Passes & Canyons Blog

I was asked by a contact with the Colorado Sportbike Club about my thoughts regarding ABATE of Colorado going forward.

Do you think ABATE should continue/survive? If so, do you think the changes that need to happen could be executed? Where do we go from here?

I didn’t answer right away because I had to do some serious thinking. When I did reply, this is what I said.

Tough questions, which is why I didn’t reply immediately.

I do think we need some sort of lobbying group down at the capitol. And at this moment, ABATE is it. I heard from Terry that the legislators have made it clear that if ABATE ever got too chummy with the Confederation of Clubs that ABATE’s credibility would plummet and our voice would not be heard as welcome. So it’s not as if we could expect the COC to pick up the slack. An organization such as the Sportbike Club might be able to build a favorable presence down there but that would take time and I’m not aware of any such effort as of yet. So ABATE is what we have.

I just renewed my membership with ABATE. I joined years ago at the Last Brass Monkey Run so I’m always up for renewal at this time of year. I wondered about it because there are so many questions I, as a member, want answers to and haven’t gotten yet. But for only $30 I figured I’d go ahead. If dues were $100 I’m not sure I would have made the same decision.

I believe that Bruce Downs, as the new state coordinator, is sincerely interested in resolving a lot of the issues that lead to the group being where it is today. Bruce strikes me as a competent, intelligent person and I agree with him that looking forward is more important than looking back, though we definitely need to do some looking back.

I really don’t know the other people on the board and some of the negative things I’ve heard leave me less than totally confident about what we’ll see from there. I absolutely think ABATE needs to broaden its outreach beyond just the Harley crowd and I always applauded Terry’s work with the Sportbike Club and the MRA. From what I hear, some of the board members have a very different opinion in that regard. If that’s true I think those people need to ask themselves the question, do we represent all motorcyclists or just a certain group? And what are they, themselves, doing to bring in more members?

At the very least, it is my intention to get more involved either until I conclude it’s hopeless or–preferably–on an ongoing basis. I’ve always been moderately active and involved. That is, I at least come to meetings regularly and to some events. This coming Saturday (Jan. 17) I intend to go to the state board meeting, which will be at 11 a.m. at Mickey’s Steakhouse up at 72nd and Broadway. My impressions from that may have a significant influence on my hopes and expectations.

So we’ll see.

And so we will see. I’ll have more to say after the meeting, obviously.

Biker Quote for Today

If you think adventure is dangerous, try routine. It is deadly.

The legislative update at our ABATE of Colorado D-10 meeting on Sunday brought news of a bill possibly in the offing that would reinstitute a helmet law here.

According to State Coordinator Bruce Downs, Rep. Paul Rosenthal had first stated that he would definitely such a bill in the upcoming session. Rosenthal then apparently backed off from that, indicating that he might work on developing a base with an eye toward introducing such a bill in the 2016 session.

ABATE has been cooperating with two other major motorcycle groups in the state, the Colorado Confederation of Clubs and the US Defenders, preparing to fight any such bill.

The groups have put together a letter that will be made available at numerous motorcycle events, such as ABATE’s Last Brass Monkey Run this week and the Colorado Motorcycle Expo (formerly Colorado Motorcycle Show and Swap). Riders will be asked to sign the letter and provide their address, and then the letters will be sorted by the signer’s representative. Should a bill be introduced at any point the letters will be hand delivered to the appropriate representative.

The idea is to be ready, and hopefully to have thousands of signed letters in hand to be delivered.

“There’s no way this is going away,” said Bruce of the attempt to reinstate the helmet law.

According to Bruce, the organizations sought a meeting with Rosenthal to discuss the issue but the representative made it clear he would not be swayed by their arguments.

Recent from National Motorcycle Examiner
Only a biker knows . . .: Motorcycle wit and wisdom, 35

Biker Quote for Today

Full Throttle – solves the problem or ends the suspense.

I had a discussion recently with Bruce Downs, the new state coordinator for ABATE of Colorado, in regard to the financial issues the organization is facing. It was not a particularly satisfying conversation.

