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Paulding BOE & EPHS football Booster club being sued


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Heritage Bank has sued the Paulding Board of Education, seeking in the complaint “The outstanding balance of the Loan to Heritage is $352,071.90 of principal and interest of $13,393.71 for a total of $365,465.61. The loan accrues interest at the per diem rate of $53.79 after September 11, 2017.” Also named in the suit are the East Paulding High School Booster Club as well as “John and Mary Doe 1-20”.

 

four members of the Paulding County Board of Education voted not to allow the payment of the loan of Heritage to the Booster Club to be paid through the School District.
Though it is apparent by all parties’ accounts that the $450,000 loan in question was taken out by the East Paulding Booster Club, Heritage Bank goes on to state that “The School District is using the Field House without paying lease payments, and is therefore taking the use of the Field House.” and further states that “The School District has encouraged and interfered with allowing the Booster Club to prevent using funds generated by it to be paid to Heritage.”

 

here is the Jan 10 meeting were all of this went down: very interesting meeting

 

 

 

http://douglas.allongeorgia.com/paulding-boe-facing-lawsuit-over-east-paulding-fieldhouse/


complaint filed http://douglas.allongeorgia.com/wp-content/uploads/sites/9/2017/11/17-CV-002362.pdf

 

BOE answer: http://douglas.allongeorgia.com/wp-content/uploads/sites/9/2017/11/Answer.pdf

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If the building is on school property and being used by school students, I don't see how the school district can get out of making lease payments. I'm no lawyer, but the bank is being represented by Roy Barnes Law Group and when ol' Roy speaks in the courtroom, folks would be wise to listen. He usually wins his case, and wins big.

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I hope the bank wins. And as part of the settlement, takes that damn cannon those phony "Raiders" shoot off.

 

I live about 1000 yards from the school. Right now, I can hear the PA system inside my house and the cannon has fired twice since I started typing this post. And there are, maybe, 50 people watching a 7th grade football game.

 

I really hope the bank wins, takes possession of the entire property, burns it to the ground and turns it into an airport. It would be much less annoying.

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the booster club is separate from the school, the booster club are the ones who renewed the loan every year... if the bank wins against the BOE do you know where the money will come from? I am guessing Tax payers.. what do ya'll think?


I hope the bank wins. And as part of the settlement, takes that damn cannon those phony "Raiders" shoot off.

 

I live about 1000 yards from the school. Right now, I can hear the PA system inside my house and the cannon has fired twice since I started typing this post. And there are, maybe, 50 people watching a 7th grade football game.

 

I really hope the bank wins, takes possession of the entire property, burns it to the ground and turns it into an airport. It would be much less annoying.

 

lol when we lived there I could sit on my front porch and every time i heard the cannon go off i knew the Raiders had scored lol

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i hope the bank does not win against the BOE personally I do not think the tax payers should be held accountable for Booster club /private donation from builder. and since the BOE has no money they will use our money as in taxes to repay this private donation by the brothers Paris builders I do know that Jan 10, the BOE voted for all public funds from EPHS to cease from helping pay this loan off.

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I'm afraid what will happen is the BOE will in years to come spend much more in attorney fees than the loan could be settled for now thus hurting the tax payers,

and the bank will in years to come spend much more in attorney fees than the loan could be settled for now thus hurting the share holders (mostly locals),

and the booster club members will spend till they file bankruptcy and loose their homes thus hurting their families for years to come.

 

Just like we are seeing at the airport, the lawyers all win and everyone else pays.

 

Just like Surepip RIP, the lawyers all win and the family pays. Didn't Surepip win in court twice?

 

I am praying for someone to have the wisdom of Soloman to show us a quick compromise thus cutting the lawyers out of their long term guaranteed income.

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I'm afraid what will happen is the BOE will in years to come spend much more in attorney fees than the loan could be settled for now thus hurting the tax payers,

and the bank will in years to come spend much more in attorney fees than the loan could be settled for now thus hurting the share holders (mostly locals),

and the booster club members will spend till they file bankruptcy and loose their homes thus hurting their families for years to come.

 

Just like we are seeing at the airport, the lawyers all win and everyone else pays.

 

Just like Surepip RIP, the lawyers all win and the family pays. Didn't Surepip win in court twice?

 

I am praying for someone to have the wisdom of Soloman to show us a quick compromise thus cutting the lawyers out of their long term guaranteed income.

I know the booster club (which has since dis-banned) does not have the money, the BOE does not have the money unless they get it from us, and I know the bank wants their money so your right it is a no win situation except for the lawyers

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The PCSDBoE should pay it off then sue the EPHS booster club.

