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Southeast Valley (SEV) Baseball

Southeast Valley (SEV) Baseball

2020 Financial Audit Finding on Past SEV Board of Directors

There is an ongoing audit by SEV Baseball into past financial misappropriations spanning several years prior to 2020. Currently, we have gone back to 2016. There is a significant amount of misappropriation discovered in earlier years that we are working through as well. To date, we have discovered upwards of $25-50k in egregious spending which is highly suspicious or has not been accounted for. We are working with the proper authorities to move this case forward, and hold individuals accountable. These offenses against SEV Baseball have been severely detrimental to the League's financial health and function. Unfortunately, the children in our community are the ultimate victims. This theft is directly from the pockets of the families who put their trust in our youth baseball league. 

If you have any information that might be helpful, please contact our league President, Vice President, or Treasurer. There has been an outpouring of support for our efforts to improve this League for the benefit of our community youth and families. We appreciate your support, and will continue to press forward with our best efforts. SEV Baseball will continue to heal and regain its financial strength. The current Board is committed to gaining your trust once again through transparency. 

2016


Cash Withdrawals

(ATM & in-branch) $13,100 in cash withdrawals with no record of what the cash went toward.

All cash withdrawals were conducted by the league Treasurer during 2016.

All ATM withdrawals were conducted with league issued ATM cards.

Fast Food Transactions

Purchases at various fast food and restaurant locations around the Queen Creek area totalling $675.53.

Taco Bell, Burger King, Dunkin Donuts, Buffalo Wild Wings, Jimmy John's are some of the purchase locations. 

In addition to fast food purchases, charges on the SEV card include: Gas stations, Walmart with cash back, Lane Bryant (clothing), Kohl's (clothing), Johnson Utilities. 

Total suspicious transactions: $3,839

2017


Cash Withdrawals

(ATM & in-branch) $10,966 in cash withdrawals with no record of what the cash went toward made by Treasurer and President. (names withheld)

Fast Food Transactions

Purchases at various fast food and restaurant locations around the Queen Creek area totalling $1,198.

Krispy Kreme, Barro's Pizza, Buffalo Wild Wings, Chick-Fil-A, Denny's, and other locations.

Questionable Transactions made by President and newly-elected Treasurer. (names withheld)

  • Centurylink $349.50
  • Verizon Wireless $489.55
  • Best Buy $378.16
  • MGM Grand Las Vegas $253.06
  • Lowe's Mesa $109.56
  • (2) Ewing Irrigation $2,530.99, $297.35 made 6/19/17
  • Home Depot Chandler $443.81 made 6/19/17
  • Costco Gilbert $107.18 made 6/19/17
  • Ewing Irrigation $878.34 made 9/7/17
  • Pinal County Treasurer $1,505 made 11/17

There was a second CHASE account associated with SEV Baseball that was closed on 11/6/17.  The Board is currently in the process of auditing that account. Results of the audit will be shared with League members once the audit is completed. 

2018


Questionable Transactions with no connection to SEV Baseball made by President and Treasurer. (names withheld)

  • Monthly "Pack Rat" payments
  • Target Mesa
  • Netflix
  • Amazon Prime Membership
  • Apple iTunes
  • Numerous Amazon and Amazon Marketplace transactions
  • Courier Service
  • Uber Eats
  • Checks written by Treasurer to various indivduals for hourly pay at a rate of $8/hr. 

Questionable Transactions made by newly-elected President as of March 2018. (name withheld) NOTE: The President supplied uniforms through his own home business Dirty Thredz for SEV Baseball during Fall season ONLY. The Dbacks supply/sponsor uniforms for Spring season. The League paid for the clothing and supplies, then was charged for uniforms via invoice. 

  • BSN Sport Supply $1,363
  • Team Express $258
  • McCreary's Tees $1,497
  • Stahl's $70
  • Pinal County Treasurer $850
  • Snider Sports $4,099
  • President paid self $747
  • Dirty Thredz LLC $820

2019


Uniform Cost/Expenses

Total spent on uniforms and supplies related to screen printing in 2019: $13,160

  • Epic Sports $109
  • McCreary's Tees $3,703
  • The Hat Pros $844
  • Forever Stitches $570
  • Ten Cow Tees $422
  • Mid America Sports $102
  • Dirty Thredz LLC $7,410

NOTE: Uniforms were supplied by the Dbacks for Spring season. Board members generated a quote for Spring season from an independent professional supplier for a cost of $16.47/uniform (hat and jersey.) No vote was ever held by the Board to approve jerseys produced by the league President for the Fall 2019 season. The Board was told by the President that he could produce them at a lower cost. The average per player for Fall was approximately $29 resulting in a 77% increase in cost vs. the quoted price. Unknowingly to the Board, SEV Baseball paid for the supplies to create the uniforms, then was charged by Dirty Thredz LLC (personal business of the President) for uniform costs. 

Questionable Transactions made by the President in 2019 until his resignation on September 9, 2019 without Board knowledge or approval. 

  • Amazon Marketplace $343
  • Amazon $69
  • Envato Market $61
  • Hilton Garden Inn Phoenix $158
  • Walmart $154
  • Sam's Club $311
  • Smart & Final $97
  • Venmo $8,086
  • ATM cash withdrawal $500
  • Best Buy $651

SEV Baseball Debt


Past board members did not pay for the use of fields for the 2017 Fall season, and accrued debt in multiple school districts in the area.

Queen Creek Unified School District was owed $13,893.

Combs Unified School District was owed over $9k. 

The day after the President resigned from the Board, he proceded to write multiple checks to his home business Dirty Thredz LLC and Combs Unified School District totalling over $15k from the SEV Baseball account without Board knowledge or approval. While the debt to Combs was paid in full, this served to cripple the League to the point of near insolvency. Had it not been for our success with concessions, the League would not have been able to complete the Fall season. 

Current board members have made arrangements with QCUSD officials to pay the debt, and utilize fields for the 2020 Spring season. 

Moving Forward


SEV Baseball's current financial status is still critical. With the amount of money that has been misappropriated, the League is essentially running without any room for error. SEV Board members turned over the potetial criminal activity to the Arizona Attorney General's Office. The Attorney General referred the League to local law enforcement. SEV Baseball is turning over findings to the Pinal County Sheriff's Department.

The League is now operating in accordance with IRS non-profit guidelines. Taxes have not been filed since 2016, which puts the League in jeopardy of losing its 501(c)3 status. All taxes from 2017, 2018, and 2019 will be filed by May 15, 2020. 

The Executive Board members have put into place necessary checks and balanced to ensure every transaction is overseen by multiple Board members, documented appropriately, and all cash is accounted for. Every check written by the League requires a 2-person signature. There is a minimum of three signers on the CHASE account. Processes and procedures are being addressed to safeguard against future financial issues such as listed above. 

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