That’s not, in large part, Bruce’s fault. A lot of the questions I asked had to do with events that took place before Bruce stepped in as the new state coordinator. He has no desire to comment on matters that he had no knowledge of, and no one can blame him for that. In many cases he said that he was asking the same questions himself and so far had not been able to come up with solid answers.

I have to admit, too, that I had an erroneous understanding going into this discussion. With all the stories and rumors going around, Bruce had issued a statement to the membership denying/refuting specific claims and offering . . .

This is where I didn’t read carefully enough. I had the idea in my head that he was offering to speak to anyone who had questions about the matter. If I had really focused on his words I would have had a different take. Here’s what he said:

I would like to state right now that I am interested in getting to the truth about the rumors circulating about ABATE and its operation. I am willing to meet with anyone who can provide me with justifiable documentation as to the rumors.

And then this:

Again, I ask that anyone with justifiable documentation please come forward and show me the proof. I and others have dug deep and can find no evidence to support any of the rumors. I am willing to be corrected and will say so. If no justification can be provided any statements made are based on hearsay and innuendo and will be treated as an effort to defame ABATE and will be dealt with as such.

Not at all what I was thinking, is it? Bruce was not offering to answer questions, he was asking anyone with information to help answer his questions. So I soon got frustrated asking questions to which Bruce would respond that he didn’t know the answer. That was my own fault. But it had been my intention to speak with him even before he sent that note out, so my questions were the same as they would have been.

With that said, what did we discuss, and what did I learn? A little; not much.

My first question was broad: Considering how flush the organization was a few years ago, how did we get to the point where someone decided borrowing money at a high rate of interest was a good idea?

Because most of the money flowing through ABATE comes from rider training, this is inevitably where this question leads. Bruce walked me through the introduction of new competition and changes in the Colorado Motorcycle Operator Safety Training (MOST) program that reduced revenue per student. While a relatively stable number of trainees signed up for classes, trainers proliferated and ABATE, which at one time was training more than 5,000 per year, last year trained around 2,700. Meanwhile, the amount paid to training organizations by the MOST program in order to reduce the cost to the students, thereby encouraging more students to get trained, fell from $100-$125 apiece to about $35 now.

OK, I knew the generalities of all that, if not the particulars. So what did the board do, and when, to address this declining revenue?

“I cannot answer that question for you.”

Bruce was on the board in the early 2000s as Northeast Regional Coordinator but left the board before the downturn. So he was not there to be privy to the discussions that may have gone on.

Let’s move on to the stories about a $45,000 ad campaign that reportedly went nowhere.

I have no idea where that figure came from and to hear Bruce discuss it, he doesn’t either. In his message to the members he had said as much:

As to the rumor that ABATE spent $45,000.00 on advertising I can find no documentation or evidence that that claim is true. We did spend a lot (in my opinion) of money on advertising but nowhere close to the amount claimed. Please prove the claim or quit using false information.

He told me, “I have dug into the 2014 financials and there was nowhere close to $45,000 being spent on advertising, much less $45,000 over budget. It has come to my attention that this did not even occur this year. If that is the case, I’m still going to look into it, but if this is something in the past, it’s something in the past.”

Let’s move on to the loans that are crushing ABATE now. Who made the decisions to take out those loans?

Bruce doesn’t know. He wasn’t there when the decision was made and apparently conversations that seem crucial now were not seen to be significant at the time, so memories are vague.

Why were the loans taken?

“As I understand, it was because we were short money and needed to pay bills.”

That about sums things up. That’s about all Bruce was able to provide.

I want to make the point here that Bruce’s focus since he took over as state coordinator is primarily on the future, not the past. His primary focus is on accomplishing whatever is necessary for the organization to survive, and not so much on how we came to be in this spot in the first place. After survival is assured perhaps you can go back and look into how the problems came to be in the first place.

“I’m trying to give you as much information as I can. I don’t know that we’re ever going to . . . I think there’s way too many things that went on that we’re never going to be able to say, ‘This is the cause.’ I think it was a multitude of factors and hopefully we will learn from that. Hopefully the members will say, ‘Yes, I have a responsibility for this organization, and I am going to hold those more accountable in the future’ and go from there.”

