2016 AU Convention Update – Police Report Filed

April 25, 2017
By

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The Loft Report has learned that Mark Karges has filed a police report with the San Bernardino Police Department and filed a report with the Internal Revenue Service (IRS) stemming from fallout from the 2016 American Racing Pigeon Union Convention (AU).

In the report, Karges alleges that AU Convention Chairman, Kamal Hindi, did not pay out prize monies owed to many of the handlers and breeders of the 2016 convention and instead embezzled these funds. While it is known that some handlers and breeders where paid, over 50 individuals have claimed they were not.

Additionally, handlers have said that prior to being allowed to be handlers; they were required by Mr. Hindi to sign contracts agreeing to submit a W-9. After the final race flown on December 9, 2016, Mr. Hindi reportedly requested everyone who won $600 or more to submit a W-9 to him in order to be paid. Reports suggest both handlers and breeders cooperated.

As a general rule, the IRS requires issuance of 1099-MISC to each person to whom you have paid at least $600 in rents, services (including parts and materials), prizes and awards, or other miscellaneous income payments.

In addition to the police report and IRS form being filed by Mr. Karges, the AU has hired legal counsel in the wake of several attempts to get Mr. Hindi to abide by his agreement to pay handlers, breeders, and auction participants their lawful winnings or earnings.  Mr. Hindi’s attorney did submit to AU attorneys in early April a basic accounting statement which, according to the AU, lists “total prize money is $288,500.00.”  Moreover, his accounting “does not denote number of birds and at what entry amount they were received.”

Adding another wrinkle into the situation, iPigeon.com is still holding onto auction proceeds from the race winners, Europeans, and domestic bred auctions birds. Shortly after the completion of the final auctions, iPigeon mailed a check to Mr. Hindi, but he returned it.  Since then, iPigeon has been working to get owners paid, but issues remain because the contract is with Mr. Hindi and not the individual breeders.

 

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2 Responses to 2016 AU Convention Update – Police Report Filed

  1. Tom Fremont on April 26, 2017 at 9:16 am

    If I recall correctly, the AU receives a percentage of the financial benefits from each convention. I’m not sure if it is the same amount, or the same format for each convention. However I would be curious if they at any time received compensation for this convention, and if so would they not have a responsibility allocate those proceeds back to the many fanciers that have been ripped off. Of course this is only speculation on my part. I wonder if anyone might know for sure if monies were transferred to the AU in any way shape or form from this convention ? And if so how much ?

  2. RONALD C WHITMER on April 28, 2017 at 11:47 pm

    I have it on good authority that the AU home office has been given two weeks to public announce how this fiasco is being dealt with (IE how they intend to hold those responsible accountable and fix this)or they will be held partially accountable in a class action lawsuit. As the AU has the big pockets in all of this they will end up paying the lions share of whatever amount of money is recovered for those who still have yet to be paid what they are owed.

    interesting days ahead indeed!

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