Frank Pagano, Past President, Koniag; Leisnoi, Inc.           October 4, 2012

Landless Natives & Purchase of a Senate Seat.  ANCSA shareholders, we urge you to open your eyes and take a good look at your Native corporation, the State of Alaska and the members of the Alaska Congressional Delegation.  Think about what they have done to you through the ANCSA legislation.  The people involved supported the practice of racial segregation which is discrimination/ racism as defined and understood in Title VI of the Civil Rights Act of 1964.  (The Blacks were segregated and that was identified as discrimination/racism).  Unbeknownst to many of us, the racial prejudice and discrimination has been practiced against Indigenous people for many years since ANCSA was passed into law and since our corporations were set up under Alaska law.

Our Congressional Delegation have purportedly been representing you and your interests in the U. S. Congress.  The ANCSA boards of directors and management personnel have also supposedly been representing you and your interests as well.  In this representation, they have allowed your civil and Constitutional rights to be taken away…you have nothing, you have no property rights…

Prior to the passage of ANCSA in 1971, Alaska’s Indigenous people owned the whole State of Alaska…all 375 million acres!  The ANCSA settlement limited Indigenous land ownership to only those lands that were “used and occupied”, and thus the 44 million acres conveyed to village corporations.  As a Tribal member or a shareholder, how many acres do you actually and personally own from ANCSA?  How many acres does your Tribe own from ANCSA?

And, the law says Natives received 44 million acres of lands?

Remember the recent Alaska Senatorial elections where your Native Corporations gave about $1.3 million of corporate dollars to a certain write-in campaign, even though that candidate lost in the primary?  The purpose of the ANCSA corporate donations was quite obvious…she was  supportive of the corporations’ continued segregation and racism against Indigenous  shareholders, which is in violation of federal law.  She supported the Native corporations to insure that no investigations took place on the SBA Section 8(a) minority contracting program.

As you may realize, the Native corporations have substantial control and influence over what happens in the State of Alaska.  Since the ANCSA corporations have bought themselves a senator, it not only affects the shareholders, believe me, it also affects all Alaskans, White, Black, Asians, Mexican Americans, everybody.  What else have they bought?

Lost Civil Rights and Corrupt Judicial System.  Pagano states, “I am an American citizen of Aleut descent, a lifetime resident of Alaska, military combat veteran of Korea and I do not appreciate my civil rights being taken away because of the greed, power and corruption of many of those select few on the ANCSA boards of directors. They are and have been hiding behind the law, the officers of the law and those in the judicial system, which they have great control and influence over.

Restricted & Inalienable Shareholder Stock.  Why is it critical that the Native Corporations, their leadership and their attorney advisers maintain and keep the shareholders stock restricted?  You should know and be aware that:

(1) you as a shareholders cannot sell your stock;
(2) you cannot go to the bank and borrow on your stock;
(3) you are not required to report your stock on your Income Tax; you report only a taxable dividend if the total dividend distribution is above the total contributed capital;
(4) your stock does not go into probate, but you can will it to whomever.
(5) you only have a stock certificate that show you own shares in the corporation. Many call it a dead Bird around our necks; it is not worth a piece of used toilet paper.
(6) ANCSA Amendment of Feb 3, 1987 extended indefinitely shareholders stock restrictions. These amendments also changed the ANCSA legislation from a contractual agreement into “Indian Law”, between Alaska’s Indigenous people and the U. S. Government on that date.
(7) Shareholder’s dissenter’s rights were also eliminated by the February 3, 1987 ANCSA amendment and made Alaska’s Indigenous shareholders captive shareholders (no different than plantation slavery…you can run but you cannot hide).

As a result of the above, ANCSA Boards have authority and license to dictate, and withhold information from their shareholders; file lawsuits against them, because of Alaska’s racist law, 3 AAC 08.315 False or Misleading statements, all paid for by your corporate treasury.  Interestingly, while shareholders are prohibited from alienating their stock, the corporation Boards of Directors along with their attorney advisers, can sell, trade or borrow, using the corporate assets as collateral, which represent the shareholders stock, and they’re doing this without shareholder vote and without any relevant and related information for shareholder consideration.

ANCSA corporations do not have to comply with securities laws as other corporations are required to by law.  In other words, they have a license to ignore or eliminate you from your corporation.  Many shareholders are deathly afraid to stand up to their corporations and their attorneys.  Shareholders fear being sued or black-balled by their own Native corporation or being referred to and called “dissidents”.

Ask yourself, or any of your shareholder friends or relatives:  At any time since 1971, has the stock restriction issue, ever been discussed or presented to shareholders as an important provision of the ANCSA law?  That, without public hearings, the stock restriction were extended indefinitely by the Congressional amendment of February 3, 1987?  Has this issue ever been put on the table and discussed or debated, in AFN or any of the ANCSA corporations during the past 40 years?

Village & Region Lawsuits: Similar. There are two ongoing lawsuits in two Regions that you should be aware of.  One is against several shareholders by a Regional Corporation.  Another is against a corporate board of directors by a Recall Group of shareholders.  The interesting thing about these two lawsuits is that they are being prosecuted by the same attorney from the same law firm.  It would appear to me that there may be a violation of the Professional Code of Conduct for the practicing attorney’s involved.

Take a close look at these lawsuits: one, in a local Region against its own shareholders. The same attorney represents the Regional Native Corporation in a continuing lawsuit against its shareholders.  This Regional Corporation is one of the largest regional Native corporations. They also have hired other high powered lawyers from California. This Region is spending millions of dollars to keep certain corporate and court information from becoming public.  They have filed all of the litigation documents under seal in the Federal Court in that particular and ongoing lawsuit, in which no shareholder or any public citizen can have access to the sealed information.  They have been very successful against the shareholders, to date.

