LIVING ON THE EDGE ****************** SIGNIFICANT STORIES AND COMPILATIONS from past issues Full text follows Tables of Contents and Summaries To get ALL the news from the Edge of the Frontier, subscribe to NORTHERN HERALD. Details on Home Page. ******************************************************************* For mostly complete text of issues on or after 02/24/97, access our LIBRARY from our home page: http://northernherald.com ******************************************************************* Copyright (c) 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005 by Northern Herald and Northern Herald Publications, Inc. MEDIA AND OTHER USERS: See Copyright Info and Limited Permission to Use - Revised 9/6/97 - at the end of this file. ****************************************************************** PAGE MAP - ALL OF THE FOLLOWING IS ON THIS ENORMOUS PAGE - TO GET TO IT, JUST SCROLL DOWN: -------- 1. PREFACE - THIS IS BEMIDJI 2. TABLE OF CONTENTS and anthology summaries 3. FULL TEXT OF FEATURED ARTICLES ********************************* PREFACE - THIS IS BEMIDJI ------------------------- (News Story Contents follow this preface, which contains editorial material) Bemidji is a town that has been, in recent past, known as the Crime Capitol of Minnesota. It is speculated that crime flourishes here because, although most places have a corrupt element, in Bemidji, it exceeds 50% of the populace and electorate. Over 1/2 of the electorate supports, or at least will tolerate, corruption, particularly if it benefits their friends and relatives, or enables them to hold office. For this reason, in Bemidji, crime is not limited to the shadows. In this remote community, it can be blatant, and perpetrated openly, by top officials and their friends, with impunity. Bemidji is a city where: 1. Our former police chief (Robert Tell) was subject to a BCA (Minnesota Bureau of Criminal Apprehension) recommendation of about 17 charges, mostly in the nature of Theft by Swindle, or similar counts, stemming from phoneyed-up travel vouchers. (See THE POLICE CHIEF ROBERT TELL ACCOUNTS, below) The case was not prosecuted for a year and a half, but following our report, charges were brought. A Beltrami County jury would not convict, however, despite the chief's admission at trial that he did it, and our City Manager (Phil Shealy) restored him to his position, which he held for several years until his eventual retirement. 2. Our present police chief (Bruce Preece) appears to have swindled over $1 million in fraudulent helicopter sales, leases and similar dealings. No criminal charges have yet been brought, although the fraudulent dealings are numerous and well corroborated (see stories in THE POLICE CHIEF BRUCE PREECE FILES, below). 3. Our former state senator (Skip Finn) did federal time for swindling over $100,000 from the Leech Lake Band of Ojibwe in an insurance scam. 4. Our former state representative (Bob Johnson) left office after three DWIs within a year, and other irregularities. He had been a multi-term favorite in many elections. 5. Our former County Attorney (Tom Keyes), Beltrami County's top law enforcement officer, died of an overdose of cocaine. His law partner (Tim Faver) is our current County Attorney; has been for many years and through many elections. 6. When NORTHERN HERALD began to make available the facts and secrets of Bemidji, the City tried to outlaw its distribution. By order of (still) City Attorney Alan Felix, as supported by certain members of Bemidji Police Dept., NORTHERN HERALD could not be distributed in Bemidji public places (i.e. on the street or sidewalk) under threat of jailing. In 2001, the United States Court of Appeals, in Northern Herald and Steele vs. City of Bemidji, et al., overturned two Bemidji city ordinances as unconstitutional, restoring access to the free press to persons in the City of Bemidji. (Verbatim court order is available from our main page.) Eventually, the City was ordered to pay $3,001. in damages, plus costs. (See BEMIDJI AND THE FREE PRESS, below.) Living in Bemidji ----------------- Bemidji government is pretty much oblivious to civil rights and property rights - you don't have a lot of them here. When they're violated, you can take the matter to the courts and maybe win, but that's mostly for people who like to live in courtrooms; most people have enough to do with work-a-day living that they don't need to be harassed, or spend time defending their rights, or to be paying attorneys to do it. Having a copy of the Bill of Rights won't do you much good when deputies are breaking your door down, with a warrant signed by one of our local judges because someone said you look funny (see Search Warrant Issued On Looks, post). That's why a lot of people live somewhere else, preferably someplace that considers itself part of America, and bound by its Constitution. Bemidji is a city where, among other things, you'll be told: How high the grass in your lawn can be; How to stack your firewood; What common things you may or may not have in your yard; Not to park after 10 pm in City Parks or by the waterfront - your car can be towed, even if you're in it watching the lake. (Don't even think about RV parking.) If boating, and you stay on the lake too late, when you get back to the dock, and your car, you may find the parking lot gate locked, with your car locked in. Not to park after 1 am on the vacant downtown streets (this includes people who live in downtown apartments and have no other place to park, and their guests); Not to feed the Canadian Geese, which the City now discourages on Lake Bemidji (it must be Homeland Security or something, the geese being foreign and all that; but people used to come here to see the large flocks of them). Even if you comply with these ordinances, the city may condemn your property if it wants something else, including other private property, there. You'll also be told where you may smoke (outside, even in the 20 below winters - not in bars, restaurants, your own store, office, or lodge; or most any other place open to others). How do we get these naziesque ordinances? Our roster of candidates for public office isn't that great; most people who run have ulterior motive, sometimes without even knowledge of the Constitution; and if a qualified, conscientious person did run, our inbred electorate, many with corrupt old-line ties, wouldn't elect them. This tends to explain our City Council and County Board. There might even be an attempt to run them out of town, which we do with people whose views or lifestyles are such that they get deemed undesirable. They may find themselves unable to get and keep a job, evicted and unable to rent an apartment, and unable to obtain needed medical services (such as in the Roy Martin matter); if this doesn't work, they may find themselves charged with crimes they didn't commit, and repeatedly being held in jail overnight (may include tasing or other roughing-up) until they can appear before a judge. Usually, eventually, they get the idea and leave, which was the point. Morality of Bemidji ------------------- You couldn't enforce adultery laws in Bemidji. It would be too hard on Bemidji men. Too many of their wives would be in jail too much of the time. Bemidji is a whore town. It has been since the early days of logging and remains so to this day. Whoredom is a driving force behind much of its corruption, and has been supported by the city's key sources of influence. The City's most notorious "bardello" (Hard Times Saloon) has, in recent times, also been the most popular police hangout. In 1997, Police Chief Tell issued a memo advising his officers to stop being there illegally, after closing time, when certain of the most desirable young ladies also seemed to be allowed to remain. Hard Times Saloon was then owned by Richard Morton, a relative of current Bemidji Republican leader Bill Batchelder, who is also the influential operator of Bemidji Woolen Mills, and former Chairman of the Bemidji Police Commission. Each year, the inventory of ladies of questionable repute is fortified by the new crop of freshman coeds coming to Bemidji State University, and who are susceptible to being assimilated into the Bemidji system. One man interviewed, a few years back, from another Northern Minnesota city, said that when he was in college (in his home town) he used to come to Bemidji to "socialize" because the girls were easier here. So it is with young girls immersed in an immoral environment. It is not uncommon, in Bemidji, for a woman (including married ones) to have more than one male consort. Again, this type of lifestyle is routine and accepted here. It may say something about the quality of Bemidji men. But this climate of immorality is also largely supported by the publicly-financed and misnamed Northwoods Coalition for Battered Women (NCBW), here, which takes action, including suborning perjury, to irretrievably break worthwhile marriages, homes and healthy lifestyles; encouraging, instead, single parenting, welfare dependence and whoredom. Why? Under state law, and county grants, NCBW, and other women's shelters and advocates, get paid well for this. So do their directors and employees, many of whom, due to their nature, would be unable to hold down a job elsewhere. By these means, these organizations and their staff, which claim to be pro-women, actually, exploit women in the worst way, for personal monetary gain. If one were to bring a good and faithful wife to Bemidji, it is not unlikely that after getting here, she would be assimilated and corrupted by the prevalent environment of immorality, which is unavoidable. The travesty of Divorce might soon follow. -------------------------------------------------------------- ------------------------------------------- TABLE OF CONTENTS - SIGNIFICANT STORIES AND COMPILATIONS from past issues ------------------------------------------- These Contents are not hypertext, you can't click on them. They are in the same order as are the full text articles, in the full text section of this page - just SCROLL DOWN to find what you want. This file is cumulative and voluminous - you may find it more expeditious to FIND (from your EDIT menu on Explorer and certain other browsers) for a unique keyword in the headline (as listed in these Contents) - that'll probably take you down to the full article; or to download this entire file and then search using your own word processer. BEMIDJI AND THE FREE PRESS This anthology chronicles the progress of the $600 Billion lawsuit brought by Northern Herald and Editor Adam Steele against the City of Bemidji and others, for attempting to suppress distribution of Northern Herald in Bemidji. The suit commenced 11/19/99, at which time the United States District Court (USDC), at Minneapolis, issued an order restraining the City of Bemidji from enforcing the unconstitutional ordinances while the suit for damages was pending. It concluded 06/16/03 when the USDC, by the Honourable Judge Rosenbaum, found for Editor Steele, and ordered the City to pay $3,001 in damages for violation of First Amendment rights (report in issue of 06/30/03). The suit had been initially dismissed by USDC Judge Kyle, but subsequently, on appeal, the federal court found two Bemidji ordinances unconstitutional, and remanded the case back to the USDC for trial. The complete opinion of the United States Court of Appeals, finding the Bemidji ordinances unconstitutional, is available at our main page (northernherald.com) USDC JUDGES ERICKSON, KYLE UPHOLD BEMIDJI PROHIBITION OF LITERATURE Appeal to Eighth Circuit Under Way From Vol. 6 No. 2 - 11/08/00 HERALD, EIGHTH CIRCUIT FEDERAL COURT, BRING BEMIDJI INTO UNITED STATES Ruling Finds Bemidji Statutes Unconstitutional; Court Recognizes Discriminatory Enforcement From Vol. 6 No. 11 - 09/01/01 The $600 Billion Lawsuit EIGHTH CIRCUIT DISMISSES BEMIDJI CITY APPEAL From Vol. 7 No. 9 - 07/27/02 The $600 Billion Lawsuit USDC FINDS FOR NORTHERN HERALD EDITOR, AGAINST FELIX, CITY OF BEMIDJI From Vol. 8 No. 3 - 02/10/03 The $600 Billion Lawsuit NH EDITOR, CITY OF BEMIDJI, GO TO TRIAL JUNE 9TH From Vol. 8 No. 5 - 05/12/03 NH EDITOR WINS $600 BILLION LAWSUIT Two Unconstitutional Bemidji Ordinances Overturned; Bemidji Ordered to Pay $3,001 Plus Costs From Vol. 8 No. 6 - 06/30/03 BEMIDJI AND YOUR RIGHTS TO PRIVACY AND THE 4TH AMENDMENT Leading Edge Journalism SEARCH WARRANT ISSUED ON LOOKS From Vol. 9 No. 4 - 03/08/04 SCHIEFERDECKER WOULD HAVE SPENT $THOUSANDS OF YOUR MONEY TO TRY TO KEEP $668 But Semons Insist on Hearing; Money Ordered Returned From Vol. 9 No. 6 - 06/21/04 THIS IS BEMIDJI - THE BEMIDJI POST OFFICE The Bemidji Post Office MOVING . . . TOWARD A LOWER STANDARD OF SERVICE From Vol. 6 No. 2 - 11/08/00 WHY? From Vol. 6 No. 9 - 06/30/01 BEMIDJI'S MANN FOR THE JOB IS A MANN ON THE MOVE! Postmaster Charles Mann Improves Bemidji Postal Service, Now Moves On To Solway. From Vol. 10 No. 3 - 03/07/05 ABOUT OUR COURT-SUPPORTED MENTAL HEALTH AGENCY: UPPER MISSISSIPPI MENTAL HEALTH CENTER (UMMHC) HOMOSEXUAL ASSAULT CHARGED IN UMMHC SUIT From Vol. 1 No. 20 - 05/03/96 LAST UMMHC HOMOSEXUAL ASSAULT CASE TO SETTLE From Vol. 4 No. 4 - 11/25/98 (See also PR MAN FOUND NOT GUILTY IN UMMHC, WOMEN'S ADVOCATE-BACKED ASSAULT CASE, post) PEOPLE WHO REQUIRE OCCASIONAL OR PERIODIC HEALTH CARE, AND ARE CONSIDERING A MOVE TO BEMIDJI, MAY WANT TO READ THIS: THE MERITCARE MONOPOLY AT BEMIDJI Part 2 of a multi-part series resulting from our continuing investigation of health service practices in Northern Minnesota From Vol. 6 No. 10 - 07/28/01 MERITCARE REFUSES TO TREAT ANTHRAX-LIKE SYMPTOMS Part 3 of a multi-part series resulting from our continuing investigation of health service practices in Northern Minnesota From Vol. 7 No. 2 - 11/03/01 THE POLICE CHIEF BRUCE PREECE FILES Bruce Preece, present Police Chief of Bemidji, and son of long-time Bemidji Judge James Preece, has been accused, with good corroboration, of swindling over $1 million in helicopter scams. As of this release, he has still not been prosecuted. For recent developments, also our check recent issues which have not yet been archived to The Library (the ones still posted in .pdf) Leading Edge Journalism At Bemidji - High Corruption Marches On! BEMIDJI POLICE CHIEF PREECE IMPLICATED IN ALLEGED HELICOPTER PONZI Purchaser Says $295,000 Missing; Manufacturer Pulls Preece's Franchise From Vol. 7 No. 7 - 05/04/02 Leading Edge Journalism-Follow Up NEW HELICOPTER FRAUD ALLEGATIONS SURFACE AGAINST BEMIDJI POLICE CHIEF PREECE Hennepin County Attorney's Office Takes Interest Bemidji Police Commission Claims "Didn't Know" From Vol. 7 No. 9 - 07/27/02 Leading Edge Journalism - Follow Up PREECE NOT YET CHARGED From Vol. 8 No. 2 - 12/30/02 Leading Edge Journalism ----------------------- Bemidji Crooks EVIDENCE MOUNTS IN BEMIDJI POLICE CHIEF PREECE ALLEGED HELICOPTER SCAMS But No Criminal Charges Are Landed Yet From Vol. 8 No. 3 - 02/10/03 Leading Edge Journalism BEMIDJI POLICE CHIEF BRUCE PREECE'S WIFE GUILTY OF DWI WITH .20 Car Goes Off Roadway From Vol. 8 No. 3 - 02/10/03 Leading Edge Journalism ----------------------- The Inevitable Happens BEMIDJI POLICE CHIEF PREECE GOES BANKO New Judgement Likely Prompted Filing; Leaves Trail of Scammed Helicopter Debt From Vol. 8 No. 7 - 08/11/03 Leading Edge Journalism - Follow-Up ----------------------------------- This Is Bemidji SWINDLE VICTIM, TRUSTEE, WON'T LET PREECE GET AWAY WITH IT Victim Files Claims of Embezzlement, Larceny Against Bemidji Police Chief, Bankruptcy Trustee Files Objection to Preece's Claim of Exempt Property From Vol. 9 No. 1 - 09/29/03 ANOTHER SWINDLE VICTIM FILES CLAIM IN POLICE CHIEF PREECE BANKRUPTCY Unchallenged Debts of Bemidji Police