SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF ORANGE
_______________________________________________

Sam Sloan,

Petitioner,

Index No. 2004-7739
-against-
Affidavit in Support
of Order to Show Cause

Beatriz Marinello, Tim Hanke, Stephen Shutt,
Elizabeth Shaughnessy, Randy Bauer, Bill Goichberg,
Kenneth M. Chadwell and United States Chess Federation,

Respondents.
________________________________________________

Sam Sloan, being duly sworn, deposes and says:

1=2E Since the initial petition was filed in this case on November, 2004,
drastic and irreparable harm has occurred to the United States Chess
Federation, much as I predicted. The top five officials of the USCF
have all been pushed out of office, fired or forced to resign. Beatriz
Marinello, the current President of the USCF, has taken over as Chief
Operating Officer, in clear violation of the USCF By-Laws and New York
Not-For-Profit Law.

2=2E Bill Goichberg left as Executive Director on December 31, 2004 and
Ken Thomas left as Chief Financial Officer on the same day. Kalev Pehme
has been fired as Editor of Chess Life magazine. Barbara VanDerMark is
no longer Executive Assistant and has moved to Florida. Judy Misner,
Managing Director, has been sent to Tennessee. Thus, the top five
people are no longer there.

3=2E On January 3, 2005, Beatriz Marinello took over running the office
on a day-to-day basis. She told the remaining staff members that their
jobs were guaranteed only until the end of January.

4=2E A meeting of the USCF Executive Board was held on December 19, 2004
in Boca Raton, Florida. The original agenda of this meeting provided
that Beatriz Marinello would resign as President as of January 1, 2005,
at which point she would take over the day-to-day operations as Chief
Operating Officer. However, prior to the meeting, Ms. Marinello
realized that she might not have enough votes to hold the position of
Chief Operating Officer unless she was also President, so she changed
her mind and decided to hold both positions. Her resignation was taken
off the agenda. This violates at least three provisions of the USCF
by-laws. Article VI Section 4 of the USCF By-laws states:

"No employee of the USCF is eligible to serve on the Executive Board"

See http://www.uschess.org/org/govern/Bylaws.php

5=2E Beatriz Marinello is now serving on the Executive Board as USCF
President. She is also employed by the USCF as Chief Operating Officer.
This is a clear and obvious violation of USCF By-laws. Therefore,
Beatriz Marinello must immediately resign or be removed as USCF
President.

6=2E The defendants respond to this in Internet postings by saying that
Beatriz Marinello does not receive a regular salary, and therefore is
not an employee. They claim that she is a "volunteer" who only receives
expense money, they say. However, the expense money she receives is
considerable, probably as much as a salaried employee would be paid. It
is known that she receives a $50 per day food allowance, or $350 per
week. She also receives $300 per month to park her car in New York
City, even though her duties as "Chief Operating Officer" do not
involve travel to New York City. (Apparently, she travels to New York
City for treatments for her kidney disease.) She also receives
considerable travel expenses, including for frequent trips between
Miami where she lives and New Windsor, New York, where the USCF office
is still located.

7=2E A total of $60,000 has been budgeted for "expenses" for Beatriz
Marinello from now until July. This is considerably more than the prior
executive directors received as salary.

8=2E Beatriz Marinello sits in the USCF office almost every day, at the
desk in the chair normally occupied by the Executive Director, unless
she is on one of her all-expenses-paid trips. She makes decisions,
issues orders, hires and fires people and is the major working
executive of the USCF. She writes her own checks, controlled only by
her political allies. There is no way to know how much she is paying
herself. For her to claim that she is a "volunteer" and not an employee
is ridiculous and absurd. I am sure that there is a multitude of case
law on this, including Workman's Compensation Law, showing that she is
clearly an employee.

9=2E Another board member is the recipient of largess. Elizabeth
Shaughnessy, who resides in Berkeley, California, is receiving
considerable expense money to supervise the work of the Crossville
architect who has been hired to design and supervise the construction
of the new building in Crossville, Tennessee. The USCF has signed a
contract to pay the architect $60,000. This is for a building that was
only supposed to cost $300,000, not counting the fee for the architect.
The Beatriz Group claims that this is justified because Elizabeth
Shaughnessy is an architect. However, Shaughnessy has not worked as an
architect for many years, if ever. Her professional job is teaching
chess to children and running chess camps and schools.

