If you saw the report on the NAIC this afternoon on CNBC,
you are probably as disappointed and disgusted as I am. For
those who didn't get a chance to see the report, NAIC, an
alleged not for profit organization, is being investigated
by the US Senate Finance Committee (in fact is now at the
center of the investigation of the committee's investigation
into not for profit organizations) for excessive salaries,
perks, etc. For example, the CEO is paid a salary of over
400K, paid for Cadillac Escalade, paid for country club
membership, etc. All board members receive free cars, free
club memberships too. The only board member to question
these sleazy practices, Ralph Seger, was fired for doing so.
Other NAIC employees were fired or suspended (such as Mark
Robertson, Director of Online Services) for answering the
Senate committees questions. NAIC was reported as having
conducted its own investigation to learn the identity of
those leaking information to the Senate.

Also, board members have conflict of interest relationships
including one board member who is a lawyer, was paid an
additional 64K last year and his legal firm was paid over
200K for services. The CEO, a former Flieshmann-Hillard
advertising exec, has allowed his former employer to benefit
to the tune of over 200K for advertising fees.

The NAIC CEO appeared as smug as can be when Scott Cohen,
CNBC, attempted to interview him about these excesses. I'm
glad that CNBC conducted this investigation and I hope that
the Senate Finance committee takes additional action against
the NAIC.

It's too bad that a greedy and sleazy few have been allowed
to tarnish the reputation of an organization that was
founded on the principles of investor education and
responsible corporate governance. As the CNBC reporter
stated, it's too bad that it doesn't practice what it
preaches!

I am, as well as my club, are finished with the NAIC!

Steven Cook wrote:
> If you saw the report on the NAIC this afternoon on CNBC,
> you are probably as disappointed and disgusted as I am. For
> those who didn't get a chance to see the report, NAIC, an
> alleged not for profit organization, is being investigated
> by the US Senate Finance Committee (in fact is now at the
> center of the investigation of the committee's investigation
> into not for profit organizations) for excessive salaries,
> perks, etc. For example, the CEO is paid a salary of over
> 400K, paid for Cadillac Escalade, paid for country club
> membership, etc. All board members receive free cars, free
> club memberships too. The only board member to question
> these sleazy practices, Ralph Seger, was fired for doing so.
> Other NAIC employees were fired or suspended (such as Mark
> Robertson, Director of Online Services) for answering the
> Senate committees questions. NAIC was reported as having
> conducted its own investigation to learn the identity of
> those leaking information to the Senate.
>
> Also, board members have conflict of interest relationships
> including one board member who is a lawyer, was paid an
> additional 64K last year and his legal firm was paid over
> 200K for services. The CEO, a former Flieshmann-Hillard
> advertising exec, has allowed his former employer to benefit
> to the tune of over 200K for advertising fees.
>
> The NAIC CEO appeared as smug as can be when Scott Cohen,
> CNBC, attempted to interview him about these excesses. I'm
> glad that CNBC conducted this investigation and I hope that
> the Senate Finance committee takes additional action against
> the NAIC.
>
> It's too bad that a greedy and sleazy few have been allowed
> to tarnish the reputation of an organization that was
> founded on the principles of investor education and
> responsible corporate governance. As the CNBC reporter
> stated, it's too bad that it doesn't practice what it
> preaches!
>
> I am, as well as my club, are finished with the NAIC!


Thank you. I was looking forward to that expose, as I heard
them talking about it earlier in the week. Due to my work
schedule, I was not able to see it. I could tell from the
previews that it was not going to be favorable. Some of our
members have been pursuing joining them, but the cost was
too high for our small club. I also felt it would diminish
the due diligence of our members to rely on their
recomendations. I have always been against joining them, as
there is everything you need to know available for free if
you know where to look. Thanks to CNBC for bringing this out
into the public eye. And thanks to the creators of Bivio,
for giving us such a useful and full-featured web based
accounting program at a reasonable price. Good luck to all
clubs.

Now you know why bivio has never been mentioned in Better Investing
magazine, or allowed to participate in NAIC events. The organization is
addicted to dollars from the "official, approved" accounting product,
even though it is inferior and more expensive (and the official product
was even worse before bivio started taking business away). bivio has
growing by word of mouth, despite NAIC efforts. --Ion

Steven Cook wrote:

> Also, board members have conflict of interest relationships including
> one board member who is a lawyer, was paid an additional 64K last year
> and his legal firm was paid over 200K for services. The CEO, a former
> Flieshmann-Hillard advertising exec, has allowed his former employer
> to benefit to the tune of over 200K for advertising fees.

> As the CNBC reporter stated, it's too bad that it doesn't practice
> what it preaches!