Chief Preece Discharged 10/15/03 From Vol. 9 No. 2 - 11/17/03 Leading Edge Journalism - Follow-Up PREECE SWINDLE TRIALS RESET FOR SEPT. 28TH From Vol. 9 No. 5 - 04/26/04 THE POLICE CHIEF ROBERT TELL ACCOUNTS Bemidji Police Chief admits wrongfully taking money from city over several years - testimony indicates he lies to Bureau of Criminal Apprehension Investigators - a Beltrai County jury finds it's "just a mistake" - City Manager restores Chief to office. Tell remained Chief of Police of the City of Bemidji until his retirement in 2001. From Vol. 1 Nos. 8, 18 & 19 - 11/24/95 - 4/22/96 THIS IS BEMIDJI - MORE ON GOOD 'OL BOY LAW ENFORCEMENT, EMPLOYERS, AND GENERAL CORRUPTION IN ONE OF THE MOST CROOKED, INBRED, PO-DUNK TOWNS TO BLIGHT THE FACE OF AMERICA: BEMIDJI, MINNESOTA Leading Edge Journalism - Bemidji Police Corruption Continues BPD COWBOY CHARBONEAU ARRESTS RYAN NEWMAN FOR NONEXISTANT NO-DRINK ORDER. Newman Files $8 Billion Federal Lawsuit; Northern Herald Calls for National Guard; Martial Law From Vol. 9 No. 6 - 06/21/04 NORTHERN NATURE - AND UNNATURAL ACTS Leading Edge Journalism BEMIDJI DEPUTY UNNATURAL ACT CASE REMANDED TO STATE COURT Suit Alleges Deputy Asked Minor Male for Unnatural Favour. From Vol. 8 No. 1 - 10/28/02 Leading Edge Journalism - Follow Up BELTRAMI DEPUTY UNNATURAL ACT CASE SETTLED From Vol. 8 No. 5 - 05/12/03 EMPLOYERS, FRAMES AND GOOD 'OL BOY COPS - THE RANDY JOHNSON/CRAIG LITTLEGHOST ANTHOLOGY Leading Edge Journalism This Is Bemidji ------------------------- HAVOLINE XPRESS LUBE TRIES TO FRAME NATIVE EMPLOYEE Owner Randy Johnson makes racial statements; threatens to file charge if employee won't resign. From Vol. 10 No. 2 - 12/20/04 Leading Edge Journalism-Follow Up --------------------------------- Northern Herald - Fighting Northland Corruption - And we're winning! This is Bemidji - There's lots of open space and lots of opportunity, but DISCRIMINATION HAS NO PLACE IN BEMIDJI. From Vol. 10 No. 3 - 03/07/05 Leading Edge Journalism ------------------------ The Craig Littleghost trial - Littleghost Acquitted This is Bemidji --------------- FORMER XPRESS LUBE OWNER RANDY JOHNSON: "I'LL MAKE SURE THAT YOU'LL END UP IN JAIL, AND I CAN DO IT BECAUSE DEBBIE IS AN OFFICER." From the testimony of former Havoline Xpress Lube employee Scott Brein From Vol. 10 No. 5 - 07/04/05 AND NOW A WORD ABOUT BEMIDJI'S CHURCHS AND ORGANIZATIONS TO HELP THE TRULY NEEDY SLAUGHTERS FIND NO HELP IN NORTHERN CHURCHES, BLIND AGENCIES From Vol. 9 No. 6 - 06/21/04 THE SHERIFF PAT MEDURE FILES Pat Medure is Sheriff of Itasca County, at Grand Rapids, Minn. Leading Edge Journalism ITASCA COUNTY SHERIFF'S PENSION POLICY QUESTIONED Allegedly Disbands Posse to Put Office Staff on PERA Police Pensions; The Law From Vol. 8 No. 2 - 12/30/02 THE RICHARD LORY STORIES As of May 3, 1997, Richard Lory is serving a 12 1/2 year sentence at the Minnesota State Prison, Stillwater, Minnesota for the fatal shooting of Bruce Bradach Jr. in late 1993. Lory has maintained throughout that he was trying to defend his family, including his daughter who, hours earlier, had been gang raped by Bradach and others. His appeal to the Minnesota Appellate Court failed, and the Minnesota Supreme Court denied review. He began serving his sentence in late September, 1995 and will be eligible for parole after serving eight years. From Vol. 1 Nos. 2, 3 & 5 - 09/22/95 - 10/16/95, Vol. 2 No. 14 - 04/28/97 POLICE "OK" GANG-FIGHTING AT BEMIDJI HIGH SCHOOL From Vol. 1 No. 10 - 12/22/95 NORTHERN EDITOR ORDERED TO JAIL From Vol 1 No. 11 - 01/05/96 Business Among Friends FORMER PAUL BUNYAN TELEPHONE MANAGER ISSUES CAVEAT From Vol. 1 No. 17 - 03/22/96 SNOW NOT JUST OUTSIDE - THE EARLY 90s COCAINE TRAIL THROUGH CENTRAL MINNESOTA, ALLEGED TO HAVE INVOLVED KEY BUSINESSMEN AND OFFICIALS AND THE DEATH OF AT LEAST ONE KEY INFORMANT SNOW NOT JUST OUTSIDE Former Crow Wing County Attorney John Remington Graham's findings re: the trail of cocaine through North Central Minnesota from information procured from his now-dead informant From Vol 1 No. 7 - 11/10/95 Guest Column GRAHAM CHALLENGES REINVESTIGATION OF GAST DEATH by John Remington Graham, Contributing Legal Writer From Vol 1 No. 15 - 04/05/96 Letters to the Editor VISITOR GETS A TASTE OF BEMIDJI HOSPITALITY From Vol. 3 No. 11 05/13/98 THE AUTO DEALERS AND GETTING YOUR CAR FIXED - CONTENTS Excerpts from our AUTO SERVICE FORUM that make the movie "Fargo" look tame: DEER RIVER ALLIANCE OWNER DISSATISFIED WITH CLUSIAU'S (Chrysler) From Vol. 1 No. 23 06/14/96 CLUSIAU'S SUED FOR "GROSS MISREPRESENTATION" Allegedly "fixed" engine warning...By removing indicator bulb. From Vol. 1 No. 24 06/28/96 NEWMAN PREVAILS IN AUTO REPAIR NEGLIGENCE SUIT From Vol. 2 No. 13 04/07/97 HOUSTON FORD CUSTOMER BLOWN AWAY BY "PRICE SHOOTOUT" Bena Man Claims Attempted Overcharge, Misrepresentation of Warranty - From Vol. 3 No. 8 03/11/98 Consumer Corner - Follow-Up HOUSTON FORD RENEGES ON OFFERED REFUND From Vol. 3 No. 11 05/13/98 PUBLIC RADIO IN NORTHERN MINNESOTA EDITORIALS - OPINION - Guest Column: KAXE RADIO HAS LOST ITS COMPASS From Vol. 2 No. 5 11/18/96 THE WOMEN'S SHELTERS AND THE LAW (a contradiction in terms) I. THE KAREN JANOV MATTERS JANOV TRIAL CONTINUED - WOMEN'S SHELTER MAY HAVE HARBORED FUGITIVE From Vol. 1 No. 4 - 10/06/95 JANOV TRIAL TAKEN OFF-CALENDAR From Vol. 1 No. 7 - 11/24/95 FELIX CUTS JANOV SWEETHEART DEAL From Vol. 1 No. 17 - 03/22/96 II. BONITA JONES - OFP PERJURY BY SHELTER RESIDENT Also: ANNOTATION RE: KIDNAPPING BY MILLE LACS SHELTER WOMEN'S SHELTER RESIDENT CHARGED IN FALSE OFP Also annotation: Mille Lacs Kidnapping by women's shelter From Vol. 1 No. 20 - 05/03/96 FORMER WOMEN'S SHELTER FUGITIVE FAILS TO APPEAR From Vol. 2 No. 8 - 01/08/97 FUGITIVE WARRANT ORDERED FOR FORMER WOMEN'S SHELTER RESIDENT From Vol. 2 No. 9 - 01/20/97 BONITA JONES, WOMEN'S SHELTER RESIDENT, PERJURY SET FOR TRIAL From Vol. 2 No. 16 - 06/09/97 WOMEN'S SHELTER RESIDENT FAILS TO APPEAR ON PERJURY From Vol. 2 No. 17 - 06/30/97 III. ANOTHER KIDNAPPING ANOTHER KIDNAPPING BY SHELTER CLAIMED From Vol. 2 No. 16 - 06/09/97 (delayed to 06/11) RUBY HARRASSMENT CONTINUES From Vol. 2 No. 17 - 06/30/97 (delayed to 7/2) IV. Where Your Money Goes WOMEN'S SHELTER RECEIVES, SPENDS OVER $1/2 MILLION IN YEAR From Vol. 2 No. 17 - 06/30/97 (delayed to 7/2) V. NEVIS MAN WAS ARRESTED FOR DOMESTIC ASSAULT . . . ON HIM From Vol. 1 No. 19 - 04/19/96 VI. Leading Edge Journalism PR MAN FOUND NOT GUILTY IN UMMHC, WOMEN'S ADVOCATE-BACKED ASSAULT CASE But Pays Over $12,000 in Legal Costs Due to Accusation From Vol. 8 No. 2 - 12/30/02 (See also HOMOSEXUAL ASSAULT CHARGED IN UMMHC SUIT, ante) VII. Leading Edge Journalism ANOTHER ITASCA CO. MAN CHARGED IN LIKELY FALSE ACCUSATION BY STEP-DAUGHTER Incurs $25,000 in Legal Costs; Charge Assisted by Women's Advocate From Vol. 8 No. 6 - 06/30/03 VIII. MEN LOBBY AT CAPITOL From Vol. 8 No. 6 - 06/30/03 IX. AUDITOR'S REPORT DISCLOSES MAJOR MISSPENDING BY WOMEN'S SHELTER From Vol. 9 No. 1 - 09/29/03 BANKS AND BUSINESS - MINNESOTA STYLE Some people say that big business here does what it does because the authorities let it get away with it. You can judge for yourself. Letters to the Editor BLACKDUCK MAN, FORECLOSED, TELLS OF MISREPRESENTATION BY BEMIDJI FIRST FED. Commerce Dept. Concurs; but Local Courts, Federal Regulators Offer No Relief From Vol. 2 No. 11 - 02/24/97 FIRST FEDERAL BANKING AND SAVINGS INSURER ORDERED TO SHOW CAUSE From Vol. 2 No. 12 3/17/97 NEWS COVER-UP ATTEMPTED IN FIRST FEDERAL BANKING AND SAVINGS MARKETS HEARINGS SET MAY 5TH, 21ST From Vol. 2 No. 14 04/28/97 FIRST FEDERAL - USLIFE CASE CONTINUED From Vol. 2 No. 15 05/19/97 MONDRY ISSUES SUMMARY JUDGEMENT FOR FIRST FEDERAL From Vol. 2 No. 16 06/09/97 DIRKES/DOC-FIRST FED/US LIFE CASE "EVAPORATES" From Vol. 2 No. 17 06/30/97 Where We Get Our Candidates and Who We Vote For ----------------------------------------------- AAKHUS SENTENCED From Vol. 2 No. 1 09/23/96 In Sept. 1996, Robert Aakhus, 18-year old son of Jeff Aakhus, Republican legislative candidate, was sentenced for setting fire to the house of neighbors Sherry and Joseph Day, while ransacking their garage. Robert's blood alcohol was said to have been .27 at the time. His father Jeff polled about 49% of the vote two months later in November. He lost by less than 500 votes. Consumer Corner LATE-NIGHT SECURITIES HUSTLING From Vol. 1 No. 19 - 04/22/96 LACK OF WILLING WORKERS CITED FOR SHORTENED BEMIDJI GROCERY HOURS From Vol. 6 No. 2 - 11/08/00 HIGH CORRUPTION ERUPTS AT NEVIS - AN ANTHOLOGY A compilation of the many reports, from various issues of Volume 7, as this saga evolved at the small town of Nevis, Minnesota; where the corrupt council of this near bankrupt city, with many accounting irregularities, tried to unlawfully depose their Mayor. From Vol. 7 No. 2 11/03/01 ---------------------------- Leading Edge Journalism City Council Deposes Lawfully Elected Mayor HIGH CORRUPTION ERUPTS AT NEVIS From Vol. 7 No. 3 12/08/01 ---------------------------- NEVIS COUNCIL REFUSES TO FOLLOW LAWFUL PROCEDURE CIRKS IDENTIFIED AS THIEF But Nevis City Attorney John Masog Refuses to Prosecute Theft MASOG RESIGNS From Vol. 7 No. 4 01/15/02 ---------------------------- CORRUPTION TO RULE NEVIS 'TIL 2003 Rural Hubbard Co. City May Surpass Bemidji as State's Laughingstock NEVIS MAYOR TO PRESENT STATE OF THE CITY NEVIS RETAILERS HALT HERALD From Vol. 7 No. 5 02/16/02 ---------------------------- NEVIS: ATTORNEY GENERAL ACTS NEVIS MAYOR RECEIVES SPHERES GETTING BACK TO NORMAL AT NEVIS From Vol. 7 No. 6 03/23/02 ---------------------------- STATE AUDITOR CITES IRREGULARITIES AT NEVIS HOW HIGH SHOULD PHILLIP HARRIS HANG? From Vol. 7 No. 7 05/04/02 ---------------------------- NEVIS COUNCIL CALLS SPECIAL MEETING TO INSULT MAYOR From Vol. 7 No. 8 06/01/02 ---------------------------- MISCONDUCT CHARGE AGAINST NEVIS MAYOR DISMISSED From Vol. 7 No. 9 07/27/02 ---------------------------- NEVIS ADMINISTRATOR MAUREEN CIRKS RESIGNS From Vol. 8 No. 5 05/12/03 ---------------------------- 2002 Steele Spheres Awarded GRAHAM HAS SPHERES Attorney awarded for work in Nevis matter Consumer Corner THE OFFICE MAX REBATE SCAM - INVESTIGATION RESULTS From Vol. 7 No. 7 - 05/04/02 ****************** END OF CONTENTS - TEXT BEGINS *********** ============================================================= From Vol. 6 No. 2 - 11/08/00 ----------------------------- USDC JUDGES ERICKSON, KYLE UPHOLD BEMIDJI PROHIBITION OF LITERATURE Appeal to Eighth Circuit Under Way ST. PAUL -- In a sweeping decision, United States District Court (USDC) Judge Richard Kyle, on August 29th, 2000, and following recommendations of federal Magistrate Raymond Erickson, sitting at Duluth, ordered all claims dismissed in the action (USDC Case No. 99-1862) by Adam Steele and Northern Herald Publications, Inc. against the City of Bemidji and 29 other defendants against whom allegations of suppression of free speech were brought. A notice of appeal to the Eighth Circuit Court of Appeals has been filed (Appellate Case No. 00-3348). The suit seeks damages of $600 billion against the various defendants for denial of constitutional rights. Of particular note in the ruling was Judge Kyle's order dissolving a temporary restraining order (TRO), issued November 19, 1999, by USDC Judge Rosenbaum, at Minneapolis, which allowed the Northern Herald newspaper to be distributed on the public streets of Bemidji. Prior to the TRO, persons selling the Northern Herald, or even giving away complimentary copies, had been threatened with jailing. At one time, Bemidji police Sgt. Michael Porter told a vendor, giving away copies of the Northern Herald on the sidewalk in front of the Bemidji Post Office, that if the activity continued he was going to "Take you to jail, today." Per Al Felix, City Attorney, Bemidji has reasoned that a person giving away literature constitutes an "obstruction" and is thusly prohibited by Bemidji's "obstructing" ordinance. Bemidji has maintained this throughout the action, notwithstanding that it has never been demonstrated that any bona fide obstruction of pedestrian or vehicle traffic, or substantial obstruction of view, was ever caused by the activity. The ruling by Judge Kyle, of course, operates such as to prevent the question of fact from being tried. The effect of the ruling is that, for now, Bemidji police may stop any person from disseminating any literature with which they don't agree on the streets, sidewalks, boulevards and other public places of Bemidji. As far as the First Amendment is concerned, Bemidji is dark. Curiously, last summer, there was a more substantial "obstruction" on Bemidji's Paul Bunyan Drive NW. Some people were advertising a car wash by holding large signs on the sidewalk. The multiple car wash signs were far more obstructing than the body sign that Northern Herald vendors wore when distributing the paper. In order to test the uniformity of application of the "obstructing" ordinance, a complaint of the car wash signs, on the public sidewalk, was made to Bemidji police Sgt. Daryle Russell, but Sgt. Russell stated that he would not act on the matter - that he would neither cite the car wash workers for the obstruction, nor ask them to cease. POST-PUBLICATION NOTE: The ruling cited herein was later reversed by the United States Court of Appeals for the Eighth Circuit. Full text of that ruling, which held two City of Bemidji statutes unconstitutional, is available from our main page: northernherald.com From Vol. 6 No. 11 - 09/01/01 ------------------------------ HERALD, EIGHTH CIRCUIT FEDERAL COURT, BRING BEMIDJI INTO UNITED STATES Ruling Finds Bemidji Statutes Unconstitutional; Court Recognizes Discriminatory Enforcement ST. LOUIS -- The Eighth Circuit Federal Court of Appeals, on July 30, 2001, issued a landmark ruling in Northern Herald's, and Editor Adam Steele's $600 billion lawsuit against the City of Bemidji, its officers and several local retailers and others for denial of First Amendment rights to print and circulate the Northern Herald (Appellate case no. 00-3348MN). In it's filed opinion, reversing the summary judgement previously issued by the District Court in favor of the Bemidji City defendants, and remanding the case back to the Federal District Court for trial and determination of damages, the Court stated the Bemidji "soliciting" (ord. no. 6.39) and "obstructing" (no. 10.31) ordinances to be unconstitutional; and further recognized that Bemidji City officials including City Attorney Alan Felix and former Bemidji police Sgt. Michael Porter attempted to apply the ordinances to Steele's activity in distributing the Northern Herald even though nothing that the ordinances proscribe was being done. In the opinion, written by Circuit Judge Richard S. Arnold for the three-judge panel, the Court said, regarding the ordinances under which Bemidji can require discretionary permits and bonds, "... several salient features of the permit schemes run afoul of the First Amendment." The case results, in part, from an incident in 1998 where Editor Steele was distributing copies, wearing a sign that said "FREE - TODAY ONLY," on a downtown Bemidji sidewalk. Police Sgt. Porter threatened to take Steele, "to jail today" if he continued. Steele contacted City Attorney Felix, who concurred with Porter's action, ceasing curbside distribution of the paper in Bemidji. Although Judge Rosenbaum, of the Federal District Court at Minneapolis, in November, 1999, issued a temporary order restraining the City of Bemidji from enforcing the ordinances against Steele, that restraining order was subsequently dissolved by U.S. District Judge Kyle (St. Paul), to whom the case was ultimately assigned. In its opinion, the Appellate Court noted, "Neither ordinance