That's like saying your Momma should pay all your debts and sue you to get the money back. The BOE approved the field house would be built on the $450,000 they gave them plus $450,000 in donations. There was NEVER any mention of a loan. The bank had it's hands slapped from the FDIC for bad lending practices.

 

This was a signature loan, signed for by the then Football Booster President who also built the building. He filed bankruptcy during the recession, why wasn't this loan part of that bankruptcy? I'm confused how the BOE should be responsible for a private loan.

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I hope the bank wins. And as part of the settlement, takes that damn cannon those phony "Raiders" shoot off.

 

I live about 1000 yards from the school. Right now, I can hear the PA system inside my house and the cannon has fired twice since I started typing this post. And there are, maybe, 50 people watching a 7th grade football game.

 

I really hope the bank wins, takes possession of the entire property, burns it to the ground and turns it into an airport. It would be much less annoying.

So you think the taxpayers should have to pay this loan that was taken out without the BOE voting for it? We should pay because a group of people wanted twice the field house that all of the other schools got. Each school was given $450,000. What makes EPHS special that our tax dollars should pay for such a bad decision. That should never have been done on property the people who took out the loan did not own. It had to end badly.

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I have always been split on this issue. I don't understand how a volunteer organization that people retire from yearly when their kids' graduate can sign a loan. With that said the bank gave the loan in the spirit of helping out the school and the kids. The clubhouse is there and being used as it was intended.

The bank is a community bank. They are not a huge chain that can easily absorb the loss. I do know this, for all intent and purposes my home belongs to the bank until I pay it off. The clubhouse belongs to the bank to do with as they please.

The BOE can choose to be petty and not pay back the loan because strictly speaking, they have no signed agreement making it their responsibility. The bank can board up the clubhouse and not allow the kids use of it.

 

There was a lot of goodwill flowing when the loan and the build were done. The solution needs to be in the same spirit.

I think rent to own might be what is best.

I will say this and it will be very unpopular if no one wants to pay for it, board it up. It is wrong that the school has had full use of it and they don't own it. If it doesn't mean enough to the school to pay for it then board it up.

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Here's a compromise I think is fair.

The bank takes the steel structure. I'm guessing worth about $500k.

The BOE keeps the concrete & masonry. I'm guessing worth about $500k.

Everyone wins.

 

The bank erects their steel structure at the airport on the pad that was prepared for the 911 Center.

The bank, IBA, PCAA & PCED market the building to house a new industry.

Everyone wins.

 

The BOE allows either the JROTC or Band to use the concrete slab where the Field House used to sit.

Now the JROTC & Band don't have to share a practice pad any longer.

Everyone wins.

Edited by mojo413
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I have always been split on this issue. I don't understand how a volunteer organization that people retire from yearly when their kids' graduate can sign a loan. With that said the bank gave the loan in the spirit of helping out the school and the kids. The clubhouse is there and being used as it was intended.

The bank is a community bank. They are not a huge chain that can easily absorb the loss. I do know this, for all intent and purposes my home belongs to the bank until I pay it off. The clubhouse belongs to the bank to do with as they please.

The BOE can choose to be petty and not pay back the loan because strictly speaking, they have no signed agreement making it their responsibility. The bank can board up the clubhouse and not allow the kids use of it.

 

There was a lot of goodwill flowing when the loan and the build were done. The solution needs to be in the same spirit.

I think rent to own might be what is best.

I will say this and it will be very unpopular if no one wants to pay for it, board it up. It is wrong that the school has had full use of it and they don't own it. If it doesn't mean enough to the school to pay for it then board it up.

The Bank is getting no good will out of this. It was a bad loan. They are paying lawyers instead of writing off the loan? I guess it is their choice but I don't want to pay taxes for the remainder of the cost for a $900,000 field house just because some parents in 2008 thought their school was better than the rest. That is like building a garage on your neighbor's property while they are out of town then claiming they have to pay for it. SMH

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The signatures on the loan are responsible to repay the loan. I do not recall myself or any of my neighbors signing this loan. Good ole boy wants to play big Ike for junior GOB while he is in school, GOB goes to banking GOB to approve loan so that GOB number one can build a play house for GOB junior, bank GOB green lights , GOB builds playhouse, GOB junior grows up goes to GOB college, GOB washes hands of juniors Alma Mater, economy tanks, bank GOB checkered past comes to light, bank GOB blames everyone in county but himself for crappy loan, bank examiners tell bank GOB get our money back or else, bank GOB calls the honorable Roy Barnes, original GOB hides behind county GOB system and gets amnesia that EPHS even exists, tax payers are stuck in a mess. Does that about cover it.