I don’t argue with that priority. But as a member I’d still like to know how we came to take on these scandalous loans. I think it was Larry Montgomery who said at the first D-10 meeting where this was all announced, that “doing absolutely nothing would have been better than taking out these loans.” How the hell did that decision get made? I think we have a right to know.

Recent from National Motorcycle Examiner
Former ABATE of Colorado officer faces theft charge

Biker Quote for Today

The more complete your on-board tool-kit, the more likely it is that all your trail riding buddies will expect you to fix everything that breaks on their bikes.

A lot of people have had a lot to say about what has been happening within ABATE of Colorado since the news broke that Terry Howard had been fired as state coordinator and the organization is in deep financial trouble due to a loan taken out at an apparently loan-shark-level interest rate. I’ve been trying to sift the truth out from the hyperbole.

First though, let me provide an update on Terry. She was in court again on Friday for “second advisement” and a preliminary hearing was set for February 3 at 8:30 a.m. She is facing one charge: theft. A second original charge of forgery has been dropped. What she is alleged to have stolen, however, seems to be an issue.

I asked her, because I had absolutely no further information than that it was a charge of theft, what exactly it was that she was charged with having done. Not surprisingly, she declined to discuss it as her attorney had advised her not to. It soon came out, though, in the proceeding, that she could hardly have answered the question. Her attorney, Wade Eldridge, told the judge that the defense had never received any information on just what exactly Terry is alleged to have done. It’s hard to prepare a defense without knowing what the charge is, he said (my paraphrase). The judge agreed that the defense was due a “bill of particulars” and the district attorney in the case said that would be provided right away. So that’s where things sit at this point.

In the meantime, some members–or perhaps at this time former members–of ABATE are not at all happy with how this whole matter has been handled. Some of Terry’s most vocal supporters are members of the Colorado Sportbike Club (CSC), which is a group Terry reached out to and drew into alliance with ABATE. I said when I first reported on this whole affair that I hoped the relationship weathers this storm. I’m not sure it is going to.

There have been a number of posts on the CSC forum and elsewhere that take the ABATE board to task and point fingers at persons other than Terry as perhaps responsible for whatever money seems to have gone missing. You can check these out if you’re interested:
http://www.cosportbikeclub.org/forums/showthread.php?53440-ABATE-of-Colorado-Rotten-from-the-Inside!!!
http://www.cosportbikeclub.org/forums/showthread.php?53434-ABATE-of-Colorado-WTF
http://thedandooligan.wordpress.com/2014/11/14/letter-from-ann-layson-on-11132014/

Trying to stamp out some of the smoldering fires, Bruce Downs, the new ABATE state coordinator, issued a letter to the membership denying a number of charges and saying that, “I ask that anyone with justifiable documentation please come forward and show me the proof. I and others have dug deep and can find no evidence to support any of the rumors. I am willing to be corrected and will say so. If no justification can be provided any statements made are based on hearsay and innuendo and will be treated as an effort to defame ABATE and will be dealt with as such.”

I had been intending to approach Bruce with questions as soon as I felt I had enough background to even know what I wanted to discuss. This email came right at the point when I felt I was ready, so I immediately replied that I would like to take Bruce up on his offer to discuss things that was also part of his note. A couple days later we spoke. This post is already getting long so I’ll go over what came out of that discussion in a follow-up post.

Recent from National Motorcycle Examiner
Former ABATE of Colorado officer faces theft charge

Biker Quote for Today

Do not ignore fear – outride it.

I spoke to people from the Denver Police Fraud Unit and the Denver District Court Wednesday and got a few things clarified regarding the charge against former ABATE of Colorado State Coordinator Terry Howard. She definitely has been charged, but only on one count of theft. I had been told previously, and reported with caveats, that there were charges of forgery and theft. (I have updated that post with this new, solid information.)

There still isn’t much official information available yet but I did learn that there will be a “second advisement” at 1:30 p.m. on Friday, Dec. 19 in Room 2100 at the Denver City and County Building. The case is #CR146265 in case anyone wants to pursue it. I will definitely be there.

