In article , Sam Sloan says...

What follows is an absolutely absurd recitation of the history according to Sam
Sloan. It contains many blatant lies and untruths. If I thought Sam Sloan had
a nickel to his name, I would, as a defendent, discuss the only defense that
would stop this nonsense, and that is a countersuit.

As it is, I am comforted that anybody with half a brain will see it for what it
is, the ravings of somebody who is losing or has lost their grip on reality.

Randy Bauer




SUPREME COURT OF THE STATE OF NEW YORK
APPELLATE DIVISION - SECOND DEPARTMENT
_______________________________________________

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. I am a voting member of the United States Chess Federation. The
United States Chess Federation is a Not-For-Profit Corporation which
since the 1940s has been headquartered in New York State. Between 1999
and 2003, the USCF suffered more than one million dollars in financial
losses. By 2003, the only significant asset left was the headquarters
building in New Windsor which the USCF owned free and clear. In July
and August 2004, a special election was held to replace two board
members who had resigned before their terms were up. This special
election was to fill the one remaining year of their terms. Elected
were Elizabeth Shaughnessy and Randy Bauer. I finished third. There
were a total of six candidates.

2. When they ran for their one year terms, Elizabeth Shaughnessy and
Randy Bauer did not tell anybody and nobody knew nor had even the
slightest reason to believe that they had any plans to completely
decimate and destroy the United States Chess Federation as we knew it.
Yet, that is exactly what they have done.

3. In September 2004, only one month after Shaughnessy and Bauer were
first elected, the USCF sold the headquarters in New Windsor, New
York. This was a 12,000 square foot building. The proceeds of the sale
was the ridiculously amount of $513,000. This sale was done in
violation of New York Not-For-Profit Law because the board never voted
for this sale, the voting members and the delegates did not vote on
this sale, the New York State Attorney General was not notified of
this sale and the Orange County Supreme Court was never notified and
never approved of this sale. The sale of the building violated
Sections 510 and 511 of New York Not-for-Profit Law as well as the
by-laws of the United States Chess Federation.

4. On October 19, 2004, after only ten minutes of debate and
discussion, by a vote of 4-3, the USCF Executive Board voted to move
to Crossville Tennessee. The USCF at that time employed 23 persons in
its New Windsor Headquarters. This meant that those people, who had
worked there for an average of seven years and some of whom had worked
for more than 30 years, would lose their jobs unless they moved to
Crossville, Tennessee.

5. During the ten minutes which was allowed for debate of the move to
Crossville, Bill Goichberg, Executive Director, presented an offer
from Liberty New York which he said was worth a million dollars more
than the Crossville offer and since Liberty is near to New Windsor it
would enable the staff members to keep their jobs. In addition, Ken
Thomas, Chief Financial Officer of the USCF, submitted a letter
stating that he had experience in moving several major companies and
the board had failed to seriously consider the costs of such a move.

6. Several superior offers were presented to the board: One from
Kansas, one from Kentucky and one from Massachusetts. The Board
brushed aside all these superior offers and the recommendation from
the Executive Director and the warnings from the Chief Financial
Officer and after only ten minutes of discussion and no written plan
on how to accomplish this move voted in favor of the move by 4-3.

7. Neither the sale of the building nor the decision to move to
Crossville was timely announced on the USCF website or on any public
forum. I found out about it only because I have insider friends and
secret sources of information. On November 8, 2004, I filed a special
proceeding entitled Sloan vs. Marinello, Index No. 2004-7635 seeking
to enjoin the move to Crossville. Because I had insufficient funds to
pay the filing fees totaling $305, I filed a poor person motion. Three
days later I was informed by the law clerk of Judge Lawrence I.
Horowitz that he was not signing my order to show cause because 1) I
needed to include a letter from an attorney certifying that I had
meritorious case, 2) I needed to obtain approval from the County
Attorney for Orange County approving the case and 3) I had failed to
name the Attorney General of the State of New York as a Defendant.

