Armstrong Misleads & Swindles Livestrong Donors

[trailrunner]

They were different groups each day (apart from a couple of guys who paid twice to ride both days)

In addition he flew in on the private jet and flew out again as soon as he could.

The speaking fee of $250,000 each night was paid to him by the LAF.

So that's $1 million for the weekend. And I bet the expenses for his flight were paid for by the LAF.

Afterwards he and his accountant must have been laughing about fleecing the rich yuppies who paid for that ride. Like shooting fish in a barrel.

 

[Random Direction]

Here's a challenge to the Calgary, Edmonton, Vancouver, Victoria, Regina, Saskatoon and Riondel folks who cycle or do tri's - if you know others in the picture, are you quick enough convince them to call the local media with corrobation of the story, that LieStrong was potenially defrauding by pocketing 10/35th of the money? Shouldn't be too hard - the community is pretty small. Could create a pretty big splash.

Besides, if you are Canadian, it probably is quite hard for Lance to sue...

 

[Velodude]

So that's $1 million for the weekend. And I bet the expenses for his flight were paid for by the LAF.

Afterwards he and his accountant must have been laughing about fleecing the rich yuppies who paid for that ride. Like shooting fish in a barrel.

I calculate $1.5m.

$10,000 X 100 plus 2 x $250,000.

The payment of $250,000 (x 2) from LAF to LA ended up being in breach of the Foundation's disclosure requirements.

None of the audited LAF annual reports disclose any payment to Armstrong.

I would suspect the $500,000 was deducted from the $2.5m receipted donations from the cyclists before being accounted in LAF's bank account and books.

 

[Neworld]

http://ireport.cnn.com/docs/DOC-860283

I was in Calgary in 2005, during that monetary lynching.

On the Friday he gave a speech to the Alberta Cancer Society. Tickets $400 per, 800 attendees. No idea what the revenue from Provincial Corp sponsers was. So 300K + at least another 200K. Guess how much made it to the ACS?

On the Sat am, he rode a 30 min spin class with 50 execs, 10K each.

On the Sat aft, did the LL ride, Sunday the return ride.

In addition to the blinded Canadian fans in Alberta there are a lot of Oil lov'n, Texans in the Republic of Alberta to support LA. And subsequently get ripped off by him too.

 

[irongrl]

I mean, I was just being pedantic anyway, I totally believe the story, just that he makes it sound very clear that he made the decision to take it off after this 2005 incident:

I proudly wore a LIVESTRONG arm band for many years however cut it from my wrist after witnessing and learning of the Armstrong's attitude towards contributors and his lack of disclosure to and misconceptions sold to contributors of his iniatives.

I see what you mean, it does sound more like he took it off right after the incident.

 

[Race Radio]

My, how things has changed

he tried the same thing early this year. Tri Training camp in Kona. $20,000 each. 3 people signed up. Canceled at the last minute

 

[I Watch Cycling In July]

Then who does get it then if you and your colleges who need it as badly as the patience themselves can't /don't

It goes to awareness projects, not research. The Lance Armstrong Foundation, which owns the Livestrong brand, does not have cancer research listed in its objectives. They don't do it, they don't fund it.

This latest shouldn't really be a surprise. Siphoning off the cash before it hits the LAF books is Armstrong's standard MO. He does personal endorsement deals with the companies that buy rights to the livestrong brand from the LAF. Never appears in the Livestrong accounts. People don't know what he gets paid for his "charitable work".

@velodude, what you suggest is a possibility. Could the event have been run by an event company though? If an event company takes the payments, hands a fee to Lance, pays the other expenses, then hands the crumbs to the Alberta Cancer Society, that would have a veneer of legality.

 

[hiccuphell]

geez, give the guy a break. any idea how much it costs to have motoman ride over from Nice? plus ear muffs and the cost of paying off Canadian customs.

 

[python]

i read the original post's article and had no reaction at all...there was nothing to surprise there, a second later a thought flashed through my mind, i saw the very episode some place and very recently ...i could not immediately recall where. then i did recall - it was on armstrong's face during his sca deposition video.

the same small man.

 

[Velodude]

..<snip>....@velodude, what you suggest is a possibility. Could the event have been run by an event company though? If an event company takes the payments, hands a fee to Lance, pays the other expenses, then hands the crumbs to the Alberta Cancer Society, that would have a veneer of legality.

Armstrong has a bad precedent record.

- Caught making an improper profit out of sale of LAF rights to Demand Media. In act of contrition donated the profit or will donate the profit to LAF.

- Multi million dollar fee for appearance at TDU was induced on Armstrong's representation that all his comeback cycling income would be paid directly to LAF. Armstrong admitted to NYT to pocketing the fee which included amounts for Adelaide cancer center Livestrong rights. SA state government refuses to release details of the payment which suggests it is odious.

- The Alberta, Canada 2005 ride fees. Riders must have been falsely induced to pay $35,000 on the communicated belief the whole amount was going to LAF and totally tax deductible. Clearly fraud on the $10,000 component to Armstrong.