on its face proscribes giving away newspapers that the donor is holding while standing on a City sidewalk. Nevertheless, the City has applied, and apparently wants to continue to apply, the ordinances to Steele, whether or not he attempts to sell his newspapers and whether or not he places them on City property." The opinion further looks at the ordinances themselves, holding them unconstitutional because 1) they vest the City Council and Police Chief with too much discretion to deny the permits; 2) the solicitation permit, if issued, is valid for only sixty days and then must be reapplied for; 3) the bond and insurance requirements of the ordinances "cannot be imposed as a prior restraint on protected speech"; and 4) "neither ordinance imposes a time limit on the City Council's decision to grant or deny a permit. ..." Precedential value. Under this ruling, the Bemidji soliciting and obstructing ordinances are, legally, unenforceable. The final word in determining the constitutionality of an ordinance is vested in the United States Supreme Court. Opinions of the Circuit Appellate Courts, however, are published in legal references such as Northwest Reporter, and, unless reversed by the Supreme Court, are generally followed by the District Courts within that multi-state circuit. This opinion may thusly be cited as authority by attorneys and others, should another corrupt little town try to ban it's free press by similar means. In its opinion, the Appellate Court noted a letter sent to Steele by Felix shortly prior to the incident involving Sgt. Porter, in which letter Felix cited the soliciting and obstructing ordinances, and stated that continued distribution of the Northern Herald at curbside without a permit was a violation punishable as a misdemeanor. Felix stated that the permit was conditioned on provision of insurance and bond. FELIX: IF YOU DON'T THINK LIKE ME, GET OUT OF TOWN. The Appellate opinion notes, "Felix warned Steele that the City would require, 'at a minimum, public liability coverage with policy limits equal to those required of the City,' ... [and that] 'a substantial bond would be mandatory.' ... Finally, Felix ... suggested that Steele find 'willing local, private outlets' to distribute his paper, commenting that 'in light of this community's apparent unwillingness to embrace your ideas, another option may be your consideration of relocation to another community ... more willing to embrace your way of thinking'" Further litigation. The case against the City now, on remand, goes back to the Federal District Court for trial and determination of damages. The City is represented by Minneapolis attorney Jon Iverson, who has indicated that the City intends to try to weasel out of paying damages on a theory of qualified immunity. That is, to say the municipal employees were just doing their jobs. At Nuremberg, the court held that jobs and orders or not, the World War II defendants should have known that it was wrong to gas and burn Jews. The Federal District Court will now have to determine whether a trained and licensed City Attorney should have known that it is wrong, in America, for a City to try to ban a newspaper from public distribution. Non-City Defendants. The Appellate Court let stand the District Court's ruling dismissing the suit against private retailers who banned the Northern Herald from their stores. That part of the ruling is expected to be further appealed, by Steele, to the U.S. Supreme Court. Note: The complete opinion of the United States Court of Appeals for the Eighth Circuit may now be accessed from the main page of the Northern Herald website. From Vol. 7 No. 9 - 07/27/02 ----------------------------- The $600 Billion Lawsuit EIGHTH CIRCUIT DISMISSES BEMIDJI CITY APPEAL ST. LOUIS -- The United States Court of Appeals for the Eighth District, on June 28th, 2002, dismissed an appeal, by Defendants, The City of Bemidji, two of it's officers and 3 police officers; in the suit brought by Northern Herald editor Adam Steele for encroachment of First Amendment rights. The filed complaint states that, in 1998, when Steele was distributing the Northern Herald on a public boulevard in Bemidji, Bemidji Police Dept. Sgt. Michael Porter, ordered Steele to stop, or Porter would, "Take you to jail, today." Porter's action was ratified by City Attorney Alan Felix, and, until the federal District Court issued a restraining order in late 1999, Northern Herald could not be sold or given away on Bemidji public streets or sidewalks, under threat of jailing. In 2001, the federal Appellate Court found the conduct and two ordinances of the City of Bemidji (the City) to be unconstitutional, and remanded the matter back to the U.S. District Court for trial. Accordingly, the District Court dismissed the City's motion for summary judgement, earlier made. But although its actions were found unconstitutional, the City tried to escape paying damages by advancing a claim of qualified immunity, that is, that the City employees, including City Attorney Alan Felix and the police officers, didn't know that they were breaking the law, and were just doing their jobs. On this they asserted an appeal, back to the Eighth Circuit Appellate Court, of the dismissal of their motion for summary judgement. Generally, non-dispositve action on a motion is not appealable, until a final disposition of the case. When ordered, by the Appellate Court, to show cause why their appeal should not be dismissed for want of jurisdiction, the City cited certain authorities to the effect that where the case turns on a question of qualified immunity, there may be jurisdiction to hear the appeal. But the Eighth Circuit, in its ruling, said that the City had filed no intervening motion based on qualified immunity, and the order of the District Court did not mention same. The matter, thusly, remains pending trial before the United States District Court. From Vol. 8 No. 3 - 02/10/03 ----------------------------- The $600 Billion Lawsuit USDC FINDS FOR NORTHERN HERALD EDITOR, AGAINST FELIX, CITY OF BEMIDJI MINNEAPOLIS -- The City of Bemidji, and its City Attorney, Alan Felix, will have to stand trial in an action brought by Northern Herald editor Adam Steele for violation of First Amendment rights, per a ruling of the Honorable James M. Rosenbaum, Judge of the United States District Court, sitting at Minneapolis. In 1998, and pursuant to the direction of Felix, Steele had been told by Bemidji Police Dept. (BPD) Sgt. Michael Porter that if he continued distributing the Northern Herald at curbside, Porter would, "Take you to jail, today." The United States Court of Appeals for the Eighth Circuit earlier ruled the Bemidji ordinances, under which Porter purported to act, unconstitutional; but five individual City defendants, including Felix, had requested qualified immunity. In it's January 2nd, 2003 ruling, the District Court granted immunity from suit for City Manager Phil Shealy, (former) Police Chief Robert Tell, and BPD officers Porter, and Jon Hunt; on the grounds that as officers and administrators, they were merely acting pursuant to Felix's legal advice and direction that the ordinances be enforced. But the Court held that Felix, as City Attorney, could be culpable for directing the improper enforcement of the unconstitutional ordinances, saying in it's order, "... The court finds that the contours of the First Amendment are such that a reasonable city attorney would recognize this constitutional infirmity;" clearing the way for the case to now proceed to trial against Felix and The City of Bemidji. The suit seeks total damages of $600 billion. Steele has offered to discuss settlement with the City, but, to date, the City has not yet placed the matter on the City Council agenda. From Vol. 8 No. 5 - 05/12/03 ----------------------------- The $600 Billion Lawsuit NH EDITOR, CITY OF BEMIDJI, GO TO TRIAL JUNE 9TH MINNEAPOLIS -- Trial in the matter of Steele vs. City of Bemidji and Alan Felix has been set for June 9th, 2003, at the federal Courthouse at Fergus Falls, per a scheduling order of the United States District Court. The case (no. 99-1862) claims damages arising from First Amendment infringement by the City of Bemidji and Alan Felix, its City Attorney. The complaint cites instances where Steele, Editor of Northern Herald, was stopped, by BPD officer Hunt, from selling the paper on a public MNDOT right of way near the Paul Bunyan Mall; and from giving away complimentary copies of the paper on a public boulevard, by then-BPD Sgt. Michael Porter, who told Steele that if he continued distributing the paper on Bemidji public property, Porter would "take you to jail, today." If you don't think right, just get out of town! Porter's actions were ratified by Felix, who wrote to Steele, in a letter, "... [an] option may be your consideration of relocation to another community ... more willing to embrace your way of thinking." In reviewing the actions of the City, and holding two Bemidji ordinances unconstitutional, the United States Court of Appeals earlier said, in it's opinion, "... the City has applied, and apparently wants to continue to apply, the ordinances to Steele, whether or not he [does the things prohibited by the ordinances]." (The entire Opinion of the Appellate Court is available at northernherald.com) On April 11th, a pre-trial settlement conference was convened in Duluth. In the sprit of the settlement conference, Steele presented a compromise settlement proposal to the Bemidji City Council April 7th, and also at the conference. The proposal, designed to come at minimal cost to Bemidji taxpayers, included 1) all of the miscellaneous parcels of idle real property currently stockpiled by the City of Bemidji and not being used for any public purpose (thus returning same to the tax rolls, as should be); 2) monetary damages equal to the limit of Bemidji's liability insurance; 3) monetary damages equal to $50 per taxable residential property, for each year that Alan Felix remains in the employ of the City; this representing the public cost of keeping on a City Attorney who is oblivious to, and acts in wanton disregard of the U.S. Constitution; and 4) the City's agreement to be enjoined from further First Amendment violations. At conference, the City presented a counteroffer of $2,500; no settlement was reached. Jon Iverson, attorney for the City of Bemidji, has indicated that they intend to base their case on credibility. In other words, the City will have its police officers lie on the stand, and is banking on the jury believing them, over the testimony of the Plaintiff. In this, Bemidji Police Officers Porter and Hunt have already filed sworn affidavits before the Court; Porter's saying that he never threatened to immediately jail Steele for distributing the Northern Herald; and Hunt's saying that he merely contacted Steele to advise him that the Mall was "concerned that he was posing a[n alleged] traffic hazard"; that Steele "did not disagree ... and agreed to leave the median." Hunt's sworn affidavit continues, " ... I did not threaten to remove Mr. Steele. ... Adam Steele left voluntarily. ... Not only did he leave the median, but he left the area altogether." Finally, Hunt's sworn statement continues, "I did not prepare a report regarding this incident because no action was taken." But he did. Immediately after the incident (02/09/98). And the official police (CFS) record (#98002344) noted as "Remove Adam Steele," contains Hunt's report, which recites, "This officer was advised by Adam [Steele] that he did not feel he had to leave as he was not a traffic problem ... Adam also advised that [the median area where he was standing] was public property. ... This officer advised Adam that unless Adam had permission from the mall ... he would have to leave the area." That CFS report is expected to be introduced, at trial, to impeach Officer Hunt's testimony. The area where Steele was standing was identifiable by right-of-way markers, and has also been identified by maps as public MNDOT, and not mall, property. The filed complaint seeks, and at trial, the jury will be asked to award, damages against Felix, and the City of Bemidji, totalling $600 billion, for unlawfully and unconstitutionally attempting to stop the free press by attempting to stop the distribution of Northern Herald in the City of Bemidji. Post-publication note: NH Editor Adam Steele won, at the trial held June 2003, and the City of Bemidji was ordered to pay damages. Details in NH of 06/30/03. From Vol. 8 No. 6 - 06/30/03 ----------------------------- NH EDITOR WINS $600 BILLION LAWSUIT Two Unconstitutional Bemidji Ordinances Overturned; Bemidji Ordered to Pay $3,001 Plus Costs MINNEAPOLIS -- Following a one-day court trial, June 10, 2003, with jury waived by both sides, the Honourable Judge James M. Rosenbaum, Judge of the United States District Court at Minneapolis, found for Northern Herald Editor Adam Steele, and, in an amended order issued June 16th, ordered the City of Bemidji and City Attorney Alan Felix to pay a total of $3,001 in compensatory and punitive damages, plus costs. The judgement came following trial of a First Amendment action brought for the City's attempted prohibition of the sale of Northern Herald by curbside vendors in Bemidji (case no. 99-CV-1862 JMR/RLE). In August, 1998, following Felix's having sent Editor Steele a letter threatening charges under two Bemidji ordinances if he continued to sell the Northern Herald at curbside, (then) Bemidji Police (BPD) Sgt. Michael Porter approached Steele, who was giving away complimentary copies on Irvine Ave. near the post office, and told Steele that if he continued to distribute the paper at curbside, Porter would "take you to jail today." The trial, to determine damages, followed a holding, in this case, by the United States Court of Appeals for the Eighth Circuit which determined that the Bemidji "soliciting" and "obstructing" ordinances, which Felix had cited in his letter, were unconstitutional. The Court had, in November 1999, when the action was first filed, issued a restraining order against the City, restraining Bemidji from enforcing the ordinances. Northern Herald Publications, Inc. was not allowed to proceed as a party Plaintiff because the corporation could not, in the 3 1/2 years the case was pending, find a suitable attorney willing to take the First Amendment case for a contingency fee. Corporations, unlike individuals, cannot bring suit without an attorney; so Editor Steele brought the action on his own behalf. The City of Bemidji was represented by League of Minnesota Cities attorney Jon Iverson, of Minneapolis. BPD officers (former) Porter and Jon Hunt testified for the City. Importantly, the ruling establishes that First Amendment rights have quantifiable worth, and sets a monetary value on the value of loss of those rights, for 2.2 years, over an area the size of Bemidji. Felix's letter to Steele, dated August 5, 1998, cited the soliciting and obstructing ordinances (which require a permit for same) and required, for issuance of a permit to sell the Northern Herald, that Steele obtain liability insurance "with policy limits equal to those required of the City," and that "a substantial bond is mandatory." The costs of these would reasonably exceed what a news vendor would earn. If you don't think my way, get out of town. The letter concluded, "Of course, in light of this community's apparent unwillingness to embrace your ideas, another option may be your consideration of relocation to another community within this State or elsewhere which may be less concerned about the safety of it's citizens and more willing to embrace your way of thinking." In issuing the