This black Texas principal was suspended because a parent sent this photo into the school board. John Iadarola and Jayar Jackson break it down on The Damage Report.
News coverage: NBC Channel 5
Which Stetson Clark is it?
1) Stetson Clark seems to match the description of the former school board member who filed the complaint.
His likes include “Support the Confederate Battle Flag”, lots of Trump stuff, FoxNews
2) Stetson Clark
Occupation: Operations analyst
Experience: After starting my career in Washington D.C., I joined Goldman Sachs and helped them build up their Dallas-Fort Worth office. My current employer, Highland Capital Management, is where I now oversee operations, accounting and auditing. My current duties at Highland mirror what I will bring to parents and taxpayers of GCISD — make sure we are getting the most from every dollar we invest. I have the ability to analyze complex financial data sets and turn that into an actionable plan for the future.
In October 2019, Highland Capital Management filed for Chapter 11 bankruptcy protection.
Hedge funds that play in the rough-and-tumble world of distressed debt are accustomed to using the court system to achieve their ends.
These battles often get ugly. For firms in this world — which seek to buy the equity and debt of companies that are in dire financial straits and then turn those companies around — the playbook often involves suing to recover assets, doing battle with other creditors, and taking control of the companies post-bankruptcy.
But even by the standards of exceptionally litigious investment firms, Highland Capital Management stands in a class by itself.
The Dallas-headquartered alternative-investment firm has been slugging it out in the courts since the financial crisis with investors, investment banks, and a pair of ex-employees who allege the firm fraudulently transferred assets to avoid paying out judgments that the courts ruled they are owed.
.. At its pre-crisis peak, in 2007, the firm managed some $40 billion and was considered a powerhouse hedge fund firm and a pioneer in so-called collateralized loan obligations, securing its status as one of the most high-profile — if controversial — credit investment firms in the business. But wrenching losses in its Crusader funds, and in another credit-focused hedge fund that had invested heavily in the toxic credit instruments that took down many of its peers, led the firm to suddenly announce in 2008 that it would suspend redemptions as it attempted to liquidate the assets — spawning the legal brawl that prompted the bankruptcy filing more than a decade later.
.. The one relic of its pre-crisis past that has remained, however, is Highland’s reputation as a scorched-earth litigator.
Almost no one contacted by Institutional Investor would speak on the record for this story, for fear of legal reprisal. Those fears are well founded: Thousands of pages of legal documents show that Highland’s co-founder and current chief executive, James Dondero, is not afraid to wage the legal equivalent of war — and doesn’t back down when the courts don’t rule in his favor.
Various court documents related to the lawsuits show that Highland has referred to investors as “idiots” in emails, blamed what it called one ex-employee’s “erratic” and “megalomaniacal” behavior on brain damage, and accused another ex-employee of having inappropriate sexual relationships with subordinates — the latter claim determined by an arbitration panel to be a “false pretext of ‘for cause’ termination” to get out of contractual obligations related to the value of his limited partnership.
.. But putting its numerous disputes behind it will be easier said than done. Many of the creditors have litigation claims against the firm, and they aren’t exactly ready to make nice. Those creditors include the two ex-employees alleging fraud, as well as investment bank UBS, which just won a $1 billion judgment against two now-defunct Highland entities over another crisis-era deal that also went south.
What’s more, some of the creditors aren’t satisfied with the new governance structure. And according to a copy of the proposal seen by II, one of them has suggested an entirely new management team to take control of Highland Capital Management.
The architect of the plan is none other than one of Dondero’s most ardent foes.
.. Highland’s reputation as a bare-knuckle brawler in court had already been cemented well before the crisis. That reputation is largely thanks to James Dondero.
Standing at a physically imposing 6’4″, Dondero is a big-game hunting enthusiast who owns a large gun collection — though people who know him say he also owns an even larger trove of books and can be socially awkward.
.. “Highland was viewed very negatively by the investor community,” a senior private equity executive told Institutional Investor for a 2007 profile of the firm. “They had an attitude of sue first and ask questions later.”