10. This would be of little moment except that the by-laws of the USCF
prohibit this. In Not-For-Profit Corporations such as hospitals and
universities, the members of the Board of Directors are never
employees. I have not been able to find any case law requiring this,
however.

11. The sale of the USCF's building in New Windsor, New York was
prohibited by the by-laws. The by-laws provide:

B=2E The building and land cannot be encumbered, liened, or mortgaged in
any fashion without action by the Delegates at a regular meeting or
special meeting called for that purpose, except as provided in Section
10 below.

Section 10. Life Member Assets Management.

Borrowing of an aggregate of more than $200,000 is possible only when:

1=2E The Executive Director certifies that there is a need for such
borrowing.

2=2E The Executive Board approves of the borrowing.

3=2E The Life Member Assets Management Committee approves of such
borrowing.

4=2E A report shall be made to the Delegates in the Annual Report
describing the funds borrowed and repaid during the past year

12. No such action was voted upon or taken by the Delegates at a
regular or special meeting called for that purpose. The opponents are
claiming that a vote that was taken at the August 2002 delegates
meeting in Cherry Hill, New Jersey covers this. However, that was for
a different amount of money at a different time under different
circumstances. That proposed sale did not take place for reasons which
are still not clear. No vote on this matter was taken at either the
August 2003 or the August 2004 delegates meetings. Obviously, a new
vote was required in view of the passage of time and the change in
circumstances.

13. The Bylaws state:

"The Executive Board shall be subject to the authority of the Board of
Delegates, and none of its acts shall conflict with actions taken by
the Board of Delegates."

14. This means that if the Executive Board does contravene the acts of
the Board of Delegates, it is a Bylaws violation. The "Standards of
Conduct for the Executive Board", are to be found at:

http://www.uschess.org/org/govern/conduct.html

"The USCF Board of Delegates establishes the following standards of
conduct for Executive Board members in the performance of their duties:

(2) (a) Except where noted below, no Executive Board member or a member
of his immediate family may receive financial compensation from the
USCF for any reason, except for standard reimbursement of expenses,
during his tenure on the Board, or for two years after completing his
tenure if such compensation results from bids accepted or agreements
made by the Board during his tenure. In claiming expense reimbursement,
a Board member must claim only that portion of expenses that were
incurred in non-political activities that were a legitimate exercise of
the Board member's duties. Any unusual expenses for which reimbursement
is questionable must be referred to the full Board for consideration.
Board members are expected to exercise all reasonable frugality in
incurring expenses to be reimbursed."

15. This act of the Delegates does in fact flat-out prohibit Beatriz
Marinello and Elizabeth Shaughnessy from receiving money from the USCF
"for any reason", except to reimburse expenses incurred in the course
of their duties as a member of the Board. Their duties as a member of
the Board involve attending meetings of the Board held four times a
year and air fare to and from those meetings. Three hundred dollars a
month for parking a car in New York City is not a legitimate expense
incurred as a member of the Board.

16. Traditionally, the expenses incurred by Board members have amounted
to a few hundred dollars per year. For example, one year, Don Schultz,
who was USCF President at the time and who lived in Miami, took a limo
to the airport to attend a Board meeting and charged the limo expense
of $50 to the Board. This caused a tremendous flap and row which
reverberated for months over the Internet. Some Board members argued
that Mr. Schultz should have taken a public bus to the airport at a
cost of less than two dollars. The harsh debate over this $50 limo
charge can be found in the Google archives of the newsgroup
rec.games.chess.politics .

17. Now, in contrast, we have Beatriz Marinello and Elizabeth
Shaughnessy spending tens of thousands of dollars of USCF membership
dues with no board or membership oversight at all. Nobody knows how
much they are spending or how much they are paying themselves.

18. Even if Beatriz Marinello had in fact resigned, and then was
immediately given a contract as move coordinator or anything else, the
Executive Board would have had to show some kind of "paper trail" to
prove that the "agreement" was made only after she resigned. If Ms.
Marinello had resigned in the expectation of being given a contract,
and then immediately after getting it (the minute after, the day after,
the week after), one would be hard put to it to say there was no
"agreement".

19. What we have here is a bandit group acting completely illegally in
total violation of New York Not-for-Profit Law and of USCF By-laws.
They clearly have no care nor concern for legal niceties. They belong
in jail (which might be the best thing for Beatriz Marinello, because
then the government and not the USCF members will be required to pay
for treatments for her kidney disease.)

