Well, hell. One of us might as well do it.
Note: there's an upper limit on quote boxes, so Frank's quotes are gonna be in
bold, m'kay?
QUOTE (FrankTrollman)
Here's the short version of the Shadowrun Situation:
Loren L. Coleman (the Battletech author, not the Cryptozoologist), is the majority shareholder of InMediaRes LLC.
As far as I know, this is true. The numbers I've heard are between 50-62%.
There are approximately 16 minority shareholders, a tally which is in no small part "approximate" because there have been at least two pieces of shadiness involving Mr. Coleman unilaterally transferring ownership of other people's stock.As far as I am aware, there were sixteen shareholders total. There have been some weird allegations about whether or not the stock was sold correctly (i.e. if there was any actual transfer of ownership), and the question of "who owns what percentage" is currently being argued. Call it speculation until the dust settles.
Over the last three years, Mr. Coleman has been making more and more unauthorized draws on the corporate accounts.Not entirely true; to the best of my knowledge the Colemans were the only one with access to the accounts and the books for a long period. So he essentially authorized himself. The part about the draws is
totally true, though.
While doing so, he has had a mansion built for himself in a gated community in Snohomish, Washington. This construction project was paid for not only out of his own pocket, but also by contractors that were billed directly to the corporation as freelancers.The Colemans
did build a house in a gated community during this period (their old home is used as the Catalyst office); the part about the contractors is something I've heard as well, but I don't have details - so call it speculation.
During this period, IMR has been subcontracting for books to be translated and published in German, French, and Japanese with Pegasus, Black Book Editions, and ArcLight respectively.True.
These companies have turned royalties in to Mr. Coleman and he has voluntarily declined to ship the royalties up the chain to Topps.If you believe Jennifer Harding's statements about why she left, this is also true. Of course,
it wasn't just the foreign companies not getting paid their royalties.This is a continuation of a practice engaged in by FASA where the foreign royalties would simply be lost and not distributed. However, in this case it is directly demonstrable that malicious intent was held - in that Mr. Coleman directed his book keeper to leave foreign royalties unreported on the grounds that Topps "didn't care about them anyway."I had heard about FASA doing that kind of thing, but it was before my time. The other part, Jen Harding attests, is
true.
Also during this period, the reported income from conventions and direct sales has mysteriously fallen from nearly forty thousand dollars a year to less than six. This comes from Coleman selling things for cash and then simply pocketing the money rather than reporting it as corporate income. This means directly that royalties were not paid on those materials either.Speculation. This is something I heard about, but there's literally no way to tell if it's true without seeing the books.
Even after the real estate collapse, Mr. Coleman's house was appraised at a value of approximately $650,000.True.
Over the last few years, he has consistently told creditors and investors that finances were much tighter than such extravagant expenses would indicate. Many creditors were not paid at all. And by "creditors" I don't just mean printers and advertisers and other "corporate" creditors, or even simply financial creditors such as the investors and poor suckers who made personal loans to IMR or Coleman directly - I include the actual creative staff. There are seriously Battletech writers whose checks are three years late, and given current financial problems may never be paid at all. Coleman's draws on company funds were so fast and heavy that some checks he wrote to writing and artistic staff actually bounced. My own personal checks were months late, and short by about a hundred dollars. And that was years ago (my last check actually arrived in 2008, though of course I stopped being a Freelancer there in September of 2007).I can't speak for investors, but yes, Catalyst has long played the cash-dry angle with freelancers and was habitually late in payment. With the recent spate of checks, I'm not sure where everyone stands now, but there were freelancers that were not paid for products printed years ago at the time I left. Yes, some of the checks that Catalyst has written in the past have bounced. Whether this was all due to Loren and his increasing cash draws, I couldn't tell you without looking at the book.
As this situation has boiled to a head, smaller and more agile companies have already divested themselves of connections with IMR and Mr. Coleman. Posthuman Studios (Eclipse Phase), and WildFire (CthulhuTech) have both cut themselves loose.True.
WildFire has been quite public with the terms they have agreed to on splitting from Mr. Coleman, and he has broken those agreements twice. Three times if you include the fact that he didn't pay them their royalties in the first place. The first splitting agreement was that IMR couldn't make any new books, but they would sell off the remaining stock that said "Catalyst" on it and use some of the money to pay the owed royalties to WildFire. Coleman kept selling the books, but didn't pay the royalties. Then they made a new agreement where IMR had to give WildFire their remaining Cthulhutech stocks and that would count towards the royalties debts.As
linked, IMR was transferring ownership of the stock as partial payment of its debts.