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That's like saying your Momma should pay all your debts and sue you to get the money back. The BOE approved the field house would be built on the $450,000 they gave them plus $450,000 in donations. There was NEVER any mention of a loan. The bank had it's hands slapped from the FDIC for bad lending practices.

 

This was a signature loan, signed for by the then Football Booster President who also built the building. He filed bankruptcy during the recession, why wasn't this loan part of that bankruptcy? I'm confused how the BOE should be responsible for a private loan.

From my understanding--this debt is covered and discharged in his Bankruptcy. Even if it wasn't actually listed as a debt in his Bankruptcy--it is still discharged. However, I would think this could be thought of as fraud. He never had any thoughts of repaying this loan himself. I am sure that Roy Barnes is looking into all of these angles. Any type of fraud or criminal activity is totally separate from a Bankruptcy. Barnes also has Howard Rothbloom ( very well respected Bankruptcy attorney) at his disposal and if anybody can find a loop hole, it would be him. He is famous for going after hard cases. He was one of the first to sue mortgage companies when all those interest gouging problems started.

 

If that man put his signature on the dotted line of those loan documents--and clearly had no thoughts of repaying that loan himself--I fully believe it could be some sort of fraud.

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The Bank is getting no good will out of this. It was a bad loan. They are paying lawyers instead of writing off the loan? I guess it is their choice but I don't want to pay taxes for the remainder of the cost for a $900,000 field house just because some parents in 2008 thought their school was better than the rest. That is like building a garage on your neighbor's property while they are out of town then claiming they have to pay for it. SMH

it was not the parents in the district that wanted the bigger better field house... it was the new head football coach that insisted on a bigger better field house that was one of his conditions to stay. the principal pretty much made that decision and started the field house. when the president of the booster club offered a *private donation* to build it and fund it.. after 1 year and once the building was finished his name was to come off of the loan and booster club take over renewal of loan. which they have done up until recently. now the BOE is also being sued, with booster club.. so a lot of money will be wasted on lawyers on all sides.

 

so to post *some parents in 2008 thought their school was better than the rest*. is not a fair statement.. most parents had no idea what was going on, until after the fact.. :)

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From my understanding--this debt is covered and discharged in his Bankruptcy. Even if it wasn't actually listed as a debt in his Bankruptcy--it is still discharged. However, I would think this could be thought of as fraud. He never had any thoughts of repaying this loan himself. I am sure that Roy Barnes is looking into all of these angles. Any type of fraud or criminal activity is totally separate from a Bankruptcy. Barnes also has Howard Rothbloom ( very well respected Bankruptcy attorney) at his disposal and if anybody can find a loop hole, it would be him. He is famous for going after hard cases. He was one of the first to sue mortgage companies when all those interest gouging problems started.

 

If that man put his signature on the dotted line of those loan documents--and clearly had no thoughts of repaying that loan himself--I fully believe it could be some sort of fraud.

it was in the contract once the building was complete , and after 1 year their names (builders) would come off of loan.. their names was only on loan to get the building completed, after that the booster club was suppose to keep the loan renewed every year. and they have renewed loan every year and paid it .did he go bankruptcy after the 1 year and his name came off of loan? only 1 of those (builders) filed bankruptcy and loan was in both names... from what i understand the one builder who filed bankruptcy could not file bankruptcy on that loan. (i could be wrong)

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Is this the field house that burned a couple of months ago?

 

No, what burned was the gymnasium attached to the school itself. The field house is behind the South end-zone, all adorned with a big ad from a local HVAC company. I wish someone could explain to me how a local business gets to advertise on public property?

Edited by Glassdogs
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No, what burned was the gymnasium attached to the school itself. The field house is behind the South end-zone, all adorned with a big ad from a local HVAC company. I wish someone could explain to me how a local business gets to advertise on public property?

they *donate money* to advertise their business.. didn't this come up last year? lol

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I hope the bank wins. And as part of the settlement, takes that damn cannon those phony "Raiders" shoot off.

 

I live about 1000 yards from the school. Right now, I can hear the PA system inside my house and the cannon has fired twice since I started typing this post. And there are, maybe, 50 people watching a 7th grade football game.

 

I really hope the bank wins, takes possession of the entire property, burns it to the ground and turns it into an airport. It would be much less annoying.

We all know that you hate that school and the cannon, but my question is why would you move across the street from the school that you can see out of your kitchen window, knowing there would be kids, traffic, football games and noise? It was your choice to move there.

