Ali Akbar Vindicated! National Bloggers Club Granted 501c3 Nonprofit Status by IRS

Brett Kimberlin and his cohorts have been publicly accusing Ali Akbar of defrauding donors to the National Bloggers Club (NBC) by falsely claiming the NBC was a 501(c)3 nonprofit organization.  Donations to a 501(c)3 are tax deductible.  Kimberlin also claimed that Ali had never even applied for 501(c)3 status.  Sounds like the basis for a good defamation lawsuit against Kimberlin to me.

Actually, Ali had applied for the nonprofit status some time ago, but the status grant was long in coming.  You know, IRS, conservative non-profit, Lois Lerner -- you get the picture.

Well, the IRS finally granted the nonprofit status as of last Friday.  Now one of the claims Brett Kimberlin made in his RICO lawsuit has been proven totally false.  Wait til the judge hears about this, hey Brett?

Here's Ali's Facebook post of a few minutes ago:

My Telephone Conversation With Ali Akbar and Robert Stacy McCain Tonight

Ali Akbar called me tonight and I had a nice phone conversation with him and with Stacy McCain.  It was good to hear Stacy's Southern lilt again, as we haven't talked in months.

It seems my fears were misplaced.  Ali has been quite active behind the scenes to reinstate the National Bloggers Club with the Secretary of State of Texas, and that should happen fairly soon.  There is more good news, but I am not at liberty to discuss it at the current time.  In any case, my confidence in Ali Akbar was given a booster shot.

Brett Kimberlin has NOT taken over the National Bloggers Club, and has no legal standing to order anyone to do anything with regards to the NBC.

Ali says he is interested in having me be the NBC's accountant, and we will work together to bring everything current and to bring the books into shape.  I look forward to this, as a way to serve the conservative blogging community.

Expect good things.  If you are a member of the National Bloggers Club, remain so; if all goes according to plan, things are going to get a lot better.

National Bloggers Club Update: I Will Work With Ali Akbar to Bring Tax Status to Current

I have offered my assistance as a CPA to Ali Akbar and the National Bloggers Club, to bring all tax filings up to date and apply for 501(c)3 status.  Akbar seems interested in working with me to accomplish this.

Since Ali is taking steps to correct the situation, I hereby withdraw my call for him to resign as President of the National Bloggers Club.

I will provide this assistance free of charge.

Brett Kimberlin's Alleged Highjacking of The National Bloggers Club: I Have Serious Doubts That It Is True

I have been doing some research on Brett Kimberlin's alleged takeover of the National Bloggers Club, Inc, a Texas corporation.

I have grave doubts about the veracity of Kimberlin's claims.

There are two issues in this case.  One is the Texas Franchise tax; if it is not paid, a corporation can lose its active status and be denied the right to transact business in Texas.  The other issue is the organization's name.  I have seen no indication that the corporation loses the right to its corporate name if it fails to pay the state franchise tax.  Therefore, I doubt that Brett Kimberlin has obtained the legal right to use the name of the National Bloggers Club in Texas.

What forms did Kimberlin file and what fees did he pay to obtain the right to the Texas corporate name, "National Bloggers Club?"  I'd really like to know.

In order to do business as a Texas corporation, you have to jump through some hoops.  You have to submit Articles of Incorporation, issue stock, and elect a Board of Directors.  Did Kimberlin do that?  I doubt it.

Further, you can apply for a corporate name, but a preliminary approval of such a name isn't final.  The Texas Secretary of State website says this about corporate names:

1. How do I determine whether the name I have chosen for my entity will be accepted for filing by the secretary of state?

   Under section 5.053 of the BOC, a filing entity cannot have a name that is the same as or deceptively similar to a filing entity, foreign filing entity, name reservation, or name registration filed with the secretary of state. Furthermore, a filing entity cannot have a name that is similar to an existing name on file with the secretary of state unless the existing entity consents in writing to the use of the similar name.
   Texas Administrative Code, title 1, part 4, chapter 79, subchapter C sets out the rules for determining whether names are the same, deceptively similar, or similar. If you wish the secretary of state to provide a preliminary determination on name availability, you may call (512) 463-5555, dial 7-1-1 for relay services, or e-mail your name inquiry to Corporations Section. A final determination cannot be made until the document is received and processed by the secretary of state. Do not make financial expenditures or execute documents based on a preliminary clearance. Also note that the preclearance of a name or the issuance of a certificate of formation under a name does not authorize the use of a name in violation of another person’s rights to the name. See Trademark FAQs for more information.

