Ken Cartonla lawsuit with USAB

[Sportssummary]

Does anyone know who Ken Cartonla is or what his lawsuit against USAB is about? I think he may be out of Florida, but not sure.

[Dennis]

Yes, he is out of Florida. Lawsuit? If it is against the current board, it probably has something to do with their lack of oversight of Jim Millman and Millman's use of the foundation's money. That is purely a guess.

[kenc]

I am from Florida and you are correct in thinking it is about the incompetience of the last Board of Directors and how they allowed Jim Millman to talk them into taking money (1.8 million) from the foundation and blow it without ever demanding results.

The claim is against the Director and Officiers insurance policy for mismanagement of our money and their inability to control what was happening in USA Boxing.

Ken

[Slythex]

Just a technical detail. I don't think you can sue the insurance company for the D&O, but rather you sue the previous board, then the D&O insurance kicks in and is obliged to cover both legal expenses and monies associated with the final judgment.

But for all intents and purposes, yes, the goal is to get the D&O to cover some of this.

I've also heard that Millman has a suit against USAB to get the money remaining on his contract from when he was canned. I wonder if this might actually come into play. If USAB loses the Cartonla suit (which we want, because then the D&O insurance kicks in), would that serve as evidence of gross misfeasance on the part of Millman, and thus render his lawsuit null and void?

[zonca]

The 1.8 million mishandled money is being recoverd, coaches and athletes are picking up the tab, more for reg. and coaches lic., and sanctions and club reg., USA boxing is paying a loan for 1.8 million $ for 18yrs with no intrest, it is 1 hundred thousand a yr for 18 yrs with no intrest, and the ones paying this debt off are us coaches and athletes and gym owners!!!!!!!!!!

[kenc]

I received a message today on the lawsuit and the LBC's should be contacted shortly. I do agree with the other comments on this page and it will all come out in the wash. Until the next time. Ken

[boxmel]

and the ones paying this debt off are us coaches and athletes and gym owners!!!!!!!!!!

Membership monies pay for membership services, i.e., insurance. Membership monies do not go into a central pool and pay for other expenses.

[kenc]

This is the latest development according to USA Boxing Board member, which is an attorney.
The information has been turned over to a guy named Robt Matney(who I never heard of) and he is supposed to be a grass roots representative, to persue this. I asked the attorney why him, who is he, where did he come from out of the blue? My answer was Hal Adonis recommended him to handle it, I hit the ceiling!
Three weeks ago I had my last converstaion with the attorney board member and he instructed Robt. Matney to get in touch with me and gave him my cell phone number and STILL NOTHING. I have since then called the attorney/board member 3-4 times for answers about Mr. Matney and now the attorney is not calling me back, What is going on? My opinion is Robt. Matney has been appointed by the BOD and has become a puppet. He is also the moderator of the USA Boxing google page and I know for a fact, Dr. frank Filiberto authored a letter to be posted on that site for everyone to read on June 6th and nothing has appeared. Below is the e-mail that was supposed to be posted and never was and I can tell you by someone dragging their feet will cost us morew than the 2.5 million I was asking for and Mel you are right we are paying for it. A class action is needed. Until the next time
Ken Cartonla

Dear USA Boxing Members:

You have not heard from me for quite some time because I believe our
newly elected Board of Directors serve at your will and deserve a fair
chance to move USA Boxing in a direction we will all be proud of.

You are all aware that I was a past member of the Board of Directors,
yes the Board of Directors that just about bankrupted USA Boxing.
Myself and John Brown happened to come to the Board after all the Money
was misappropriated. I investigated the finances and actions of the
Board and what I found was sickening.
Not only did USA Board of Directors misappropriate over $1.8 million
from the Foundation, that the courts say we have to pay back, they also
approved overspending 1/4 of million dollars on the National
Championship, money they did not have and we are still paying the
bills. The past Board of Directors also spent over $200,000 in attorney
fees that did not need to have been spent, all they needed to do was
report the claim to the insurance company. The lists goes on and on
from family Disney trips paid for by our membership dollars to family
vacations to China paid for by us.
It is no secret that I was not well liked by the Board and they forced
my resignation. It seems that things never change, the reason for my
resignation was my distrust and dislike for an athlete rep, who still
remains on the Board and once again struck at our pockets by acting
outside of the Board and suing, costing us significant amount of money.
Board members must exercise fiduciary responsibility and past Board
members were guilty of not doing that and one of those past Board
members continues to disrupt.

Our present Board, as did the Past Board of Directors, has insurance
and we must file a claim for return of our misappropriated money. Our
present Board is in a bind because they can't take action against their
own policy but we can. Let's help this newly elected Board and get them
the operating capital they deserve.

My Proposal:

LBC's unite in a class action suite against the actions of the past
Board of Directors and get in excess of $2 million returned to us.

Have a General Meeting at Ringside World to determine our approach.

Invite Ken Cartonla, who opened a claim against the Board

Our Board needs this monkey off its back and we can do it for them.

Sincerely,

Frank P. Filiberto MD
Past Treasurer, USA Boxing

[boxmel]

He is also the moderator of the USA Boxing google page and I know for a fact, Dr. frank Filiberto authored a letter to be posted on that site for everyone to read on June 6th and nothing has appeared.

Do you really think the Grassroots email list should be used for these types of emails? I think anything "personal" should be sent via regular email and, trust me, Frank does have a membership email distribution list. I really don't think the Grassroots email is geared toward snarkiness on the part of membership. I've had years of Stan Gallup's and John Brown's and Frank Filiberto's emails and will cancel my Grassroots subscription if it turns into everyone's personal platform. And considering all we have is your point of view, who's to say you're right and USAB is wrong? Ahhh - membership fees DO NOT pay for law suits.

[JMac]

Filiberto was the treasure on the BOD during the time of the US Championships and when Millman pissed away the 1/4 mil. He should have said something when it was happening not after the fact.
He says he came on the board after but that is not true.

[kenc]

You are correct in saying, who knows if I am right? There is valid proof, first and foremost the USOC audit of USA Boxing; they in fact stated mismanagement and the BOD not controling Millman's spending. They, also gave him a $35,000 raise when we were bankrupt. Then there is the law suit which USA Boxing lost in the Colorado Courts, stating USA Boxing did not have the authority to take 1.8 million from the foundation (now we are paying it back from our dues), incidently this was contrived by the chairman of the BOD as well as USA Boxing management personnel and their signatures appear on the paperwork.
Now the best one the insurance company raised the D and O insurance premium and did hint of the reason by using the term mismanagement.
So if none of this appears to be complete incompetience or mismanagement to you then I am wrong and will admit so, but it must be resolved.