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it was in the contract once the building was complete , and after 1 year their names (builders) would come off of loan.. their names was only on loan to get the building completed, after that the booster club was suppose to keep the loan renewed every year. and they have renewed loan every year and paid it .did he go bankruptcy after the 1 year and his name came off of loan? only 1 of those (builders) filed bankruptcy and loan was in both names... from what i understand the one builder who filed bankruptcy could not file bankruptcy on that loan. (i could be wrong)

 

it was in the contract once the building was complete , and after 1 year their names (builders) would come off of loan.. their names was only on loan to get the building completed, after that the booster club was suppose to keep the loan renewed every year. and they have renewed loan every year and paid it .did he go bankruptcy after the 1 year and his name came off of loan? only 1 of those (builders) filed bankruptcy and loan was in both names... from what i understand the one builder who filed bankruptcy could not file bankruptcy on that loan. (i could be wrong)

You are not wrong, I attended the meeting.

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it was not the parents in the district that wanted the bigger better field house... it was the new head football coach that insisted on a bigger better field house that was one of his conditions to stay. the principal pretty much made that decision and started the field house. when the president of the booster club offered a *private donation* to build it and fund it.. after 1 year and once the building was finished his name was to come off of the loan and booster club take over renewal of loan. which they have done up until recently. now the BOE is also being sued, with booster club.. so a lot of money will be wasted on lawyers on all sides.

 

so to post *some parents in 2008 thought their school was better than the rest*. is not a fair statement.. most parents had no idea what was going on, until after the fact.. :)

Some of the parents in the Booster's Club had to know otherwise they would not have been held responsible for the loan. Someone could have said no. This was a deal that should never have been made by any of the parties..

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Some of the parents in the Booster's Club had to know otherwise they would not have been held responsible for the loan. Someone could have said no. This was a deal that should never have been made by any of the parties..

i agree.. the president of the booster club was also the one who made the loan, and was the builder... if i am not mistaken, the president of the booster club put it like this* this is what is gonna be done and done it* no vote, no discussion, he told them what was gonna happen and if they did not like it *move back to the north* after the year was up, that loan should have never been renewed or signed by any booster club member.

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The basic facts of this are a little wonky. As far as I know, schools are public property. Meaning it is owned by the taxpayers and overseen by the school board.

How can an employee or parent organization simply decide to take out a loan and build what they want on public property?

The school board at the time had to be complicit as was the admin. Just because it is an inherited debt should not mean it does not have to be paid. The board could have said no at any time, but they did not. Nobody said no. They are all happy to retain control of the nice free clubhouse. Another thing that bothers me is the school board and admin should be very knowledgeable about the nature of booster clubs. The bank might not be that wise about them, but the school board sure as heck was.

This deal was not made in the dark of night. It was well known to a lot of people.

When this was first brought before the board there was no irregularity in this loan other than it was made to a club. A club that has existed as long as the school.

 

If nothing else, from here on out there should be oversight of these clubs. The schools are public property.

 

It is the school board and admin that were complicit at the time that makes me believe that they owe this debt. I know as a taxpayer I should try to get out of paying anything with taxes. These kids have a great clubhouse it is used daily. If you support our athletic program then you appreciate the value of what we got for the money.

 

Between this and the airport, I don't know why any business or company would get tied up in this county.

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From my memory, the school board approved a budget that was to replace the field house. The loan came in when the parents and coach wanted state of the art equipment. That is the over run loan.

The bottom line IMO is that the school board decides what can and can't be done on school property. They were aware of the deal. Someone takes out a loan and builds it on school property. A lot of people that had the ability to put on the brakes. My guess is they were all riding the wave. Best clubhouse, best team ect. To be frank there are schools all over the country that taxpayers will invest like this. This might be over the top for Paulding but not everywhere. In fact, those involved with this still believe this was an incredible value for what they were paying. I have heard it said many times that Paulding kids don't need nice things just the basics. Kids know whether education is a valuable commodity in their community, it is everywhere you look on our campuses. That fieldhouse makes those athletes feel valued by their community. The money could be raised if you have people willing to donate and support because they value high school athletics.

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The BOE does not have anything to do with the loan. Their name is not on the loan. The President of the booster club took out the loan with his name on the loan and his brother. They should be held responsible for the loan not the school or the tax payers. Heritage Bank should have known better. Glassdog why would you move that close to the school then complain? For everyone that wants the bank to win needs to do some research and get the facts first.