Judgement, Judge Rosenbaum said of Felix's letter, "His letter can fairly be referred to as a remarkable document.... That last sentence says more than I can comment on. ... This was a clear effort to restrain and bar him [Steele] from exercising his rights." In it's earlier ruling, the Appeals Court had noted that "... the City has applied, and apparently wants to continue to apply, the ordinances to Steele, whether or not he [does the things prohibited by the ordinances]." (The entire Opinion of the Appellate Court is available at northernherald.com) Editor's Note: At trial, in addition to denying that he threatened to immediately arrest Steele, (former) Sgt. Porter also testified that Steele stood in traffic, in front of the post office, "5 feet" into the street, from the curb. The many readers who have seen me vending the Northern Herald there will know that this is a blatant lie. City Attorney Felix tried to weasel out of the suit by claiming, on the stand, that the yellow curb in front of the Post Office was not just no parking, but also a no-stopping or standing zone. His Honour, however, saw through this ruse and said that the signs make it clear that it's just no parking - cars can lawfully stop to buy a paper. We forgive Felix, however, for his ignorance of what a yellow curb and a "no parking" sign mean. He's just the City's Attorney, after all. -- Ed. ================================================================== From Vol. 9 No. 4 - 03/08/04 ----------------------------- BEMIDJI AND YOUR RIGHTS TO PRIVACY AND THE 4TH AMENDMENT Leading Edge Journalism SEARCH WARRANT ISSUED ON LOOKS Money Seized, Though No Connection to Drug Trade; Couple Faces Eviction "The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized." -- Fourth Amendment to the United States Constitution TENSTRIKE -- On January 30, 2004, acting on a search warrant based primarily on the physical appearance of lupus patient Denise Semon, Beltrami County deputies and agents of the Paul Bunyan Drug Task Force, apparently looking for a meth lab which was never found, raided and searched the home of Richard and Denise Semon, near Tenstrike. Items seized and taken into evidence included a small packet of a substance believed to be methamphetamine and found on the person of Richard Semon, a small amount of killer weed (marijuana) and some purported killer weed smoking devices found in the home; and $668 in cash, mostly taken from Semon's wallet on his person. In interview Semon did not deny that he has used the poison known as meth, sometimes also called "speed" or "crank." His wife, Denise, who suffers from lupus, as well as fibromyalgia and a herniated disc, said that marijuana can relieve some of the pain of those conditions. "It's not legal in Minnesota to prescribe, but otherwise ... my doctor ... said that she'd have it prescribed for me in a heartbeat," she said, adding that she'd been medically advised that use of the killer weed, if it were legal, would also help with her hereditary, unusually low weight condition by stimulating the appetite. Semon said, however, that he does not deal in drugs, had no meth lab, and the money seized was not drug related. The couple has, to date, been unsuccessful in procuring return of the money, which has little evidentiary value (should there be a trial, it would be easy to establish that the money was there, without having the actual cash in the County's possession) and the efforts of the County to retain the money appear to simply be for the purposes of depriving the Semons of it. Semon has said that his lot rent is in arrears, and the couple has received an eviction notice, and will be evicted if the rent isn't paid. The Semons have also had to apply for emergency assistance because, due to the cash seizure, they were without money to pay the electric bill and their electric company sent them a shutoff notice. Although, from the evidence, it appears that the Semons had users' quantities of various poisons in their home, the circumstances of the warrant are subject to question. There are, in Beltrami County, many homes, some likely belonging to top government officials, in which, were authorities allowed to simply go in and search without probable cause, they would probably find evidence (our past County Attorney died of cocaine overdose in 1989). But this cannot legally be done. In the instant case, the affidavit for the search warrant, issued by the Honourable Judge Benshoof, was wholly based on hearsay by an unidentified "concerned citizen," who did not attest to having seen any drugs or drug paraphernalia, but largely suspected the Semons owing to the physical appearance of Denise, which appearance actually resulted from the lupus. The affidavit also mentioned a bowl containing syringes (but without hypodermic needles, per Semon) and "a reddish crystal like substance", which the affidavit speculates could have been iodine, used in manufacturing of methamphetamine poison. The affidavit was not executed by the "concerned citizen", or by anyone else who claimed to have seen, or have had personal knowledge of, drugs or drug equipment in the residence; but was actually signed, and warrant procured, by Beltrami Deputy Jeff Anderson; the affidavit recites what the "concerned citizen" allegedly told the deputy. In interview, Richard Semon said that the "reddish" substance was actually plant bedding (it's a clear light pink gel that holds water), and the large syringes without needles were used for adding water to ivy cuttings and other house plants that they had in narrow neck bottles. Having needleless syringes, which are not used in conjunction with illegal drugs, is not a crime. No charges have, as yet, been filed. If this search warrant passes muster for probable cause, then anyone's house could be raided, based upon some third-party telling a deputy (but not under oath) that they saw what might be drug equipment; and the deputy swearing to it before the issuing Court. Probable cause? The affidavit. The affidavit convincingly recites that the "concerned citizen" told Anderson that Semon's wife "had what appeared to be burn marks on her face", and "rotting" teeth. It continues, "Your affiant [Dpty. Anderson] knows that methamphetamine manufacturing is highly explosive .... [and] long-term methamphetamine use causes users' teeth to decay. The concerned citizen also described the female [Semon's wife] as skinny and gaunt, typical of chronic methamphetamine users." The affidavit continues, "The concerned citizen stated that he/she could smell a strong, undistinguishable odor inside of the residence coming from the back room .... There was also a fan in that room. The concerned citizen also stated that inside of the residence ... there was a brown dish containing a reddish crystal like substance and syringes on it. ..." It concludes, "From the aforementioned facts and observations your Affiant [Anderson] believes that the Manufacturing of methamphetamine is conducted at the above-described residence." No drugs seen. The affidavit contains no mention of any observation of any thing, which was, with reasonable certainty, known, to either Anderson, or the "concerned citizen", to be drugs or drug-related. In interview, Semon said that the "strong undistinguishable odor" was a wood-burning stove. The fan was used to circulate the heat. Further, Semon stated that the marks on his wife's face were not burns but were symptomatic of her lupus. "Lupus is an auto-immune disorder ... where my immune system is attacking healthy cells in my skin," Denise said, adding that her slight build is hereditary, "It runs in my father's side." Semon said that he believes that the "concerned citizen" is one Charles "Chuck" Compton, because that was the only person who was in the residence recently who was unaware of Denise's illness, and the symptoms thereof. Compton has failed to return our calls for comment. Semons and his wife said that the violation of their privacy has caused severe emotional distress, "Don't sleep - don't feel like our house no more," he said. Denise, who has been receiving counseling for a chronic social anxiety disorder and agoraphobia (these types of neuropsychiatric problems occur in a majority of lupus patients --WebMD), is attending psychiatric treatment for the emotional distress caused by the raid. She is subject to panic attacks, refuses to go in public alone, and viewed her home as her "safe spot". She no longer feels secure there, "I don't feel comfortable sitting at home. ... I'm afraid to talk on my phone. ...I've been in therapy most of my adult life for agoraphobia and social anxiety ... they've [the raid has] taken 15 years of counseling and thrown it down the toilet," she said. Now, after the raid, "My husband doesn't get out of my sight," she said, adding, "I haven't had an anxiety attack like this [as was recently experienced since the raid] in three years." Denise described physiological symptoms that the anxiety of the raid has precipitated. The raid occurred less than 3 weeks after the death of Denise's father. Additionally, the raid has caused social repercussions in their close-knit community. Denise said, "When we go to friends' houses, they look at us funny; ... we carry a copy of our [search receipt] papers with us to show everybody" that there was no meth lab in their home. But Denise said that people still get "paranoid" around them. Rumours abound, and "I've got a couple friends left, but most of 'em ... they've heard the rumours and they ... look at me differently." Clearly, it appears that the Semons may be users of various mind-destroying poisons. Methamphetamine usually kills very slowly. The drug first attacks the front of the brain. The user becomes very talkative, babbling on almost constantly, speaking quickly and repetitively and making little sense - he begins to sound like a politician. The brain rots away, a little at a time, until only the stem (necessary to maintain vital functions) is left intact. Tapping on the head may produce a hollow sound. At this point the person has become very stupid (this may not be distinguishable, though, in Northern Minnesotans; or for that matter, anyone who decided to take drugs to begin with). When the rot continues, affecting, finally, the brain stem and vital functions, the person dies. This cures the drug use. During the rotting, the person may become psychotic (again, like our elected officials); in advanced stages, the user may become vegetative like a spinach or cabbage, although not (generally) green. If they do, in fact, use these things, in time their brains will rot away and that will be the end of them. But the larger issue here is not the welfare of the Semons, it is the welfare of the Constitution and the guaranteed security of Americans under it. Ultimately, it is the courts that are the guardians of the Constitution. (That is why, if Bush gets a second term, and packs the Supreme Court, then civil rights, including Roe vs. Wade, are likely to become history.) Lots of law enforcement officers would like warrants to search lots of places in hopes that they find something. It is incumbent (pardon the bad word) upon the courts to ensure that searches are conducted only where there is attested probable cause that a crime has, in fact, been committed. Legally, if what was seized in the search does turn out to be the mind-numbing poison - methamphetamine, and killer weed, then the Semons may be chargeable with possession; except that the evidence may have to be suppressed due to the illegality of the search. In this case, yes, they did, purportedly, find a small quantity of users' drugs; but they went in without probable cause. That endangers us all much more. ---------------------------------------------------------------- SCHIEFERDECKER WOULD HAVE SPENT $THOUSANDS OF YOUR MONEY TO TRY TO KEEP $668 But Semons Insist on Hearing; Money Ordered Returned From Vol. 9 No. 6 - 06/21/04 (LEADING EDGE JOURNALISM - FOLLOW-UP - For detailed original reporting, see Search Warrant Issued on Looks, NH of 03/08/04, ante, on this page) BEMIDJI -- On January 30, 2004, Beltrami deputies and agents of the Paul Bunyan Drug Task Force served a search warrant on the residence of Rick and Denise Semon near Tenstrike. Trouble was, the warrant was badly flawed. It was clearly directed to a supposed manufacturing operation of the poison: methamphetamine. Denise Semon suffers from lupus, and the informant mistook her symptomatic facial scars for burns, which were speculated to be from a meth lab fire. What was speculated to be drug paraphernalia turned out to be only supplies for feeding plants. Rick Semon did not deny that he has used meth, sometimes called "speed" or "crank", but categorically denied making it. So, when the deputies asked him if he had any drugs, he gave them a small packet of the poison from his pocket. They continued with the search, which didn't turn up any other substantial results. But they did take all of Semon's money - $668 - from his wallet. Although Semon could state its source as being elsewise, deputies confiscated the money under the pretense of it's having been drug trade related. There was no evidence whatsoever supporting this contention. Without the money, the Semons were threatened with eviction, and had to apply for emergency assistance because they received an electricity shutoff notice. Several months elapsed since the search, with no formal action taken. Semon could have been charged with simple possession, but the warrant had been issued without apparent probable cause (no one saw drugs or drug equipment on the premises) and would likely be subject to a motion to suppress, making the possession evidence inadmissible. But the county still had the Semon's illegally-seized $668, and wasn't about to return it. Eric Shieferdecker is a hot shot in Beltrami Co. Atty. Tim Faver's office where he's an assistant county attorney. He has been known to spend thousands trying to avoid returning a $500 (max. est. value) hunting bow, which, it was eventually ruled, the County had no right to keep. (See Schieferdecker Loses Beltrami Bow Case, NH of 01/15/02 in The Library, v.7, at northernherald.com) Court records are littered with other cases Shieferdecker has tried, appealed and lost. Still, he's married to Rebecca Signe Anderson, daughter of Minn. Supreme Court Justice Russell Anderson, so he can pretty much do what he wants. His job in the Co. Atty.'s office is pretty much secure; after all, it's just the taxpayers' money, and in Beltrami County, which has returned Faver to office many times, that's like so many sheep waiting to be shorn. So, when, in May, Rick Semon appeared before the Honourable Judge Hawkinson (case no. C7-04-457) to obtain return of the $668 unlawfully seized, Shieferdecker launched into a series of legal shenanigans to delay, and prevent that from happening. Firstly, the prosecutor claimed that, even by May, he was not ready to proceed. The matter was continued to be heard June 9th at 2 pm. Then, to establish an (expensive) subterfuge to continue holding the money, five days before the June 9th hearing, Shieferdecker filed a 5th degree controlled substance (simple possession) charge against Rick, for the small amount of meth he had. He sent Semon a letter encouraging him to seek assistance from the public defender's office (at further public expense) and another to the Honourable Judge Benshoof, requesting that the June 9th hearing be continued (postponed) until August, presumably for the benefit of Semon and, "to save Mr. Semon from driving down from Tenstrike on Wednesday." In his arrogant letter to Semon, Shieferdecker wrote, "I think you will also find in due course that there was