> Steven Cook wrote:
>
> > Also, board members have conflict of interest relationships including
> > one board member who is a lawyer, was paid an additional 64K last year
> > and his legal firm was paid over 200K for services. The CEO, a former

I don't think he is just any board member either. I think
he may be the person who puit together all of the paperwork
for the shell game that is NAIC to begin with.

My team never used NAIC......figured it was worthless to buy
into the scheme.

Steven Cook wrote:
> If you saw the report on the NAIC this afternoon on CNBC,
> you are probably as disappointed and disgusted as I am. For
> those who didn't get a chance to see the report, NAIC, an
> alleged not for profit organization, is being investigated
> by the US Senate Finance Committee (in fact is now at the
> center of the investigation of the committee's investigation
> into not for profit organizations) for excessive salaries,
> perks, etc. For example, the CEO is paid a salary of over
> 400K, paid for Cadillac Escalade, paid for country club
> membership, etc. All board members receive free cars, free
> club memberships too. The only board member to question
> these sleazy practices, Ralph Seger, was fired for doing so.
> Other NAIC employees were fired or suspended (such as Mark
> Robertson, Director of Online Services) for answering the
> Senate committees questions. NAIC was reported as having
> conducted its own investigation to learn the identity of
> those leaking information to the Senate.
>
> Also, board members have conflict of interest relationships
> including one board member who is a lawyer, was paid an
> additional 64K last year and his legal firm was paid over
> 200K for services. The CEO, a former Flieshmann-Hillard
> advertising exec, has allowed his former employer to benefit
> to the tune of over 200K for advertising fees.
>
> The NAIC CEO appeared as smug as can be when Scott Cohen,
> CNBC, attempted to interview him about these excesses. I'm
> glad that CNBC conducted this investigation and I hope that
> the Senate Finance committee takes additional action against
> the NAIC.
>
> It's too bad that a greedy and sleazy few have been allowed
> to tarnish the reputation of an organization that was
> founded on the principles of investor education and
> responsible corporate governance. As the CNBC reporter
> stated, it's too bad that it doesn't practice what it
> preaches!
>
> I am, as well as my club, are finished with the NAIC!

 From: "Timothy Mansfield" <tmansfie@bivio.com>

> My team never used NAIC......figured it was worthless to buy
> into the scheme.

Tim, In defense of NAIC, I have to tell you that had it not been for NAIC,
I wouldn't be as far along in my investing as I am today. This is a
50-year-old organization that has always had its members' best interests at
heart.

UNTIL...Mr. Tom O'Hara retired and a new management team was brought in.
It's the new management team, and the lack of action from the trustees, that
has caused this fiasco.

NAIC has approximately 40 employees and 200,000 members. It's the volunteer
members who do all the work! And we are just as disgusted as you are with
the whole thing!

I just want you to know that NAIC is not a scheme. It's an organization
that educates investors on how to invest in fundamentally sound companies.
And it works. Once we can get management booted, we'll be back to taking
good care of our members again.

Lynn Ostrem, Minneapolis
garbagecop@foxinternet.net

CNBC's Scott Cohn gave an update this past week on the NAIC
scandal and reported that the Michigan AG is now
investigating the NAIC.

I really would like to see the NAIC purge itself of all the
bad apples, specifically Ken Janke, Dick Holthaus and the
entire board. I spoke to Irving Roth at IClub Central a
week or two ago and he indicated that there is a "grass
roots" effort underway to see that these sleazy individuals
are removed from the NAIC. I wonder how Tom O'Hara feels
about Janke now?

I know that if something isn't done soon, my club won't be
renewing its membership when it comes due.

Lynn Ostrem wrote:
>
> From: "Timothy Mansfield" <tmansfie@bivio.com>
>
> > My team never used NAIC......figured it was worthless to buy
> > into the scheme.
>
> Tim, In defense of NAIC, I have to tell you that had it not been for NAIC,
> I wouldn't be as far along in my investing as I am today. This is a
> 50-year-old organization that has always had its members' best interests at
> heart.
>
> UNTIL...Mr. Tom O'Hara retired and a new management team was brought in.
> It's the new management team, and the lack of action from the trustees, that
> has caused this fiasco.
>
> NAIC has approximately 40 employees and 200,000 members. It's the volunteer
> members who do all the work! And we are just as disgusted as you are with
> the whole thing!
>
> I just want you to know that NAIC is not a scheme. It's an organization
> that educates investors on how to invest in fundamentally sound companies.
> And it works. Once we can get management booted, we'll be back to taking
> good care of our members again.
>
> Lynn Ostrem, Minneapolis
> garbagecop@foxinternet.net