Attachment "7

"

midwest premiums & promotions
MIDWEST PREMIUMS

& PROMOTIONS/P.O.

BOX B006/LEAWOOD, KS. 66206/(913) 383-9333/FAX

(913) 383-9555

June 25, 2010 Clair Lane Attorney for Martin McDona!d LAW OFFICES OF CLAIR WILLIAM LANE One West Elliot Road, Suite 106 Tempel Arizona 85284 SENT VIA FAX TO 480-756-2525 Dear Mr. Lane, Back in April of this year, I was contacted by a Chandler Police Detective named Robert Lenz. He alleged that your client. Martin McDonald, created a scheme to defraud a local volunteer group by misrepresenting reimbursement requests. His only request, however, was thatI describe the items associated with the order. He did not ask me any additional questions, which is unfortunate because I would have shared what I know with him. In May of this year, sometime on or around May 121 20101 I was again contacted by Detective Lenz and informed that your client was arrested. I don't know if all information has been fully disclosed nor was an investigation completed to its fullest possible extent. I have been following this story and feel that I need to speak up because I do think your client is being subjected to something that should not be occurring, I have conducted business with the City of Maricopa for the past several years. We started supplying the City of Maricopa with promotional items starting in 2005. Historically, for our company at least, the City of Maricopa was a slow payer. This means there were a couple of instances in which the city Was delayed in paying their bills. In August and September of 2007, I had extensive communication with Mr. McDonaid for the product he ordered. It was basic items with the City of Maricopa logo imprinted on them such as back sacks, bumper stickers and plastic bags. I explained to Mr. McDonald that his employer was not quick in paying bills. He informed me that this purchase was being paid for by theMarlcopa Cultural Activity Center, which is also apparently known as the Friends of the Library. He told me wasbeing reimbursed dollar for dollar and was sending me a personal check.

INCENTIVE PROGRAMS -PREMIUMS

- ADVERTISING SPECIALTIES - INCENTIVE TRAVEL

Again, the product was ordered ·in August and September. We did not receive any payment until mid to late October. It wasn't until this situation developed with Detective Lenz's phone call that I went back into our files to review everything since the time period was approximately three years ago. We received two checks from the City of Maricopa and my accountant deposited them, not me. After reviewing my file notes this stood out to me because Mr. McDonald told me he was mailing his personal check to cover the three invoices. He informed me what the check number was, the amount and that the check was being mailed from City Hall. He explained that the Friends of the Library would reimburse him for this purchase. Based on a published article from a web site called www.lnMaricopa.com/this falls in line with the situation described by a Ms. Corrine Wilcox-Cornn. I do not recall if I told my accountant that Mr. McDonald was sending his personal check to us or not but as the owner of the company I knew about him sending his personal check. Performing some research into this issue caused me to question why I received two checks from the City of Maricopa and not just one check. Logic suggests that it would be more appropriate to send one check and save on postage and materials instead of two checks. The first check arrived in early October and the second one was received later that month. It wasn't until this situation arose that I realized how we were ultimately paid for this order. Had I physically received the checks from the City of Maricopa myself, I would have immediately contacted Mr. McDonald to inquire about the situation. In allof my dealings with Mr. McDonald, I found him to be very professional. He apologized for the delayed payments from past orders but I knew it wasn't his fault. He doesn't write or approve the checks. I have zero reason to believe that Mr. McDonald would engage in any fraudulent activity or theft. In the end, I am not sure what is going on in Maricopa or with Mr. McDonald but I sense something far greater is at play. I do in fact feel he is being set up. I do feel the investigation by Chandler PO Detective Lenz was incomplete and not conducted .as deep as it possibly could have been. I am saddened that an honest man is being set up, tarnished and subjected to unfair treatment. While I hate to turn away business. I will no longer conduct business with the City of Maricopa because of this incident and their payment history. I simply don't feel the entire story is being told. I am not sure if this helps any but I am more than happy to supply my side of the situation. Please feel free to contact me at 913-383-9333.

STATE OF KANSAS
)55

)
)

Johnson County

SUBSCRIBED AND SWORN to before me this~day

of June, 2010

(~

= Notary Public

~

:::

.

~-

07/07/2010

--..

14:48

9133839555 ,_ .-"~- ..-_.

Update. Yahoo I Mail

Page 1 Of;C

PAGE 01/02

Update

g From~·~I·.==7:i:rll:U:7 :1 To:

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AFFIDAVIT OF STEV:; DUDLEY

Wednesday, July 7, 201011:19 AM

WednesdaYI June 30, 2010

To Whom It May Concern:
I recently submitted an affidavit to the Pinal Cou )ty Attorney's Office and to the Law Offices of William Clair Lane regarding Martin Me )onald. 1 feel another communication is needed in order to clarify and further expand upon the situation at hand. I distinctly remember this on. er because of the price and unique circumstances. The items that Mr. McDonald orc ered were of the promotional variety and printed with the event name and sponsor in 'ormation. I run a small business and cannot afford to take risks that some other pror iotlonal companies can afford to take.

