
By Steven M. Thomas
Photography by Challenge Roddie
Published in the Orange Coast Magazine
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Why Jim Gilchrist Does What He Does
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1. Question: What is the current legal status of ongoing law suits?
Anwser: Info on the current court cases
The jury found in Jim Gilchrist's Minuteman Project, Inc.'s favor, JGMMP was the prevailing party having won both phases of the trial - phase one the essential declatory relief portion and phase 2 the damages phase. Although the damages were smaller than one might have expected, the jury found that Courtney and Stewart stole $ 4,000.00 of Minuteman Project, Inc.'s money and awarded that amount in damages.
The jury, additionally, found that Marvin Stewart and Deborah Courtney engaged in a conspiracty to intentionally interfere with both contractual relations and business relations of MMP, Inc. and JGMMP, Inc. after they were legally fired from MMP, Inc. in February 2007.
Moreover, and the article touches on this a little, the jury found that they misrepresented to others that they were members of the board of directors of MMP, Inc., when they were not. In fact, they concealed the fact that they had been legally fired February 2, 2007.
Could they have been mistaken and not known they were fired. No. They were given notice of a special meeting to be held February 2, 2007 with the express purpose their removal. They had conversations with MMP, Inc.'s attorney about the notice they had received and discussed the purpose of the upcoming meeting. They attended the February 2, 2007 meeting and witnessed the votes removing them from MMP, Inc. And, lastly, they received an e-mail from the corporate counsel for MMP, Inc. informing them that they were removed and were to have no involvement with MMP.
After being told they were fired, what did they do? They ran to the bank and removed funds from MMP, Inc. - what you and I might term stealing.
The jury found that they misrepresented themselves to the bank, stole the money and have to return the money. In nearly every count they were found to have misrepresented themselves to third parties, they were found to have engaged in a conspiracy to harm MMP, Inc. and JGMMP, Inc., they were found to have intentionally caused harm and in at least one case the jury found that they violated one or all of the following Federal laws (Title, 18 sections 1030, 1708, 1341, and 1342, having to do with computer fraud and abuse, engaging in a fraudelent scheme to divert monies, attempting to divert US Mail and mail tampering).
Despite their claims that they only acted in the best interests of MMP, Inc. the jury found that in nearly every instance they intended to do harm and did cause harm to MMP, Inc. and JGMMP, Inc.
The court and jury affirmed defendants Courtney and Stewart had no authority over the affairs of MMP, Inc., any and all involvement ceased February 2, 2007, they never were officers or directors of MMP and at no time did they constitute a majority of the board of directors as they falsely claimed. Their actions in attempting to seize control of MMP, Inc. were fraudulent and criminal.
The court found Jim Gilchrist was never removed from control of MMP, Inc. In fact, defendants own documents and testimony showed that no vote was taken to remove Gilchrist, and the court ruled at the very most they asked him to resign as President. He, of course, refused.
Jim was the sole director of the organization and the very board Courtney and Stewart served on, an advisory board, voted to affirm Gilchrist the sole director and holder of all four offices.
In short, Stewart and Courtney were found in court to be liars, cheats, theives and frauds or at least, that's how I saw it.
Well, here’s how it ended.
December 19, 2009, Stewart and Courtney’s lawsuit against Jim Gilchrist personally went nowhere. The honorable Judge Randell Wilkinson, Dept. C-25, Orange County Superior Court of California, granted a summary judgment motion filed by Catherine Lukehart of Santa Ana (Jim Gilchrist’s personal attorney).
The judge ruled that Stewart and Courtney failed to provide any evidence that Jim Gilchrist made any false representations (to anyone), failed to show any fraud on the part of Mr. Gilchrist and, in fact, failed to provide any (emphasis again on any) admissible evidence of alleged wrong-doing. The case against Jim Gilchrist (personally) is essentially dismissed, Jim Gilchrist is removed as a defendant in their action.
Gilchrist wins and is totally exonerated of their bogus charges. Not only do Stewart and Courtney lose, but they have to pay costs to Gilchrist.
February 5, 2010, Judge Randell Wilkinson issues a Statement of Decision and grants a permanent injunction barring Stewart, Courtney and Sielski from claiming to be members, managers, spokesperson(s) and/or board members of Minuteman Project, Inc.