8. I did not understand or agree with this decision by Judge Horowitz
but I was able to borrow the $305 from a person concerned about USCF
staff members who were losing their jobs. I then paid the filing fee,
but the clerk's office in a strange ruling said that it had to be paid
under a new index number. Therefore, a new index number was assigned
to this case, which was 2004-7739. The petition and all the other
documents were the same.

9. On this same day but just prior to filing this second case I served
all of the defendants with a complete set of papers which included my
proposed order to show cause, and my petition, affidavit in support
and memorandum of law. I also mailed courtesy copies to everybody I
could think of who might oppose my case. I mailed a total of 27 sets
of my papers. One of these sets went to Leroy Dubeck, who thereafter
filed opposition papers to my motion. I also served a complete set of
papers on the Office of the New York Attorney General at 120 Broadway,
New York City. By surprising coincidence, the attorney at the New York
Attorney General's Office who received my papers was Andy Davis, who I
knew 32 years ago when he was Bobby Fischer's Personal Attorney.

10. In addition to the above, I sent a complete copy of my papers by
email to all of the defendants. I also posted them all to the chess
politics newsgroup rec.games.chess.politics as well as to five chess
email groups plus I posted them on my own website which has 15,000
visitors per day. In short, everybody in the entire world of chess had
access to a complete set of my papers even before the new index number
was purchased.

11. Judge Horowitz finally signed the Order to Show Cause on November
16, 2005. I received it by fax on the following day. I immediately
sent it by both regular mail and certified mail to each of the
individual defendants. I also found a licensed process server in
Newburgh to serve it on the office.

12. However, two of the defendants, Beatriz Marinello and Elizabeth
Shaughnessy, had gone to Calvia, Spain on the Island of Majorca for
the World Chess Olympiad and World Chess Congress. Other defendants
lived in Tennessee, Massachusetts, Pennsylvania or Iowa and could not
be personally served. Only Bill Goichberg and the United States Chess
Federation were New York residents. However, Goichberg was out of
state organizing and directing a chess tournament. Therefore, my
process server was not able to personally serve Goichberg until
Tuesday, November 23, 2004.

13. At the hearing on this motion, counsel for the USCF admitted that
the USCF had received the order to show cause by mail on Friday,
November 19, 2004. In page 2 of the transcript which is annexed hereto
as an exhibit the counsel for the USCF said "There was apparently
service by mail at least on USCF, and the executive director in New
Windsor that was received on Friday." However, counsel for the USCF
argued that because the process server had been unable to track down
the executive director and serve him personally until November 23,
2004 (four days after service by mail had been received) that the case
should be dismissed.

14. Several of the other defendants evaded or refused service of
process. For example, the certified letters sent to Beatriz Marinello
and Tim Hanke were both returned marked "UNCLAIMED". Please see
attached exhibit showing a certified letter postmarked November 17,
2004 addressed to Beatriz Marinello and returned marked unclaimed.
Similarly, please see the attached exhibit showing a certified letter
to Randy Bauer also postmarked November 17, 2004 and returned marked
"REFUSED". This demonstrates that the defendants, all of whom had
already received the moving papers by regular mail and by email were
evading service of process. However, Stephen Shutt and Kenneth M.
Chadwell both received and signed for the certified mail, as did the
husband of Elizabeth Shaughnessy.

15. Chess Life magazine, a copy of which is attached hereto as an
exhibit, listed the address of Beatriz Marinello and Tim Hanke as
being the USCF office in New Windsor. Thus, service on the USCF office
was service on them. Elizabeth Shaughnessy does not have any postal
address at all listed in Chess Life, only an email address.

16. At the hearing which was held on November 30, 2004 before Judge
Lawrence I. Horowitz, counsel for the USCF and the other defendants
served a complete set of motion and opposition papers. These included
a notice of motion (2 pages), Affirmation of Michael Matsler in
support (7 pages), affidavit of Bill Goichberg in support (3 pages),
affidavit of Leroy Dubeck in support (4 pages), affidavit of Michael
Reis (a real estate agent) in support (2 pages) and a memorandum of
law (10 pages). In addition, Counsel for the USCF submitted 6 exhibits
totaling 25 pages. Thus, the papers filed by counsel for the USCF came
to a total of 53 pages. Clearly the USCF had received notice and was
well prepared. Counsel did not ask for more time.