I was incredibly hesitant to begIn the order bee; use of the past slow pay experience with the City of Maricopa. I do not stock the ac ;ual product but instead order the items from my suppliers and then have them screene I or imprinted with the requested artwork or other information. I work on short p, IV cycles with my vendors and any delay in receiving payment impacts my bottom line. ~sk anyone in the promotional business: delayed payment can significantly in' pact cash flow position.
Mr. McDonald apologized for the past slow pay experience and assured me that in this instance he was sending me his personal check and being reimbursed by this Friends of the Library group. I felt comfortable with this, md moved forward with the order because the City of Maricopa was not to be tnv ilved in the payment process. I would not have engaged in the transaction if the City of Maricopa was responsible paying party for this invoice. This order required three invoices in total, whi, ;h I submitted to Maricopa. I still question why the city sent me two checks (wh' r not submit one check or why not submit three separate checks for each invoice I subrn tted to Maricopa?) and question their financial oversight in this matter. If I can be of further service please do not he~·tate to contact me at 913-383-9333. i

Steve Dudley

http://us.mc329.mail.yahoo.com/n'

c/showMessage?sMi.....

7/7/2010

07/07/2010

14:48

9133839555

Update ... ahoo! Mail Y

Page"PAGE 02/02 ",._

STATE OF KANSAS

Johnson County
.~ "

) )ss )

SUBSCRIBED AND SWORN to before me this

7: 'Lday

of July, 2010

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Attachment "8"

AFFIDAVIT OF JANE HENIG June 24, 2010 To Whom It May Concern: I would like to provide a statement regarding the recent incident involving Marty McDonald. My name is Jane Henig and I am the former Treasurer for the Friends of the Maricopa Library from 2004-2009. I was formerly in charge of bank accounts and financial controls for the Friends of the Maricopa Library (also known as the Maricopa Cultural Activity Center). Three accounts were opened in 2004: two for the library and one to help the recreation department. Mary Lou Smith and myself opened these accounts. At the same time as the library accounts were opened, the recreation account was also opened. This was done so that we could keep donations and expenses separate from the library funds. Mr. McDonald was not involved in setting this account up nor did he order us to set the recreation account up. The City of Maricopa, specifically Roger Kolman, was well aware of this account from its set up. Checks were written to Mr. McDonald to reimburse sometimes checks were written straight to vendors. him for items he paid for and

During my time as treasurer there were no account irregularities. My understanding is that no issues existed with the recreation account other than an accumulation of left over funds. I want to make this clear: Mr. McDonald never had direct access to any of our accounts. Any requests for balances, checks and reimbursements had to come to me first. The City came to us in August of 2009 asking for files with an official request made by Assistant City Manager Roger Kolman. He asked for and received all files pertaining to the recreation account. The Friends of the Library wanted to close the recreation account but it had a balance of funds remaining. We simply wanted to know where the money needed to go. I had the funds converted into a cashier's check, which'l held for several months until the city decided that the remaining funds should remain-with us. I requested to be involved in the meeting that was held in late August. After the first meeting, I was removed from the process. Recent reports in the media suggest that it was the Friends of the Library who went to the City about account irregularities. It was my understanding that this is not true at all. I was informed that Mr. McDonald would often meet with Mr. Kolman and the budget manager on a routine basis regarding the purchase from Midwest Premiums and Promotions. It was my understanding that Mr. McDonald was using his personal check to pay for these items (see copy of his check that was presented to me so I could reimburse him using the Recreation Account). It wasn't until May of this year that I learned Mr. McDonald's check never cleared his account. Mr. McDonald was always honest and forthcoming in dealing with us.

The investigation launched by the City of Maricopa was brought to my attention in March 2010. Myself and several other members of the Friends of the Library decided to speak up about Mr. Kolman's request. We felt that Mr. McDonald should have a level playing field. In March of this year (2010), the city came to us requesting a meeting. It was right after Marty had filed his lawsuit against the city. They explained that they found some account irregularities but the "City" could not move forward with it because the "Friends" were the perceived victim. As told to me by several people with knowledge of the matter, multiple persons attended a meeting at City Hall. Included in this meeting were several current board members of the Friends of the Library group as well as key management personnel from the City of Maricopa and Detective Robert Lenz from the Chandler Police Department. I personally feel that the City of Maricopa and Chandler Police Detective Robert Lenz manipulated some of our members by providing limited information. From what I understand about the meeting I don't feel that everything was brought to light before the friends group. I was surprised that Detective Lenz never came to speak with to me since I was the treasurer at the time in question. My understanding is that during this meeting city personnel and the detective repeatedly stated something along the lines of, "if this gets out it will be very damaging to the Friends of the Library." This threat was used as a tool to coerce good people into making a bad decision. Sincerely,

