CGL Speculation #5, It continues Options

[JM Hardy]

As a late comer in this discussion, Can someone please tell me what is ACTUALLY going on. I have heard rumors ranging from drop bears at my profits to CGL is going down like the Titanic.
Edit:
All I really want to know is this: where does my beloved game stand?

The basics: Catalyst is behind on freelancer payments, which has been tied to the co-mingling of business and personal funds. The lateness of the payments, and other factors, led to some freelancers withholding their copyrights on some work or terminating contracts. That has meant some books, namely Seattle 2072, Running Wild, Vice, and Dawn of the Artifacts 1 and 2, are not on sale at the moment. Payments have been made for some books, and I hope to have news about them being back on sale shortly.

The situation has also meant that sections of some books had to be re-written. That is currently happening. Once the text is approved, edited, and laid out, then more books will be ready. The next in line is Corporate Guide, then Sixth World Almanac, Dawn of the Artifacts 3, and Runner's Toolkit (not necessarily in that order). Work on other books to follow those is proceeding apace.

The Shadowrun license is due for renewal at the end of May. Catalyst personnel have been in discussions with Topps about this, but I have no decisions to report at the moment.

That's where the game stands. As I've mentioned before, I'm going to keep working on it until someone in a position of authority tells me that I can't any more. That hasn't happened yet.

Jason H.

[JM Hardy]

[snip]
I understand the feeling that CGL/IMR has put out great product and it would be great if they kept putting out great product. The thing is: if many (most?) of the writers who gave us that product have left how great will the product be going forward?

[snip]

@MindandPen: Please correct any mistakes I've made.

@Ketjack: If I've misinterpreted anything you posted, I'm sorry. Please correct me.

While I wasn't specifically asked, I'll offer one correction. It is not accurate to say that "most" of the writers who have worked on SR have left. I realize you put a question mark after the word, so I thought I'd clarify that.

Jason H.

[Bob Lord of Evil]

Now let's talk about were and howmany times I'm gonna punch LL Coleman if he's ever in arms reach.

Since you want to talk about perspective...

"An assault is carried out by a threat of bodily harm coupled with an apparent, present ability to cause the harm. It is both a crime and a tort and, therefore, may result in either criminal or civil liability."

You doubled down by doing it over the internet and therefore made it a Federal crime.

I point this out not as a threat of any action on my part, simply as a public service reminder that penalties beyond anything the Admins may or may not do exist as possibilities.

Edit: I was putting my post together whilst the Admin was doing his thing. Sorry, sometimes I just don't type that fast. (IMG:style_emoticons/default/biggrin.gif)

[augmentin]

While I wasn't specifically asked, I'll offer one correction. It is not accurate to say that "most" of the writers who have worked on SR have left. I realize you put a question mark after the word, so I thought I'd clarify that.

Jason H.

You are correct, sir. That is indeed what the question mark was there for. Thanks for the clarification. I'll go edit.

[MJBurrage]

It should be noted that a "cash draw" does not literally mean take a certain amount of funds in paper money.

A "draw" means a transfer of value from the company to the owner. If an owner took a $2,000 laptop from the company for personal use at home, that would be a $2,000 "non-cash draw".

If the owner electronically transfers $2,000 from a company account to a personal account, that is a "cash draw". The fact that Coleman apparently used one account for business and personal funds is not illegal, but is notably poor judgment for a company with partners.

[augmentin]

It should be noted that a "cash draw" does not literally mean take a certain amount of funds in paper money.

A "draw" means a transfer of value from the company to the owner. If an owner took a $2,000 laptop from the company for personal use at home, that would be a $2,000 "non-cash draw".

If the owner electronically transfers $2,000 from a company account to a personal account, that is a "cash draw".

Great point. Thanks!

The fact that Colman apparently used one account for business and personal funds is not illegal, but is notably poor judgment for a company with partners.

It may or may not be outright illegal, but would you classify it as of questionable legality?

[Method]

Edit: I was putting my post together whilst the Admin was doing his thing. Sorry, sometimes I just don't type that fast. (IMG:style_emoticons/default/biggrin.gif)

No worries. You made a good point.