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Didn't the push for this facility start with the new coach they had hired at that time?

yes yes yes a new field house was a condition of the new coach

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The bottom line IMO is that the school board decides what can and can't be done on school property. They were aware of the deal. Someone takes out a loan and builds it on school property. A lot of people that had the ability to put on the brakes. My guess is they were all riding the wave. Best clubhouse, best team ect. To be frank there are schools all over the country that taxpayers will invest like this. This might be over the top for Paulding but not everywhere. In fact, those involved with this still believe this was an incredible value for what they were paying. I have heard it said many times that Paulding kids don't need nice things just the basics. Kids know whether education is a valuable commodity in their community, it is everywhere you look on our campuses. That fieldhouse makes those athletes feel valued by their community. The money could be raised if you have people willing to donate and support because they value high school athletics.

The BOE approved the larger field house to be funded by DONATIONS. There was never any mention of a loan, and the BOE did not approve a loan.

 

This is more of the "way we've always done it" stuff. All of this has a common person involved, every single bit of it. The one person that should actually know better.

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The basic facts of this are a little wonky. As far as I know, schools are public property. Meaning it is owned by the taxpayers and overseen by the school board.

How can an employee or parent organization simply decide to take out a loan and build what they want on public property?

The school board at the time had to be complicit as was the admin. Just because it is an inherited debt should not mean it does not have to be paid. The board could have said no at any time, but they did not. Nobody said no. They are all happy to retain control of the nice free clubhouse. Another thing that bothers me is the school board and admin should be very knowledgeable about the nature of booster clubs. The bank might not be that wise about them, but the school board sure as heck was.

This deal was not made in the dark of night. It was well known to a lot of people.

When this was first brought before the board there was no irregularity in this loan other than it was made to a club. A club that has existed as long as the school.

 

If nothing else, from here on out there should be oversight of these clubs. The schools are public property.

 

It is the school board and admin that were complicit at the time that makes me believe that they owe this debt. I know as a taxpayer I should try to get out of paying anything with taxes. These kids have a great clubhouse it is used daily. If you support our athletic program then you appreciate the value of what we got for the money.

 

Between this and the airport, I don't know why any business or company would get tied up in this county.

from what i am told and what was in the meeting, the BOE (at the time) was not aware this was a personal loan, it was brought to them as a *private donation* which i still have an issue with, a private donation of that amount 450,00.00 should have been questioned.. who? how? ect... the BOE at the time should have declined this private donation of that huge amount...I find it hard to believe that the BOE at the time did not know exactly how this private donation was happening. unless they do not communicate with one another. which when you have BOE members who set on the bank board you know or i should know I know the BOE knew exactly what was happening. but called it a private donation to cover their butts. the booster club should have never renewed the loan every year not knowing what their income was going to be every year... the school should have never used football equipment for collateral. and yes the bank should have never approved a private loan on a school property.. this whole deal should have never happened. but i am afraid we the tax payers will have to repay this loan.. which the remainder is 390,000.00 the loan it self has after all these years has barley been touched becasue of the interest..

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If the taxpayer gets stuck with the payment then the property holders in the in the EPHS district should have additional levies placed against them since those students see the benefits of the building.

 

But, the loan document states what the bank is entitled to - give them some helmets, weight lifting equipment, sign rentals on the building, etc. and send them on their way.

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The BOE does not have anything to do with the loan. Their name is not on the loan. The President of the booster club took out the loan with his name on the loan and his brother. They should be held responsible for the loan not the school or the tax payers. Heritage Bank should have known better. Glassdog why would you move that close to the school then complain? For everyone that wants the bank to win needs to do some research and get the facts first.

the contract stated after 1 year and with the building completed the builder ( brothers construction) would come off of the loan, after that the booster club would renew the loan every year... don't get me wrong, i do not agree with the construction brothers being able to even do a private loan on the field house.. it should have never been done. but the builders were released from being on the contract after the 1 year mark. and upon building completed. they were only responsible for the first year. since this loan was done as a business loan for the brothers. i think they all are at blame, the bank should not have approved loan, booster club should not have continued to renew loan, the BOE should have paid closer attention to what was going on. the construction brothers should have never been allowed to take a business loan out for school property.

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but "it was for the children..."

:rofl: I said the same thing..... I do not guess it matters as long as it was for the children.. everyone that was involved can just turn a blind eye to it..

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The PCSDBoE should pay it off then sue the EPHS booster club.

They need to sue the “original “Booster Club Members” who signed for the loan! They’re the ones who put them in debt, they need to be the ones to pay the loan!!

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