Carl Busby Attorney Kansas City

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Carl Busby Attorney Kansas City – The Downtown Minority Development Corporation has for years fought the perception that it lends taxpayer money to minority businesses and doesn’t bother to make sure the money is repaid.

The DMDC, a city-affiliated non-profit organization established in 1978, has suffered a tarnished reputation in recent years. In 2003, it stopped lending entirely pending an audit of its books. Meanwhile, the organization, in an attempt to regain some credibility, began going after several minority businessmen who took its money and later went bankrupt.

Carl Busby Attorney Kansas City

Carl Busby Attorney Kansas City

Oddly enough, one of those credit deadbeats is a familiar member of the Kansas City media, a man known more for his weather forecasting than his business acumen.

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In 1998, KMBC Channel 9 Emmy-winning meteorologist Bryan Busby and two partners started Weather Computing Systems. The company provided weather forecasting equipment to television news stations across the country. They used the deposit certificate from DMDC as security to get bank loan.

The lawsuit, along with eight other collection actions, is part of DMDC’s efforts to combat its tarnished image as an organization that siphoned off federal community development block grants and state municipal enterprise loan money. Is.

For all its existence, DMDC has been beset by problems. In 1994, a scathing audit by KPMG revealed that DMDC had stopped borrowing, had only $300,000 left in its coffers, and was $3 million in debt due to a bad hotel investment. KPMG’s audit also cited poor record management and failure to properly monitor loans.

In 1996, then Mayor Emmanuel Cleaver reorganized the DMDC board and appointed several new members. “It’s about trying to restructure an organization that could have a huge impact on minority businesses,” Cleaver told the Kansas City Star at the time. Struggling DMDC had just $1 million and its second loan freeze in 2 years.

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But even this restructuring did not cure DMDC. A 1998 federal Department of Housing and Urban Development audit found deficiencies in the city’s oversight of the corporation, revealing that deadbeat borrowers owed a total of $13 million but had made payments over the previous 6 years. I have only made payments of $150,000. According to the audit, DMDC is making little effort to recover bad loans. Cleaver admitted that the borrowers told him they didn’t think they needed to repay the money. In 2000, the government stopped providing municipal enterprise loans to DMDC through the city and instead chose Douglas Bank to administer the program, leaving DMDC as its sole source of funding. The payment process was abandoned.

Now DMDC is trying to recover the old loan. DMDC has filed some lawsuits against defaulting borrowers and obtained judgments, but neither DMDC nor the city’s Department of Housing and Community Development has been charged with DMDC’s unpaid and non-performing loans. Could provide the data.

“We’re in a state of chaos,” DMDC attorney Donna Wilson told The Pitch. Wilson says the city’s troubled housing department, now phased out by the city manager, handled DMDC’s accounting for years and kept all of the organization’s financial records. Wilson learned a year ago that KPMG had not completed a 3-year audit. “They were sending requests for information about housing and community development, sometimes to people who were no longer there, and the requests were sitting on desks and getting lost,” says Wilson.

Carl Busby Attorney Kansas City

It is awaiting an overdue audit, and according to Wilson, the DMDC has little idea of ​​how much money it actually has. In the meantime, it depends on the favorable outcome of actions against business owners like Busby.

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The now-defunct firm of Busby and Foster sold weather equipment and defaulted on a $100,000 bank loan guaranteed by the DMDC with a certificate of deposit. According to Wilson, the DMDC is still trying to come to terms with the weather accounting system.

Busby won’t talk to Pitch, but his attorney, Dana Cutler, says Busby is not guilty. “He wasn’t even involved in the day-to-day activities. They were using his expertise in the weather — he was a quiet fellow,” Cutler tells The Pitch. But a company application submitted to the DMDC in 1998 showed that Weatherman owned about a quarter of WCS. (According to the filing, Foster held 51 percent; WCS technology guru James Dewey held Busby’s 24.5 percent. Dewey later left the company.) And Busby, in a letter with Foster, promised to repay the loan. What did According to the lawsuit filed in Jackson County Court.

