" ..
RALEIGH. N.C.,
THURSDAY,
MAY 23, 1991
VOL. 50, NO. 52
N.C.'s Semi-Weekly
DEDICATED TO THE SPIRIT OF JESUS CHRIST
SINGLE COPY ftfj
IN RALEIGH
ELSEWHERE 300
SPARC Program To Aid Students
On Academic, Athletic Skills
See Page 9
Booze & Sports: A Losing
Combination
See Page 17
Pyramid Scheme Alleged
Dream Of Wealth Lure To Minority Investors
Melvin J. Ford, a former
encyclopedia salesman from North
Carolina on tours across the country
haa promised mainly blacks, Asians
and other minorities that tneir
dreams of riches can come true if
they would Invest fhetr money with
him and recruit their friends to do the
same.
In less than three years, his
international Loan Network (ILN) oi
Lanham has recruited about 45,OM
members and taken in more than $4(
million, according to a report in the
Washington Post.
At pep-rally like lnvestmet
seminars, Ford, a dynamic speaker,
is often Joined by other motivational
speakers, such as the Rev. Jesse L.
Jackson, to enhance the
organization’s credibility.
This credibility is now under
question by federal authorities and
the State of North Carolina Justice
Department who have temporarily
shut down what they say was a
pyramid scheme.
In an attempt to keep out of legal
trouble, ILN recently entered into
agreements with several states
where regulators have investigated
whether his sales tactics violated
laws governing investment activities.
“It is ILN’s policy to fully cooperate
with any regulatory inquiries,”
Andrew J. Sherman, an attorney for
the firm said.
At least seven states have
investigated ILN and the firm has
agreed to give back more than $1
million to Wisconsin and North
Carolina investors, state officials
said.
A federal fudge in Washington,
D.C. recently granted the request for
a temporary restraining order to
freeze all of ILN’s assets, to pro
hibit it from accepting funds from
new investors, and to require h to
return all monies it has deposited
abroad.
The judge also ordered profits to be
returned to investors.
The Securities Exchange
Commission took the action against
ILN of Lanham, Md., which claims
40,000 who were enticed by
extravagant but allegedly fraudulent
promises of financiaLga.in.
The complaint named ILN
President Ford and ILN Vice
President Odell Mundey as the chief
architects of the alleged fraud.
The Office of the Attorney General
Consumer Protection Section in
North Carolina received calls and
letters of inquiry concerning ILN as
early as October 1,1990.
Attorney General Lacy H.
Thornburg replied that ILN cannot
offer its Property Acquisition
Certificate (PAC) membership
program in North Carolina until ILN
is registered to sell securities in this
state.
“Of the other services and benefits
supposedly offered through the II.N
Benefit Plan, its discount buying
service has not as of this date met the
statutory requirements to do business
in North Carolina, and ILN is not
bonded and registered to offer loan nr
mortgage services here," the office
stated.
“North Carolina has a statue
making it a criminal offense to offer,
promote, or participate in pyramid or
chain distribution schemes. The
(See PYRAMID, P. 2)
The North Carolina Legislative
Bjack Caucus has announced plans
for the sixth annual North Carolina
Legislative Black Caucus Weekend
focusing on the theme, “New
Horizons—Challenges for the ’90s.”
Special guests at the conference
will be Rep. Daniel T. Blue, Jr., first
black speaker of the N.C. House of
Representatives, and Gov. Lawrence
Douglas Wilder, first black governor
of Virginia.
This year’s conference wiH
examine the issues affecting the
African-American comgumity and
set guidelines for community leaders
and the legislative delegations
representing those communities to
follow in addressing the issues.
Speaker Blue has served in the
North Carolina House of
Representatives since I960, when he
was elected as one of four legislators
for Wake County. He has thus far
served five terms, and has chaired
several committees, as well as
chairing the Legislative Black
Caucus. Among the many awards he
has received are the Outstanding
Legislator Award from the N.C.
Academy of Trial Lawyers and from
the N.C. Black Lawyers Association.
Wilder made history in the state of
Virginia in 1969 when he was elected
the first black governor by the voters.
The election was the zenity of a long
political career wherein it is
understood that he earned the
recognition he now has. Wilder is also
being considered as a possible
Democratic candidate for president
in 1992.
Gov. Wilder’s career spans 20 years
of public service to Virginians, and as
well, he is an established attorney,
having been a founder in the firm of
Wilder, Gregory and Martin.
NEWS BRIEFS
BUCK CAUCUS
N.C. House Speaker Daniel T.