sufficient probable cause for the warrant to be issued. ... Ultimately I believe it will come to pass that the $668.00 will be forfeited." The hearing was rescheduled - but the Semons didn't want the postponement - they wanted their money back. They contacted the Court Administrator the morning of June 9th, notifying her that they did not agree to the postponement requested by Schieferdecker. The matter was put back on calendar for that afternoon. At the hearing, not Schieferdecker, but Mr. Faver, appeared and told the Court, "I'm satisfied that the State could not meet it's burden of proof" of showing that the money was, in any way, drug-related. Accordingly, Judge Benshoof immediately ordered return of the $668 to the Semons. The 5th degree possession charge, and the Semons's challenge to the legality of the search warrant, remains pending as the Semons wait for a public defender to be appointed. Post publication note, as of 08/01/05: Ultimately, the search warrant was held, by the Court at Bemidji, to be valid; notwithstanding that neither the affiant, nor his informant, had seen drugs at the Semons' home, nor otherwise had personal knowledge of same. Richard Semon was found guilty of simple possession of methamphetamine. The case is now being appealed, based on the legality (or lack of same) of the search warrant. ========================================================= From Vol. 6 No. 2 11/08/00 ---------------------------- The Bemidji Post Office MOVING . . . TOWARD A LOWER STANDARD OF SERVICE BEMIDJI -- The Bemidji Post Office boasts one of the most up-to-date facilities around. While in many cities of roughly comparable size, employees keep the post office, sometimes housed in a much older building, open on a round-the clock basis, postal employees at Bemidji enjoy a newer modern and spacious building, and recently, one of the few automatic sorting machines in the state. Yet customer service has steadily deteriorated. In the early 90's, the Bemidji Post Office was open (for box customers, postage machine and letter drop) 'til 10 p.m. weekdays. There was also a service window with a buzzer, so if someone had an oversize package or something that had to be postmarked that day, they could give it to an employee. Last mail pickup was 7:30 and 8:00 p.m., depending on whether it was local or out of town. Now the last pickup is at 6:00 p.m., and the buzzer at the service window has been disconnected. If customers have something after 6 that needs to be postmarked that day, they're just SOL (Simply Out of Luck). The change in last pickup was very controversial. It was implemented while Dallas Radel was the postmaster as part of a scheme to have the mail automatically sorted at St. Cloud. Some people objected to the change because it meant that local mail not in by 6 wouldn't be delivered the next day. Nonetheless, Radel found it necessary so the mail could make the truck to St. Cloud. But the St. Cloud sorting plan wasn't implemented. Instead, the Bemidji post office got new automated sorting machines, enabling faster and easier sorting of the mail, locally. It is not known precisely why the last pickup, then, stayed at 6 p.m. It was no longer necessary to make the St. Cloud run. Under postmaster Radel, the Bemidji Post Office achieved a loss rate, measured in an independent survey by Northern Herald, of about 5.7% - over one piece in twenty. Confronted, during his term as Bemidji postmaster, with the survey results, Radel simply denied them. During his administration, closing of the lobby was cut from 10 to 8 p.m., although Saturday window hours were expanded to 1:45 p.m. (they have now, however, been cut to ending at 11:15 a.m.). In 1999, following the failure of his St. Cloud sorting scheme, Radel left the Bemidji Post Office. The "official" reason given was medical leave. In actuality, many hoped he would be transferred to some post office urgently in need of greater efficiency, like in American Samoa or something. Postal officials tend to be tight lipped on personnel matters, and you can't always believe what is said anyway, but latest word is that he is, indeed, being transferred - he has not returned to his former post at the Bemidji office. To supervise the implementation of the new mail sorting machines, Pine River postmaster Steve Stephan was brought in as a temporary post office Acting Manager. He has since been replaced by Warren McQuary, also temporarily while a new postmaster is being found. Per Pat Rankin, postal supervisor at Bemidji, it is not known when the position will be filled, the application deadline was October 25th. Despite the change in postmasters, reinstatement of previous hours and service levels, however, is probably not in the offing. Regarding the shortened last pickup time, and why it didn't go back to 8 p.m. following the scrapping of the St. Cloud plan and installation of the new machines, Rankin said that now the additional time was needed, "to process it [the mail]. . . the volume has changed over the years." Still, this did not explain why other high volume offices are open 24 hours. --------------------------- From Vol. 6 No. 9 - 06/30/01 ----------------------------- WHY? The Bemidji Post Office recently, with the addition of expensive equipment, became a mail sorting center. Bemidji did not deserve this distinction, and efficiency-oriented post offices will send their mail elsewhere for sorting. Postal rates will again go up on July 1st, partially to pay for this kind of waste of money on a nationwide basis. But as long as the expenditure has been made here and the Bemidji Post Office upgraded, we have to ask, ---- WHY ---- 1) Is the Post Office closed at 8 pm (for box pickup)? 2) Is the last mail pickup still no later than 6 pm? 3) Does it often take EXPRESS MAIL 2 days to go to/from Bemidji? -------------------------- From Vol. 10 No. 3 - 03/07/05 ------------------------------ BEMIDJI'S MANN FOR THE JOB IS A MANN ON THE MOVE! Postmaster Charles Mann Improves Bemidji Postal Service, Now Moves On To Solway. BEMIDJI -- After 4 years of improving Bemidji Postal Service, Postmaster Charles Mann went to the Solway Post Office February 1st. "I guess I find that I miss dealing with the customers directly and waiting on the customer, and this provides an opportunity to do more of that . . . so, when the opportunity came, I requested a transfer," he said. Mann's tenure at Bemidji has seen many positive changes. Unlike Dallas Radel, the postmaster before him, who efficientized by cutting customer service, shortening the lobby hours, and making the last mail pickup earlier in the day - an inconvenience for businesses mailing after work; Mann's focus was on giving the customer more service and convenience for the money. He recently returned the lobby closing to 10 p.m. weekdays; and implemented an automated postal center, allowing people (using a credit/debit card) to send parcels, including those weighing over a pound, anytime the lobby is open. Mann's term saw the implementation of the new 911-emergency services street names, and he said that helping the customers and the postmen deal with that and make the conversion was one of his biggest challenges; the new addresses, he said, will prevent confusion due to reassignment of route numbers as the community expands. "Once you get an address, it's the same and we don't have to change it, even if you end up on a different route," he said. Mann is excited about recent innovations in the postal system which now allow customers to use the Internet more, such as to place a mail vacation hold, arrange a mail pickup, or even print their own postage; as well as the newer sorting equipment, which they're "using to hold our costs down, to help the customers," he said. Mann's term also saw the 9/11 period with it's anthrax scare, and addressed the required beefing up of security, "Internally, we've made a lot of changes since then - how we handle the mail, on plans to react if there is an emergency, on aviation security, that sort of thing," so they'll be "as ready as we possibly can," should another emergency occur. In closing, Mann added that they've received some calls and there has been some concern about the possibility of postal rates increasing, but said that this is not in the immediate future, and probably wouldn't happen until toward the end of 2005. He could not speculate on what the new first-class letter rate might be. Mann's departure leaves some pretty big shoes for the new Bemidji Postmaster to fill. Mann said that the job would be routinely advertised, and likely filled within about three months. ================================================================ From Vol. 1 No. 20 - 05/03/96 ------------------------------ HOMOSEXUAL ASSAULT CHARGED IN UMMHC SUIT BEMIDJI --Upper Mississippi Mental Health Center (UMMHC), a major provider of court-ordered mental health and rehabilitative services in Bemidji, has been sued, along with a former employee, in an action that charges nonconsenting homosexual conduct between the employee and three men, two of them vulnerable adults, receiving treatment at the center under court order or referral. The incidents cited allegedly occurred between 1989 and 1992. The complaint alleges that UMMHC was made aware, early on, of some of the employee's unusual conduct, but failed to take action until other, and more serious incidents occurred. The lawsuit asks damages in excess of $50,000 on each of 14 grounds, and also certain other damages, as proven. The complaint, filed May 1, 1996 before the Ninth Judicial District Court at Bemidji, alleges that the former employee, Larry Coen, 2925 Ridgeway Avenue, Bemidji, had contact with the men, in the course of their court-ordered therapy at UMMHC by "rubbing his body" and "pressing his body in a sexual manner" against theirs, and persisting in requests to meet the men off of UMMHC premises, accompanied by threats to one of the men that if he did not meet Coen in that manner "Coen would see to it that [the patient] would not complete the court-ordered program." Per the complaint, one of the men did not complete the program, due to Coen's action, and, as a result was eventually incarcerated, losing his successful businesses and his home. The complaint states that the behaviour of Coen was brought, in about 1990 or 1991, by one of the plaintiffs, to the attention of therapist John Yingling, who disclosed it to UMMHC. UMMHC's response was that the patient "should deal with the problem with Coen himself." The complaint alleges several other incidents, including that, subsequently, Coen fondled another patient (the 2nd plaintiff in the suit), without his consent, and that Coen intimidated the third patient in the suit, a learning disabled vulnerable adult, into repeatedly going to Coen's home, where Coen compelled him to perform various unnatural acts. The complaint alleges that Coen told the patient that if he did not comply, Coen "would make it rough for [him] in the program and that [he] would be in the program two more years. The complaint further alleges "That [UMMHC] is vicariously liable for the conduct of its employee as they knew or should have known of Coen's conduct and in addition for negligently employing and retention of Coen as a counsellor [sic], for placing him with his known propensities in a position to manipulate those in the program. For failing to properly supervise Coen...." Both Rob Cole, Executive Director of UMMHC, and Larry Coen, declined to comment on the suit. Attorney for the plaintiffs is Darrell Carter, Esq. of Bemidji, who said that other persons, not presently included as plaintiffs in the suit, may have been damaged by Coen. "There is at least one other victim, and there may be others." he said. Beltrami County Attorney Tim Faver has brought no charges against Coen or UMMHC as a result of the cited incidents. Upper Mississippi Mental Health was criticized in 1994 for refusing treatment to Heather Lory, traumatized by a gang-rape. Collusion, by UMMHC, with the County Attorney's office, which had brought charges against Heather's father for shooting one of the rapists, was speculated. Per Lory, she was told by UMMHC that she couldn't speak of that incident (the rape) in counseling. Heather finally publicized the incident on national television in early 1994. From Vol. 4 No. 4 - 11/25/98 ----------------------------- LAST UMMHC HOMOSEXUAL ASSAULT CASE TO SETTLE BEMIDJI -- Darrell Carter, attorney for three men who claim they were sexually abused while undergoing court-ordered sexual rehabilitation at Upper Mississippi Mental Health Center, (UMMHC) has announced that a settlement agreement has been reached with the last of three clients to have brought suits against UMMHC. Two of the three cases settled in June, 1998, for an undisclosed amount, and Carter would not divulge the damages that UMMHC will pay for this last case. The original complaint, filed May 1, 1996, alleged that Larry Coen, a former UMMHC employee, had contact with the men, in the course of their court-ordered therapy at UMMHC, by "rubbing his body" and "pressing his body in a sexual manner" against theirs, and persisting in requests to meet the men off of the UMMHC premises. The complaint further alleges that UMMHC was made aware of the incidents, which allegedly occurred between 1989 and 1992, but took no action. The complaint further alleged that Coen threatened the men that if they didn't comply with his requests to meet him off-premises, "Coen would see to it that [the patient] would not complete the court-ordered program." The complaint alleges that, due to Coen's action, one off the men did not complete the program and was incarcerated. The complaint further alleged that another of the men, a learning disabled vulnerable adult was intimidated into going to Coen's home, where various unnatural acts were performed. UMMHC and Coen declined to comment on the matter when originally interviewed. Carter said that he and the Plaintiffs were satisfied with the settlements, and said that the action had resulted in a policy change that there be no contact between employees and patients off of the UMMHC grounds. But Carter expressed concern about continuing abuses of patients, and UMMHC's treating them without dignity. UMMHC gets all of the court-ordered referrals of sex offenders in a multi-county region, including Beltrami. He was particularly critical of the therapy policy which requires that individuals "confess" to things that they may not have done. "I know of recent cases where individuals have been told that they think or act in a certain manner, which they haven't - and if they don't [admit to it], they're reported to be in violation of cooperating with the program," Carter said. ============================================================== From Vol. 6 No. 10 - 07/28/01 ------------------------------ Leading Edge Journalism ----------------------- Health Care In Northern Minnesota THE MERITCARE MONOPOLY AT BEMIDJI Part 2 of a multi-part series resulting from our continuing investigation of health service practices in Northern Minnesota BEMIDJI -- It's Friday. Troubled by chronic insomnia, you've taken a retirement medicine that your doctor has, for years, prescribed. Now you notice that you don't have enough left for the weekend. Like almost all Bemidji physicians, your doctor does not have a private office of his own - he offices at the sprawling Bemidji MeritCare Clinic, a branch of MeritCare (formerly the Fargo Clinic) of Fargo, North Dakota. So you call your doctor at the clinic. You never get to speak with him directly, though; the call is intercepted by a MeritCare medical secretary - mostly a specialized clerk. You tell her you need your