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laserhaas

(7,805 posts)
Tue Jun 24, 2014, 12:41 PM Jun 2014

Did Petters Ponzi Receiver Kelley Admit Deceiving the Public? (Possible Fraud).

There are several major cases Douglas Kelley of the Kelley Wolter firm - is known for. Looming large still are the Tom Petters (Paul Traub) Ponzi and the Minnesota Orchestra scandal. I'll deal with the conflict of interest/color of law crimes and ethics of DK in another thread. In this one we are going to simply deal with the Orchestra scandal and;

Has Douglas Kelley kind of admitted to public deception (fraud)?


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Who is Douglas Kelley?


Background is necessary to get a bigger picture view. Douglas Kelley is a former federal prosecutor and considered one of the heads of the Republican party programs in Minnesota. Prior to the Tom Petters case, Douglas Kelley was purportedly engaged to the Pohlad daughter (owner of Minnesota Twins and more). During the Petters Ponzi case in Minnesota, Doug's "Kelley Wolter" law firm was the attorney at law for Tom Petters; who then switched to the other side and became the Federal Receiver and Bankruptcy Trustee in some Tom Petters cases. Nothing sums up Doug Kelley better than this question;

Can Al Capone's Frank Nitti become the Federal Receiver of Capone's organized crimes?

You say "of course not"! But that's exactly what happened in the Petters Ponzi case.


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Minnesota Orchestra Scandal


At the "Song of the Lark" blog, they seek to digest the Orchestra case and abuses of budget with Douglas Kelley at the helm (who sought to create a new "Beethoven" contemporary era (hence the picture poster above). However, the real goal of Douglas Kelley was to bust the unionized efforts of the Orchestra's musicians. Though the Republican leader claims that such is the furthest thing from his mind.

Doug Kelley stated simply (originally) that the prices cuts in musical labor were necessary; otherwise the Orchestra would go broke. Now Mr. Kelley is recanting his early position. The Song of the Lark blogs coins it as DK is admitting to "bullchitting" (deceiving the public and musicians in general).

The fact of the matter is, lying to the public and opposing parties in financial matters is deception. As Douglas Kelley well knows (being a former Assistant United States Attorney) - Deception = FRAUD.

So the question remains - Has Douglas Kelley admitted to deception (fraud)? I'll let you read the article and Minnesota DU members comment with their knowledge of the case. Song of the Lark blogs story "Doug Kelley Still Problematic"

The article states;

So listen, I understand negotiations, and I get what he’s saying. But I also want to point out that Doug Kelley is cheerfully admitting to bullshitting. Not just bullshitting musicians, but bullshitting the public. How many times did we hear that these particular cuts were necessary to save the institution from complete collapse? Yeah, about those: Doug Kelley is now saying he didn’t really need them to ensure a healthy organization. How do you operate a successful non-profit while simultaneously manipulating such an important number? If these numbers were facades, how many others were, too? Non-profit arts organizations ought to be above this type of shenanigan.

Maybe if the Minnesota Orchestral Association didn’t have a history of deferring to PR companies to decide what size deficits to report – or a history of leaving out important facts when asking for money from the state legislature – or a history of never publicly mentioning Michael Henson’s massive bonuses before muckraking bloggers got to the story – this admission would be less troubling, but as it is, it confirms an unsettling long-term strategy: Show numbers that help you make your case at the time, then reveal later that the true picture was different.

And Mr. Kelley doesn’t think that his bullshitting contributed to the level of animosity?

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