[MindandPen]

While I applaud your ability to think like a shadowrunner, for the sake of accuracy (heh) I do not believe there has been any indication that CGL is actually going to try and cover Loren's ass in that particular way.

If I had to hazard a guess, I'd say they'd try and make it appear as a loan. It's the most common and easiest from an accounting standpoint. The Gordian knot will be the legalities of how they structure the loan. That is a very nasty knot to work through when multiple years are involved.

-M&P

[MindandPen]

you know, i think i just figured something out.
If they were to cover his ass like this, they would look like a party/accomplice to this all . .
Now if they simply were to FORGIVE him for what he did . . well, THEY were the ones who lost money, HE made the mistake of not paying taxes for this money right?
Basically, IMR/CGL would stand there like the good natured victim who forgives the thief and the thief would be more or less getting what's coming for him right?

Tell me i'm just too paranoid and that can't really be right?

Depending on a bunch of things (which require lawyers) that could be right. However, since Loren L Colman is still a member of the LLC, it most likely is not that simple (again, I Am Not A Lawyer).

-M&P

[MindandPen]

If they go the 1099 route there would be significant tax liability for Loren L Coleman, but it sounds like I should really defer to Mind&Pen on those issues.

What I can point out is that if Loren L Coleman stole all that money and IMR/GCL loses the BT/SR license they are in a much worse position than if Loren L Coleman stole all that money and IMR/CGL retains the BT/SR license and it's related earnings potential.

Based on what I've seen in the past in other situations, yes, there could be a significant liability, which is then his problem to deal with - depending on a bunch of internal things I have no knowledge of and the current tax law which I am not up to date on.

-M&P (not a lawyer)

[kzt]

I don't think Trollman did it bluntly. He slashed through it like a nice deboning knife through beef. He's taking pleasure to do it and that's what is wrong about it.

IIRC Frank is still kind of peeved over the several thousand dollars he was owed for SR freelancing.

[Cain]

As a late comer in this discussion, Can someone please tell me what is ACTUALLY going on. I have heard rumors ranging from drop bears at my profits to CGL is going down like the Titanic.
Edit:
All I really want to know is this: where does my beloved game stand?

Basically, various people have pointed out that Loren L. Coleman has apparently withdrawn large sums of money from Catalyst, apparently for personal use. A co-owned of Catalyst has posted charts showing these withdrawals. According to some, this caused a cash shortfall, which in turn apparently led to a bunch of freelancers not getting paid. Many of those freelancers went on a strike of sorts, and withheld copyright until they were paid. According to Jason Hardy, some payments are being made as we speak; his post covers all those details better than I can. Meanwhile, Loren Coleman asked Tiger Eyes to falsify royalty reports to Topps, who owns the Shadowrun license. She refused, and IMO was forced out for being honest.

As far as Shadowrun stands, it all depends on Topps. The license comes up for renewal in mid-May, and there's a question of rather or not Catalyst can come up with the money. The price I've heard bandied about was $500,000. And that's assuming that Topps will even work with Catalyst anymore.

[MindandPen]

Just a funky side note, withdrawals over $3,000 normally require a meeting with a bank manager. Talk about some interesting questions.

Withdrawals over $10,000 in cash require a form to be sent to the Treasury department (IRS and Comptroller of the Currency) and, depending on the institution, the FDIC/NCUA (whoever insures them). The Federal Reserve also gets a copy, though not immediately, depending on how they draw from the Fed.

-M&P

[MindandPen]

But if the cash never reenters the US-administered fiscal system, but instead finds a new home in Liechtenstein, Singapore or the Caymans, how would the IRS know about this?

Foreign Corrupt Practices Act, Currency Exchange Act (whatever replaced it recently) and the Patriot Act. All cover conversion of dollars to another currency.

-M&P

[MindandPen]

While MindandPen is far more qualified than I am to answer these question...

@MindandPen: Please correct any mistakes I've made.

Actually, there are probably others better qualified (Ketjack comes to mind as an owner), or lawyers. I've seen it from the "investigating not good things" side.