prescription refilled - she says that she'll check with the doctor and get back to you if there's any problem. Otherwise you can just pick up the Rx, to be called in, at the pharmacy. Not hearing back, you go to the pharmacy Saturday morning; but nothing has been called in. And you can't reach your doctor. Unlike most private physicians' offices, MeritCare has no physicians' exchange - a usual service where doctors receive important patient messages after hours. MeritCare's answer is if it's that important, you should go to the Emergency Room (of North Country Regional Hospital on the same campus as Bemidji's MeritCare Clinic) and pay the associated charges. After a sleepless weekend, you again, on Monday, call the pharmacy. They check with the clinic and find out that your doctor signed the prescription on Friday, MeritCare staff just forgot or didn't bother to call it in. This is Bemidji, and this is MeritCare Clinic - a sad excuse for what medical service, in most places, is and should be. The incident recited, as it concerns MeritCare, is documented. Similar errors concerning the mismanagement of patients' medical needs by MeritCare have been observed and are not infrequent - more the rule rather than the exception. Over the years, in Bemidji, MeritCare has induced doctors to forego private offices in favor of practicing at the MeritCare Clinic. There, instead of the usual doctor-patient relationship, Bemidji patients receive assembly-line style managed health care. One can make an appointment with his own doctor there, but often exigencies, which are less than what would usually be considered "emergencies" arise, and a patient needs to see his doctor on a day or two's notice. At most private medical practices, the patient would be worked in to the schedule. Not at MeritCare though - MeritCare's answer is what they call "urgent care" - a patient can come in that day, but, he'll be assigned to a doctor, usually not his own regular physician, on a random basis. The doctor who sees him will usually be wholly unfamiliar with his case, history, allergies, etc. If the patient has to return for follow up, he'll be seen by yet a different doctor. This is so even if the patient's regular doctor, who is familiar with his case, is in that day. The doctors are managed by MeritCare staff, and the patient's usual doctor, who knows his case history, may not even be informed that the patient is in. MeritCare management does not understand that, unlike auto parts, doctors are not interchangeable; or perhaps the clinic's management just doesn't care as long as the cash flow is okay. In Bemidji, due to MeritCare's monopoly, and the lack of private physicians' offices, a person seeking medical services has few options. There are as many doctors, both general and specialized, as one would expect for a city the size of Bemidji. But their offices are all associated in that, mostly, they all practice at the same behemoth clinic. This has taken its toll for reasons other than just medical. Some people have been refused service at MeritCare for political reasons. A case in point was when, in 1995, Roy and Patricia Martin, chronic arthritics who required frequent medical treatment, were refused service by their MeritCare physician. It seems that Roy had been falsely accused (and acquitted by a jury) of molesting Ida Stein Hightshoe, who happened to be a MeritCare employee. Shortly after Roy was exonerated and released from jail, his doctor told him he'd have to go elsewhere for medical service. But, in Bemidji, there's practically nowhere else to go but MeritCare. When the Martins left Bemidji, they cited inability to get needed medical care as a primary reason. Waive confidentiality? Bemidji is a talking town. There's a lot of talk here. When a patient first registers at MeritCare, he's given a purple form and told to sign it. It waives the right of confidentiality as regards diagnosis and other medical data. A patient cannot be compelled to sign the form, or may strike out certain paragraphs before signing, but most don't know this, and simply give MeritCare permission to discuss their case with others. Doctor's pay to see a nurse? In Urgent Care, there are sometimes waits exceeding two hours, even if the patient had an appointment. MeritCare also routinely asks Urgent Care patients to agree to be seen by a nurse-practitioner, instead of a doctor, at the same fee. Technology vs. the traditional doctor-patient relationship. A leading professional in a medical-related field summed up the problem by explaining that modern day health care management often just doesn't allow for the physician to spend enough time with the patient to arrive at a proper diagnosis and treatment. At the core of the alleged inadequacies of MeritCare seems to be the erosion of the traditional doctor-patient relationship. When doctors join the MeritCare system, in many ways, they give that up in favour of convenience (for the doctor), such as centralized accounts management and easier accessibility (again, for the doctor) of technology and medical-related services, such as lab work and X-ray. Still, in the old days, a doctor would come to your home, if necessary. He would have only his black bag with, but somehow managed to treat what ailed you. The doctor knew each one of his patients and cared for them individually to the best of his ability. Patients respected this, and besides, you didn't request a house call if you didn't have to, because it cost $6. Interviewed, regarding the standard of service, MeritCare's Administrator at Bemidji, Randy Beck, said, "We see 700 people a day.... the cost of medicine is very, very high ... it is almost impossible to meet all of [patients'] expectations ... we can't afford it. ... You're talking about what health care was like [in past times]. [There were illnesses that] back then, nobody knew how to treat - now, they know how to treat. There's been a cost to this technology." And Beck alluded that part of that cost has taken its toll in the ability of the patient to contact his own physician, when needed. "You try to balance how you provide the service to [the patients] with the amount of demands that all these people have, ... it's like any industry - we've gotta learn from these things and keep moving forward. ... Here, you contact your physician via the nurse," he added. In many places, physicians, due to the nature of their work, have seen fit to be on-call, if needed by their patients, even in off- duty hours. It's something that, historically, has gone with the turf of the well-paid medical profession. Addressing the MeritCare system, Beck replied that, usually, a doctor's workload may include 2,500 patients. He said a doctor should have time off, whether golfing or fishing or for family, when, even in an emergency, he should not have to be available. Another doctor can cover for him, without ever having consulted with that [i.e. the patients' usual] doctor about the case history, allergies and reactions, previously tried treatments, etc. "You have to have a system," said Beck, "... that manages it to the best of the ability. ... You have to have [interchangeability of] the physicians ... it's called 'medicine'. Medicine is the documentation of what goes on. And with that documentation, other providers [can provide the service.]" Beck said that it was not possible to "go back" to the doctor-patient relationship of days past, "in some ways it would be nice to take the best part of that system and the best part of this system and put it together. The only thing I can tell you is we're working at it," Beck said. Regarding the lack of competition, Beck said, "Physicians see an advantage of being part of a larger group ...." "We're ... interested in trying to solve problems," said Beck, "I would appreciate it if [patients with complaints] would just give us [in administration] a call. ... I have no problem with dealing with every patient who has an issue in our system ... we don't blow it off ... we treat every patient complaint as an opportunity to learn." Patients experiencing difficulties at MeritCare may contact Administration personally at the clinic, or are encouraged to call Mr. Beck, Mr. Warren Larson, administrator and MeritCare Administration at 218-333-5484. ================================================================ From Vol. 7 No. 2 - 11/03/01 ------------------------------ MERITCARE REFUSES TO TREAT ANTHRAX-LIKE SYMPTOMS Part 3 of a multi-part series resulting from our continuing investigation of health service practices in Northern Minnesota BEMIDJI -- Despite much publicized warnings that persons having cold or flu-like symptoms, the same initial symptoms of Anthrax, are well advised to take precautions against possible Anthrax, such as by use of antibiotics; physicians at Bemidji's MeritCare clinic are refusing to prescribe the Anthrax remedy, CiproŽ, even when insisted upon by the patient having such symptoms, and where said patient has no known allergies to antibiotics. In the documented case reported here, the physician gave, as his reason for refusing to prescribe the antibiotic, that Bemidji is not known as an at-risk area; notwithstanding that anyone who has contact with mail that may have passed through a tainted postal processing center is potentially at-risk, and the illness has turned up, sporadically, throughout the country. Interviewed, MeritCare Administrator Warren Larson indicated that MeritCare did not have a specific policy on the prescribing of antibiotics during the Anthrax threat, and that the decision was left up to the individual doctors. Editorial Note: Hopefully, when the first actual Bemidji Anthrax case occurs, which MeritCare and its physicians may have refused to treat in the early stages, they'll get sued for enough to put this poor excuse for a medical service provider out of business, opening the door for additional, qualified, doctors to start to locate, independently, in Bemidji. At present, Bemidji's MeritCare is one of the few places where the doctor-patient relationship takes the form of an adversarial one. A patient, new to the area, commented that MeritCare was unusual, and the worst service she'd received from doctors anywhere. ============================================================== Leading Edge Journalism ----------------------- At Bemidji - High Corruption Marches On! BEMIDJI POLICE CHIEF PREECE IMPLICATED IN ALLEGED HELICOPTER PONZI Purchaser Says $295,000 Missing; Manufacturer Pulls Preece's Franchise From Vol. 7 No. 7 - 05/04/02 BEMIDJI -- The City of Bemidji has not exactly cornered the market on corruption. It exists, in a limited sense, in the dark nooks and crannies of many urban centers, municipalities and rural governments across the nation. What makes Bemidji special is its demography. Whereas, in most places, those tending toward corruption tend to be an elite, popping up to work their malevolence on a catch-as-catch-can basis, and mostly confined to the shadows of the government halls; in Bemidji, with its huge welfare population that will take whatever they can get so long as they don't have to work for it, and also it's large government-based (Bemidji's largest employer) population, including many liberal educators at BSU, for whom any politics are OK as long as the money faucet keeps running; Bemidji is unique in that it seems to possess an electorate, a majority of which either favors, or at least is tolerant of, corruption. Corruption doesn't have to stay in the shadows here - we put it in the highest seats of local government and we send it to the state legislature at St. Paul. Corruption can be blatant in this remote municipality. Forget about the Constitution and laws - they don't apply here. That may be why, with local property taxes as high as they could go, residents got hit with a $60 "storm sewer fee" this year, which was passed at a "public hearing" that those residents never knew about and was unattended, except by the Council, last spring. And in this quagmire of openly corrupt dealings, it would be natural and proper that such a City should have a Police Chief who is a liar and crook. It's consistent. Fits right in. The Chief. When Police Chief Tell (a BCA investigation produced about 17 allegations of theft by swindle, but a Beltrami County jury, in 1996, wouldn't convict Tell - accepting his explanation that it was mistake) finally retired last year, the City Council and management could have gotten some fresh blood. Someone from outside the corrupt circle here. But, of course, they didn't. They hired Bruce Preece, son of long-time Bemidji Judge James Preece, famous, or infamous, depending on how you look at it, for some of his rulings protecting the good ol' boys of Beltrami County. Helicopter shenanigans. Now, faced with allegations of misdealings in high-priced helicopters, including that Preece took full payments for (over $300,000) airships, which payments were never turned over to the manufacturer, a contact close to the situation has said that Preece is acting as if nothing is wrong. Preece's initial statement to Northern Herald is right in line with this as he told us that there's no substantive problem. That the Torrance, California firm of Robinson Helicopter Company failed to renew his franchise only because Preece is selling his helicopter business, known as Helicopter Flight, Inc., operating at the Crystal airport near Minneapolis. Frank Robinson, of Robinson Helicopter, though, told a different story. Although he could not disclose the details of any specific allegedly fraudulent transactions, after a description of customer allegations against Preece, charging that Preece took full payment (about $320,000) for at least one helicopter, tendering only $25,000 to Robinson, Frank Robinson confirmed that the franchise was pulled, because, "The situation that you have described has been a recent problem with Mr. Preece, and that's why he is no longer our dealer. However, any orders that he has placed ... before his dealership was cancelled, we would go ahead and complete the aircraft and complete these transactions, once we have received the payment for it." Robinson is a conscientious firm that won't tolerate the appearance of impropriety among it's dealers. Said Robinson, "Our whole concern here is that anyone who has paid for their aircraft, simply, should get it. ... A dealer is not to hold any of the funds, either deposits or final payments; they are to be immediately transferred to the factory (Robinson) to complete the sale, so that the customer can get their aircraft on time." A customer, Jim Bult, owner of a trucking firm near Chicago, said that, in January, 2002, he had ordered a Robinson R-44. Bult said that Preece told him it could be delivered by February 15th, if Bult tendered payment in full (about $320,000) to Preece with the order. Bult said that, to expedite that order, he paid Preece in full by wire. Robinson, though, only requires that a $25,000 deposit be paid to begin manufacture of the craft. Apparently that was all that Preece turned over to Robinson, for Bult's order. Bult said that February came & went - no helicopter. Upon inquiry with Robinson, he was told "it wasn't even made, and [not] scheduled to be released until April 5th." Then it would be delivered upon their receipt of the remaining amount - about $295,000 - that Bult had already paid to Preece. April came and went and as of May 2nd, Bult said that Robinson was still holding his helicopter for payment. There is no certainty as to what Preece may have done with the other $295,000. It has been speculated that he may have been waiting for another sale, to use the proceeds to pay for the back order. With the franchise