20. Each of the illegal agreements to move to Tennessee and to appoint
Beatriz Marinello as Chief Operating Officer have passed by a bare 4-3
vote. There is vocal opposition to all this, led by Dr. Frank Brady,
the only qualified person with significant experience running a
business who is on the Board. Dr. Brady is Chairman of the Department
of Mass Communications, Journalism, Television and Film of St. John's
University. By contrast, the most of the group pushing through this
illegal scheme to loot the few remaining assets of the United States
Chess Federation are a motly crew of nerdo well unemployeds or
minimally employeds. Mostly, they teach chess to children
professionally. Beatriz Marinello has never held a regular office job
anywhere except as USCF Scholastic Director, which primarily involved
directing or supervising chess tournaments for children. She has no
background in business or finance. She has no background for working in
a business office, much less running one. She has never submitted a
resume or signed or submitted a job application or gone through the
interview process normally required by any job applicant. She would
never have been hired for this job of Chief Operating Officer were she
not Chairman of the USCF Executive Board.

21. The motion papers submitted by Michael J. Matsler state that I
never served the papers other than the signed Order to Show Cause. This
is simply a lie. ALL OF THE PAPERS WERE SERVED ON ALL OF THE
DEFENDANTS. However, the papers other than the signed order to show
cause were all served previously. They were all served on the same day
that this case was filed. They were also posted on the Internet and on
my website on the same day, which was November 12, 2004. Since the
underlying papers had all been previously served, there was no need to
serve the same papers again. Please note the tricky wording in the
affidavit of Bill Goichberg.

4=2E On Tuesday, November 23, 2004 at 4:45 in the afternoon a man came to
our offices and delivered to me one copy of the same Order. Once again,
there were no other papers attached to the Order.

22. Please note that this sentence does not state that the underlying
papers were never served or received. Rather, it simply states that the
papers were not attached to the order. The fact is that the full papers
were served, but not on that day. They were served on November 12,
2004, which was 11 days previously. It is true that the previously
served papers did not have this index number on them, because the index
number had not yet been assigned. However, in New York State, unlike
other states, it is customary and indeed recommended to serve the
papers before the index number has been purchased, and that is what was
done here.

23. Opposing counsel claims that this court has no jurisdiction over
the defendants with the exception of Bill Goichberg because they do not
do business in New York State nor do they reside in New York State.
This is not true. They regularly attend meetings in New York State at
the USCF offices in New Windsor. They also have telephone conference
calls involving New York State. On September 29, 2003, the USCF
Executive Board held a meeting at the USCF Offices in New Windsor. The
minutes are posted at
http://www.uschess.org/org/govern/motions200309.html

24. Included among those present were Beatriz Marinello, Tim Hanke and
Steve Shutt, who are all defendants here. At that meeting, when the
question and answer time came, I raised my hand and asked a question.
This was a perfectly normal question which any normal board member
would have been happy to answer. Tim Hanke refused to answer the
question, which I had not even finished asking, and loudly stormed out
of the meeting. The meeting immediately broke up and almost everybody
left. Just a few minutes before all this had happened, Al Lawrence, who
was a 15 year employee of the USCF including 8 years as Executive
Director, abruptly resigned from all his positions with the USCF and
abruptly left the meeting because of obscene language including the
f-word and the a-word which had been used in closed sessions of the
Board, especially by Stan Booz, Chairman of the Audit Committee and a
political ally of Beatriz Marinello.

25. Most of the defendants evaded service of process. The papers sent
by certified mail were in most cases returned marked =81grefused" or
"unclaimed". Attached are copies of a returned envelope. I still have
the unopened envelopes which I am prepared to present to the court. The
defendants cannot be allowed to gain any benefit from evading service
of process. Defendants Beatriz Marinello and Elizabeth Shaughnessy were
in Spain attending the World Chess Olympiad which lasted from
mid-October to mid-November, 2004. I believe that Beatriz Marinello
went at USCF expense, which may be a violation of USCF by-laws because
she had no official status at the FIDE Congress. Only the USA Delegate
has official status. That is Robert Tanner. Elizabeth Shaughnessy
usually attends as a member of the Irish Woman's Team. She plays chess
(although very weakly). I assume that the USCF did not pay her
expenses. Don Schultz was there as well, but he usually travels at his
own expense.