The court found that despite Mr. Stewart and Ms. Courtney’s claims that they constituted the majority of the board of directors and that they fired Gilchrist – Gilchrist remained in control of Minuteman Project and it was they (Stewart and Courtney) that were legally fired from the Minuteman Project, Inc. on February 2, 2007.
The advisory board that Stewart and Courtney served on, voted on January 19, 2007 to leave Mr. Gilchrist the one and only director on the board of directors (the governing body) and elected to have him hold all four offices. That was both the will of the majority of the advisory board and the vote passed.
There has been much made about Mr. Gilchrist being the sole director and it has been alleged that it is improper and illegal according to California law. There is nothing illegal or improper about a non-profit organization being headed by one director. It has also been alleged that one cannot hold all the offices. That’s not true either.
Mr. Gilchrist filed papers with the Secretary of State of Delaware, an amended certificate of incorporation making him the sole director. The board affirmed this arrangement as noted above. The same advisory board elected him to hold all four offices. Similarly, Gilchrist filed as a foreign corporation in California (again as sole director).
Mr. Stewart who has repeatedly made these claims is not a lawyer and is incapable of reading either Delaware or California law. What makes matters worse is that Mr. Stewart founded California non-profits (501 (c) 3 and 501 (c) 4) and guess what – he was the sole director. When he said that it was illegal in California, he knew that was a lie.
Back to the alleged firing of Gilchrist. The court found that the testimony and the documents filed by the defendants (Stewart and Courtney) showed that they never fired Gilchrist – in fact, they never even took a vote to remove him from office. The conspirators Stewart, Courtney and Coe thought about removing Gilchrist, but instead decided to write him a letter and ask him to resign as President of Minuteman Project. Gilchrist refused and told the three that they were all fired!
Gilchrist contacted the corporate attorney for Minuteman Project, Inc. and in an abundance of caution, they called a special meeting for the removal of Stewart and Courtney from the advisory board. Jim Gilchrist’s firing of the the two was sufficient, but in the event that anyone could misconstrue their advisory board as a de facto board of directors, he advised following the necessary protocol.
Mr. Robbins, corporate attorney, sent an e-mail to each informing them that a special meeting would be held on February 2, 2007 and the special purpose of that meeting was the removal of Stewart and Courtney from the board. Stewart and Courtney received the notice of the meeting, they had telephone conversation with Jack Robbins about the nature of the special meeting and the action items removing them from the organization.
Stewart and Courtney (and Coe) were present at the meeting in which they were fired (Coe resigned – notably, recognizing Mr. Gilchrist’s authority by handing her resignation to him). They witnessed the vote removing them from any and all involvement and then, they received a follow up e-mail from Jack Robbins, corporate attorney for MMP, reminding them that they were removed, had no official capacity with MMP, were no longer members, were prohibited from using MMP property and he demanded they return MMP property they had along with the materials they improperly removed from the organization’s offices.
Stewart and Courtney didn’t accept their firing. Prior to the special meeting, they filed false papers with the Secretary of State of Delaware claiming to be the only board members and officers of the organization. They took these false papers and false corporate resolutions created after their termination, to the Washington Mutual Bank. They stole $4,000 of MMP, Inc. funds for themselves.
They then proceeded to convert other MMP property to their names in order to divert MMP funds away from the organization and to their accounts. They took control of the organization’s donor lists, the websites, the merchant accounts and attempted to have funds raised for Minuteman Project sent to themselves.
Gilchrist went to court, won a temporary injunction prohibiting them from diverting any more MMP, Inc. monies and prohibiting Stewart and Courtney from spending any MMP, Inc. money. The court ruled that Gilchrist was likely to prevail in an action against them and ordered the injunction to maintain the status quo.
What did Stewart and Courtney do? They continued to try to divert money and mail to their use. That’s right, in direct violation of the court’s order – they continued to try to get their hands on MMP, Inc. funds. Stewart, in Violation of Title 18, sections 1341 and 1342, devised a scheme through misrepresentation and deception to have money deposited in the US Mail directed to his post office box account. Stewart, Courtney and Sielski, in Violation of USC Title 18, 1030 the Computer Fraud and Abuse Act, used computers and passwords they were no longer authorized to use and used in a manner exceeding their authority to attempt to divert monies to their use and for their purposes.