However unseemly that attitude may have been to Highland’s rivals, it worked as an investment strategy. The firm racked up impressive returns, with its Crusader funds gaining 40 percent in 2006, and attracted blue-chip investors along the way. These included the California Public Employees Retirement System and the Ontario Teachers’ Pension Plan.
.. But trouble hit in 2008 — as it did with so many hedge fund managers — when the financial crisis began, wreaking havoc on the funds and slashing returns. In October of that year, Highland told investors it would suspend redemptions from the Crusader funds — as well as from the Highland Credit Strategies fund, a separate hedge fund — and start liquidating their assets. But at the time, Highland maintained that it wished to wait to liquidate some of the assets to avoid dumping them at cut-rate prices in a fire sale.
.. When the case finally went to arbitration, the panel overseeing it unanimously issued three partial final awards and one final award against Highland, finding that the firm, its in-house lawyers, and Dondero had “engaged in willful misconduct, self-dealing, and secrecy, and made multiple misrepresentations to the Redeemer Committee and the Crusader Fund’s investors,” according to a November court filing in Delaware Bankruptcy Court by the Crusader creditors’ committee citing the arbitration findings. The panel also found that “Mr. Dondero was actively involved in the misconduct” and that Highland’s internal lawyers “were integral to implementing Highland’s deceitful schemes.”
.. But the firm eventually stabilized, and Daugherty ended up staying until fall 2011. By then the firm had created various new funds, including one that Daugherty was supposed to manage. But he, according to court documents, was not comfortable with the terms, autonomy, or lack of investor approval associated with the fund’s structure and wanted to see an agreement in writing.
Dondero refused, snapping at Daugherty, “You will trust or you will leave,” according to the court documents. Daugherty resigned on September 28 of that year.
Then things took a strange turn.
.. In October 2011, according to a lawsuit, Dondero invited Daugherty for a drink at Nicola’s, an upscale Italian restaurant in a suburb of Dallas. Over scotch, Dondero confided to Daugherty that he had amassed evidence that his wife, Becky, was cheating on him and that he planned to file for divorce. Dondero subsequently told Daugherty he planned to try to get his net worth down to avoid a hefty divorce settlement per the terms of his prenuptial agreement, according to the same court documents.
Not long after, Daugherty received a subpoena from Becky Dondero’s lawyers, seeking his testimony in the couple’s highly acrimonious divorce proceedings. In April 2012 a lawyer asked Daugherty questions about how much Highland was worth. Then he asked him point-blank if Dondero had ever told him about his plans to reduce his net worth so he could avoid paying his wife $5 million that she was owed. Daugherty testified that he had. Highland filed a lawsuit against Daugherty just two weeks later.
.. “Contentious” is an understatement. In its April 2012 complaint against Daugherty, filed in Dallas County Court, Highland accused him of improperly retaining the firm’s confidential information, breaching his fiduciary duty, and making defamatory statements about the firm; it also accused Daugherty of launching into “abusive tirades” against employees, publicly calling them “fucking idiots” and using misogynistic and homophobic slurs to berate them. Furthermore, Highland claimed that Daugherty had become “increasingly unmanageable, erratic, and insubordinate” — which it blamed on an admission Daugherty had allegedly made to the firm that years earlier he’d had two strokes that “left him with dead spots in his brain” and affected his mental competence and conduct.
.. According to trial transcripts, Daugherty testified that he paid Highland its fee award in December 2016, after the firm took aggressive measures to collect on the judgment. Daugherty testified that he and his wife had moved their vehicles out of the carport attached to their house because an internal Highland lawyer had threatened to confiscate all of Daugherty’s assets in front of his wife and kids.
“There was a vein of terror going through my family. . . . We were trying to protect our assets,” Daugherty testified at the trial.
When Dondero took the stand, he tried to portray Daugherty’s actions as simply those of a disgruntled employee.
“Ten or 20 percent of all employees, when they exit the firm, end up being some form of conflict. Eighty, 90 percent of the people move on with life for a variety of reasons, but then some people never get over it and they make it the rest of their life,” he said. “So I think that’s what Pat’s doing.”
