After I wrote this post about how the IRRRB, which is essentially run by the DFL, granted 2 loans to Meyer Teleservices, I started thinking things through about the corporation. First, let’s review what this company did:
The company was founded in St. Cloud in 1977; opened its Little Falls office in 1999; and then launched on the Range in Eveleth in 2007.
It was a company with direct ties and allegiance to the Democratic Party. After Republican President Richard Nixon’s resignation over the Watergate scandal the business created an “… innovative small donor fundraising program called the Dollars for Democrats program,” according to the Meyer Teleservices website.
At this point, taxpayers are footing the bill for a company that received taxpayer-subsidized loans to run a fundraising operation for Democrats. It’s more than that, though. Here’s more:
The St. Cloud-based company also leaves behind a debt of about $250,000 to the Iron Range Resources & Rehabilitation Board, which had issued two loans totaling $650,000 to the business for its Eveleth facility.
I’d ask which idiots were stupid enough to make a second loan to the company but we know which idiots made the second loan. I even think we know why they made that second loan. The IRRRB, aka DFL North, made that second loan to keep the fundraising operation going through the last election.
Wasn’t it clear that the company was failing? The taxpayers are on the hook for $250,000 in debt that Meyer Teleservices hasn’t repaid. Surely, somebody should’ve noticed that when Meyer applied for the second loan. Certainly, this information should’ve sent red flags into the air into the air if the IRRRB was paying attention:
Fundraising through telemarketing was its major service and revenue source. But the business model proved too outdated in recent years for today’s mobile phone society.
“Land lines are decreasing eight to twelve percent per year. And because of court rulings we can’t, we can’t consciously dial cell phone numbers. And a lot of politicians are now using the Internet to raise funds,” Owen said.
The owner said, “We did everything we could to stay open. I went all in. I basically lost all my retirement and took out mortgages on two houses. And the former owner put in $380,000 last year to try to keep us afloat. He’s out that now, too.”
Notice that Owens’ and Meyer’s money went to prop up a business destined for failure. It didn’t go to pay off the debt. That’s because fundraising for Democrats was more important to Meyer, Owens and the IRRRB. Taxpayers shouldn’t get shafted because the IRRRB, which is the DFL’s office on the Range, didn’t care about taxpayers. These 2 sentences should’ve been the brightest red flags imaginable to the IRRRB:
But the business model proved too outdated in recent years for today’s mobile phone society. Land lines are decreasing eight to twelve percent per year.
The first question that I have is simple. It’s impossible to think that the IRRRB cared about taxpayers if they knew this information. And it’s impossible to think they didn’t know this information. They aren’t that ignorant.
Legally, the DFL doesn’t owe Minnesota’s taxpayers a penny for this. Morally, they’re guilty of shafting Minnesota’s taxpayers out of hundreds of thousands of dollars. Additionally, Mssrs. Meyer and Owens should’ve paid back the loan rather than keeping the fundraising operation afloat.