Blue, Jr. and Gov. L. Douglas
Wilder of Virginia will be the
main speakers at this year's sixth
annual weekend conference of
the North Carolina Legislative
Black Caucus from June 14-15 at
the Raleigh Hilton, 3415 Wake
Forest Road. The theme is "New
Horlsohs—Challenges for the
'90s."
M&F REPORTS INCOME
Mechanics and Farmers Bank
has reported its net Income after
taxes of |7M,404; earnings per
share of 91.24 and total assets of
197,818,980. The bank has con
tinued Its growth In total assets
as well as shareholders equity.
Total assets Increased 0.29 per
cent and shareholders equity,
which represents 10.19 percent of
total assets, increased 4.21 per
cent for the year as of Dec. 31,
1999.
NEW PRINCIPALS
The Wake County School Board
has named principals for two
Wake County elementary
schools. Mary Ferguson, who has
been acting principal at Combs
Elementary School since
January, has been named the
school’s principal, and Peggy W.
Holliday, who was once principal
at Combs, has been named prin
cipal of Kiagswood Elementary.
(Sue NEWS BRIEFS, P.2)
BLUE
WILDER
Among the offices he held leading
to his present position are: lieutenant
governor of Virginia; chairman of the
National Democratic Lieutenant
Governors’ Association; member of
the Virginia Senate; chairman of the
Senate Committee on
Transportation; chairman of the
Senate Committee on Rehabilitation
and Social Services; chairman of the
Senate Committee orf Prtvtley «Bd
Elections; chairman of the
Democratic Steering Committee.
Both of these history-makers will
highlight the conference. Community
leaders are especially encouraged to
attend
As the problems in the black
community appear to be worsening in
the nation, the caucus has the
potential to focus local attention on
the urgency of the matter to develop
and plan action strategies and policy
initiatives among public and private
organizations. The caucus involves
policy makers on public health,
politics and social policies.
Location of the conference will be
the North Raleigh Hilton at 3415 Wake
Forest Road, Raleigh.
16-Year-Old Girl
Stabbed By Boyfriend
Victim In
Critical
Condition
A broughton High School student
was listed in critical condition
Wednesday at the Raleigh
Community Hospital following a
stabbing incident.
A 21-year-old male has been
charged with the attack.
Johnny Antonio Stewart is being
held in the Wake County Jail on a
$50,000 secured bond.
According to officials at the jail
Stewart is being held on the following
charges; breaking and entering,
assault with a deadly weapon with the
intent to kill and inflicting serious
injuries.
The arresting officer, MC Keith
was not available for comment
concerning the motive for the attack.
Jail officers said that the court date
is set for June 3, at 9:00 a.m.
In other related news:
Raleigh police have arrested two
men in connectin with separate bank
robberies in Raleigh last week, Police
Lt. W. L. Baker said.
Anthony Jeffries, 31, of 416 N. Allen
Drive, Wake Forest, was arrested
Friday and charged with felony
armed robbery in connection with the
May 14 robbery of a Central Carolina
Bank branch on Calumet Drive.
In that robbery, three men entered
the bank and one demanded money.
Police later received three baseball
caps, a pair of rubber gloves and a
(See VICTIM, P.2)
f
TOP TEEN WOOERS—Mambtrs of Tap Teent of America
ware ffret pUca winners ia a Ip sync talent shew recently
at Enloe High School. Teele Lynette Guy, Trtna
JEcJ
TrotibMMd, tWphaale Buy, Taauny Watkins, Tosha Tylar
and Jay, battar known as ALMA-BET performed ABC's
Playground (remix). (Apple 1-Hour Photo)
Leaders ot Kaleigh SANE/
FREEZE charged that President
Bush’s proposed federal budget
neglects domestic problems, and
mistakes high levels of military
Famine, Suffering In North Africa
Increases As Warfare Continues
r amine is anecung more uiau i.
million people in the Horn of Africi
this year and unless relief efforts an
immediately launched, the pictun
for the Sudan, Somalia and Ethiopii
is one of tragic suffering fron
starvation and warfare, accroding t<
Bread for the World president Arthui
Simon.
Simon said this year’s famine coulc
be worse than the one in 1964-85, anc
the governments of Sudan, Somalii
and Ethiopia have never been ii
greater disarray.
The Laodicea United Church <
Christ will install its new pastor, th
Rev. G. Wesley Raney, on Sunda)
May 26, during a special installatio
service at 4 p.m. The Rev. Isaa
McDonald, pastor of the Wesle
Grove United Church of Christ
Newport News, Va., will be the guet
speaker, along with his choir, th
United Voices of Christ, providing th
music.