pulled, though, there may not be future sales. And Mr. Bult is still waiting for the helicopter he paid for in January. "To date, customer has paid for the product, helicopter has been ready for shipment, customer is still waiting for the product," Bult said. The time value (i.e. interest) on $295,000, at 5%, is about $1,229. per month. Bult said that if he'd known that the airship wouldn't even be completed until April, he might have bought it anyway, but he wouldn't have tendered payment in full in January. He said that, in the interim, Preece has promised several times to "make it right" claiming various technical reasons for the delay. Investigation by Northern Herald has disclosed indications that up to 2 other customers may also have faced delays or irregularities in delivery of their product (i.e. helicopters), but their statements are not yet available. Preece's statement. Contacted again, with this new information, Preece's calm explanation was straightforward. He explained that Bult's $320,000+ payment wasn't actually for his (Bult's) helicopter. That it was an investment in another helicopter, in which Bult was to have had a half-interest, that would then be sold at a profit, which would be used to give Bult a discount on his helicopter, that could then be paid for and delivered to Bult. Perfect sense. Preece said that the market went soft, making it hard to sell the "investment" helicopter early in the year, but he expected to have it sold, and Bult's helicopter delivered, this week. Preece said, "He invested in another aircraft, with his funds, with the idea that that aircraft would be resold for a profit, profit being shared both by the company and by him. And then, that would allow him a greater discount on the purchase of his aircraft; and he agreed to do that. But, we also agreed that that transaction would be done by February. Well, as it turns out, the market was slow, and the aircraft did not sell right away. It has, actually, or is in the process of being, sold now, so the funds now have become available, and we'll be taking delivery on his [Bult's] aircraft this week ... I'll have to check with the staff, but I believe that's correct...." Trouble is, that Mr. Bult didn't know anything about his "investment" in any other helicopter. If he supposedly had a half- interest in anything, it was news to him. Bult told Northern Herald that there was no agreement regarding any other aircraft. He ordered only one helicopter, for himself. He had paid Preece the money in January, for his helicopter, and for promised delivery of that bird by February 15th. Plain and simple. "I sent the money in January for a helicopter for February ... what he [Preece] did with the money, he has since told me that he purchased another aircraft and was going to do a quick turn on it, make money and blah, blah, blah, [but] ... I had no involvement or agreement [regarding any other aircraft] ... I sent my money for one purpose; that was to purchase my helicopter. If I own part of [another] helicopter, I don't know about it," said Bult. As to the promise of delivery this week, Bult said, "[Have] I told you how many times I've heard that? ... I hope it is ... Right now, I'm out 300 grand and I'm hoping that he can make it right." Leading Edge Journalism-Follow Up --------------------------------- NEW HELICOPTER FRAUD ALLEGATIONS SURFACE AGAINST BEMIDJI POLICE CHIEF PREECE Hennepin County Attorney's Office Takes Interest Bemidji Police Commission Claims "Didn't Know" From Vol. 7 No. 9 - 07/27/02 BEMIDJI -- New accusations have arisen, from several sources, including those who had direct dealings with Bemidji Police Chief Bruce Preece's Helicopter Flight Inc., operating at the Crystal, Minn., and Moorhead, Minn. airports. To date, however, the 3-person Bemidji Police Civil Service Commission (the board that hires, fires and disciplines police officers in Bemidji) has yet to act, and the 2 commissioners contacted (Palmer Berg and Doug Deblieck - the commission is chaired by Bill Batchelder) denied knowledge of the Chief's alleged business wrongdoings. The matter was widely publicized on the front page of Northern Herald of May 4th, 2002, but as yet, to our knowledge, has not been covered by any other area paper. Many of the papers in North Central Minnesota are owned by a single interest: The Fargo Forum. The matter, however, has drawn the interest of the Hennepin County Attorney (where Crystal, near Minneapolis, is) and persons with information are encouraged to contact Pat Diamond, of the white collar crimes unit, at 612-348-8406. Nature of the beast. Most of the allegations center around sales or lease-backs of helicopters. These are about $300,000 items, but titling and documentation, controlled by FAA, does not appear to be nearly as strict and tight as it is, in Minnesota, for motor vehicles. It is here that Chief Preece seems to have seen opportunity. In early 2002, Preece's Helicopter Flight Inc. (HFI) was a franchisee for the Torrance, Calif. firm of Robinson Helicopters, which custom-builds each bird, until Robinson pulled the franchise for Preece's misdealings with customers. Robinson requires that all manufacturing funds paid by customers be immediately turned over to Robinson; this appears, here, to not have been done. As earlier reported (NH of 05/04/02), in January, 2002, Preece sold a helicopter to Jim Bult, owner of a trucking company near Chicago. Per Bult, Preece requested payment in full (about $320,000), in order to procure rush delivery by February 15th. Bult wired the money. But the representation was intrinsically false - Robinson Helicopters could not have built the bird before April, and, in fact, scheduled it to be released April 5th, notifying Preece accordingly. Of the $320,000. paid to him by Bult, Preece paid Robinson the minimal $25,000 deposit to start manufacturing of Bult's bird. As to what happened to the remaining $295,000, a credible source close to the story said, "He was either using it for personal gain, or to put into his business - pretty much anything other than use it for what the helicopter buyers were assuming it was used for," and that Preece intended, in a kind of ponzi scheme, to use the money from future helicopter sales to cover the old contracts. This scheme, of course, fell apart when Robinson canceled the franchise - there were no future helicopters to sell. April came and went, Bult still didn't have his bird. It was built and sitting at the Robinson hangar awaiting payment. In early May, in interview, Preece said that he had dispatched two pilots to California to pick up and deliver Bult's bird. This also proved false. He may have sent pilots, but as of the following week, Bult still didn't have his bird. He didn't get it until mid- July, when Bult had to pay, a second time, and this time directly to Robinson, the balance owing - another $295,000, approximately. As of late July, Bult said that, in aftermath, Preece offered him a promissory note wherein Preece had agreed to repay the amount, to Bult, by August 11th, and Bult accepted same. It is not presently known whether Preece will perform under the note. Since our first reporting, new, similar, cases, involving apparent financial misdealings by Preece and HFI, have come to light. One of those was with Twin Cities area resident Leonard Busch. Because aircraft are expensive, and generally aren't used every day by the owner, often, aircraft ownership involves an arrangement where the owner allows the aircraft firm at the airport (here, HFI) to rent or lease the aircraft to others, in exchange for a portion of the lease proceeds. Per Busch, in July, 2001, he purchased, through Preece, a used Robinson R-44 helicopter, tendering full payment of about $235,000. Busch bought it with the provision that Preece would resell it (presumably at a profit) within eight weeks; and, should Preece fail to so resell it, Busch would get full title, and $15,000, and any lease payments which accrued from HFI leasing the bird to others. Per Busch, though, Preece failed to resell the bird, failed to pay the $15,000, put 120 hours flight time on the helicopter, and Busch has yet to receive a cent of lease payment. Preece also failed to deliver title to Busch. In February, 2002, Busch demanded title to the $235,000 bird and received it in March. But he also found out that Preece had pledged the bird as collateral for debt with Security Bank USA (managed by John Baer, a relative of former Bemidji attorney Carl Baer), and had encumbered the title with about $150,000 of outstanding debt. Before long, the bank contacted Busch and told him that they wanted the chopper back for the debt, and in approx. May, 2002, Security Bank served papers in a replevin (repossession) action upon Busch. That matter is presently pending trial. Busch noted that the bank lien on the bird wasn't recorded with FAA until after the bird was transferred to Busch. Also pending trial is a suit, by Busch, against Preece for the $15,000 promised, and $16,000 in lease payments due, and for alleged fraud in Preece's mortgaging Busch's helicopter. Busch claims that since buying the helicopter (FAA Reg. No. 144GH) from Preece, he's been contacted by a man from North Dakota, who claimed that he (the ND resident) owned it, having paid Preece for it. Said Busch, "I don't even like to call Bruce Preece because what he says doesn't make any sense - it's seldom truthful." Asked if they would be concerned by the Bemidji Police Chief's apparent lack of integrity in his dealings, the two police commissioners contacted declined to make any substantial statement. The Bemidji Police Commission can be disbanded by action of the City Council, or by petition of 25% of the city's voters (M.S. 419.16). In that event, control (i.e. hiring, firing, discipline of personnel) of the police dept. would revert to the City Manager, who serves at the will of the City Council. Leading Edge Journalism - Follow Up ----------------------------------- PREECE NOT YET CHARGED From Vol. 8 No. 2 - 12/30/02 MINNEAPOLIS -- As yet, no charges have been brought against Bemidji Police Chief Bruce Preece for alleged swindling in $300,000 helicopter deals from his Helicopter Flight Incorporated (HFI) locations at the Crystal and Moorhead airports. (See New Helicopter Fraud Allegations Surface Against Bemidji Police Chief Preece, NH of 07/27/02, on this page, ante) Current status of the case is unavailable (law enforcement agencies, generally, may not comment on matters while investigation is in progress). Persons having further information are encouraged to contact Pat Diamond, of the Hennepin County Attorney's office, at 612-348-8406. Leading Edge Journalism ----------------------- Bemidji Crooks EVIDENCE MOUNTS IN BEMIDJI POLICE CHIEF PREECE ALLEGED HELICOPTER SCAMS But No Criminal Charges Are Landed Yet From Vol. 8 No. 3 - 02/10/03 BEMIDJI -- "We're all horrified that somebody like Bruce Preece can be the Chief of Police of a city," said Minneapolis attorney Mary Mason, Esq. Mason is part of a legal team representing a Wisconsin man, Richard Stanger, who is involved in a suit surrounding a $344,910 helicopter sold by Helicopter Flight Inc. (HFI), a corporation controlled and operated by Bemidji Chief of Police Bruce Preece, who allegedly personally transacted all of the alleged frauds involved. HFI operated primarily out of its base at the airport at Crystal, a suburb of Minneapolis, in Hennepin County; and also had operations at the airport at Moorhead. Allegedly, Preece firstly, in June, 2001, sold a Robinson R-44 helicopter to Stanger and was paid in full, by Stanger, the purchase price of $344,910, with Stanger taking title. In November, 2001, Stanger was willing to sell the craft, and entered into an agreement with Preece under which Preece would, for 90 days, be the exclusive agent for sale of the helicopter on Stanger's behalf. The helicopter, hangared at HFI at Crystal airport, however, was not sold during that period. Preece was authorized only to sell the helicopter, for $307,000, plus commission. Stanger said that he did not authorize Preece or HFI to use the helicopter for any other purpose. Stanger was to be notified, for approval, of any prospective offer, and was to have immediately received the proceeds, less commission, if the helicopter was sold. But, per the filed court Complaint, pursuant to a contract entered into on March 21st, 2002, between Preece/HFI, and Blue Skies, Inc., a corporation operated by Kenneth Schoenfelder, of Rochester, Minn., Preece sold Stanger's helicopter to Blue Skies, Inc. for $260,000. Attorney Mason said that Stanger was told nothing of the delivery of the helicopter to Schoenfelder, and received no payment for his helicopter. In interview, Stanger said that, essentially, Preece stole his helicopter, and delivered it to Schoenfelder, for Preece's own purposes. Stanger learned that his helicopter was gone from HFI only much later, when a mechanic told him that it was no longer there. Schoenfelder took possession of the helicopter and removed it from the HFI base. But the bird was still titled, with FAA, to Stanger. Per Blue Skies, Inc.'s filed complaint, "J. Bruce Preece and HFI failed to provide an FAA Aircraft Bill of Sale and other documentation required to record the transfer of ownership." On July 26, 2002, Schoenfelder's Blue Skies, Inc. sued Preece, HFI, Mr. & Mrs. Stanger, and Dairy State Bank (Stanger's lienholder), in Minnesota District Court at Olmstead County (Rochester), for title to the helicopter and damages "in excess of $260,000." (Blue Skies, Inc. v. Preece, et al.) The Stangers, who are out their helicopter, have filed a counterclaim against Preece and HFI, alleging that they are "entitled to the immediate return of the ... helicopter ... in good and workable condition or damages in the sum of $307,000" plus costs and disbursements, including attorneys' fees, "for the conversion of said property." Court records also disclose that on March 22nd, 2002, HFI, by Preece, gave Schoenfelder a promissory note in the amount of $260,000 plus $10,000 interest. Preece secured the promissory note with the HFI buildings, per a UCC financing statement. Stanger had nothing to do with this note. It is known that, in Preece's previously reported, allegedly fraudulent, dealings with other customers, he sometimes has given them a promissory note when he has been unable to meet his business obligations. In 2002, in the wake of other allegations of misdealings, Robinson Helicopter Company terminated HFI as a dealer in their products, and HFI, itself, has recently been, by Preece, put up for sale. The complaint by Blue Skies, Inc. (Schoenfelder) recites, "J. Bruce Preece and HFI used fraud, misrepresentation and deceptive practices, within the meaning of Minn. Stat. 325F.69 to induce [Blue Skies, Inc.] to purchase the helicopter." Schoenfelder and Blue Skies, Inc. are represented by Ken D. Schueler, Esq., Rochester; the Stangers are represented by the firm of Shulman & Associates, also of Rochester. Said attorney Mason, "... our client, Stanger, has never been paid; Schoenfelder has the helicopter ... [and is] using it in his business, but he doesn't have title to it. So both Schoenfelder and Stanger have paid HFI for the same helicopter." Said Stanger, "We're getting my helicopter back. ... It's my helicopter and if anybody else has it, they need my permission... and, so far, no one has it." Editor's Notes: (See also, Bemidji Police Chief Bruce Preece's Wife Guilty of DWI with .20, this issue, and Preece's other alleged helicopter swindles, reported in NH of 05/04/02 and 07/27/02 at northernherald.com) Persons with further information regarding alleged misdealings