Hello Libertarians. This is the fifth of a series of opinion articles I’ll be privileged to write for you once per month on an “inside baseball” topic for the Libertarian Party. I encourage everyone who has an opinion on whatever we’re talking about this month to comment or send phillies@4liberty.net your longer editorials, which may well be published.
I am convinced beyond a reasonable doubt that Angela McArdle has stolen money from us. Whether the amount stolen was $47,131.43, $49,600, or some other figure, it was a significant theft. I’m not sure whether the money diverted from the Kennedy Victory Fund to her household should be added to the money she embezzled straight out of the LNC’s general operating fund, but if it so, that number could be larger.
My gut reaction to everything related to the Kennedy Victory Fund is that it was dirty, and the less we try to squeeze the juice out of a rotten apple the better we’ll all be for it. But if someone with a stronger stomach than me can look at the issues around Swing Vote Strategist and Rescue the West (McArdle’s terribly named PACs) and demonstrate that a preponderance of the evidence shows that 10% of the money should have gone to the LNC instead of being spent beforehand, we should probably add that 10% in to the total.
Being satisfied that a theft has occurred, the question becomes what we should do about it. The conclusion of the Special Investigative Committee that considered the issue was “the cost of pursuing a claim for restitution… would exceed $49,600 – the maximum damages the LNC could reasonably expect to win.” According to the SIC report’s authors, it therefore follows that we should not bring a lawsuit against McArdle because it would be expensive and not advance the cause of liberty in our lifetimes.
I disagree.
Let’s say that it’s logically correct to bring a lawsuit if there’s a greater than 50% chance that the LNC ends up with at least one cent more than we’ve spent. Given that framework, the first question I have is how much money McArdle would have had to steal from us for a lawsuit to be a good idea. Seriously, what’s the limit? Would it not be worth it to go after a stolen $60,000? How about $100,000?
I find it a little incredible that the wheels of justice won’t profitably turn for an amount less than fifty thousand dollars. Companies go after smaller amounts from delinquent customers and fraudulent vendors all the time. I have no problem believing that this case isn’t worth the time of the most expensive lawyer in the country, but if we looked hard enough I bet we could find one who would take the case for some percentage of the final judgment or settlement amount.
In any case, even making a very poorly executed attempt to get our money back would be better than not trying at all. Trying to do this without hiring a lawyer at all would probably make every attorney and judge who looked at the attempt cringe, but at the end of the day it would be preferable to simply not doing anything. Our chance of success would still be greater than 0%, which is what it’ll be if we don’t give it a shot.
I’ll admit one wrinkle to the previous argument. Angela McArdle is certainly awful, but she’s also kind of pathetic. She keeps on lying about having a job. It’s possible that after being hit with a judgment she’ll declare bankruptcy and we won’t see part or all of the money we’re owed. We might lower the probability of that happening by also naming Austin Padgett and maybe all of their LLCs in any case we bring, but then again, maybe a competent lawyer would tell us to only go after her.
As far as I can tell from a Google search, the statute of limitations for misdemeanors in the District of Columbia is three years. For the amount of money we’re talking about here the embezzlement might be a felony, but I’m not going to pretend that five minutes of research makes me an authority on that. All I’ll say is that if the current members of the National Committee don’t want to bring a lawsuit, the next group elected at Grand Rapids will likely still have the opportunity. I think they should take it.
(Note: I am not a lawyer. Not even close. If I made some obvious error in any of the above paragraphs, I am open to being corrected by any reader. Please feel free to post in the comments or to submit an article in response.)
There is another consideration to take into account beyond the monetary expected value calculation.
Fiat justitia ruat caelum
“Let justice be done though the heavens fall”
That old phrase means that justice should be pursued regardless of the practical or utilitarian consequences. It’s not a formal part of libertarian philosophy, but I know the feeling burns bright in the hearts of honest people, and it’s a guiding principle of how I personally behave.
Taken to its logical extreme, one would conclude that we should be willing to spend any amount of money to get a legal judgment against Angela McArdle and Austin Padgett for the crimes they have committed against us. I don’t go that far, but I maintain that achieving a just outcome is worth something. How much, I’m not sure. If we end up with a judgment of close to $50,000 paid out to us, and it costs us $55,000 to get it, my gut says that $5,000 was a reasonable price to pay. Other people may disagree, and though we come to a different conclusion I respect their opinion.