Other participants in the servic
include the Rev. Yvonne Bessie;
Eastern North Carolina associat
conference minister; the Rei
Raymond Hargrove, associat
conference minister for black churc
development; the Rev. Georg
Hawkins, secretary for local churc
finance advisory services; Rei
James Morrison, retired UC
minister; Rev. Charles Brooki
than 21 million people reports the
U.S. Committee for Refugees; Africa
Watch and UN World Food Program.
Far from being fatigued by the
crisis, hundreds of local churches of
all dominations are holding offerings
of letteres services, which is not
money, but letters to members of
l Congress to address the structural
I causes of this crisis by passing the
Horn of Africa Recovery and Food
Security Act, said Bread for the
World director of organizing, Kathy
l;v:ofei
LEY HANKY
pastor, Poplar Springs United Churcl
of Christ; the Rev. David Dolby
president, Raleigh Interdenomin
ationai Ministerial Alliance; Vernoi
(See LAOD1CEA, Page 2)
Many Americans are seeking
answers to ending the crisis of hunger
in Ethiopia where war, not crop
failure is the primary cuase of the
famine. Military conflict makes it
difficult to raise and distribute food.
In the past two months, thousands
of people have been writing members
of Congress in support of a new
approach to end the famine. The bill
calls on the United States to promote
peace and development in the Horn of
Africa region in three ways: by
providing effective emergency aid to
civilians in government, and
opposition, held areas; by giving
more development assistance
directly to grass roots organizations
by-passing the military
governments; and by mobilizing
international pressure for peace in
the region.
While the Horn countries are
among the poorest in the world, their
governments spent over $6 billion on
military expenditures between 1977
and 1987. In Africa, the cost of one
modern tank could provide 1,000
classrooms for 30,000 children; the
cost of a helicopter, the salary of
12,000 school teachers.
Recurrent famine and war killed an
estimated 2 million in Ethiopia and
Sudan since 1985 and 50,000 to 60,000
people were killed by the Somalian
government from 1988 to 1990.
Ethiopia is Africa’s second most
populous nation with a population of
47.4 million, nearly 6 million of whom
1 are affected by war and famine; 4
’ million of them are in northern
Ethiopia and Eritrea and 1.3 million
1 are refugees in Sudan, Somalia,
Djibouti and Kenya.
spending for national security.
"While there is talk of a ‘new world
order' based on U.S. military might,
it is increasingly clear that we need to
invest more resources in putting our
own house in order." said Roger
Manus on behalf of Raleigh SANE/
FREEZE, a peace group whose
major concerns are to stop the
nuclear arms race and to reorder
federal budget priorities from the
military to community nut human
needs.
A Wake County Board of
Commissioners meeting Monday and
the Raleigh City Council meeting
Tuesday saw the group requesting
the commissioners and the council to
pass a resolution urging Congress
and the president to work and vote for
new national budget priorities by
redirecting federal tax dollars from
military spending toward critical
domestic programs such as
education, housing, health care and
other human needs.
Raleigh SANE/FREEZE
presented a detailed local analysis of
federal taxes paid to finance
accelerated military spending over
the past decade, along with
projections of tax dollars that would
How back to Wake County if federal
budget priorities were shifted.
Some of the major findings of the
study were:
•The average household in Wake
County paid $4,030 in federal income
taxes in 1989. Of this amount. $l,7:«>.
nearly half, went for the military and
military-related expenses
•In 1989 Wake County’s taxpayers
paid more than half c billion dollars
in federal income taxes to the
(See COALITION, P. 2)
■ />• J t _ _n
uurnam city \*onncuman
Brown Stabbing Victim
A Durham city councilman wu.^
stabbed with a wood-handled steak
knife on the steps of his home early
Tuesday and police are still looking
for an assailant and motive beyond
robbery.
Clarence Brown, 42, was in stable
but serious condition Wednesday at
Duke Medical Center, where he had
undergone surgery on his liver.
No motive has been established for
the assault, which occured shortly
after midnight as Brown arrived
home from a Monday council
meeting. Although his wallet was
missing, police have ruled out
robbery as a motive.
“We don’t think that was it,” said
Durham Police Captain Eddie
Sarvis. “The person was obviously
waiting at his house for some other
reason."
Brown, an assistant professor of
public administration at N.C. Central
University in Durham, is co
' chairman of the council’s finance
committee and has been a vocal
CLARENCE BROWN
advocate of affirmative action.
Police spent Tuesday and
Wednesday searching for clues in the
purling subbing which happened on
Brown’s 42nd birthday, and exploring
i See STABBING, P. 2)