An official offer to the USCF

KILLION LAW FIRM

JAMES L. KILLION *
SAMANTHA PEABODY ESTRELLO**

* BOARD CERTIFIED
PERSONAL INJURY TRIAL LAW
TEXAS BOARD OF LEGAL SPECIALIZATION
** ALSO LICENSED IN NEW MEXICO

2521 74TH STREET
LUBBOCK, TEXAS 79423
TELEPHONE: (806) 748-5500
TELECOPIER: (806) 748-5505

P.O. BOX 64670
LUBBOCK, TEXAS 79464-4670

August 26, 2008

Mr. Bill Hall
Executive Director and
Pro Se Counsel for USCF, Inc.
1190 Fred Ford Road
Crossville, Tennessee 38571‑0240

Re: Cause No. 5:08-cv-00169-C; in the United States District Court for the Northern District of Texas, Lubbock Division; Susan Polgar v. United States of America Chess Federation, Inc., et al

Dear Mr. Hall:

On behalf of Susan Polgar, I am authorized to extend to the United States of American Chess Federation, Inc., the following unqualified demand of settlement relative to the above referenced litigation. Susan Polgar will compromise, settle and relieve all claims she may have against the United States of America Chess Federation, Inc., only in consideration of the following:

(1) United States of America Chess Federation, Inc., will pay One Dollar ($1.00) to Susan Polgar;

(2) United States of America Chess Federation, Inc., will issue a written public apology to Susan Polgar and to the USCF membership relative to its participation in the events, acts and/or omissions as alleged by Susan Polgar in the above referenced litigation; and

(3) United States of America Chess Federation, Inc., will agree to the entry of an appropriate cease and desist order of the Court relative to any and all future acts of slander, slander per se, tortious interference with existing and future contracts, business disparagement, and tortious interference with any future business relationships of Susan Polgar.

In making this offer of compromise and settlement, Susan Polgar specifically retains and reserves any and all claims and causes of action she has or may have against all other persons, entities or parties including but not limited to those parties named in the above referenced litigation.

Susan Polgar makes this offer of compromise and settlement solely for the purpose of allowing USCF, Inc., and its membership, to avoid the burden and expense of protracted litigation and with the knowledge and understanding that the mission, spirit and assets of the USCF have been grievously compromised and subverted by the actions of members of its Board, its Administration and its attorneys acting in furtherance of their personal interests.

Your prompt written response will be greatly appreciated.

Sincerely,
James L. Killion

JLK/mhvcc: Ms. Susan Polgar

The view from a big chess promoter

August 17, 2008

Dear Susan,

I just returned home with my family from a week of vacation. I could not believe the shocking development with US chess at the 2008 USCF Delegates meeting. Since I am not posting much on either Forums, I will try to use this post to cover some of the problems I feel I cannot leave alone. I truly believe that the situation with the USCF government is completely out of control. I cannot see any future for the positive chess development in the US under the current situation. I do not believe that the USCF EB is thinking about the development of chess in the US for at least last few years and definitely not for the next year.

From year to year USCF cannot get 100 people who were elected as Delegates to come once a year (!) for the meeting. It is happening every single year for the last many years (I do not have a deep history of the Delegates meetings). Then, some people from a hallway on the site (by the way, mostly the same people for many years!!!) becoming Delegates, and as it is clear now – Directors of the organization! Just show up in a hotel and you are the Director!

Nonsense! How can we trust such governance body?!

Something does not work and should be changed! I had (!) respect to almost all current USCF EB members. Jim directed my very first tournament back in Kansas and was a great supporter after that. I sent him an e-mail immediately after he was elected to the EB but unfortunately still waiting for his response. I could not believe that Jim can change some of his chess belief very quickly… If I recall it correct, he and Frank supported the SPF for years…. If I recall it correct, he and Frank organized a great tournament (among many) in OK where you actually played in. I remember that Jim…. I also remember Randy who was the only one EB member in previous Board who came to Lindsborg to check out the site for the USCF office relocation. We had a full day of discussion and I was very happy about the very professional report he put together in one day! I remember that Randy…

I remember my first meeting with Bill at the EB meeting in FL a few years ago. I listened him as one of the great tournament organizers in the US at a luncheon where we happened to sit next to each other. I tried to learn from him. But, my God, what is going on with Bill now does not make any sense…. I am not sure that Bill realizing that he can not run the 80,000 – 90,000 people organization as his private business.

I did not sign up for that. I am sure, majority of the members signed for USCF membership and not for CCA… Bill, you did great thing for chess in the US. You have to realize that you should not rule it all at once…. At this time, it is ALL in YOUR hands … Those of us who has some understanding of the USCF structure and activities know that it is BG time NOW. Let the young generation come and give this organization a life …..

Susan and Paul, everybody who will read this message knows that we always had a good relationship. And I greatly appreciate and value it. I am absolutely shocked that … Sam Sloan’s name is one that is trying to ruin your reputation. I want you to know – there are people in chess world who know who Susan Polgar is and do not know (or does not want to know!) who Sam Sloan is! I can only hope that you and Paul have enough energy left to stay for the good of chess in the US - now and in a future. You have 100% of my support.

And if I may, as a member of the US Chess Federation, I want to apologize to both of you for those terrible mistakes made by the governance body of the organization … I am sorry … With that, I want to join Fred, and probably some other people around, and make my little voice. I decided NOT to continue my USCF membership (expiring this month) until the organization will be clear from the chaos it is now. I can re-join the organization under the new leadership, when it will be in place.

