A review of the Dr. Hector P. Garcia Founding Chapter of the American GI Forum's special bank account

Money went to local GI Forum
Review finds funds from '99 suit spent on chapter

By adriana garza Caller-Times
September 9, 2006


A review of the Dr. Hector P. Garcia Founding Chapter of the American GI Forum's special bank account indicates that money from a 1999 lawsuit has been spent on chapter business, members said at a press conference Friday.

Former founder's chapter commander Ram Chavez, who has been expelled by the national organization, and two other members of the Founding Chapter paid for the review conducted by a local accounting firm.





The review indicates $33,852 was deposited in the chapter's special account from the building fund lawsuit in 2000.

Chavez said the money is what was left of a $57,000 payment to the chapter as a result of the lawsuit.

The suit, filed by several local GI Forum chapters, was against the nonprofit National Archives & Historical Foundation of the American GI Forum and several of its directors.

The chapters claimed that the foundation denied them access to money in a building fund controlled by the foundation.

Members also alleged they were not allowed to join the foundation.

Through mediation, the founder's chapter was paid a sum of money. Two former chapter members and the National Board of Directors have asked to review documents that detail how they claim the $50,000 the chapter received from suit was spent, but the chapter did not turn over records.

In July, the national organization suspended the Founding Chapter, citing the chapter's failure to turn over financial documents. Two weeks later, the chapter was reinstated.

Chavez said the chapter spent about $23,000 on attorney and court costs, in addition to reimbursing local GI forum members who contributed to help fund the lawsuit.

Since the money was deposited in 2000, it has been used for convention expenses, including transportation, registration and hosting the state convention in 2004, according to the audit.

Some of the money also was used for slot machines in 2001 before the machines were banned in the county, Chavez said. Once they became illegal, the chapter shut down the machines that raised about $4,500 in revenue for the chapter.

Internal struggles between the national organization and the Founding Chapter over the disclosure of the financial documents have been the focus of much of the controversy surrounding the chapter in recent years.

Chapter members said they felt they were treated unfairly by the national organization but believed they were vindicated by the review, which conducted by the Swank and Salch accounting firm.

"The chapter never believed this was a legit issue," said Bob Ortiz, interim commander of the Founding Chapter. "We feel the cloud over us is now gone."

For years, the National American GI Forum has inquired as to the accountability of the chapter regarding a lawsuit filed seven years ago by Dr. Xico Garcia, brother of GI Forum founder Dr. Hector P. Garcia.

Ortiz said the chapter will present the review to the state GI Forum Board of Directors at today's meeting.

Contact Adriana Garza at 886-3618 or HYPERLINK mailto:garzaa@caller.com garzaa@caller.com