26. There is also a requirement in the by-laws that candidates for
election to the USCF Executive Board receive "BINFOS", which is short
for "Board Information". Copies of all contracts and commitments are to
be included in these BINFOS. These should include any contracts to move
to Crossville, Tennessee. I am a certified candidate for election to
the Board. My name will appear on the ballot for election in August.
However, I have never received any BINFOS. In addition, Beatriz
Marinello is trying to have my candidate's statement banned from
publication in Chess Life.

27. The by-laws also require that tapes or typed transcripts of all
meetings of the board be posted on the USCF website. Although tapes of
some of the meetings have been posted, most have not. This is a further
violation of the by-laws.

28. Regarding their claim that all of the papers were not served, there
should be a traverse held on this. I have submitted affidavits of
service showing that all of the papers were served. The defendants
claim that only the signed order to show cause was served. The court
cannot accept one version and reject another version without a fact
hearing. Furthermore, I am willing to serve the papers again, to erase
all doubt. In addition, I believe that service of the signed order to
show cause is sufficient to provide notice to establish the
jurisdiction of the court, regardless of whether or not the underlying
papers were served at the same time.

29. It is unfortunate that the court has chosen to release the funds in
the previously frozen bank account without first conducting a fact
hearing on this matter. All of my sources of information have been cut
off. When I first filed this case, I knew more about the internal
situation of the USCF than probably anybody else, including even the
members of the Board, because everybody was calling me and giving me
information. This is how I was able accurately to predict what was
about to happen. Since then, Beatriz Marinello has pulled her wagons
into a circle. She has decreed that there be no conference telephone
calls and no group emails. All conversations should be one-on-one, so
that there will be no witnesses. This, plus the fact that the top five
office officials of the USCF have been removed, creates a situation
where nobody other than Beatriz Marinello and her small band of merry
men know what is going on in this organization of nearly 90,000 dues
paying members. I do not know whether the money is still in the Key
Bank in Newburgh, or in Crossville, Tennessee or in Chile. I have tried
in every way I can to find out, without success.

30. I believe that ultimately the only solution is a court injunction
removing Beatriz Marinello and her allies from power. It is obvious
that they will never obey the law or orders of this court. This court
dismissed this case on a technicality. Nevertheless, the Board members
were informed on the law. They have chosen not to obey the laws of New
York State and it is apparent obviously nothing will convince them
otherwise, except possibly some time in jail.

31. There is a new election campaign underway. The election will be
held in August. The swing members of the board, Elizabeth Shaughnessy
and Randy Bauer, were just elected to the Board for one year terms in a
special election held August 2004 to fill vacancies created when two
other board members resigned. This explains the sudden shift to move to
Crossville right after that election was held. Now, they must run for
full four-year terms. They are committing election fraud by making
false statements in their campaign flyers. A copy of a campaign flyer
handed out by them during the US Amateur Team Chess Championship held
in Parsippany NJ on February 19-21, 2005 is annexed hereto. It is
filled with false statements. For example, they state about Elizabeth
Shaughnessy:

"She is a current Executive Board member who has also played an
important role in saving the USCF financially. As an architect, she is
the liaison between the board and the architects to insure that the new
USCF headquarters building stays on budget."

32. None of this is true. Elizabeth Shaughnessy was first elected in
August, 2004 and had nothing to do with saving the USCF financially,
which had already occurred, so this statement about her is false.
Elizabeth Shaughnessy is not a practicing architect. She makes her
living teaching chess to children. It is possible that she has a degree
or some qualifications in architecture, but she has not worked as an
architect for many years, if ever.

33. This statement is noteworthy because it constitutes the only
instance where there is any mention of the fact that the team running
for election has sold the building in New Windsor and plans to move to
Crossville, Tennessee and to build a new USCF building there. The
membership has been kept in the dark about all these plans and the
costs thereof. The instant litigation and the freeze on the bank
account has not been disclosed to the voting membership either and I
believe that this is required.

34. I demand the disqualification of Michael J. Matsler as opposing
counsel, on the grounds of conflict of interest. Mr. Matsler has a
personal interest in the outcome of this case because his law partner,
Charles Frankel of the law firm of Rider, Weiner & Frankel, P.C.
represented the USCF at the closing of the sale of the building. Thus,
if the sale were found to be legally invalid because the Attorney
General was not notified and the sale was not approved by the court,
then the law firm of Rider, Weiner & Frankel, P.C. would need to repay
the money.

