PRESS RELEASE: Recent communications to members falsely claim exempt status soliciting donations under the incorrect designation.

Press Release: Breaking News on Allegations of Mismanagement & Corruption in Local Government and the City’s AREA Chamber of Commerce

FOR IMMEDIATE RELEASE

Email: admin@horseshoechamber.org

Corruption Unveiled: Horseshoe Bend AREA Chamber of Commerce Exposed for Years of Mismanagement and Misrepresentation

Horseshoe Bend, AR – In a shocking revelation, the Horseshoe Bend AREA Chamber of Commerce (AREA), established in 1977, has been exposed for operating without legal status for years, misrepresenting its tax-exempt status, and covering up its non-compliance.

This news comes after extensive investigations and repeated requests for transparency were met with misinformation and false assurances from AREA President, Jeannette Hillaker (JHill). JHill is both the President of AREA and a sitting City Council Person.

Background:

AREA, which has claimed to support the local business community, despite its express refusal to engage or support the local business community, has been found lacking the necessary legal standing as a 501(c)(6) or 501(c)(3) organization.

Despite multiple inquiries and requests for documentation, AREA failed to provide evidence of compliance with state and federal regulations. Recent communications to members falsely claimed AREA's status as a 501(c)(3), soliciting memberships and donations under this incorrect designation.

Key Findings:

1. Lack of Legal Status:

   • AREA is not recognized by the IRS as a 501(c)(6) or 501(c)(3) organization.

   • AREA is not registered with the Arkansas Secretary of State as a Nonprofit Domestic Corporation.

   • The organization lacks the necessary filings to solicit charitable donations legally.

2. Financial Mismanagement:

   • AREA has no active bank account tied to organization’s EIN. Claims of bank alleged fraud, have been cited for the lack of compliance.

   • AREA’s lack of entity compliance is compounded by its lack of transparent accounting of collected funds and failure to remit collected sales tax to local authorities for year.

   • Misrepresentations regarding AREA's tax-exempt status have been made in various communications and solicitations.

   • AREA failed to provide financial disclosures or respond to requests for financial information and bylaws, indicating a severe lack of transparency and accountability.

3. Misinformation and Cover-Up:

   • Despite being presented with evidence to the contrary, JHill continued to assert AREA's compliance in three separate city meetings.

   • In February 2024, JHill falsely claimed that AREA was working with Ballard, a CPA firm, to rectify its status. This misinformation was a deliberate attempt to mislead the public and city officials.

   • For the months since November 2023, JHill and other board members provided misleading and evasive responses to inquiries, suggesting a concerted effort to cover up the organization’s non-compliance.

4. Lack of Organizational Structure:

   • There is no evidence that AREA’s board was properly organized or that any public disclosures were made.

   • One of the board members, an attorney, and a former commissioner of the MRID who allegedly breached fiduciary duty, failed to check or ensure legal compliance.

   • AREA made organizational changes without transparency or identifying the process, including adding new board members, removing officers and discontinuing annual fundraising events without explanation.

5. Improper Creation of a New Organization:

   • After attempts to hijack the HBCC organization from the AR Secretary of State’s website were thwarted by local authorities, rather than coming clean with regard to the ’77 AREA, the group chose ramp up their efforts to cover the old by creating a new.

   • Izard County Area Chamber of Commerce was created by the AREA team. Being faced with the option to reinstate or become a successor in interest, AREA chose neither. Instead of addressing the issues with AREA, the board created a completely new and separate organization as an attempt to start over with a clean slate, without notifying anyone or making any public disclosures with regard to the years of non-compliance and missing financial accountability. This new organization; Izard County Area Chamber of Commerce purports to be AREA.

   • This move raises concerns about the decades of funds (suggested at $50,000 annually) collected under AREA without any oversight or accountability. Membership is hesitant to permit AREA’s leadership the keys to their future.

Community Impact:

The revelations about AREA's misconduct have significant implications for the community of Horseshoe Bend. Businesses and residents who trusted AREA have been misled and potentially defrauded. The lack of transparency and accountability raises serious concerns about the governance and ethical standards of local organizations.

For these reasons local businesses have demanded the support of an organization dedicated to their support and promotion. These calls have been met with the evolution of Horseshoe Bend Chamber of Commerce (HBCC).

Impact on Volunteers and Facility Lease:

1. Volunteers:

   • Volunteers, currently without affiliation to any organization, who served as welcome and visitor center ambassadors under AREA will seamlessly transition to the newly sanctioned HBCC. HBCC, having expert advisors, has the ability to property support and organize the valuable work of the Volunteers that is consistent with a dynamic Tourism Leader like Horseshoe Bend. Their important work will continue under a legally compliant and transparent organization.

2. Facility Lease:

   • The facility leased by AREA under the 1977 EIN is impacted by the organization's lack of legal status. The City confirmed the lease is not currently held by a compliant entity. Moreover, AREA has failed to obtain requisite local business licensing or exemption request that is accompanied by an organizations exempt documentation/support.

   • Immediate action is required to address the legal status of the lease and ensure the facility is managed by an organization that adheres to legal and ethical standards.

   • AREA failed to recognize the non-cash contribution from the city of the facility rental and did not maintain the contributed facility. Under the lease with the City of Horseshoe Bend, AREA is required to develop, curate, and host a History of Horseshoe Bend Museum, the best AREA has offered our visitors is a shelf of old photo albums from the 1980s.

   • Compounding issues is the lack of innovation, the facility has no internet, nor does AREA provide the business support to its members as advertised. Membership, having paid fees were not promoted, excluded from annual publications, and ignored in, what membership representatives, have identified as retaliation from AREA to requests for compliance.

   • AREA is selling items without collecting and remitting sales tax. It is alleged AREA collects the fiduciary tax, but has failed to remit the tax to local tax authorities.

Call for Accountability:

It is imperative that AREA provides a full accounting for the years of activity in which funds were collected without legal status or public disclosures. The community deserves transparency and accountability for the financial management of their contributions.

Official Response:

In light of these findings, the newly established Horseshoe Bend Chamber of Commerce (HBCC) is seeking official recognition and sanctioning from the City of Horseshoe Bend. HBCC has completed all necessary filings and is committed to maintaining transparency, financial integrity, and ethical governance.

Call to Action:

The community is urged to demand accountability from AREA and its leadership. It is imperative to support organizations like HBCC that are dedicated to genuine service and compliance with legal standards.

About HBCC:

The Horseshoe Bend Chamber of Commerce (HBCC) is a legally compliant non-profit organization committed to supporting local businesses, fostering community engagement, and promoting economic development in Horseshoe Bend. HBCC operates with transparency, financial integrity, and ethical governance to ensure the best interests of the community.

END OF RELEASE