In spite of all the rancor, Daugherty testified at the October 2019 trial that he sincerely believed when he paid the judgment in 2016 that Highland would pay its judgment to him.
“I just thought this was Dondero being Dondero, trying to extract his . . . pound of flesh and the satisfaction of seeing me squirm,” Daugherty testified, explaining why he wired the money for his judgment before Highland paid its judgment to him. “I thought they’d pay it.”
Those are some of the views Republicans endorse by uncritically embracing and supporting President Trump. He is leading his party down a sewer of unabashed racism and willful ignorance, and all who follow him — and I mean all — deserve to feel the mighty wrath of voters in November.
I’m talking to you, Sen.
- Susan Collins of Maine. And you, Sen.
- Cory Gardner of Colorado. And you, Sens.
- Thom Tillis of North Carolina,
- Martha McSally of Arizona,
- Joni Ernst of Iowa,
- Steve Daines of Montana,
- Kelly Loeffler of Georgia and
- John Cornyn of Texas.
And while those of you in deep-red states whose reelection ordinarily would be seen as a mere formality may not see the giant millstones you’ve hung around your necks as a real risk, think again. Sen. Lindsey O. Graham of South Carolina and even Majority Leader Mitch McConnell of Kentucky, you should look at the numbers and realize you are putting your Senate seats — and the slim GOP majority — in dire jeopardy.
You can run and hide from reporters asking you about Trump’s latest statements or tweets. You can pretend not to hear shouted questions as you hurry down Capitol hallways. You can take out your cellphones and feign being engrossed in a terribly important call. Ultimately, you’re going to have to answer to voters — and in the meantime you have decided to let Trump speak for you. Best of luck with that.
It is not really surprising that Trump, with his poll numbers falling and his reelection in serious jeopardy, would decide to use race and public health as wedge issues to inflame his loyal base. That’s all he knows how to do.
Most politicians would see plunging poll numbers as a warning to try a different approach; Trump takes them as a sign to do more of the same — more race-baiting, more authoritarian “law and order” posturing, more see-no-evil denial of a raging pandemic that has cost more than 120,000 American lives.
Racism is a feature of the Trump shtick, not a bug. He sees the nationwide protests sparked by the killing of George Floyd as an opportunity not for healing and reform, but to stir anger and resentment among his overwhelmingly white voting base. Trump wants no part of the reckoning with history the country seems to crave.
This week, city officials in Charleston, S.C. — the place where the Civil War began — took down a statue of John C. Calhoun, a leading 19th-century politician and fierce defender of slavery, from its 115-foot column in Marion Square and hauled it away to a warehouse. Also this week, Trump reportedly demanded that the District’s monument to Confederate Gen. Albert Pike, toppled last week by protesters, be cleaned up and reinstalled exactly as it was.
Trump went to Arizona not just to falsely claim great progress on building his promised border wall, intended to keep out the “hombres,” but also to delight fervent young supporters by referring to covid-19 as “kung flu.” Weeks ago, Trump adviser Kellyanne Conway said that racist term was clearly offensive and unacceptable. But since Trump has made it into a red-meat applause line, Conway now apparently thinks it’s a perfectly legitimate way to identify the virus’s country of origin.
All the other Republicans who fail to speak up while Trump runs the most nakedly racist presidential campaign since George Wallace in 1968 shouldn’t kid themselves. Their silence amounts to agreement. Perhaps there’s enough white bitterness out there to carry the Republican Party to another narrow win. But that’s not what the polls say.
Trump’s antics are self-defeating. He’ll put on a racist show for a shrinking audience, but he won’t wear the masks that could allow the economic reopening he desperately wants. He may be able to avoid reality, but the Republican governors — including Greg Abbott of Texas and Ron DeSantis of Florida — scrambling desperately to contain new outbreaks cannot.
It’s almost as though Trump is determined to destroy the Republican Party. Let’s give him his wish.
Hours before he posted a controversial tweet on Saturday night that has sparked backlash for his company, Greg Glassman, CrossFit’s CEO and founder, told gym owners on a private Zoom call, “We’re not mourning for George Floyd — I don’t think me or any of my staff are,” according to a full recording of the meeting obtained by BuzzFeed News.
