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[Bob Pickle]

Under note 14 on p. 11 it says that they bought $8,031.11 of books authored by a member of management. That's down from the nearly $3 million bought in 2006, and lower than any number since at least 2001.

Yet cost of goods given away is still reported on p. 13 as being more than $1 million.

Since Remnant reported royalty payments of I think around $200,000 on their 2007 Form 990, how can it be that 3ABN only bought $8,031.11 of books written by Danny?

Any ideas?

[Snoopy]

Aaahhhggg!!  I forgot that the size of files allowed to be uploaded was increased.  Never mind about my offering to send a copy to anyone who wants it - it is right here!

[Fran]

I read the auditors page 1 & 2.  The more things change, the more they stay the same!

They still don't follow GAAP!

I have been asking for almost 5 years where their consolidated Financials were.  Hey, they don't have any!

They are still have problems valuing their assets!  This problem was brought up on the 2000 audit and every audit after that!  They are slow learners!  Or, could this be done this way on purpose?  That is my guess, because they do this, all financial statements are not prepared correctly, thus they are definitely not a fair representation of 3ABN's financial position!

Not presenting expenses of its foreign facilities is a fine way to hide funds and expenses!  That is a very serious matter as far as I am concerned!  For all these years the auditors have told then they are required to use GAAP.  Do they listen?  No!  Do they care?  No.

I really have to go to bed.  I will read the rest later this week.

[Bob Pickle]

Note 16 says that the Russian branch "is not a separate legal entity."

However, on p. 133 of the property tax case record (vol. 1), Danny Shelton testified under oath:

Well, we have the largest protestant facility in the Ex-Soviet Union. It’s probably 130,000 square foot facility that we raised the money for and purchased and we started a corporation over there, and a corporation that’s a charitable tax exempt organization, which is in Nizhniy Novgorod, Russia, which is the third largest city and we allowed the Seventh-day Adventist Church, their facilities in Russia, because of lack of finances, we share them.

And from p. 190:

Q. Before I leave the questions about the employees, you mentioned salaries that you pay in Russia.

A. Yes.

Q. Does Three Angels pay the salaries of those individuals?                                                 -

A. Yes, we do.

Q. Do they directly work as employees of the Three Angels Broadcasting?
 
 A. Our Russian branch, yes.
 
Q. Is that a separate corporation?

A. Yes.

And from pp. 349-350 of the property tax case record (vol. 2):

Q. Let me ask you this question, Mr. Shelton.
 
You indicated, I guess maybe I’m confused from your testimony yesterday, because I think you indicated that the Russian facility was actually owned by a different entity’ other than Three Angels Broadcasting Network, correct?

A. For legal reasons we can’t call it Three Angels Broadcasting, but I’m still the Director and the President and I’m still -- it’s still Three Angels but it’s Three Angels of Russia. But for legal purposes the governments won’t allow us to do it. The same way with the Philippines, because I have to have national board members too as well.

Confusing, isn't it? Danny testifies under oath that there is a separate organization, a separate corporation in Russia, and that the employees in Russia work for that separate corporation.

Yet the audited financial statement claims that the Russian branch is not a separate legal entity.

The appearance of this discrepancy is as bad as 3ABN's 2004 990 claiming that Linda Shelton never was a board member or officer at any point in time during 2004, 3ABN's 2005 990 claiming that Nick Miller never was a board member at any point in time during 2005, and 3ABN's 2007 990 claiming that Jim Gilley, Stan Smith, Larry Romrell, Garwin McNeilus, and Max Trevino never were board members at any point in time during 2007.

Am I missing something regarding Russia, or am I seeing this correctly?

[Murcielago]

Don't they also have corporations in Peru and Canada? Does anyone remember them talking about owning tv stations in Papua New Guinea?

[Bob Pickle]

Don't they also have corporations in Peru and Canada? Does anyone remember them talking about owning tv stations in Papua New Guinea?

Note 14 claims that there are separate legal entities in Peru, Brazil, and the Philippines. However, while claiming to provide the majority of revenue to the corporation in Brazil, they failed to report one cent of money going there.

Note 14 in the 2004 audited financial statement reported a corporation in Canada named Three Angels Christian Communications.

From pp. 370-371 of the property tax case record (vol. 2):

MS. RHOADES: Now, Mr. Shelton, you’ve mentioned  that you’ve got the Three Angels Broadcasting I think you said it was New Guinea, you’ve got your local Three Angels Broadcasting
 
Are there any other subsidiary or related corporations to Three Angels Broadcasting Network that existed in the year 2000 and 2001?
 
THE WITNESS: 2000 I believe the Philippines.

Did we mention the Philippines? Russia, of course.

I don’t know if we were set up in 2001. Yeah, 2001 we would have been I believe for New Guinea. Russia, New Guinea, the Philippines, and let’s see.
                                     
Any other entities outside the United States?

So we have separate corporations, according to factually challenged Danny Shelton, in Papua New Guinea, Russia, and the Philippines.

