Fellow Patriots,
As you all know, there has been much discussion about monies removed a PGR PayPal account prior to November 2006, by then board member  Jason Wallin in the amount of $26,520.00 claiming that they were expenses incurred performing his duties as Director of Technology.  After careful discussion by the Board of Directors, and notifying the FBI, it was suggested that our accounting firm perform an audit of the corporate books and Mr. Wallin’s personal banking records to determine to determine the best course of action for the PGR to take against Mr. Wallin.  There were also concerns about how unaccounted for funds would affect our 501c(3) status with the IRS.

After a thorough audit and much research into the IRS regulations that govern non-profit organizations, our accounting firm, Tatum & Associates of Franklin TN, suggested that we issue an IRS Form 1099 to Jason Wallin for the full $26,520.00.  The firm also believes it unlikely the amount due is collectable.  The accountant added that by issuing the IRS 1099 to Wallin, the PGR, Inc. is in compliance with IRS regulations concerning the missing funds, thus safeguarding the PGR’s 501c(3) status.

Although there could still be charges pending from the FBI, who have an active case number for this issue, the PGR at this time will take no action against Jason Wallin in this matter.  Mounting a very expensive legal action that could possibly cost us more than we are owed, which would not be a fiscally responsible thing for us to do.

According to Mr. Jon Tatum, managing partner of our accounting firm , that the fiscal records and controls are more than adequate to prevent any opportunity for this to happen again.  All accounts are under constant review of Tatum & Associates. Below is the letter from Mr. Tatum on this issue.

April, 15, 2008

Patriot Guard Riders, Inc

Board of Directors

Dear PGR Board of Directors:

The following is an opinion of Tatum & Associates, Inc based on the information supplied us to perform a limited scope audit of PayPal records concerning Mr. Jason Wallin.  This information was supplied to the PGR, Inc Board of Directors for their review.  The PGR, Inc Board of Directors bares the responsibility for their decision concerning Mr. Wallin.  Tatum & Associates, Inc has been asked to submit the findings and our recommendation to the PGR, Inc Board of Directors.

On the basis of our audit we find that Jason Wallin owes to PGR, Inc. the amount of $26,520.00.   Tatum & Associates, Inc believes it is unlikely the amount due is collectible. Tatum & Associates, Inc. recommends a Form 1099 be issued in the amount of $26,520.00 to Jason Wallin.   Tatum & Associates, Inc. believes by issuing a 1099 to Jason Wallin, the PGR, Inc. is in compliance with IRS regulations concerning income to a board member and thus safeguards the 501c3 status.

Sincerely,

Jon Tatum

Tatum & Associates, Inc.

2000 Mallory Lane, Ste 130-140