“Can you tell me why I should mourn for him? Other than that it’s the white thing to do — other than that, give me another reason,” he asked a Minneapolis gym owner who had questioned why the brand hadn’t posted a statement about the protests across the country after the death of George Floyd.
The 75-minute Zoom call, which was sent to BuzzFeed News via its secure tipline, was a part of an initiative that CrossFit had started after the coronavirus pandemic shuttered gyms across the country. CrossFit affiliate owners who spoke with BuzzFeed News said they were invited at random to the check-in calls over the past three months with Glassman and other staffers from CrossFit’s corporate headquarters.
The call was held hours before Glassman responded to a tweet on Saturday night that called racism a public health issue, writing, “It’s FLOYD-19.” His tweet drew immediate backlash from gym owners and caused Reebok to end a partnership deal with the company. CrossFit subsequently posted an apology on Glassman’s behalf, calling his words “not racist but a mistake.”
“Floyd is a hero in the black community and not just a victim,” he said in his public apology. “I should have been sensitive to that and wasn’t. I apologize for that.”
But during the Zoom call hours earlier, which had been between 16 affiliates and staff members, Glassman repeatedly expressed doubts about whether systemic racism existed and questioned the motives of protests around the country.
“I doubt very much that they’re mourning for Floyd,” Glassman said on the call about protesters and CrossFitters who were looking for the company to speak out. “I don’t think that there’s a general mourning for Floyd in any community.”
He also recounted unfounded conspiracy theories on the call that included speculation Floyd was killed to “silence him” due to a purported, baseless role in a criminal conspiracy involving counterfeit money.
Glassman speculated that the nightclub where both Floyd and his alleged killer, former Minneapolis police officer Derek Chauvin, worked has “been under investigation by the FBI for over a decade for laundering money.”
“It’s very interesting that George gets popped with counterfeits, and who comes but the head of security from the dance club? Watch: This thing’s going to turn into first-degree murder,” he said. “That’s what it’s going to turn into. And it’s going to be because I’m predicting this. We have friends in the FBI in your neighborhood, and they’re of the view that this was first-degree murder and it was to silence him over the counterfeit money. That’s the belief. That’s what the cops think.”
Glassman and representatives for CrossFit did not respond to repeated requests for comment for this story. BuzzFeed News is publishing select clips from the call, but not the full audio, in order to protect the identity of the source who shared it.
Listen to clips of Glassman on the call, edited together by BuzzFeed News to protect the identity of the source who shared it.
During the call, Glassman also complained about looting and buildings that had been set on fire. He questioned the legitimacy of the protest movement that has gripped the nation in the three weeks since Floyd’s death.
“Moved to action? Burning the city down, is that the action? Destruction of Black- and minority-owned businesses, is that the action?” Glassman asked while speaking to a gym owner from Minneapolis who detailed what their members had been doing to help the community in the aftermath of nights of looting and protests.
“I would prefer a trial of a murderer rather than burning the city down. I think that the law has a better response. I think burning your city to the ground and burning a police station to the ground because a cop killed what was very likely going to be a coconspirator in a counterfeit ring — I just don’t get the burning thing. How about the Black cop that was killed?” Glassman said later in the call, adding that he wasn’t going to “fund antifa” — another conspiracy theory — because “a guy got killed.”
Glassman told the owners on the call that “killing George was wrong” before adding that “burning the town down was wrong, killing the Black cop was wrong, and the Black-on-Black murder every weekend in every one of our cities is a tragedy.”
He told the Minneapolis gym owner on the call that he thought the city’s plans to defund the police department were “terrifying” after they outlined how their community was trying to rebuild from Floyd’s death.
“It sounds like more of the same. It sounds like punishing the cops. It sounds like blaming the police for all of the problems in blighted communities, and I don’t think anything could be farther from the truth. Have you ever done a ride-along with cops in a rough neighborhood?” Glassman said. “You don’t have to answer, but I have many, many times, and that is crazy tough work and almost all of the men and women are professionals.“
During a lengthy discussion on the coronavirus, Glassman again shared more unfounded theories. “The Chinese let this virus get out of the laboratory, and that indeed did happen,” he said. (US intelligence officials have said they have not formally concluded whether the virus emerged from the Wuhan Institute of Virology.)