So that gives us the following at least:

• Brazil
• Canada
• Papua New Guinea
• Peru
• Philippines
• Russia

[Bob Pickle]

As a side note, 3ABN's 2001 financial statement at note 14 claims that 3ABN purchased $75,000 of books from an entity owned by two board members.

That must be D & L Publishing, and the two board members must be Danny and Linda Shelton.

That agrees with Danny's 2001 tax return which treated D & L as a partnership, jointly owned by Linda.

However, on Danny's 2002 tax return, filed sometime in 2003, no longer lists Linda as an owner.

That makes it appear that Danny was contemplating getting rid of Linda before Dr. Abrahamsen ever came along.

It also raises questions about Danny's testimony on his affidavit in Minnesota in Feb. 2008:

D&L Publishing was an unregistered D.B.A. that I used as a sole proprietorship for publishing purposes during the time I was married to my ex-wife, Linda Shelton.

How could Danny say D&L was a sole proprietorship when it was clearly a partnership in 2001, according to Danny himself on his 2001 tax return filed in 2002, and according to 3ABN's 2001 financial statement also filed in 2002?

[Snoopy]

When did Danny step down as president?

Under note 14 on p. 11 it says that they bought $8,031.11 of books authored by a member of management. That's down from the nearly $3 million bought in 2006, and lower than any number since at least 2001.

Yet cost of goods given away is still reported on p. 13 as being more than $1 million.

Since Remnant reported royalty payments of I think around $200,000 on their 2007 Form 990, how can it be that 3ABN only bought $8,031.11 of books written by Danny?

Any ideas?

[Bob Pickle]

He announced Jim Gilley as being president on Sept. 6, 2007, in the same broadcast in which he said that Christians who say that he is being investigated by the IRS are enemies of the gospel.

[WillowRun]

You know....sometimes you damage the wheat when you are rooting out tares.  Is it better to let the tares be or to destroy the wheat?  What if you don't care about the wheat just as long as you get those pereceived tares...cause really until the judgement you won't know for sure which is which....... Do you care about the damage to the wheat???  Is there a way to accomplish your weeding without destroying everything around it? 

I know this sounds like a nonsequitur  but it really isn't .......when you think about it. 

[Bob Pickle]

Go ahead and elaborate more about what you are thinking.

[WillowRun]

Actually Bob, I am more interested in what you have to say?  I've said all I intend to...

actually....I've changed my mind....

Bob I think you have an unhealthy obsession regarding this 3abn thing..We can't force God's timing.....  There is so much out there now that any more isn't going to matter. I also think you might have a better legal case if you stop the message board trial.

Maybe the best thing to do is promote Hope, SAFE TV, LLBN or other regional Adventist stations and encourage your friends to do the same.  I've been listening to HOPE TV on my computer while I work and it has been such a blessing..and a nice change of pace from talk radio.  You should try it...it really does give one another perspective...I plan on buying a glorystar system when I get my income tax return so that I can have my two favorite SDA networks again SAFE TV is local to my area and I've been there since it's beginning. 

Now, I've really said all  I intend to..

[Fran]

Australia?  Just who handles all the finances and does the accounting for these offices?  This should be reported to the State Department.  They take care of broadcasting on foreign soil.

Don't they also have corporations in Peru and Canada? Does anyone remember them talking about owning tv stations in Papua New Guinea?

Note 14 claims that there are separate legal entities in Peru, Brazil, and the Philippines. However, while claiming to provide the majority of revenue to the corporation in Brazil, they failed to report one cent of money going there.

Note 14 in the 2004 audited financial statement reported a corporation in Canada named Three Angels Christian Communications.

From pp. 370-371 of the property tax case record (vol. 2):

MS. RHOADES: Now, Mr. Shelton, you’ve mentioned  that you’ve got the Three Angels Broadcasting I think you said it was New Guinea, you’ve got your local Three Angels Broadcasting
 
Are there any other subsidiary or related corporations to Three Angels Broadcasting Network that existed in the year 2000 and 2001?
 
THE WITNESS: 2000 I believe the Philippines.

Did we mention the Philippines? Russia, of course.

I don’t know if we were set up in 2001. Yeah, 2001 we would have been I believe for New Guinea. Russia, New Guinea, the Philippines, and let’s see.
                                     
Any other entities outside the United States?

So we have separate corporations, according to factually challenged Danny Shelton, in Papua New Guinea, Russia, and the Philippines.

So that gives us the following at least:

• Brazil
• Canada
• Papua New Guinea
• Peru
• Philippines
• Russia

[Bob Pickle]

There is so much out there now that any more isn't going to matter.

I've felt the same. If it weren't for the lawsuit and the unanswered questions that have to be answered for the case, my time would be spent doing other things.

I also think you might have a better legal case if you stop the message board trial.

In what way do you think this would be so?

[WillowRun]

I also think you might have a better legal case if you stop the message board trial.

In what way do you think this would be so?
[/quote]

It gives the appearance of you having an axe to grind or a personal vendetta rather than a legitimate legal case.  You have to think about how the Judge or the other side's legal team can use what you put out for public consumption...and you also have to think about the baby christians out there...and how this might cause them to reject their new faith...