While this case is crucially important for Terry Howard, not at all meaning to be dismissive toward her, it is really small potatoes for ABATE. ABATE has a much bigger issue, which is this crushing debt that threatens to wipe out the organization. I’ll be following the case but I’m going to be spending a lot more time trying to get answers to the questions regarding how ABATE ever got here in the first place.

I want to spell out the questions I’m going to be pursuing, both to let you know where I’m headed and also to organize my own thoughts on what I want to do. I’ll include a little history along the way.

There was a time not long ago when ABATE was flush. Revenues from the rider training program were in excess of $1 million a year, providing the group the cash to put the state coordinator on salary along with the rider training program manager (already being paid, I believe) and two folks to work in the office. Ben Hochberg was the rider training head and it was largely through his efforts that the program was doing so well.

Personalities were conflicting in the office, however. One thing led to another and Ben got fired. One thing I want to understand is how–and if–Ben’s departure ties in with the decline in the program and the revenue it brought in. Was there already a major decline in proceeds when Ben left? Or did the program nosedive after he left? I do know there were some issues before Ben left that he tried to warn the board about but I’m not clear if they were financial.

So Ben left and then what happened? I do know the state MOST program (Motorcycle Operator Safety Training) went through some changes, and I’ve talked about them here. Was that change in MOST all by itself the cause of ABATE’s financial crash? Or was firing Ben a decision that really should have been avoided at all costs? Or what other factors came into play?

Either way, it is my understanding–and I want to know a lot more about this–that ABATE launched an advertising campaign to the tune of about $45,000 and apparently was not very successful. I’m an active member. I go to meetings. I have never heard about this ad campaign. I want to know what it was for, what it entailed, what the results were, and who made the decision to do it, and why.

And then this expense apparently led to a need to take out a loan just to meet expenses. And ABATE apparently didn’t have the credit standing to qualify for a bank loan so Terry personally signed or co-signed for it. How did we fall so far so quickly? Why was this loan even necessary?

And after that came another loan, I guess intended to cover the first one. Who made that decision? What discussion went into that? And this is the one that is killing ABATE. I saw an article about exactly this kind of loan-sharking in the Nov. 17-23, 2014, issue of Bloomberg Businessweek magazine. Discussing this field of finance, the magazine says, “It’s a high-risk market, and interest rates can exceed 500 percent a year.”

And they quote someone who lost her company because of falling for this loan come-on: “It’s the worst possible decision you can ever make, because they own you. It’s crack for a business. You can’t get off it.”

I repeat: how did we ever get to this point? I want details and I want names. Not to blame and point fingers, but if the same people who made these decisions are calling the shots today then I’m going to have some serious issues about trust. And I know I’m not the only one. I was all prepared to write a check to do my part to help bail the organization out but when I started learning about all this I put down my check book. I’m going to need answers before I reach for that check book again.

Biker Quote for Today

I know there’s money in motocross. I put it there!

I went to the Denver Police substation yesterday to try to get confirmation and details, but apparently because this reported action came from the District Attorney’s Office the PD didn’t have it on their computer. I haven’t had time to contact the DA yet. So be advised that so far, all I’m about to tell is hearsay.

I heard from two people on Friday that Terry Howard, the former state coordinator for ABATE of Colorado, had been criminally charged. One of the two sources included the information that the charges were forgery and theft.

Update 12-10-14: I learned today directly from the Denver District Court that Terry has been charged with theft, not forgery.

This whole story has been exploding all around me. Because I seem to be the only one with journalistic pretensions following it, many people who have an interest and know about the matter has been contacting me. I definitely appreciate everyone who has contacted me but it’s going to take me awhile to sort through it all.

The greater number of the folks I have spoken with tend to have tried and convicted Terry in their minds. It was very interesting then to receive the email from someone who supports Terry and stands by her. There are a whole lot of interesting statements in her note that I hope to learn a lot more about.

For instance–and again, this is still only hearsay–apparently the organization needed a loan quickly to meet obligations but was not able to qualify for a loan from a bank. So Terry took out a $28,000 loan in her name–or personally co-signed for a loan, I’m not sure which–with the money going to ABATE. This person also says that “Terry also started finding discrepancies in the books. Before she could present her findings, and the day the check cleared for the $28,000 to keep ABATE afloat, she was suspended on suspect of theft and fraud and subsequently forced to resigned.”