Malfeasance and/or Misfeasance Exposure.  Many of us would like the U.S. Congress to free up our stock immediately; revoke all amendments passed by Congress without any public hearings before those of us being detrimentally affected.  If our stock was freed up or made alienable, the Native corporations, their boards and management staff, would be subject to state and federal securities laws, meaning that the Board members and staff would be held accountable for their wrong doings.  In my conservative opinion, this would eliminate up to 50% of the corruption in the State of Alaska.,

These issues can only be addressed by the Congress, as our shareholders, who are owners of our corporations, have essentially been silenced by and with threats of lawsuits against them! In order to achieve the needed changes to ANCSA, I believe many of us would and should support candidates against the incumbent delegation.  We should have new representatives to have the Congress immediately return our lands to our federally recognized Tribes, our subsistence rights restored and to free up our ANCSA stock, so that we can get our lives back to normal.

We should demand that the Governor of Alaska and the Legislature abolish the Alaska racist regulation 3AAC.08.315 False or Misleading Statements.  This is the culprit regulation which is a racist, segregationist regulation, because it only applies to Indigenous shareholders!

Regarding ANCSA lawsuits against shareholders, Pagano stated, “I can honestly say that during my tenure as president of my Regional and Village corporations, our attorneys advised me to sue shareholders for saying negative things about the corporation and its managements. My record is clear.  Never have I taken their advice; this type of action only makes the attorneys rich and causes division within our Indigenous ranks.”

Corporate Assets Sold, While Shareholder Stock Remain Restricted. The corporation boards and managements are and have been selling, trading or collateralizeing the assets of the corporation, in which individual shareholders own up to 100 shares of stock, while the shareholder stock remain restricted, without any accountability.  These so-called Native corporate leaders refuse to disclose who they sell our corporate assets to or disclose who the buyers are.  Why is this disclosure important?  We have learned that our assets, which are comprised of our lands, businesses and renewable and non-renewable resources, are being sold under market value, and usually at a loss, etc.  Remember, the Regions own very little surface lands. It is the village corporations that own all or most of the 44 million acres that were conveyed.  It is believed that the non-Native interests are targeting these lands for confiscation, just as they have done with a certain village corporation in the Kodiak region.  A certain law firm now has control over village corporation assets, including its 60,000 acres of land on Kodiak’s 34 mile road system.

SBA Section 8(a) Minority Contracting; Regional Corporate Subsidiary and the Anchorage Port Project. The Small Business Administration (SBA) Section 8(a) program is a good example of this abuse of our shareholder restricted stock. We know that companies upon companies have been created, many of which are and have been “shell” subsidiary companies, of which the shareholders have no idea who the owners or partners are. The “shell” game is a money- laundering scheme!  Example: When a regional corporation sold a wholly-owned 8(a) subsidiary company, it refused to disclose who they sold it to.  However, this company was the 8(a) contractor to Norad for the Anchorage Port project, which they reported they had contracts in excess of $350 million dollars, yet they reported that the subsidiary was sold for $11 million dollars, which sale was sudden, without explanation to the shareholders.  However, it was later learned that only the Anchorage Port contract was sold; the three other subsidiaries under that subsidiary were transferred to another subsidiary, KSI, and is currently based in Chantelly, Virginia.

Best Kept Secret.  Now, do you understand why the restrictions of shareholders stock is critical to the ANCSA boards and attorney’s and is probably the best-kept ANCSA secret?  Part of this secret is the government’s bias, prejudice, discriminatory and segregationist practice against ANCSA Indigenous shareholders. ANCSA as a federal law and the Alaska Securities regulation 3AAC.08.315 False or Misleading Statements APPLY ONLY TO ALASKA’S INDIGENOUS PEOPLE.  I urge all of you shareholders within the reading distance of this information, to carefully read and study this information…it’s our children’s, grand children’s and great grand children’s future!

Setup; False Criminal Allegations. The above are the reasons we on the board of directors who had salvaged my village corporation were set up, framed with false criminal allegations, taken to court with a judge who held a kangaroo hearing, found us guilty; court documents and records indicate evidence of collusion, and maybe serious complicitous conduct in the legal community among certain of the attorney’s and judges.

Who Are the Players in the Hostile Take-over?  I have been involved with The ANCSA Corporations for 40 years. This involvement has become a nightmare with my village corporation, because of the contractor, A-1 Timber and it’s attorney.  Examination of Court records indicate collusion between the owner/manager of A-1 Timber, the Recall group, with their attorney, to take over my village corporation.

“The Superior Court Judge involved is up for a retention vote this year. This Judge must be voted out and removed from the bench, for serious violations of the Canon rules.  The judge also disregarded the law in his ruling concerning the illegal conduct of a shareholder meeting.  His decisions in case 3AN-11-8404 C1 must be voided and a new trial be conducted by an impartial Judge,” Pagano concluded.

More to come!

Segregation. 1. The act or process of separating. 2. The unconstitutional policy of separating people on the basis of color, nationality, religion, or the like. (Black’s Law Dictionary, Third Pocket Edition)
Racism. The practice of racial discrimination, segregation, etc,
Exemptions from federal securities laws mean that the boards of directors and management personnel can commit any crime or wrongdoing without being prosecuted.
Dissidence. Disagreement; dissent
Malfeasance. A wrongful or unlawful act; esp., wrongdoing or misconduct by a public (corporate) official.
Misfeasance. 1. A lawful act performed in a wrongful manner. 2. More broadly, a transgression or trespass
Complicity. Association or participation in a criminal act; the act or state of being an accomplice * Under the Model Penal Code, a person can be an accomplice as a result of either that person’s own conduct or the conduct of another (such as an innocent agent) for which that person is legally accountable.

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