Know Your Players

(This short chapter, in its entirety, was written by SN-L commentator InYourWindow for the SN-L:

You might want to take a closer look at W.D. Management or White Dog Management. This for-profit entity began its relationship with Alternative Opportunities back in 1992 or before.

Look closely and you will find a pattern of conflict of interest between the for- profit and not-for-profit. How much has the not-for-profit been bled by the for-profit? How many other state bids has AO won without discussing its conflict; contracts with the Missouri Department of Mental Health and the Missouri Department of Social Services? Many!

Does the for-profit rent to the not-for-profit? Well, take a look at 1111 S. Glenstone Avenue, which is owned by White Dog Properties (Tom Goss), and is rented to Alternative Opportunities? How much money is the not-for-profit paying for rent to the for-profit White Dog Properties? Who builds up equity – the for-profit or not-for-profit? The for-profit.

Pretty slick deal.How much money would W.D. Management have to be siphoning off of the not-for-profit AO in order to have a for-profit pay $16+ million in order to have a 10 year management contract? How many Missouri not-for-profit statutes have been violated by this for-profit using the sham not-for-profit?

Take a look at Alternative Opportunities “merger” with Lakes Country Rehabilitation.
Is it true that then Lakes Country Rehab CEO Bob Scheid was promised and paid $500,000 by Alternative Opportunities to support the merger? Was Tom Goss functioning as CEO of Alternative Opportunities at that time? Yes, he was. Pretty slick deal.

If a national for-profit corporation is willing to buy W.D. Management for approximately $17 million dollars, and the only apparent asset they are purchasing is a 10-year management contract of this not-for-profit, how much money must that national for-profit expect to bleed off the not-for-profit in just ten years?

Obviously, the national for-profit entity expects to make substantially more than $17 million off of the management contract. The for-profit manages the not-for-profit, thereby determining how much profit it can make from the not-for-profit. Completely contrary to the intent and purposes of the non-profit statutes, but still...a pretty slick deal.