Glassman also trashed epidemiology as “a social science,” said upstate New Yorkers should secede from the rest of their state due to the strict lockdown measures in New York City, and urged gym owners to only pretend to comply with health precautions when they reopen.
“It was a panic. Absolute panic right from the start. And I think it’s inevitable that it’s going to turn out that this has cost way more lives than have been saved. Way more,” he said. “At some point, you’ve got to do what’s right, and it may not come with approval. It may not be seen as the right thing to do, but you still have to do it. It’s the burden.”
“I was asked by the Italians, ‘What would you do, coach?’ And I said, ‘I would agree to any restrictions put on me by the health authorities, and I would open my gym, and then 10 minutes later I would do whatever the fuck I wanted. That’s what I would do.'”
Mike Young — the owner of a fitness facility in Morrisville, North Carolina, that contains a CrossFit affiliate — was one of the people on the call. He’d had the franchise for more than a decade and had been excited to speak with the CrossFit CEO and owner. “I get to meet this guy who’s probably been the biggest influence in this field,” Young told BuzzFeed News, “and then it turned into a shitshow, really, where the guy is just — conspiracy theory after conspiracy theory.
“My first thought was, I thought maybe I was being punked, but I knew how he was and I thought this is just batshit crazy. I’m sitting there, like, my jaw is dropping. Is this happening? What is this guy saying?
“It was just surreal,” he said.
Young, whose audio had not been working for most of the call, said he had to leave early to attend another meeting. He said he later wrote to the Minneapolis gym owner to apologize for not being able to defend them on the call.
“It was beyond awkward,” he said. “The way I would describe it, I was privy to information from a private conversation that the world should know about. This guy has a couple thousand of these CrossFit affiliates, and he’s the figurehead, and he’s speaking like a lunatic at a time when things like COVID-19 and George Floyd, Black Lives Matter, are basically already causing unrest. And the things he’s saying are unsubstantiated conspiracy theories — inflammatory nonsense, really.”
Young said he went to bed on Saturday night with the conversation weighing on him. When he woke up on Sunday, he decided to take a stand and publicly announce he would no longer work with CrossFit. He prepared a post on Medium, but Glassman had already written his “FLOYD-19” tweet. But because Young did not record the call, he said, he tried to not go into specific details in his Medium post about what Glassman said in order to avoid a potential lawsuit.
“The tweet is bad. It’s insensitive,” he said. “But as someone who listened to the call, you know the tweet is nothing compared to the phone call.”
Near the end of the call, when a gym owner suggested they were considering dropping their affiliation with CrossFit, another CrossFit headquarters staff member spoke to defend Glassman. “You’re not even approaching this with any compassion. You’re approaching this strictly with your agenda,” they told the gym owner. “Do you know how many Black people are going to be saved by CrossFit?”
CrossFit’s days of backlash started when Alyssa Royse, an affiliate owner from Seattle, posted an email that she received from Glassman in response to a letter she wrote detailing why her gym would be leaving the brand.
“You’re doing your best to brand us as racist and you know it’s bullshit,” Glassman wrote back. “That makes you a really shitty person. Do you understand that? You’ve let your politics warp you into something that strikes me as wrong to the point of being evil. I am ashamed of you.”
Glassman went further on the call with affiliates that did not include Royse, saying that her letter had “all of the class, all of the moral value of putting a sign in someone’s yard that says ‘known pedophile.’”
“It’s a horrible fucking thing to do to someone, to call them a racist when there’s no evidence, when there’s not one scintilla of evidence to suggest anything like that, and that’s what she did to me. And what I sent her back was a ‘Fuck off!’” Glassman told the members of the Zoom call. “You call me a racist and I’mma tell you, ‘Fuck you!’ You tell me to spin around twice or I’m a racist and I’ll go, ‘Fuck you!’ We can get to ‘fuck you’ a bunch of ways. What it leads me to believe is that this isn’t about race.”