When the company first applied to the DMDC, the board weighed the company’s only strength — “Bryan Busby’s expertise in the field,” according to its DMDC application — against its weaknesses: high salary costs, few recent Inexperience of partners in sales, ventures. management, and lack of a well-developed market.

It didn’t look good, but apparently the DMDC board was impressed by the company’s product demonstration: a small weather station called a “weather stick” designed for use in television stations.

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Austin, Texas, station KVUE bought 11 devices from Busby five years ago. KVUE meteorologist Ilona Torok says weather wands aren’t exactly a technological innovation. “They’re just meteorological observations — they measure temperature, humidity and wind speed, and I believe there’s a rain bucket,” she tells Pitch.

He showed Wilson Pitch a list of eight companies that are bringing collection action—Weather Computation Systems, Forest Meat Corp., Marcus Chicken & Waffles, Gill Construction, MC Constructors Inc., Ethnic Art, Federal Electric, and Banderas Stone—and With three DMDCs. Forbearance agreements have been made.

DMDC has requested a meeting with City Manager Wayne Kothen to see if the city wants to continue monitoring DMDC. DMDC has been virtually ignored by the city for years, Wilson says. According to DMDC bylaws, the mayor must appoint four board members (the city manager selects the fifth), but Mayor Kay Barnes never appointed a member, according to phone calls and a 2002 memo. Despite the letter seeking guidance from DMDC. Wilson says he doesn’t know why the city was pulled from the DMDC.

Carl Busby Attorney Kansas City

Board members appointed by the Clerk are systematically filed. Two years ago, board member Alicia Malgoza resigned. Phil Brooks stepped down in March. The board is now rarely found. A small number of members makes it difficult to achieve a quorum.

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But Gregg Williams, an assistant to the mayor, says Barnes learned about the board vacancies two months ago. He says he will help find members to appoint them. The mayor expects to name the new members by mid-August. “The mayor wants to make sure everything is done properly so they can do what they need to do,” Williams told The Pitch. At the Kansas City Mafia Film Festival in November, author Terence M. O’Malley, William Ousley and Gary Jenkins 24, 2018. Thanks to Larry Henry

Crowd control at a Las Vegas casino is revealed when authorities learn about it from a surveillance microphone in a Kansas City grocery store.

In fact, the bug was planted on a dining table that sat next to a bench at the now-demolished Kansas City pizzeria, Villa Capri. In the late 1970s, authorities in the Kansas border town of Missouri uncovered a bombshell they had hoped to learn about warring gangs: the Kansas City Sevilla crime family illegally controlled a money pipeline that It started inside the Tropica Hotel Casino on the Las Vegas Strip. The BJs’ disco song “Stayin’ Alive” played in the background of the pizzeria, adding an ironic twist to the underworld setting of a city ravaged by mob-targeted bombings and gunfire. (“Feel the city break and all tremble…”)

Kansas City Mafia boss Nick Sevilla lived in a house in a subdivision once known as the “mob neighborhood.” Thanks to Larry Henry

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Over time, authorities discovered that tens of thousands of dollars in untaxed gambling revenue—scum—were being illegally transferred monthly from Las Vegas casinos to Sevilla and other Mafia organizations in the Midwest. . As a result, rioters in Kansas City, Chicago, and other areas were later convicted and imprisoned.

This milestone in mob history took center stage at the two-day Kansas City Mafia Film Festival Thanksgiving weekend at the Crown Center’s MTH Theater, which featured documentaries.

By Terence M. O’Malley. At the Nov. 24 screening, retired FBI agent William Owsley joined the filmmakers for a question-and-answer session in front of the audience.

Carl Busby Attorney Kansas City

The Crown Center is located near the historic train station where, in June 1933, four law enforcement officers were killed by Charles Arthur “Pretty Boy” Floyd and other criminals in a failed attempt to free a friend. who was being taken to the federal penitentiary in Leavenworth. , Kansas. Captured in Hot Springs, Arkansas, prisoner Frank “Jelly” Nash was executed at Union Station in what became known as the Kansas City Massacre.

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The Depression-era shootout, while important in understanding Kansas City’s lawlessness in those days, was merely background, not the focus.