However, when they opened those boxes, the books were still tens of thousands of dollars short of what was still owed.WildFire was owed royalties, we know this much. We don't have the details of the agreement with IMR, but we know transfer of ownership of the CthulhuTech books to cover part of the debt was part of it, and as below...
WildFire has now pressed for Chapter 7 against IMR.True. InMediaRes maintains that these are
additional measures WildFire is taking to get the rest of the money it is owed.Other creditors may yet follow suit.Other creditors can be added to the legal action linked above, so that's entirely possible.
Topps is pressing for an audit of IMR and Mr. Coleman's funds.Speculation. I have heard Topps is doing an audit of IMR's books, but again, this is stuff we have no way of knowing.
The things they will find in that are... less than hopeful. IMR's Payables are currently much larger than their Receivables. Years of not paying corporate debts while the primary shareholder milks the company dry has left them in arrears to everyone they've had any contact with.Speculation. This is pretty much the situation as I understand it, though the recent spate of checks has at least squared them (or gone some way to squaring them) with many freelancers.
And the books are literally unauditable. So much stuff has been rewritten or simply never written down at all that making sense of it would be a Herculean task of its own. There is no sales data - it's seriously just a list of money in and money out.Speculation. This is a rumor I keep hearing - literally, no track was kept of the sales data, only deposits and draws. Needless to say, we don't have access to the books, inauditable or not, so call this speculation.
Meanwhile, the company has been hemorrhaging employees left and right.Adam Jury, David Stansel-Garner, Troy Garner, Jennifer Harding, Stephen McQuillian - that's more than half the staff I know of, so I'd call that true.
Some of them have been straight up asked to falsify financial documents or quit, while others have simply seen the writing on the wall and fled like rats on a sinking ship.Jennifer Harding again, for the first part.
Most hilariously, a good amount of corporate property has actually gone with the employees, since the employees often went and got equipment on their own to be "reimbursed" later on - reimbursements that likely as not never came. Most hilariously, the shipping computer left with the employee who used it.True. Specifically, Troy Garner took the shipping computer with him because it is his own property.
Mr. Coleman has been paying debts only when forced, and even then those debts have been paid late and often short. The only reason that any freelancers got paid in the recent days was because they were withholding copyright on books that they had been owed monies on for some time and which were in turn scheduled to sell for more in the remaining weeks than their own contracts.True. Squeeky wheel gets the grease and all that.
Adam explains it best.Nevertheless, a lot of high quality talent, and even medium quality talent, has stated that come hell or high water, they will never work with IMR again.Certainly Jennifer Harding, Jay Levine, myself, and several other ex-freelancers are of that opinion.
So in all of this, you may ask three simple questions: Who are the bad guys in all of this? Does Shadowrun have a future? And of course: What about all those books we were promised?
The Bad Guys: It's tempting to get very angry at the people who rant on message boards defending the indefensible. Complete assholes like Bull and Doctor Funkenstein are certainly not helping anything, and their allegiances and blatant lack of ethics will doubtless be remembered long after this saga is over. But don't fool yourself: their antics aren't unexpected or particularly relevant. You can get 20% of the people to approve of whoever happens to be in charge no matter what they do.Frank has been miffed at the attitude of Bull and Doc Funk toward this whole situation. Granted, Bull and Frank have never got along, but I think he's genuinely perplexed as to Doc Funk's attitude toward the whole matter.
The bad guys are still Loren L Coleman, Randall Bills, and Jason Hardy.
Loren Coleman of course is the man who proximally stole all the money. He is the center of the web of lies. It is he who demanded and received total control of the piggy bank and then sucked it dry while no one was looking.This is Frank's principle assertion. Certainly, the graphs linked above make the case that he was making significant draws, and we know he was late in getting payments out to freelancers, WildFire LLC, and other creditors as listed in the legal case.
He's also trying to steal the company from the other investors. His legal defense is seriously that it only counts as embezzlement if he isn't the only owner, and that despite the fact that he took money from all his investors in exchange for partial ownership, and he has been sending them tax forms every year, that 3 to 4 years later he still hasn't gotten around to filing the forms properly to indicate that they actually own anything. So his defense against the charge of embezzlement is... interstate mail fraud. I can't even make this stuff up.Speculation. This corresponds with what I've heard, but there hasn't been an independent confirmation just yet.
Randall Bills is Loren's best friend. And he is one of Loren's closest allies.True, if
Bill's letter to the freelancers is anything to go by.
It was he who told the book keeper that if she didn't want to follow Loren's instructions to help defraud investors and license owners and the IRS that she could quit.True, according to Jennifer Harding's post linked above.