17. Significantly, Exhibit A in the papers submitted by counsel for
the USCF included a certified mail envelope postmarked November 17,
2004 and marked received by the USCF on November 19, 2004. This
clearly establishes that counsel for the USCF admitted and
acknowledged receipt of the motion papers on November 19, which was 11
days before the hearing date of November 30, 2004.

18. Is submitted that for these reasons the subsequent decision of
Judge Horowitz that the case was dismissed because of inadequate
service of process is clearly wrong on the facts and the law.

19. The other issues before the court which concern the illegal acts
of the USCF Board in selling the building without permission of the
courts and then terminating almost all of the 23 employees and moving
the assets to Tennessee are dealt with in my other moving papers which
are attached and incorporated by reference. However, here I want to
bring up to date the most recent developments.

20. In the proceedings below, counsel for the defendants stated that
the USCF has been given "free land" in Crossville Tennessee and for
that reason is moving there and is going to build a new headquarters
there. It was stated that it was only going to cost $300,000 to build
this new headquarters and therefore there would be a significant cost
savings because they the building in New Windsor had been sold for
$513,000.

21. However, it turns out to be not exactly like that. Now that the
USCF is half in Crossville, we have been informed that the new
building will cost more than $600,000 and will be only 5,000 square
feet whereas the building just sold was 12,000 square feet. Moreover,
the land so generously given to us by the generous City Fathers of
Crossville is next to a river and a duck pond and has in part been
designated as a "wetland" by the State of Tennessee, which means that
we will need permission from the Tennessee Department of Environmental
Conservation to build there. Also, this land is close to two major
nudist colonies which are located in Crossville and this might be of
concern to the parents of the more than 30,000 children who are
members of the United States Chess Federation

22. So it turns out that the poor country lawyers who gave up this
"free land" were not so stupid or so generous as the Marinello Group
made them out to be.

23. The move to Crossville and the events surrounding it constitute
violations of numerous provisions of the by-laws of the United States
Chess Federation. Here are a few of them: The by-laws prohibit any
employee of the USCF from serving on the board and any board member
from being an employee. Yet, three of the members of the board, all of
whom are members of the group of four who voted 4-3 to move to
Crossville, have taken over the duties of employees. Beatriz
Marinello, USCF President, has had herself appointed as Chief
Operating Officer. Elizabeth Shaughnessy, another board member, is the
supervising architect supervising construction of the planned
building. Tim Hanke, USCF VP of Finance, has taken check signing
authority. All of this is prohibited by the by-laws.

24. They claim that they are simply "volunteers" and not employees,
but they are receiving compensation in the form of expense money for
airplane trips, hotel expenses, meals and car rentals. They refuse to
reveal how much they have spent and how much they have received as
reimbursement. $60,000 has been budgeted to pay the expenses of
Beatriz Marinello during the move. They refuse to reveal how much she
has actually spent or received. This is another violation of the
by-laws. Quoted from the "DELEGATE ACTIONS OF CONTINUING INTEREST":

"42. VOLUNTEER EXPENSES. A summary of all reimbursements
to each member of the Executive Board, International Delegations, and
all other volunteers shall be published in the Executive Board
Newsletters and on the USCF website. (1990, 1998)"

Source: http://www.uschess.org/org/govern/2004delcall.pdf

25. Frank Brady, a member of the board strongly opposed to the move to
Crossville, demanded that proponents of the move provide a statement
of expenses to be incurred in connection with the move. They refused
to do so and Dr. Brady subsequently resigned. Since then, they have
posted on the USCF website a statement of the costs of the move at
http://www.uschess.org/org/gov-ern/f...veexpenses.pdf

26. That statement shows the total budget for the move as $242,475.38.
However, that $242,475.38 does not include the $60,000 to be paid to
Beatriz for her expenses nor does it include the $45,000 to be paid
to the architect. Originally, a contract was signed to pay the
architect $60,000 but after outrage expressed by me and other voting
members it was reduced to $45,000. However, the new contract with the
architect requires that the contract to build the building not be put
out for open bidding and that we must hire a building contractor
designated as satisfactory by the architect. Also, the architect
accepts no liability regarding the wetlands issue, which is how we
first found out that there is a wetlands issue.