But, based on my read of current law (and I'm Not A Lawyer), it looks good.


-M&P

[kzt]

Withdrawals over $10,000 in cash require a form to be sent to the Treasury department (IRS and Comptroller of the Currency) and, depending on the institution, the FDIC/NCUA (whoever insures them). The Federal Reserve also gets a copy, though not immediately, depending on how they draw from the Fed.

Or patterns of transactions that would appear to cumulatively result in that. It also happens for cash deposits over $10,000 or patterns of cash deposits. Oh, and transferring it out of the country? Also reported. And if you personally carry it out of the country it must be reported by you to customs before you leave. If they catch you they can arrest you and/or seize the money. The feds are very interested in people who move around large amounts of cash...

[MindandPen]

...but would you classify it as of questionable legality?

I know from personal experience (and as we have all seen) those situations are the easiest for fraud and/or errors to occur. I also know that listening to good CPA's will usually prevent or fix such problems.

Side Note: If you ever set up a business, have a separate checking account for the business and move funds between your personal and business account - with notes as to why you moved them. It's a bookkeeping pain but solves lots of problems, like this one.

-M&P

[tweak]

Odd. I went over to the Battletech forums to see what was going on. This whole kerfuffle isn't even mentioned over there. Are the Battletech freelancers being paid? And are there any Battletech books not being sold? Or are copyright only being withheld on Shadowrun product?

[JM Hardy]

Odd. I went over to the Battletech forums to see what was going on. This whole kerfuffle isn't even mentioned over there. Are the Battletech freelancers being paid? And are there any Battletech books not being sold? Or are copyright only being withheld on Shadowrun product?

As both a BT and SR freelancer, I can say that SR payments and BT payments are behind by about the same amount. I am not aware of any copyrights being withheld on BT products, so no books are currently not being sold.

Jason H.

[BlueMax]

Odd. I went over to the Battletech forums to see what was going on. This whole kerfuffle isn't even mentioned over there. Are the Battletech freelancers being paid? And are there any Battletech books not being sold? Or are copyright only being withheld on Shadowrun product?

A few notes
1. The battletech forums are a CGL forum and have "different" moderation
2. Battletech has a different community.
3. As far as this poster knows, no battletech books have been pulled from distribution.

Those three things alone mean that you will see less speculation over there. They are also listed in the order I think makes the most difference.

BlueMax

[Method]

The BT forums are also officially owned and operated by CGL/IMR.

[Edit: doah! got ninja'd by BlueMax!!]

[MindandPen]

...I've seen it from the "investigating not good things" side...

Just to answer a question I've been asked a few times. My experience was in leading/performing the IT/Security audits, policy/procedures audits, and the digital forensics for "problem" situations. While I was trained in the financial and legal aspects, I am not a lawyer or CPA.

-M&P

[urgru]

Odd. I went over to the Battletech forums to see what was going on. This whole kerfuffle isn't even mentioned over there. Are the Battletech freelancers being paid? And are there any Battletech books not being sold? Or are copyright only being withheld on Shadowrun product?

@edit: mooted by Jason's answers to these questions . . .

[urgru]

As both a BT and SR freelancer, I can say that SR payments and BT payments are behind by about the same amount. I am not aware of any copyrights being withheld on BT products, so no books are currently not being sold.

Jason H.

"[B]y the same amount" of money, books, or time? Pretty big differences between the three. I assume that everyone is being treated equally (un)fairly, but the SR side of the line may be "ahead," at least relative to the other two metrics, if the dollar amounts are in rough parity. Would blow the "BT freelancers are getting better treatment!" meme out of the water.

[JM Hardy]

"[B]y the same amount" of money, books, or time? Pretty big differences between the three. I assume that everyone is being treated equally (un)fairly, but the SR side of the line may be "ahead," at least relative to the other two metrics, if the dollar amounts are in rough parity. Would blow the "BT freelancers are getting better treatment!" meme out of the water.

I'm using time as my metric, since that generally is how things are paid--the stuff that's been out the longest gets paid sooner.

Jason H.