It bothers me that they have time and again made false claims against Gilchrist when it was their own actions that were criminal in nature and were against the interests of MMP, Inc. They attempt to deceive the public in stating that Gilchrist made up the whole sole director thing. No, actually since 2005 he was on file with the Secretary of State of Delaware as the sole director and only he could make changes with the State of Delaware.
Furthermore, in December of 2006 and January 2007, the advisory board members were aware that Jim Gilchrist was the sole director, that only his vote counted and time and again, they voted to have Jim Gilchrist continue to run the organization and serve as the sole director.
Anyway, the February 5, 2010 decision by the court said that when the three (Stewart, Courtney and Coe) met and discussed Gilchrist’s future with the organization – the meetings were invalid because they didn’t have a quorum, they didn’t give notice of the meetings, they didn’t specifically call out the purpose of the meetings and, they didn’t even take a vote on Gilchrist – their actions were null and void. No legal actions can be taken without a quorum (in this case without Gilchrist) and nobody could be removed without proper notice.
April 30, 2010, a jury in the penalty phase of the trial found that Mr. Stewart and Ms. Courtney had misrepresented themselves to the bank and had, in fact, stolen the organization’s money. They found that they were liable for their misconduct and ordered restitution.
Additionally, they found that they intentionally interfered in the business relations and contractual relations of MMP, Inc. and it’s successor and assignee Jim Gilchrist’s Minuteman Project, Inc. (JGMP). In at least one cause of action, they found that they violated Federal law (any one or all of USC Title 18, Sections 1030 Computer Fraud and Abuse, 1341 and 1342 involving the attempted misdirecting of the U.S. Mail (mail fraud, mail tampering, etc.).
The last two things you should know. Although Ms. Courtney had no official role for recording the minutes of meetings (meetings were informal), at about the time of their termination prepared what she alleged to be minutes of the meetings in January and February fo 2007. The meeting minutes weren’t actual meeting minutes in that motions and votes weren’t recorded, when other advisory board members said things Ms. Courtney didn’t like she didn’t reduce to writing what they said, she editorialized and expressed her opinions liberally.
Nevertheless, she put these minutes before the court and represented to the court that the minutes were taken in the ordinary course of business and accurately reflected what occurred. Furthermore, she represented that these minutes were distributed and shared at meetings and approved by vote of the majority of the board.
At trial, it was revealed that the minutes were not presented at meetings, not distributed in advance and the advisory board members were not given the opportunity to review, make changes and/or vote on the meeting minutes. They were approved sometime after the two (Stewart and Courtney) were fired and the approval was apparently by Stewart and Courtney.
Even that said, Ms. Courtney prepared two different sets of meeting minutes for the January 19, 2007 meeting. The original minutes showed the aforementioned votes pertaining to affirming Jim Gilchrist sole director. First vote she contended was conditional, Jim Gilchrist was made sole director to take effect after 14 days. A second vote is recorded giving Jim Gilchrist sole director with no such caveat. It notes give Jim Gilchrist ready [sic] everything and holds all four offices.
Ms. Courtney prepared a second set of meeting minutes removing the votes, instead saying the motion was made and the vote fails.
When asked in court, she readily admitted that she made both sets of minutes. She admitted that the second set did not accurately reflect what had transpired at the meeting. Furthermore, she admitted submitting the false meeting minutes numerous times to the court. She even admitted she submitted the false meeting minutes to the court numerous times in an effort to deceive the court.
Mr. Stewart is not blameless in this either. He, too, knew that the minutes prepared did not accurately reflect what happened at the meetings. He knew votes were taken, yet he submitted numerous times the false meeting minutes as though they were true. He and Courtney at one point filed a declaration saying that no vote was taken.
Lastly, at the end of the trial – after numerous days at trial, after Mr. Stewart had elected to have a jury trial – he after the verdict was in, falsely claimed that he hadn’t asked for a jury. He doesn’t want to pay the jury fees and instead wants the OC taxpayers to pay his way.
Think what you want of Mr. Gilchrist and MMP, Inc. – Stewart and Courtney are guilty of multiple incidents of perjury and they have a demonstrated penchant for lying. Lest you think I am defaming them, it’s true – It’s all a matter of the court record(s). Mr. Stewart’s lack of integrity is not only in his relationship with Mr. Gilchrist, he lacks integrity with the Courts and the State of California.
So much for his being a Federal employee and his being held to a higher standard.
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