Another opinion I disagree with but respect is that the sooner we drop the issue the sooner we can move past it. This whole episode will scab over more quickly if we just leave it alone. Whether to initiate a lawsuit against a former chairperson is not the kind of issue people want to deal with when they sign up to do the work of the Libertarian Party, and I understand wanting to focus on something else and let time begin to do its healing work.
Maybe that’s the path of wisdom, but I doubt it. Experience suggests that working through an injustice and bringing it to a proper conclusion is better than letting the harm go unanswered. If we bring a lawsuit and the judge finds one way or the other, then it’ll be done. If we let it slide, I don’t think the resolution will be as clean.
Raise money for the legal fund, specifically earmarked to pursue redress against Angela and potentially Austin – the LLC is in his name. My hunch is that this will be the biggest fundraiser in years.
We call ourselves the Party of Principle. We must stand by our principles, especially when it embarrasses ourselves, if we want anyone to take us seriously.
Every party member should be contacting their LNC representatives about this issue.
The current leadership seems to want to sweep McArdle’s embezzlement under the rug as “too hard to deal with.”
Your remarks may not enhance your vote total tonight. That is good. Their true colors will be revealed.
I am of the belief that action should be taken, especially because of what Chase said above: “ensuring donors that it is safe to continue sending money to the party.” That is the most important thing here. Without that, the future looks bleak.
LET’S BE CLEAR: I don’t care if we receive a single dime in reimbursement. This isn’t about recovery. This is about 2 key points: legally prosecuting a presumed criminal act, and ensuring donors that it is safe to continue sending money to the party. What we have seen is an absolute REFUSAL to deal with this issue – to the point that it easily looks like a cover up. NO ONE in their right mind is going to think that it’s a good idea to donate to the party when the party itself is at this point negligent in protecting that money. I wouldn’t send money knowing it could easily happen again. The party doesn’t have a donor problem. it now has a donor CRISIS. Show us that apparent embezzlement will be prosecuted (and not prtotected). it’s that – or accept we’ll be broke soon.
Even if the case against AM is “won”, there will be no payday for the LP.
What does the LP do then, spend even more money trying to enforce collection?
It’s hard to get blood out of a turnip is a saying familiar in South Carolina
courthouses; and there are no debtors’ prisons in the US. Although would like to
see a “collectible judgment” rendered in LP’s favor, at this stage of the game
and our current financial position, it could be futile.
Is there any way (I should say, any cheap way) to find out whether McArdle and Padgett are really turnips? You’re probably right, but it’d be nice to be more certain about it.
Respectfully disagree.
First of all, it’s the principle of it. You don’t let a past officer embezzle money and then do nothing about it. I don’t want to have anything to do with an organization that thinks that way.
Second of all, McArdle and her boyfriend will have to declare their assets during the civil case. At the very least, LNC could put a civil lien on any of their properties.
Once a judgment is secured, it can be renewed many times over the years and pursued over those many years.
I’m of counsel to a law firm that primarily does legal debt collection and we are successfully collection on judgments that are over a decade old.
Even if there were no monies recovered, the message sent would be clear that the LP stands by its principles against fraud and theft. It’s the LP walking its talk.
That matters.
It’s not about the money.
Agreed. It’s more than that.
The moral argument is strong here. The legal arguments… aren’t. I am not a lawyer, but:
1. If we went after McArdle or McArdle et al. and prevailed, legal costs could also be recoverable. The amount of the actual harm is irrelevant in that respect. The LNC committee is full of crap in that respect. However, one must then consider the likelihood of prevailing, because costs are only recoverable if one wins.
2. Companies can easily go after delinquent customers or vendors because they have a contract and the debt itself is a matter of fact. They turn the debt over to collections. It is much harder to collect if the debt itself is not a matter of fact; the LNC would have to prove in a court of law that McArdle owes them money, THEN they could use those same tools to collect the debt.
3. The criminal code (statute of limitations, misdemeanor vs. felony) is completely irrelevant here. There is likely a window in which to act, but this would be a civil action and criminal law is not applicable.
The LNC might file a criminal complaint in addition to any civil action, but I suspect that would come out unpleasantly for all concerned.
I’m asking because I’m genuinely curious – in other words I want to gather information, not score debate points. What do you think the likelihood is that we would prevail, and that the debt would become a matter of fact?
Do you think we could find a lawyer who would accept payment only if we win, and would be willing to take some percentage of the judgment?
One problem is the statute that the LNC is citing. It applies to the individual director/officer, but not to those related to her.
You would be well advised to consult a lawyer on legal matters.