27. The result is that most of the $513,000 realized as proceeds of
the sale of the building in New Windsor New York will be expended in
the first phase of the move to Crossville. The move will take place in
two steps. The first step will be the move from New Windsor to the Old
Baptist Church in Crossville. Then, a year later the new building by
then will presumably have been built so then we can move into the new
building. The budgeted amount of $242,475.38 only covers the cost of
the move from New Windsor to the Old Baptist Church.

28. Meanwhile about ten employees have been left behind in the office
in New Windsor. This is because the operations of Chess Life Magazine
have proven difficult to move, so they will remain there until the new
building is ready. Therefore, the USCF is renting space in New
Windsor while also renting space in Crossville whereas the move was
originally supposed to be rent free. Originally, we were told that the
Generous City Fathers of Crossville were giving us free space during
the transition period. However, now they are charging us $500 per
month for storage space alone.

29. Throughout this time, the board majority that voted in favor of
the move by a bare vote of 4-3 have tried to keep it secret from the
general membership what is going on. However, there is an election
coining up and the two board members who were elected for only one
year terms and provided swing votes must now stand for reelection. I
finished third ahead of three other candidates the last time and I am
running again. This time, in order to stop me from revealing the true
situation, they left my candidate's statement out of the April Chess
Life. Here is in part what my statement said, "2005 will be remembered
as the Year of the USCF Election Fraud. Those who claim to have saved
the USCF have not done so and instead are leading it to financial
disaster. The move to Crossville is absurd, ridiculous and possibly
even illegal."

30. USCF President Beatriz Marinello did not want this published in
Chess Life magazine and so she ordered Glenn Petersen, the editor of
Chess Life, not to publish this. Prior to this, both Glenn Petersen
and USCF Secretary Don Schultz (who also opposes the move to
Crossville) assured me on February 21, 2005 that the statement would
be published. When the April issue of Chess Life came out, there was a
blank space in the magazine where my candidate's statement should have
been. Instead of my statement, the magazine said "statement not
received in time". Meanwhile, Randy Bauer, who is up for reelection
got a motion passed on February 27, 2005 that if a statement arrives
even five minutes late by email it will not be published in Chess
Life.

31. While debating this, Randy Bauer admitted that his own filing of
petition to be a candidate for the board had arrived late and that he
had called Judy Misner, a USCF employee, who is thereby an employee of
Randy Bauer, and she had said that she would take care of it. However,
this was a violation of the USCF by-laws because the by-laws require
the petitions and filing frees of the candidates to be sent to the
USCF Secretary, who is Don Schultz, who lives in Miami. Instead of
that, Bauer sent his petitions and his filing fee to Judy Misner in
Tennessee and Judy Misner received the check one day late. Therefore,
petitioner submits that Randy Bauer should be ruled off the ballot.

32. This election in which the votes are to be counted on July 20 is a
critical matter that will determine the live or death of the USCF.
Four of the candidates including the three incumbents are known to
favor the move to Crossville. The other five candidates, which include
myself, are known or believed to be opposed to the move to Crossville.
Because of the election fraud which has already occurred and which is
continuing to occur, petitioner is asking this court to take
supervision over the election.

33. Tim Hanke, the VP of Finance who gave himself check signing
authority (in violation of the by-laws) has disappeared. Just prior to
his disappearance, Hanke wrote that he was volunteering to go to Iraq
to fight in the war. On Jan 29, 4:34 pm Tim Hanke posted under USCF
governance:

"Now that I have saved the USCF, I'm looking around for
something else to do. This is why I re-joined the National Guard two
weeks ago. The Iraq mess needs to be cleaned up, and I like a
challenge.