Until such time as Brett Kimberlin supplies documentation of Texas's approval of his use of the name "National Bloggers Club, Inc" I shall have grave doubts that he is telling the truth.  It seems to me that Brett Kimberlin and Bill Schmalfeldt may be in violation of copyright or trademark law, i.e. using someone else's trademark without permission, in a clear effort to disrupt existing business relationships.  I am no attorney, but that surely sounds actionable to me.

HOWEVER, I stand by my call for Ali Akbar's resignation.   Failure to file and pay franchise taxes timely does more than cause a corporation to lose its active standing.  It also removes the corporate shield for liability, exposing its directors to personal liability in the event of a lawsuit.  That is serious enough to call for Akbar's removal.

The National Bloggers Club: Ali Akbar Should Resign as President

National Bloggers Club per Team Kimberlin

Ali Akbar has been the leader of the organization known as the National Bloggers Club (NBC) since he formed it a few years ago.  It is an organization of conservative bloggers, and puts on the "Blogbash" event at CPAC each year.

Apparently, Akbar did not file tax returns with the State of Texas for two years, and the State revoked the NBC's ability to do business as a Texas corporation.  It also released the name "National Bloggers Club" for anyone else to grab, and notorious ex-felon, vexatious litigant and righty-hater Brett Kimberlin did so.  Now Kimberlin's favorite toady, Bill Schmalfeldt, is tweeting from the "NBC" claiming to be the National Bloggers Club.  Brett Kimberlin has put up a notice on the "New National Bloggers Club" website, ordering Ali Akbar to remove all references to the name "National Bloggers Club":

To: ali@blogbash.org
Sent: Friday, March 7, 2014 8:13:13 PM
Subject: Official Notification re National Bloggers Club Inc.

To whom it may concern:

Please take this as formal notice that the State of Texas has forfeited your rights to the National Bloggers Club as of February 21, 2014, after revoking your right to transact business on October 16, 2013. I have assumed those rights through proper legal processes.

You are hereby notified that you may not use the National Bloggers Club name for any purpose, including on any website, for any fundraising, or for marketing or promotion. You must immediately remove any and all references to the National Bloggers Club on any website and from any bank accounts. If you opened any bank accounts or set up any fundraising tools or sites using the National Bloggers Club name or any corporate papers issued by the State of Texas, you must shut those down immediately.

Please note that within four days, I will be meeting or talking with officials from the State of Texas in the Attorney General’s Office, other departments, the FBI and the IRS regarding your use of the National Bloggers Club to raise funds based on fraudulent misrepresentations regarding the validity and 501c3 status of the National Bloggers Club.

Brett Kimberlin

 Another controversy surrounding Akbar's leadership of the National Bloggers Club is the organization's non-profit status.  Initially, the Club advertised itself as a 501(c)3 organization (to which donations are deductible for tax purposes), but there is no proof that the NBC ever filed papers with the IRS to become such an organization.  So what is the status of the 501(c)3 application, Ali?  

As an aside, I do not believe that the NBC ever deliberately tried to misrepresent their status as a non-profit organization.  I believe they intended to become one, but just dropped the ball.  I have only seen one such representation, and no more.  This appears to have been an honest mistake rather than an intent to mislead anyone.  Of course, Kimberlin and his toadies have jumped on it and blew it all out of proportion.  They were apparently able to do so due to Akbar's negligence in the matter.

MY CONCLUSIONS to all of this is that Kimberlin has used Akbar's administrative incompetence to harrass and embarrass the National Bloggers Club.  This happened due to Ali Akbar's failure to take care of business.  This is especially surprising because Kimberlin has has had an extreme grudge against Akbar and the NBC for at least two years, and Akbar should have known better than to be so sloppy and allow Kimberlin a clear shot.

Ali Akbar should resign as president of the National Bloggers Club.  I am not a member, and will not become one unless the Club installs a leadership that I can trust for competence and professionalism to protect my interests as a conservative blogger.