Thank you,
Mikhail Korenman
Willowbrook, IL

Corruption and Bribery?

More facts about the potential bribery issue

Bill Hall, Bill Goichberg and the Board

I think that most of the Delegates were very disgusted with the approach that was taken to oust Paul and Susan. If there was any wrong doing it should have been sent to the Ethics Committee and had no place on the floor of the Delegates meeting. Proving a point with an "unbiased" ( ? ) attorney that was more of an attacking bull dog, questionable data from an associate of someone that may have been involved and facts that could have certainly been altered before the attorney saw them proved that the Delegates weren't going to just rubber stamp the accusations.

It is also pathetic that the President and Jerry Hanken conspired to give two unknowns money and delegates status just to win this vote. Actually a free entry for political reasons is the same as stealing from the USCF. Shame, shame.

After last Friday's conversation with Bill Hall, I understand that there is some doubt as to what I said. Sorry, folks, I DO NOT LIE!!!! But, I understand that the Board will now be vindictive toward me so I will accommodate you:I resign my Chair of the PPHBF ( I hope in favor of McCrary ), I will also resign from the Awards Committee and 2009 will be my last National Open. I will miss being MC of the Awards Banquet. But, there is life after chess.

That sums it up - except, hey, maybe your wrong!! I'm attaching an unbiased analysis of some of the postings that I hope you read and contemplate.

Reminds me of the movie " 12 Angry Men". I'll mail you all a copy.

Fred Gruenberg

Here is just a small sample of what took place (There are plenty more which directly link President Bill Goichberg, Secretary Randy Hough, and President of CJA Jerry Hanken). There are also other witnesses who are willing collaborate these charges. There are also additional physical evidence to back up the story.

In addition, I have asked to see the list of elected delegates and people who were certified on the spot Saturday morning. I also requested to see who certified these people. So far, President Bill Goichberg is stonewalling this process and Bill Hall refused to release this information without the authorization from President Bill Goichberg.

"If Bill (Goichberg) says "yes", you wouldn't owe anything to him."

"Come on Bill (Goichberg), I will go half on the airfare. There are so many good reasons to do this. Give it some thought. Just think what going half means to me and what it means to you. If we lose a critical vote, you will think of this. All the money you have given the USFCF will be in the toilet if we ultimately lose this fight."

"Could you get this done today ... I will pay."

"...it is important that you go on line today (when it is still July) and purchase a six month membership in USCF. It is $25 and I will personally reimburse you this money."

Please note that there are additional documentation and physical evidence which will be presented in due time. The above is just a very small sample.

USCF Motions by SP and PT

Motion: USCF Financials

Executive Board to direct and demand that the Finance Chair provide upon immediate receipt of monthly financial reports, copies of financial worksheets to all members of the Executive Board and Finance Committee.

Executive Board to direct and demand that the Finance Chair cannot selectively distribute financial worksheets to members of the Executive Board and Finance Committee.

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Motion: Handling of Deferred Memberships

Executive Board instructs that the ED and CFO create, distribute, and implement a policy statement, supportive processes, and procedures for the handling of deferred memberships and to ensure an accurate monthly schedule is provided in tandem with monthly USCF financial reports.

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Motion: Key Employee Insurance

At this time the only key employee truly identified that the USCF cannot operate without is Mike Nolan. Key employee insurance is reserved only for employees of an organization and not a contractor / consultant.

Seek to convert Mike Nolan to an employee and insure.

If not financially possible then enter discussions with insurance agencies to determine if Mike Nolan can acquire the insurance himself and bill the USCF for it. Prior to this occurring, the USCF must be given guarantees that the insurance agency would provide the coverage and make USCF a beneficiary.

Additionally prior to occurring factor in costs of the insurance being passed through by Mike Nolan, plus his consulting fees and determine if less than hiring him plus the direct cost of insurance to the USCF.

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Motion: USCF Sponsorship Search Committee

Create a committee of volunteers (4 + 1 committee head) to execute processes for search of sponsors for USCF key events (national invitational and open tournaments are the first priority and specialized international events).

Tasks to include: creation of project plan with deliverables, dates, task responsibilities, execution of tasks, and monthly status reports to USCF EB liaison.

Deliverables to include but not be limited to: creation of marketing / positioning literature, target list of corporations to approach, 'elevator pitch', etc.EB liaison to be determined when this motion is voted upon.

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Motion: USCF Website

Direct current web engineer, Hal Bogner, to create a project plan with deliverables, due dates, and hours estimates (+/- 10% of hours) for completing migration of the former USCF website to the current one.

Direct current web engineer, Hal Bogner, to create and submit a list of current defects / bugs with the website.

Direct current web engineer, Hal Bogner, to provide an end of week recap / status report of defect resolution and website progress through all time that his services are rendered to the USCF.

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Motion: USCF Technology

USCF EB in conjunction with ED to analyze and take action within 30 days on the time and cost estimates provided by Hal Bogner (see Motion: USCF Website) to either continue services of Hal Bogner or terminate services and hire a part or full-time assistant to Mike Nolan. If decision to hire a part or full-time assistant to Mike Nolan is made, a job posting in Chess Life, Chess Life Online, and the USCF website to be made in addition with other non-USCF job posting locations.