s t i m a t$2,500-$3,000 ed plus each, lf only (not need review anaudit) a e s s e n t i a l l y sure documents making all are (vs. there independent v e r i f i c a t i o n ) ,bemore may doable in (same but t e r moftiming s cost), woud t 2 wantodoafter season. tax

2
5 - we possible are This notreally is swampe0

5 Bailes Randall Berberich Trahan & 6 CoPA C u m m i& s n n PA 7 CoffmaCPAs MayeHoffman r 8 McCann PC
Douthel& t

5

Timing tooshort wearetooloaoed is down iakethisoninthistime to frame 30

I Associates Holmes Associates 10c h r d

2
N o- wedon't handle work the it

5

,nnarra

ic naado.l

I

S n y d e rv. Phelps,No. 06-cv-1389

I n f o re CPASby defendants

P a g e1

#ot
CPA phone Name from oer Same as # p h o n e (other book or {companv F i r s t

f_

CPAs here per Entry last name) n a m e book entrv # #) Notes reqardinq outcome call c a l l of N otime; we're booked toApril up 15. process least. This a 2-3week is at T h i nthis anaudit, attest k is to to financial statement, would to but need Cavanaugh & Porter have confirmed iswhat it if that the an 11 H o l l o mPA c o u r t seeking. is 2 No- notcertified dothiskind to of (sounds anaudit); work like and p e o p linour e business already are workin60-70 weeks now. g hour right With Allen (person to); Joy talked see thaentry#26 t 26 No- don't attest do functions audits or mostltaxes y No- notcertified doaudits to - toomuch plate; have No on don't time No- sounds anaudit; dotax like only you'll w o r k ; time year this of "have a realhard finding time someone with time." No- toobusy now right No- wecouldn't handle a thing such r i g hnow l

1n

Clinkinbeard

Steve Mary Ellen David Billy Kay

1 I

1 2 Cronin

14 15Demoret
t o Denny

1
1
1

17Ely

,IBFord 19Freking

Gary Tom
Donald

LI

f 20Grof&Berty CPAs n1 Henderson Curlis

2

H e n i nBusiness g 22Services

23Honaker 24iliff 25J a n s s e n

Paul Stephen Royce

# nolonger service in Hequitdoing certified audits yrsago 3 - not enough tohandle; staff most s m afirms couldn't l l likely handle this work Does docertified not audits for - only churches doctors/dentists

1 1

S n y d e r Phelps, 06-cv-1389 v. No.

l n f o re CPASby defendants

Page 2

#of CPA p e r Same as Name phone from # (company p h o n e (other book or F i r s t

#

Entrv #

last name)

name book

enlr#) v

26J0y
Lindbur& Vogel g office) 28(Topeka Mize Houser Co & 29 PA

Allen H.

IJ

& 27KennedyCoeLLC

CPAs here per Notes reqardinq outcome call c a l l of - we've No chosen todocertified not professional statemendon't ts; carry l i a b i l icoverage ty toenable todo us job. this No- unable dothejobinthisshort to periooftime d 4

8

No- unable toshort period due time and heavy load now case right They only do contract-based for work governmenentities; private tal no work

30 Myers Stauffer and

31Pardue 32Petiy

WmL
V Russell

No only taxwork does

Ramberg & Associates 34 Ridpath Steven

C a n n o t - notice short; do too very b u s y totax due season. Sounds like anaudit, thecourt but should clarify its - this uncommon. e x p e c t a t i o n s is lf it (after i sanaudit thecourt clarifies), estimated and requirement cost time w o u lbe: 3-6 d months a for c o r p o r a t(and i o n $5,000-91 5,000); a n d2-4 , weeks each for individual (and each). $2,000-$3,000 No- nottaking anynew on clients at this time
N o- only does work is not tax and

3

1
1

35 Sittenauer

CurA t
Kem

takinonany clients; busy g new very year accountants time of for
No- only does work; much tax too liabilitforfinancial y reporting work s u c h this as

36 S l o o p

1

S n y d e r Phelps, 06-cv-1389 v. No.

I n f ore CPAS defendants by

Page 3

#of CPA phone p e r Same as Name from # (companv First p h o n e ( o t h e r book or

#

Entrv #

Iasname) t

name b o o k entrv #)

CPAs here per Notes reqardino outcome call c a l l of No- wewould beable handle not to s o m e t h iofg scope n this - toobusy No No- toobusy if another ofyear, time m i g h t able doit,but one be to no availabltodothework after e until May Office advised is inthehospital, he and toobusv dothiswork they to

Summers Spencer J I & Callison 3 8Walker John
Wendling Noe N e l s o& Johnson n 39 L L C

3 I

10
Greg

10

40 Huseth

1

87

S n y d e rv. Phelps,No. 06-cvl389

Info re CpAs bv defendants

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