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1 total messages Started by gordon gillesby Thu, 13 Nov 1997 00:00
Public Issue Press Release
#6
Author: gordon gillesby
Date: Thu, 13 Nov 1997 00:00
86 lines
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                              News Release
    (please route and/or distribute - interviews/photo op available)


     MN Non-profit Computer Recycler Deceived by Professional Group
           Insurance Organization Bilks DRAGnet over $18,000

Minneapolis, Nov. 11  - Despite nearly universal acclaim for it's work,
DRAGnet, the nation's largest EPA-licensed non-profit computer recycling

operation may be forced to close it's doors soon.  Without outside help,

mounting debt acquired from serving the public need for computer
recycling must be resolved before January 1st for operations to
continue.

The primary debt source stems from the Minnesota Association of Life
Underwriter's commission for the first-ever state-wide computer
recycling compaign in 1995.  MALU -- a state-wide umbrella organization
for life insurance agents -- agreed to pay a sponsorship fee of $18,000
to take credit for the public service.  The money was intended to cover
actual DRAGnet expenses for transportation, personnel and hazardous
waste disposal.

DRAGnet performed two-thirds more work than was originally commissioned
while waiting for then MALU President, Vincent Troy, to pay the fee. For

over six months Troy claimed to be raising support from members of the
"Million Dollar Roundtable" -- agents whose commissions are a minimum of

$100,000 per month .  Each time Troy assured DRAGnet management the
funds would be arriving within days.

At the end of 1996, in spite of letters to the contrary, Troy suddenly
refused to pay the sponsorship fee denying any knowledge or agreement to

reimburse DRAGnet expenses.   Since then DRAGnet management has
scrambled to recover the expense of collecting, storing and processing
the large volume of hazardous waste that MALU members collected during
the drive.

"Over a third of our warehouse space has stored broken and unusable
computer monitors for over a year" pointed out Bill McCarthy, DRAGnet's
Vice President, "Over and above the actual costs of collecting it --MALU

owes us an additional $24,000 for having to store it until we can
properly recycling them."  Computer monitors contain a high amount of
leaded glass which requires special and expensive hazardous waste
disposal.

"We acted in good faith and the professional organization stiffed us."
said McCarthy.  If DRAGnet does not recover the money soon, it may be
too late.  Saddled with debt and material whose disposal wasn't paid
for, DRAGnet has limped along trying to meet service demand while
waiting for payment from MALU.

"It's MALU's responsibility," according to DRAGnet's CEO and founder,
Gordon Gillesby.  "We should not have to appeal to the public to make up

for their unethical behavior.   But, at this point, DRAGnet cannot even
afford a lawyer to help recover the money.  Perhaps public pressure will

create enough motivation for them to make good on their word."

Earlier this week, DRAGnet received notice that over $1,800 was seized
by the Internal Revenue Service via their bank account.  The I.R.S. has
served notice that, unless all taxes are paid within sixty days, DRAGnet

will be forced to close.

The DRAGnet non-Profit computer recycling mission provides: 1)
technology-related transitional (school-to-work,  welfare-to-work) pre-
employment training for educationally "at-risk" youth and adults;    2)
reliable, refurbished personal computer technology for people in
disadvantaged situations who cannot afford one from normal commercial
resources;   and 3) full service, EPA-compliant non-profit computer
recycling.

          (Contact person:  Bill McCarthy     Source: DRAGnet)
                        1110 Van Buren Street NE
                         Minneapolis, MN 55413
       612 . 378 . 9796 (voice)            612 . 378 . 9794 (fax)
       placement@dragnet.org               http://www.dragnet.org

                                - ### -
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