Jane Henig

STATE OF ARIZONA County of Pinal

) )ss )

Jane Henig SUBSCRIBED AND SWORN to before me this_ day of July, 2010

Notary Public

Attachment "9"

PROqRAMS - ?REMIIJMS - ADVERTISING SPECIALTIES - ~NC£NliVE TRAVEL

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LEAWOOD, KG a.S20&'GOOS

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Cit:y of Maricope:1
Ati:J· ~ 45145 W" ~

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Attachment "1 0"

Transaetlen Details Prop~ro<I for MARTIN J MCOONAl..D

American Express Gotd Card

I

December 21, 2001 to January 20., 2008

SUMMARY

Previous. Balance as -of
Payments Chai'gf!:8

Dec

20

2.613.55

·~.53M9
4.357.a7 0.00 1,4~0.43
Jan

ere<i1s
New Balance Closing

Date:

20. 2008

ACTlvrryav CAR.O CardmemberNllme MARTIN J MCDONALD
MARl SA MCDONAlO

Paymaots$

Charges 3.873.14 494.73

$

COld;;'

·5.530.99
0.00 -5,530.$

$ 0.00 0.00

Tob'

4,367.87

0.00

Activity ._"""","".
COMPUTER PAYMENT RECEI\II3) • THANK

.........
.1.925.70 -3.605.29-

Due In Full Ac1lVify for MARTlN MCDONALD

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MESA p,z; 107.30

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T A.RG ET 1423

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In Full AcUvlty for MARTlN MCDONALD

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ActMIy for MARISA MCDONALD
12/24,.07 TARGET STORE

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Secure Message Center - Message Print Preview Layer

https:llwww201.americanexpress.comlmsgcenteriauthregien_USIShowDetai

Message Detail
To: American Express Customer Service

Return

E-mail Address:m.jason.mcdonald@gmail.com

Your Topic;

Bilting Statement

Your Sub-topic:

Order Statement

Your Message: Response (Pravesh Phogat) 06127/2010 02:21 PM Hello Martin, Thank you for writing back. Yes, you are correct that the lime is set up with the Cenlral Time Zone. If there is any other way I may be of assistance, Sincerely, Pravesh Phaga! Email Servicing Team American Express Interactive Services please feel free to contact us.

Customer Thank stamp with a Marty

(m_jason,mcdonald@gmait.com)

06/27/201001

:41 PM

you for your help. I will take advantage of the link you have provided. Also, I noticed the time on this e-mail is 12:38pm and in Arizona it is only 10;38am.1 am guessing this service is set up Central Time Zone stamp? Just curious. Thanks again for your help. McDonald ================= Original Message = == = ='0 "''" "Oft' == == =: == ==

=

=

Response

(Pravesh Phoga!) 06127/2010 12:38 PM

Hello Martin, I apologize for the inconvenience caused to you in this regards.

I assure you that I have ordered the statements from October 2007 till February 2008 to be sent 10 you. You will receive them in the next seven to ten days. I also wish to inform you that statement copies are also available through our website free of charge. You may download and print archived statements from October 2DD7 till February 2008 online. To download and print statements, go to: http://WW\v.americanexpress.comJestatement ·\Nhen you log in, you will be on the "Summary of Accounts" page. From there, under the "Manage Your Account" heading at right, click "See all Account Services." On the next page, click "Payments and Statements" at left, then select "View and Order Billing Statements." .On the next page, you will see the option to "Order Past Statements." Clicking on the "Click here" link .under this heading will take you to a screen that will allow you to request the months you need. Once you submit the request, the reprint will be available for viewing and downloading in PDF (Adobe Acrobat) format within 48 hours. The link to the requested reprint will at that time be available on the same page where you originally requested them (with the heading "Download Billing Statemenr'). I hope I have addressed to contact me. Have a great day ahead! your concern. If there is any other way I may be of assistance, please feel free

Sincerely,

lof2

6/27110 12:17 p~

Secure Message Center- Message Print Preview Layer

https:Jlwww201.americanexpress.com!msgccnter/authreglcll_ US/ShowDetai

Pravesh Phogat Email Servicing Team American Express Interactive

Services

Customer

(m.jason.mcdonald@gmall.com)

06/27/2010

12:19 PM

I need copies of my statements for the following months: October 2007, November 2007, December 2007 and January 2008 as well as February 2008. I have tried ordering this online and Ihey have not come through yet I also phoned in this request approximately 3 weeks ago and have not received the statements in the mail. Please advise!! Marty McDonald

100627-001083

100627-001379

20f2

6/2711012:17 PII

Attachment "11"

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