Now, obviously, that sort of action doesn’t rule out the possibility of having committed forgery and theft, but it does put a little different light on the person who is accused. Likewise, some of the very negative information I’ve been given about Terry’s management of ABATE could very well be true–and I suspect some of it, maybe even a lot of it, is true–but that would not lead inevitably to the idea that she is also a forger and a thief. Nor would it suggest that she is not. They aren’t necessarily related at all.

I really see at least two linked but separate stories playing out here: First, how did ABATE get into this horrendous financial bind? And second, was there actually forgery and theft, and if so, who was the forger/thief? And in the meantime, there’s just too little information for anyone on the outside to make an informed judgment. Of course, that’s why we have courts and juries. We just hope that true justice prevails, whichever direction that may lead.

I will keep talking to people; I’ve barely gotten started. My pace will be slow. I’m not interested in getting the story first; I’m interested in getting it right.

Biker Quote for Today

Any bike can be taken off road. The question is: How much fun did you have doing it?

First let’s address the investigation into possible financial misdeeds at ABATE of Colorado:

At our District 10 meeting on Sunday, Metro Regional Representative Larry Montgomery confirmed that, at State of Colorado direction, the Denver Police fraud unit was brought in on the matter. To recap, the ABATE board discovered some financial irregularities, investigated, and ended up firing State Coordinator Terry Howard for a “failure to perform” her fiduciary duties. The situation was then reported to the state, as required by law governing 501(c)3 organizations. At the October D-10 meeting we were told that the state would decide what happens next.

The state decided that going to the fraud unit was what was next, and Larry said that unit did an investigation and has now turned their report over to the District Attorney to decide where it goes from here. There is no timetable as to when any decision will be made or any action taken.

Now let’s turn to the group’s financial woes, which are in fact a fight for life or death.

Bruce Downs, a long-time ABATE member, has been chosen the new state coordinator by the board, pending resolution of one minor issue regarding who can serve as state coordinator. Bruce spoke at length about the problems, how we got there, and how we hope to get out of them. I’ll try to cut it down to the basics.

A number of years ago ABATE was one of only a few organizations offering motorcycle rider training in Colorado. ABATE was bringing in more than $1 million a year in training revenue, and the organization became dependent on that cash flow. In recent years new competition has emerged and the landscape has shifted a good bit as well. However, no one at ABATE was sounding the alarm and things continued as before, even though the revenue picture was changing.

Update 11-25-14: I’ve been contacted by Ben Hochberg, who ran the training program for several years, and he assures me he was sounding an alert, but nobody listened. I’ll have more on this soon.

In January of 2013 a $40,000 loan was taken out and later that loan was replaced by another one. The terms of the second loan were onerous. Service on that loan is now costing ABATE $287 a day. Larry and Bruce both declined to name names or provide details, but said that a lack of organizational oversight permitted this bad deal to be made. Now the group has to get out from under this “deadly” (Larry’s word) burden.

Bruce told us that “ABATE is now being run by committee.” This means that one arm of the organization cannot commit the group to anything without the OK of the other, relevant arms, and the board makes all final decisions.

As part of that, he also said, ABATE will focus on its true mission, being a motorcycle rights organization, with rider training a secondary pursuit. Training classes are being cut and training bikes are being sold. Revenue from these bikes will be a significant part of making ends meet for the immediate future. Each district in the state will raffle off one bike, several will be placed with a consignment house for sale, and others will be listed on craigslist.

All paid staff members have already “fired themselves” and are performing essential duties on a volunteer basis. The printed Spokesman newsletter will be published online only next month and will cease publication after that. From then on, Bruce will issue an update every other week on what is happening and where matters stand, and the district reps will be expected to pass this along to their members.

Meanwhile all the districts in the state have been asked to send all their funds, minus $50 to keep their checking accounts open, to the state. District 10 voted on Sunday to do that. An appeal has been put out to members for donations and the Motorcycle Riders Foundation, the national equivalent of the state-organized ABATEs, passed along the appeal nationwide. Responses were immediate, ranging from a couple pledges of cash to “Your problem–too bad.”