by Bruce Preece and/or HFI are encouraged to contact Pat Diamond, of the white collar crimes unit of the Hennepin County Attorney's Office, at 612-348-8406. --------------------------------------------------------------- Leading Edge Journalism ----------------------- BEMIDJI POLICE CHIEF BRUCE PREECE'S WIFE GUILTY OF DWI WITH .20 Car Goes Off Roadway From Vol. 8 No. 3 - 02/10/03 Note: This article contains editorial content BEMIDJI -- In Bemidji, it is somewhat unusual for elected officials and local public figures to get picked up for DWI. That doesn't mean they're saints - former representative Bob Johnson, after falling into disfavour with police, pulled 3 DWIs within a year, before leaving office. And a pretty woman can get away with most anything, most anywhere. But when an accident happens, it becomes harder to look the other way. So it was on January 3rd, 2003, at about 11:30 am, when the extremely beautiful Michelle Diane Preece, standing tall and stately, with windswept long hair and a clean Minnesota prairie look, the wife of Bemidji Police Chief Bruce Preece, appeared, for omnibus, before the Honourable Judge Murphy, sitting at the County Courthouse at Bemidji, and pled guilty to third degree (gross misdemeanor) Driving while Impaired under M.S. 169A.20 and 169A.26 (case no. KX-02-2120). Mrs. Preece was represented by Bemidji attorney Robert Wallner. Special prosecutor (due to the appearance of conflict had the Beltrami County Attorney prosecuted) was Hubbard County Attorney Greg Larson. The offense occurred on October 9th, 2002 in Beltrami County. Prior to sentencing, Mrs. Preece took the stand and testified that she had been involved in an accident (her car left the roadway and struck a fence) on the day in question, and that afterwards, she went home; "I was just a short distance from my house," she said. She testified that officers arrived at her home within 10-20 minutes. Judge Murphy read, from the documents, that the officers found that she smelled of alcohol (Editor's Note: At .20, the equivalent of about 8 stiff drinks, she must have smelled like a brewery) and a blood alcohol test showed over .20 %. Mrs. Preece, still on the stand, agreed with His Honour's recital of the facts. The collar was made by Deputy Bill Cross. In sentencing, it was revealed that police did not immediately take Mrs. Preece into custody, as is done in many DWIs, but waited for the blood test results to come back and then sent her a Summons to appear in court. His Honour confirmed that the normal sentence for 3rd degree DWI is 10-20 days to serve, a fine, and probation on conditions. Attorney Wallner argued for the low end of that, as Mrs. Preece had already spent time in inpatient treatment since the offense; and His Honour imposed sentence of 12 days to serve, and actual fine and costs to be paid totalling $1,043; with the remainder of a 1 yr. sentence and $3,000 fine suspended. The Judge also imposed up to 6 yrs. supervised probation on conditions that: 1) She have an alcohol assessment and pay the $125 fee for same; 2) she not be in places where, primarily, alcohol is sold; 3) she not consume or purchase alcohol; 4) that she is subject to random searches and breath tests for alcohol; 5) that she will continue with treatment; and 6) she not operate a motor vehicle until her privileges to do so have been restored. The probation agreement signed by Mrs. Preece on 01/22/03 provides additional conditions, including that she not leave the State without notifying her probation officer, no possession of alcohol, and no driving without a valid license and insurance. Mrs. Preece, in order to arrange day care for her son, was allowed time for same, and arranged with the Court to begin her sentence on a later date. For security reasons, she was allowed to be housed at a jail outside Beltrami County, at her expense. Huber privileges were not requested; she was allowed to perform community service with Sentencing-To-Service (STS), but did not do so. Jailhouse math. As with other inmates, the 12 days could have equated to as little as about two and a fraction actual days. How this works: An inmate performing community service gets 2 days for 1; that makes it 6 days. They get 1/3 off for good behaviour, making it 4. Any part of a day is counted as a day, and the jail usually releases in the morning. So, a person might go in, say, Tuesday night, work Wednesday and Thursday, is released Friday morning, and they're done. But checking into the Hubbard County Jail January 8th, 2003 at 3:30 p.m., Preece did not use her STS privileges and served almost seven days until her release January 15th at 8:30 a.m., per Hubbard County Sheriff Gary Mills. No comment - The Bemidji nest of corruption. Mrs. Preece's attorney, Robert Wallner, would not allow her to speak with press after the hearing. Wallner is known for having represented other high-profile persons and law enforcement officers when they have been charged with crimes. He is a member of the firm formerly headed by Carl Baer. Carl's brother, John, heads Security Bank, involved in Bruce Preece's alleged helicopter swindles. The law firm also employs Rebecca Anderson, the daughter of Minn. Supreme Court Justice Russell Anderson, and wife of Asst. Co. Atty. Eric Schieferdecker. Editor's Note: Northern Herald was the only press present at the hearing, which was held at a time when it would be, pretty much, out of the public's eye. Mrs. Preece suggested that the story not be printed "because of my husband's position," but we, at the Northern Herald, believe that such matters are equally reportable when the criminal happens to be our Chief of Police or his family, as when it happens to be any other Bemidji Bum. The Preeces may believe that his position makes them above the law he's sworn to uphold, but here at Northern Herald, we're pretty old-fashioned, and we don't think so. Bruce Preece himself has been alleged to have swindled many hundreds of thousands of dollars in a helicopter ponzi scheme, involving his firm of Helicopter Flight Incorporated operating at Crystal and Moorhead airports (See stories, pg. 1 of this issue, and in NH of 05/04/02 and 07/27/02 at northernherald.com) In Bemidji, police hiring and firing is controlled by a three-man citizen Police Commission. Bruce Preece was hired about a year ago upon the retirement of corrupt (phony travel vouchers) Police Chief Robert Tell. The Police Commission is presently chaired by Bill Batchelder (operator of Bemidji Woolen Mills - a high-priced retail store, really, - which advertises to tourists and has been observed selling "Bemidji Woolen Mills" shirts, where the shirts were manufactured and purchased elsewhere, with the "Bemidji Woolen Mills" label then sewn in). Batchelder, along with his crony, Palmer Berg, who also sits on the Commission, comprise a majority of it. So don't look for any positive changes in the Bemidji Police Dept. leadership soon. Batchelder was also a campaign manager to State Rep. Doug Fuller, and former (fortunately) City Councilman Herb South. He is active in the Beltrami Co. Republican Party. The upside of things is that, here in Northern Minnesota, the news sometimes gets dull. But between the business antics of Bruce, and the other antics of his family, as long as the Preeces are in Bemidji, they will probably keep the news interesting and fun to read. From Vol. 8 No. 7 - 08/11/03 ----------------------------- Leading Edge Journalism ----------------------- The Inevitable Happens BEMIDJI POLICE CHIEF PREECE GOES BANKO New Judgement Likely Prompted Filing; Leaves Trail of Scammed Helicopter Debt Editors Note: For earlier stories concerning Bemidji Police Chief Preece's alleged helicopter swindles, see NH of 5/4/02, 7/27/02 & 2/10/03 at northernherald.com Preece remains Chief of Police in the corrupt little town of Bemidji. MINNEAPOLIS -- Amidst many claims, by people who claim to have been defrauded by having been sold helicopters (usually about $300,000 each), and either didn't get, or didn't get clear title to the birds, and in the wake of a $174,937 judgement recently entered against him in a single case, Bemidji Police Chief James Bruce Preece filed a Chapter 7 Bankruptcy Petition, July 11, 2003, in the federal Bankruptcy Court at Minneapolis (case no. 03-44078). The filing papers indicate that, after claimed exemptions, there will not be funds available to pay unsecured creditors (including the swindle victims), who will, consequently, be totally shafted. The filing lists Preece as doing business as, and surety for, Helicopter Flight, Inc., Aircare Executive Charter and Security, and HFI Aviation Services (HFIAS). Helicopter Flight, Inc. is based at the Crystal airport near the Twin Cities, and HFIAS may also have had operations at the Moorhead airport. The bankruptcy petition lists assets of $369,285 and liabilities of $1,563,626 The Meeting of Creditors is scheduled at 1 pm, 8/14/03, at the U.S. Courthouse, Minneapolis. The deadline for filing a complaint objecting to discharge of the debtor is 10/14/03. Preece's attorney is Gregory J. Wald Esq., of Edina. Allegations, against Preece, of fraud include at least one case where Preece allegedly sold, and received payment for, the same helicopter to two different people. One received title, the other got the bird. (see NH of 02/10/03). Although these matters have been under investigation by Pat Diamond of the Hennepin Co. Atty's Office, no criminal charges are known to have been brought. In addition to the judgement (ante), the Petition discloses 3 pending civil suits against Preece in Hennepin, Olmstead and Roseau Counties. Although the unsecured creditors listed in the Petition include some of the persons who have claimed that Preece owes them money due to the alleged helicopter swindles, the filed list may not be complete. There is, for example, no mention of Jim Bult, an Illinois man who claims that Preece owes him $295,000 as funds paid by Bult to Preece for a custom helicopter, which funds Preece never remitted to the helicopter manufacturer (see NH of 05/04/02). Bult had to pay for the bird a second time, directly to the manufacturer (Robinson Helicopter, which terminated Preece's franchise), to get delivery of the custom-built helicopter. Per Bult, Preece then gave him a promissory note for the $295,000; but it has yet to be paid. It is not known what Preece did with Bult's $295,000 which should have been remitted to Robinson; Preece's Petition lists only $6,000 as 2002 income from Helicopter Flight, Inc. The Petition discloses a federal tax lien, against Preece, for $90,000, presumably for unpaid taxes, and lists as a priority debt $41,615.12 as payroll taxes, owed to the Internal Revenue Service, for periods from 7/1/01 through 3/31/02, during which periods, presumably, withheld payroll taxes for employees of Helicopter Flight, Inc., were not being paid over, by Preece, to the IRS. Also listed in the Petition is a $174,937. judgement against Preece, entered in a North Dakota court and transcribed to Beltrami Co., for execution, in favor of Textron Financial Corp., which lists its address as c/o Cessna (aircraft) Financing Corp., Wichita, Kansas. From Vol. 9 No. 1 - 09/29/03 ----------------------------- Leading Edge Journalism - Follow-Up ----------------------------------- This Is Bemidji SWINDLE VICTIM, TRUSTEE, WON'T LET PREECE GET AWAY WITH IT Victim Files Claims of Embezzlement, Larceny Against Bemidji Police Chief, Bankruptcy Trustee Files Objection to Preece's Claim of Exempt Property MINNEAPOLIS -- You can fool some of the people some of the time, but Ken Schoenfelder, of Rochester, isn't having any of it. As reported last issue (NH of 08/11/03 - archive at northernherald.com), Bemidji Police Chief Bruce Preece, after having swindled several persons, at about $300,000 a crack, on helicopter deals, and facing several lawsuits and at least one judgement against him; filed Chapter 7 bankruptcy July 11th, 2003 (case no. 03-44078) at the U.S. Bankruptcy Court at Minneapolis. The swindle victims were named as unsecured creditors; that means that the bankruptcy asked that those debts be forever discharged, becoming legally uncollectible, with no payment thereon. With no criminal charges yet filed by the Hennepin County Attorney (why?) Preece would have effectively gotten away with scams that appear to total over $1 million in the aggregate - never even having to pay any of it back. But on September 4th, 2003, Ken Schoenfelder, one of the swindle victims, by his attorney, Michael S. Dietz, of Rochester, filed a complaint in the Bankruptcy Court stating that Preece isn't entitled to bankruptcy protection. Debts due to fraud, theft, and other crime aren't dischargable in bankruptcy. The complaint. Although each has its own particular circumstances, the fraud in this case is similar to other deals Preece put together, and on each of which, he received payment, but failed to deliver lawfully titlable helicopters. The complaint of Schoenfelder, and his corporation, Blue Skies, Inc., against Preece, recites: "... 4. Helicopter Flight, Inc. ("HFI") is a Minnesota corporation doing business at 5930 Lakeland Avenue North, Minneapolis, Minnesota [at the Crystal airport]. "5. At all times relevant herein, James Bruce Preece has been the sole shareholder and President of HFI. "6. On August 3, 2001, Richard S. Stanger ("Stanger") purchased a Robinson helicopter, model R44, Serial No. 1090 and registration number 240RM (the "Helicopter"). "7. In November of 2001, Stanger entered into a listing agreement with Defendant [Preece] for the sale of the Helicopter. Under this Agreement Defendant was appointed as sales agent for a period of ninety days to sell the Helicopter for $335,000.00. In exchange Defendants were to receive a commission of five percent of the sales price. Stanger delivered possession of the Helicopter to Defendants at approximately the same time. "8. By the terms of the Agreement, Defendant's appointment as Sales Agent would have expired on approximately February 20, 2002. "9. In March of 2002, Defendant contacted Plaintiff [Schoenfelder] about a loan/purchase transaction regarding the Helicopter. "10. Prior to the contact in March of 2002, Defendant had not communicated with Plaintiff for a period of several years. "11. Defendant represented that he had the present ability to commit ownership and possession of the Helicopter to Plaintiff. "12. The terms of the arrangement proposed by Defendant to Plaintiff was memorialized in a writing signed by both parties and attached hereto as Exhibit "A." [not reprinted here] "13. Under the terms of Exhibit "A" Plaintiff was to transfer $260,000.00 to Defendant for the purpose of acquiring the Helicopter. In the event Defendant did not repay the $260,000.00, plus $10,000.00, on or before May 21, 2002, Defendant was to transfer the Helicopter to Plaintiff and deliver an FAA Aircraft Bill of Sale to Plaintiff for the Helicopter. "14. On March 22, 2002, Plaintiff wire transferred $260,000.00 to Defendant (the "Funds"). "15. Defendant did not use the Funds to acquire title to the Helicopter. Instead he diverted it to his own use for other purposes. "16. At approximately the same time Defendant diverted the Funds, he was involved in a second claim by Dennis Brazier in which Dennis Brazier claimed that he had paid $260,000.00 for a helicopter, but had not received the helicopter. "17. At the time Defendant diverted Plaintiff's Funds, he had no present ability to repay the funds to Plaintiff and he had no idea how he would go about repaying them. "18. Defendant has not repaid any of the Funds to Plaintiff. "19. On May 30, 2002, Defendant made out an FAA Aircraft Bill of Sale for the Helicopter