And he said that he was "The Messiah of Battletech" without whose blessing the franchise would collapse. He also said that he would drive the company into the ground rather than jeopardize his friendship with Loren.Speculation. Though I hear this is pretty much exactly what he said during the owner's meeting, without the actual minutes I can't confirm it.
And he has lied to people and done everything in his power to resist efforts to remove Loren from power or the cookie jar of finances.The lies are speculation, the resistance to remove from power Loren is not (see his letter above), the cookie jar is speculation - Randall asserts in his letter that changes were made for "stronger financial oversight" and that it is planned for the Colemans to pay back the money - at the time of the letter, that last bit was not finalized.
Currently, he has his wife doing the shipping to cover for the employees who left in disgust or were forced out for lack of loyalty.True. As far as I know, one of the owners, Tara Bills, is doing Troy Garner's old job.
Jason Hardy is the current Developer of Shadowrun.True.
He was appointed for loyalty to Randall Bills rather than knowledge of Shadowrun or writing ability.Speculation.
He has continued that tradition by pushing writers out of the pool for showing insufficient loyalty to the company, regardless of knowledge of the subject, writing ability, or loyalty to the Shadowrun line.Speculation. Locking me out of the freelancer forums was the incentive for me jumping ship; and reportedly he did the same to a few others. Certainly the heightened paranoia around security and leaking drafts that led to the
abandonment of the freelancer forums hasn't helped much, but I am unaware of Jason intentionally trying to push freelancers out.
When the scandal broke, he locked arms with Randall and told him that people were spreading lies about him.Speculation. I heard that Jason when initially informed did go to Randall and take action against the individual that had informed him of Loren's "co-mingling of funds", but there's no way to confirm it independently.
I am not sure if he actually believes this to all be some sort of wacky misunderstanding, but in a sense it doesn't matter. What he is doing is pushing low quality products as part of a deliberate and very petty attempt to push through a published versions of books without the work done by people who refused to work with Loren.Speculation, at least as far as the low-quality. I have my own opinion on the matter, but I'm more biased than Frank in that regard. Since contracts have been terminated, Jason has gotten other freelancers to re-write the missing sections in an effort to get the books to print. As Jason says, he's simply working to get books in print.
Heck, at this point there are a number of people who straight up will not work with Jason Hardy.True. Myself, at least.
The Trees thing even more than the whole "maliciously cutting people who aren't supporting thieves from the loop" thing.If you don't get the reference, it's to something in an upcoming sourcebook that should not have gotten out. Jason even asked me straight-up if I'd been breaking my NDA with anyone (short summary: "What NDA? No, I don't have an NDA on file. No, I haven't been sharing that kind of stuff on the forums.") This was fair, as I vehemently hate the Trees and argued against them very strongly before I left.
So... what does that mean for Shadowrun? It means that Topps is going to award the license to someone else, and everyone who ranted about the Cult of Frank or whatever is going to get to like the taste of crow. Unfortunately, new books have a 90 day development cycle even when people aren't struggling to find their way or picking themselves through a mine field of traitors or whatever. So it's very possible that the new company is going to miss GenCon, and not get a new product out until Christmas. That will be a shame. But it's still avoidable if Topps picks a successor early enough.Speculation.
If IMR loses the license,
if Topps awards it to some other company, if if if.
What about the books that were coming out any moment now? Don't hold your breath. First of all, a bunch of the books in the pipeline are, as currently set up, very bad. War!, Corp Guide, and Attitude are under current formulation basically wastes of paper. They need rewrites, and even reconcepting.Speculation. I might agree on some of that, but it's a matter of opinion, not fact.
And that just isn't going to happen without a new company coming in and purging all the Coleman loyalists (which they should be doing anyway).Speculation. I'm unaware of any 'Coleman loyalists' aside from Randall Bills and (presumably) Mrs. Coleman.
Randall Bills has promised a street date for the Limited Edition SR4A book of May 3rd, and those books are physically real items.True. I pre-ordered mine.
But of course, he promised several other dates in the past and never delivered.In accordance with standard Shadowrun procedure not to give street dates until they're solid, I believe this is in fact wrong - no specific date was given before the above post. Several generous guesstimates were made that did pass, due to the books taking a long time to get from the boat to the warehouse or something.
He has his wife doing the shipping, and Troy left with his computer.True, see above.
So... it's anyone's guess how long it would take for books to actually reach anyone in particular.True. I'd say speculation, except I know the US Post Office. USPO, I love you, but why you gotta make me so crazy?
And of course, any books that aren't properly shipped by the time they lose the license are going to be hidden in a drawer and sold on e-bay on the down low to try to pay Loren's court costs.Speculation.
There, that wasn't so hard.