SGT Tim Hanke

34. A few weeks prior to that, Hanke had posted that he and Beatriz
Marinello were like Bonnie and Clyde and he was driving around with
the $513,000 received from the sale of the building in New Windsor in
the trunk of his car. This was taken as a joke. One hopes that he
really was joking. Since then, Tim Hanke has been silent. He has not
responded to emails. He did not participate in the telephone call of
February 27 and he did not attend the Executive Board meeting in
Berkeley California on the weekend of April 2-3. Nobody has heard from
Tim Hanke in nearly three months.

35. Only a few days after Beatriz Marinello ordered Glenn Petersen not
to publish my candidate's statement in Chess Life Magazine, Petersen
suffered two major heart attacks and had open heart surgery. Petersen
is now home from the hospital but his family has asked that he not be
contacted regarding this matter. Petersen was replaced by Gerald
Dullea but a few days after that Dullea had to be hospitalized for
angioplasty. Prior to all of this, in January 2005, the Board by a 5-2
vote fired the regular Editor of Chess Life, Kalev Pehme, who was also
believed to be opposed to the move to Crossville.

36. Since taking over as Chief Operating Officer on January 3, 2005,
Beatriz Marinello has fired the entire USCF accounting staff so there
is nobody minding the store. There are almost no permanent employees
left because those still in NewWindsor know that their days are
numbered whereas the new hires in Crossville may be temporary.

37. Since the initial petition was filed in this case on November 8,
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.

38. 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.

39. 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.

40. 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

42. 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.

43. 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 receives hotel, travel and rental car
expenses. 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 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, and to Crossville, Tennessee, where it is moving.

44. 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.

45. Beatriz Marinello sits in the USCF office, 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.

47. 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.

48. 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.

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

B. 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. The Executive Director certifies that there is a need for such
borrowing.

2. The Executive Board approves of the borrowing.

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

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

50. 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.

51. 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."

52. 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."

53. 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.

54. 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 $90 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
$90 limo charge can be found in the Google archives of the newsgroup
rec.games.chess.politics . Since then, board members have
traditionally claimed no expenses. They have paid their own expenses.
It is only since Beatriz Marinello became president that they started
claiming expense money again.

55. 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.

56. 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".

57. 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.)

58. 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.

59. 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. 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.

60. 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.

61. 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

62. 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.

63. Most of the defendants evaded service of process. The papers sent
by certified mail were in most cases returned marked "refused" 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.

64. 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.

65. 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.

66. 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.

67. 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.

68. 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.

69. 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."

70. 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.

71. 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.

72. 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.

73. 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.

74. 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.

75. 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.

76. No prior application has been made for the relief requested
herein, except for the three previous motions for an order to show
cause filed in the Orange County Supreme Court.

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

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

2. A temporary restraining order and a preliminary and permanent
injunction restraining and enjoining Beatriz Marinello, Tim Hanke,
Steven Shutt, Elizabeth Shaughnessy and Randy Bauer from taking any
actions at all with respect to the USCF until a hearing can be had.
Beatriz Marinello, Tim Hanke, Steven Shutt, Elizabeth Shaughnessy and
Randy Bauer 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. 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. An order enjoining Beatriz Marinello and Tim Hanke from signing any
check or transferring any funds of the United States Chess Federation.

5. 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. An order removing Beatriz Marinello, Tim Hanke, Steven Shutt,
Elizabeth Shaughnessy and Randy Bauer from the Executive Board of the
United States Chess Federation and disqualifying and barring them from
future membership on the Board of the United States Chess Federation.

7. An order removing the names of Tim Hanke, Steven Shutt and
Elizabeth Shaughnessy from the ballot of the United States Chess
Federation for the board election to be held in July 2005.

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

9. Such other and further relief as may be deemed just and equitable.

________________________
Samuel H. Sloan
153-90 Rockaway Blvd., #155
Jamaica NY 11434

Tel. 718-949-2512

Sworn to before me this 20th
Day of April, 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 20th day of April, 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 mail 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 20th day of April, 2005



_________________________
NOTARY PUBLIC