Written by Dallas Hyland
A few weeks back we had the opportunity to report and opine on the apparent nefarious shutting down of local public radio station KTIM.
We recently received this press release from the attorney representing Wastecon Environmental Inc. who was also, at the time, on the new board of directors of the station.
For your reading pleasure:
Attorney Review of Non-Profit Wastecon Environmental Inc. dba KTIM-LP Released to Public
“(St. George, UT) – The Letter of Review and Opinion by local attorney John Christian Barlow of non-profit Wastecon Environmental Inc. dba KTIM-LP was released to the public this weekend nearly a week after the current and former board members were given a copy and the opportunity to comment. The nine-page report of findings, actions and legal implications presented to the board Monday, March 9, 2015 came after Executive Director and CEO Perry D. Holmes told Mr. Barlow the corporation had lost its 501(c)(3) status due to an over sight by Cedar City CPA Steven K. Strand, that Tim Porter assumed he was 50% shareholder in Wastecon, the Board of Directors were inactive, there were minor violations of FCC rules & regulations, Wastecon had entered into a contract to upgrade KTIM-LP’s broadcast equipment and signal, Wastecon obtained funds through sales of underwriting (advertising) contracts and professed to Barlow and the public that the corporation was a valid 501(c)(3) corporation. Barlow served as counsel for the corporation and not as counsel for any individual associated with WasteCon Environmental Inc.
WasteCon Environmental Inc, was supposed to be serving the public by providing environmental education on its low power FM radio station KTIM. The FCC will grant license to operate a low power radio station for the purpose of serving the community. WasteCon did not operate in this capacity. It appears that WasteCon was a front for the personal gain of the individuals managing and operating KTIM.
The Letter of Review and Opinion found that Perry D. Holmes formed WasteCon Environmental as an LLC sometime before January 20, 2005. The IRS confirmed the status of Wastecon Environmental LLC as a 501(c)(3). However, Wastecon Environmental Inc., submitted its Articles of Incorporation to the State of Utah on February 10, 2010. On May 15, 2012, the IRS revoked the 501(c)(3) status of WasteCon Environmental LLC. The State of Utah, Division of Corporations shows no registration for WasteCon Environmental LLC. WasteCon Environmental Inc., has no affiliation to WasteCon Environmental LLC.
Steven K. Strand of SKS Business Solutions Inc, of Cedar City, Utah, was the original incorporator of Wastecon Environmental Inc. which does not have, and never did have, 501(c)(3) status. He was reported to be performing the accounting and tax services, when in fact no financial or corporate records were ever submitted to Mr. Strand for Wastecon.
Sometime in January or February 2015, Mr. Holmes reported that Mr. Strand failed to file the required forms to maintain the IRS tax exempt status and employed Book to Tax Bookkeeping owned by Nicole Harmon who has no certifications to prepare for Wastecon Environmental LLC a 990N form (an e-Postcard) for the years 2009 -2014. But no 501(c)(3) applications or 990N’s were prepared for Wastecon Inc. WasteCon Environmental Inc, does not maintain any public records or accounting that is available for interested individuals.
FCC Violations are numerous including not having an Emergency Alert System (EAS) required of all broadcast stations and cable systems. No public inspection file. No authorization to be broadcasting from atop their office building at 160 North 1200 East among other violations.
Board members have a fiduciary duty to insure that WasteCon Inc. was operating and serving the public interest. Wastecon Inc, does not have valid bylaws. The bylaws presented for review were generic bylaws for a Delaware corporation. These bylaws are not applicable to a Utah nonprofit corporation. Nonprofit organizations are required by the IRS to file an annual 990N form and these filings along with the exempt application available for public inspection during regular business hours. Wastecon Inc,did not have any of these files available as required by the IRS. Board members did not review the accounting and tax filing practices allowing and encouraging the absence of or inaccuracy of corporate records. Board members failed to observe corporate formalities in terms of behavior and documentation. Board members allowed the intermingling of assets of the corporation and its members; specifically they allowed Mr. and Mrs. Holmes to treat assets of the corporation as their own. Board members did not assure that underwriter’s funds were used appropriately: major purchases were not authorized; compensation for Mr. Homes and Mr. Porter was not authorized. The only two signatures on the corporate checking account were Mr. and Mrs. Holmes. There is no corporate resolution authorizing any financial institution to open and transact business; who the signers should be or how the funds should be disbursed. Board members did not meet regularly as required.
The Letter of Review and Opinion shows board members’ liability and the Opinion that the corporation should have been shutdown at least three-years ago because it was continuously in debt and not serving the public interest.”
Ok, no one likes being told, “I told you so.” Suffice it to say that in lieu of some pretty boisterous posturing from this attorney aimed at The Independent for having the unmitigated gall to ask some hard questions, we were pretty darn close to having it right. According to this press release, Barlow agrees. Also, and this goes without saying, shame on the people who seemingly orchestrated this bamboozling of our community and the people who donated time and money to this bullshit non-profit.
It is worth revisiting the idea here that something intrinsically valuable has been lost here however. Idealistic as it may sound these days, print and broadcast media, while serving also the purposes of entertainment, have the privilege and responsibility to inform the public. The single largest adversary to that process is the necessary evil of advertisement money needed to keep the lights on which invariably dictates content. Skews it even.
KTIM stood for something by trying to go against the grain and present radio entertainment and information un-filtered and un-skewed.
Too bad the one behind the mission was tainted by other agendas. We will miss you KTIM.
See you out there.
Dallas Hyland is a freelance writer, award-winning photographer, and documentary filmmaker with three films currently under his belt. The opinion editor of The Independent, Hyland’s investigative journalism and opinion columns have ranged in topics from local political and environmental issues, to drug trafficking in Utah, as well as the international front, covering issues such as human trafficking in Colombia. On his rare off-days, he can be found with his family and friends exploring the pristine outdoors. Listen to him live as a regular guest co-host on the Perspectives talk show on Fox News 1450 AM 93.1 FM in southern Utah.