35. If you look at the court papers filed by Michael J. Matsler, you
will see that he does not state whom he represents. There are several
different legal entities sued herein. This includes the USCF, the USCF
Executive Board as a Body, the individual members of the Executive
Board, the former Executive Director and a lawyer in Tennessee. Who
among these does Michael J. Matsler represent? There are two members of
the Board that I have not sued, because they are opposed to the move to
Tennessee and the firings of the employees. Clearly, Michael J. Matsler
cannot claim to represent all of these distinct and conflicting legal
entities, and therefore he must be disqualified from representing them.

36. After eight consecutive years of huge losses followed by just one
year with a small surplus, the USCF board majority has embarked on a
ruinous plan to squander the few remaining resources of the corporation
to build a new headquarters building in Crossville, Tennessee. They
have hired two of themselves to oversee this absurd, ridiculous and
illegal scheme. The USCF voting members and delegates have not even
been informed of this plan, much less allowed to vote on it. All this
constitutes clear violations of the USCF By-Laws and of New York
Not-for-Profit Law.

37. In March, 2000, Beatriz Marinello had been fired as USCF Scholastic
Coordinator (although she claims that she resigned in protest of the
USCF's decision to settle the lawsuit she had instigated against
Richard Peterson). In August, 2003, only a few days after she had been
elected USCF President, Beatriz Marinello got some part of her revenge
by firing 17 members of the USCF Staff. Now, she plans to make her
revenge complete by firing almost all of the remaining staff and
gutting the remnants of the organization, while paying herself and her
political allies substantial expense money.

38. For all of these reasons, this case should be reinstated on the
calendar and an order to show cause should be signed.

39. No prior application has been made for the relief requested herein,
except for the two previous motions for an order to show cause filed in
this court.

WHEREFORE, the petitioner requests that this court issue an order to
show cause and a stay providing the following:

1=2E A freeze on all the bank accounts of the USCF at Key Bank in
Newburgh until a hearing can be had.

2=2E A temporary restraining order and a preliminary and permanent
injunction restraining and enjoining Beatriz Marinello, Tim Hanke,
Steven Shutt and Elizabeth Shaughnessy from taking any actions at all
with respect to the USCF until a hearing can be had. Beatriz Marinello,
Tim Hanke, Steven Shutt and Elizabeth Shaughnessy may not hire
employees, fire employees, buy anything, sell anything, enter into
contracts, write checks or pay or receive money or do anything at all
with respect to the United States Chess Federation.

3=2E A temporary restraining order and a preliminary and permanent
injunction restraining and enjoining the United States Chess Federation
or its officers or employees from doing anything to effectuate a move
to Crossville, Tennessee or to anywhere else absent the order of this
court.

4=2E An order enjoining Beatriz Marinello and Tim Hanke from signing any
check or transferring any funds of the United States Chess Federation.

5=2E An order requiring Beatriz Marinello and Elizabeth Shaughnessy to
return to the USCF all expense money they have received from the USCF,
except for expenses incurred while attending the regularly scheduled
quarterly meetings of the Executive Board.

6=2E An order disqualifying Michael J. Matsler or the law firm of Rider,
Weiner & Frankel PC from representing the defendants herein.

7=2E Such other and further relief as may be deemed just and equitable.

________________________
Samuel H. Sloan
Sworn to before me this 27th
Day of February, 2005

_________________________
NOTARY PUBLIC

AFFIDAVIT OF SERVICE

No. 7739-2004

SAM SLOAN vs. BEATRIZ MARINELLO et al

STATE OF NEW YORK, COUNTY OF QUEENS SS:

Samuel H.Sloan, being duly sworn, deposes and says that he is over the
age of eighteen years and that on the 2nd day of March, 2005, deponent
served the within Affidavit in Support of an Order to Show Cause upon
respondents in this proceeding, at the addresses designated by them for
that purpose, by personal delivery to the following office address:

Michael J. Matsler
Rider, Weiner & Frankel
PO Box 2280
655 Little Britain Road
Newburgh NY 12550

__________________________
Samuel H. Sloan


Subscribed and sworn to before me
this 2nd day of March, 2005



_________________________
NOTARY PUBLIC

New Address for Sam Sloan

Please note the following new address for Sam Sloan



Sam Sloan
153-90 Rockaway Blvd., #155
Jamaica NY 11434

Tel. 718-949-2512

The above telephone number is a new number scheduled to be installed on
Monday, March 7, 2005.

Cell Phone Number 347-869-7843