If possible, ABATE would like to raise $40,000 from investors to purchase a certificate of deposit, which would be used to secure a loan on better terms so as to pay off the “deadly” loan. Those who put in money for the CD would be paid back with interest at the end of the CD’s term, seven or eight years. Bruce estimated the payments on the new loan would be around $500 per month, versus the current $287 per day. If the group defaulted on the new loan, the bank would take the CD and all the investors would lose their money.

Although Bruce expects it to take at least a year to get the organization fully sorted out and on a new, more sustainable path, whether or not it will survive to carry out these plans is currently the biggest issue. It should be decided within the next two month, he projects.

These were Bruce’s closing remarks:

“It’s time for the choir to start singing. This is not going to be Bruce’s organization; it can’t be one or two people. . . . I know everybody gives a lot of time; you’ve got to give more. I don’t know what else to say, right now we’re sink of swim. We’ve got maybe 30, 45 days, to figure it out. We’ve got to make ABATE a business like it should have been all along and we’re going to do that, if that’s what everybody wants to do. If everybody wants to sit back and say, ‘Ah Larry will do it or Bruce will do it,’ it ain’t gonna happen.”

Biker Quote for Today

You wouldn’t be riding a motorcycle if you weren’t an optimist.

Do you think it’s a good idea to have an organization that stands up at the state level for motorcyclists’ rights? That’s what ABATE of Colorado does. When there are laws proposed that would be harmful to us, we have someone down at the Capitol fighting for us because we have ABATE. But for how long?

I was very surprised to open my email this evening and find two messages. First this one:

The financial picture presented at the SBOD Meeting on November 15th was extremely dismal. ABATE of Colorado is in a very serious financial situation. With training income diminishing this time of year, our cash flow is severely negative. Our current past-due bills, plus those that will become due in December, greatly exceed our liquid funds and accounts receivable. The Financial Oversight Committee has done everything possible to keep the doors open, but this requires the efforts of all ABATE of Colorado members and districts as, collectively, we are ABATE of Colorado.
Actions taken to date include Deb, Perrie, and Don voluntarily “laying themselves off” and then coming in to keep vital functions going on a volunteer basis. Bills are getting paid as money is available.
We discussed many options to increase our cash flow at the SBOD Meeting, such as: selling excess training bikes; raffling off bikes; posting bikes on Craig’s list; consigning bikes for sale in Colorado Springs; donations from members, sponsors, and other SMROs; and soliciting investments in a CD so we can secure a loan. While these are good ideas, none get us “immediate” help.
One way to help us pay our bills right now would be for each district to forward to the State account all but $50 or so of their district treasury. Please consider our dire need and give what you can. Keep in mind that districts do not exist without the state organization being viable.

And then this one:

Due to various circumstances, ABATE of Colorado has found themselves in financial dire straits. In an attempt to overcome this situation, we’d like to secure a loan to help us through the winter months.
A bank we contacted will give us a loan equivalent to the amount of a purchased Certificate of Deposit (CD). We’re asking supporters of ABATE to invest in a CD. We realize your investment wouldn’t be a “great” return on investment, but it would enable ABATE to secure a much needed reasonable interest loan to pay off our extremely high interest / short term loan.
When the CD matures in about 7 to 8 years, your investment will be returned along with the appropriate interest earned. Your investment will be deposited in a separate account until enough money can be secured to purchase an appropriate CD (which we hope will be only a few weeks) and will not be used for anything else. We’ll contact you when the CD is purchased with the mature date and rate of return. A signed receipt will guarantee the above promises.
Thank you for supporting ABATE and investing in a CD to help our financial situation. Please respond by Friday, November 28, 2014.
Below is a temporary receipt for investment, to be followed by a formal official receipt for investment from the ABATE State Office.

I will be digging in my pocket. Even if you don’t choose to be a member, if you think what ABATE is doing is valuable, I urge you to help out, too.

Biker Quote for Today

It’s not about the bike nor the ride; it’s about the adventure in life we all seek. Great memories are made of taking the trail less traveled and explored.