Stop ODOD Abuse

By Michael T. McKibben, Chairman & Founder, Leader Technologies

- Feb 9, 2009 Letter to Governor Ted Strickland
- Feb 9, 2009 Nancy McKibben's Letter to President Barack Obama
- Feb 8, 2009 Columbus Dispatch on ODOD mismanagement
- Ohio Political Contact List

This is Economic Stimulus?

COLUMBUS (January 9, 2009) - As the Ohio Department of Development (ODOD) continues its misguided and malicious campaign against Leader Technologies - an Ohio high tech entrepreneurial company, we wanted to give those of you who have written to your state and federal representatives a place to post your responses and thoughts. If you are unfamiliar with the circumstances, here they are in a nutshell:

> In 2003, the ODOD approached Leader to participate in the "Innovation Ohio Revolving Loan Fund" program, whose mission was to support entrepreneurial technology companies like ours to create jobs. Other very small programs were also put forward in the package, but the gist of the offer was Innovation Ohio.

> With the guidance of the ODOD we applied for and were promised a 4-part financing package, confirmed by then-Director Bruce Johnson; our projections in our application were to create 159 jobs predicated on receiving $5.2 million in Innovation Ohio financing.

> ODOD confirmed the State's commitment to Leader in a Director Bruce Johnson follow-up letter received after the financing package had received approval.

> Leader received the first $250,000, with which we bought equipment. We also received a tax credit offer and a training grant offer, both of which we have never used. We were told the 4th part, the Innovation Ohio funds (the only reason we applied), were just around the corner. We were told this over and over again throughout 2003 and into 2004. We waited, growing more skeptical with each new excuse.

> Things changed. The money dried up, the administration changed. Leader never received the Innovation Ohio funds.

> In 2005, the ODOD began dunning Leader for a repayment of the $250,000, on the grounds that we had not created the required 159 jobs. Clearly, the creation of that many jobs was contingent on receiving the original, much larger grant of $5.2 million, not a tiny portion of it - 20 times smaller than what was promised.

> Despite the unfairness of the ODOD claim, we met on five different occasions with the ODOD to try and resolve the issues amicably; even three times scheduling a workable repayment over time of the money that we did not believe we owed. On all occasions, the agreement that was reached with an ODOD representative was later axed without explanation by Robert Stempfer, Assistant Chief Legal Officer for ODOD. Mr. Stempfer is a holdover bureaucrat from the Taft administration.

ODOD Contact Information:

Robert Stempfer, Deputy Chief Legal Counsel
Robert.Stempfer@development.ohio.gov
(614) 466-1714 phone
(614) 728-4920 fax

Candace M. Jones, Chief Legal Officer & Ethics Officer
candace.jones@development.ohio.gov
(614) 728-3000 phone
(614) 728-4920 fax

Mark Barbash, Chief Economic Development Officer
Mark.Barbash@development.ohio.gov
(614) 644-0571 phone
(614) 728-4920 fax

Lt. Governor Lee Fisher, Director
77 S. High Street
Columbus, Ohio 43216-1001
(614) 466-3379 phone
(614) 644-0745 fax

Michael E. Scoliere, third party attorney hired by ODOD
Michael.Scoliere@publicans.com
(614) 210-8100 phone

> A week ago the ODOD froze Leader's accounts, sent disruptive "pay us not Leader" letters to Leader's school safety and security customers as well as commercial customers. They even sent disruptive letters to school districts who are not even customers (e.g. Delaware City Schools).

Consider that the ODOD approached us about the original Innovation Ohio loan, and is now trying to recover money for jobs we did not create because ODOD failed to loan us the original, agreed-upon amount of Innovation Ohio money. Ironically, nearly every state official that we have contacted so far seems so focused on the state budget crisis and economic bailouts that they forget that we are one of the companies they should be trying to save.

Well, here's a no-fail economic stimulus package to save a company, employment of its personnel, the investments of its shareholders, and vital communications services to tens of thousands of Leader customers who depend upon the company daily (including some Ohio agencies ironically): just drop the ODOD harassment and let the company do business.

And it wouldn't cost the state a red cent.

Please leave your comments below

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