The two celebrity speaker events after the 2005 Canada rides which earned him $500,000. Depends on the representations made in selling tickets to the events. If the same representations as the rides with a lesser tax deductible receipt then it would likewise be fraud.

IRS are very particular about celebrity created foundations where the celebrity profits out of the foundation.

 

[mikkemus23]

My, how things has changed

he tried the same thing early this year. Tri Training camp in Kona. $20,000 each. 3 people signed up. Canceled at the last minute

Wow, 20K! Did that include the full Ferrari preparation? It should at that price!

 

[frenchfry]

What is really shocking is that for a $1.5m weekend he didn't even pretend to be nice.

 

[Baroh1488]

Video footage from Lance's party last night. Do any of these celebrities even know what they're doing there or do they just show up to be seen? Looking at the faces of those standing behind him make me very sad.

http://www.youtube.com/watch?v=I2JkWR1ZIT8

http://www.youtube.com/watch?v=rOKBU_U9hHA

http://www.youtube.com/watch?v=iVl3O48vLcw

http://www.youtube.com/watch?v=ptlMKf_tZ5o

 

[maxmartin]

some donors ask for their money back

http://www.cnn.com/2012/10/19/us/lance-armstrong/index.html?hpt=hp_t1

 

[TourOfSardinia]

BBC video - Lance: "difficult couple of weeks"

http://www.bbc.co.uk/news/world-20014508#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa

The disgraced cyclist Lance Armstrong has said that he has been through a "difficult couple of weeks", as he faced a catalogue of doping allegations.

Sean Penn et al at the Livestrong do.

 

[aphronesis]

Jet has been sold.

I remember hearing about this at the time and I couldn't believe it. Then I heard it over and over. Who knew riding charity rides could be so lucrative?

I remember this being reported at the time as well. The take on it then--in terms of personal interaction--was that the type of person who thought that was 35,000 well spent on humanity--while bolstering their own personal scrapbook--got whatever treatment they deserved.

The funneling off of a third of the cash is a separate matter.

 

[Baroh1488]

Whenever I listen to a hardcore supporter defend Armstrong or Livestrong, they remind me of scientologists, such as these ones.

http://www.youtube.com/watch?v=v-iZE6q_-j8

Every argument is turned into an attack against the one who questions the organisation or it's founder.

"What are your crimes?" and "Why are you afraid of Hubbard?". When I watched this video the first time, I laughed at the people and wondered what was wrong with them. Recently I realised that I had principally reacted in a somewhat similiar way, when people criticized Armstrong (they must be jealous, they must hate him), until I found out who Armstrong really is. (although I have nothing to do with Livestrong and have never participated in anything related to Armstrong). I think this is very disturbing.

And for the people who say that Livestrong can continue without Armstrong... well Scientology has continued without Hubbard and it has gone from bad to worse. Any organisation founded on a lie is bound to fall. I guess EPO is to Livestrong, what Xenu is to Scientology.

 

[ebandit]

more $

it's for the best that stories such as this hit the mainstream............potential donors need to know how much $ lance personally benefits

will we ever know how much livestrong paid in legal fees / appearance fees etc to lance?

no wonder that lance states in his latest appearance 'absolutely the mission must go on'

as he has lost endorsements................the personal $'s will be handy

 

[pmcg76]

This is a slightly different view of the same event.

http://www.pezcyclingnews.com/?pg=fullstory&id=10889&status=True&catname=Latest News

 

[Poursuivant]

Well to be fair Stiller has gone full *** and Penn, did he ever have a full pack?

Nice to see Penn take time off from telling Britain what lands they can and cannot govern.

Something I have always wanted to know: what does Livestrong actually do? Cancer Awareness. We are all aware of cancer I dont get it.

 

[veganrob]

Lance. The plague that keeps on stealing.

 

[rhubroma]

This is an unbelievable story and reminds me of that famous saying "a fool is easily parted with his money." I wasn't kidding when I previously said private initiatives in the so called realm of charity, often amount to just the commercialization of whatever the donated money is being raised for. Public, state financed and obligatory contributions through taxation to things like cancer research, while less "sexy" than having stupid people who need to have faith in someone as a basis to contribute to a corporate cause, at least avoids the worst exploitative and deceptive natures of such private initiatives. The argument that beauracratic contortions and misuse of tax funds are reasons to reject such state enterprises as inefficient and corrupt, loses much of its value when one considers just the overhead costs of running and promoting private so called charity foundations alone like Liestrong; especially in light of glaring instances of profiteering like this. Moreover I don’t even mention his foundation having paid for the private jets that flew him around to dope at 30,000 feet above sea level during the years of impunity. Other than charity! With all the problems of public foundations, they are still more democratic and principled than the private charities, so-called, which all too often become unscrupulous business enterprises. I'm not saying they are all bad, however, most people don't really consider how the money is actually being used and if such intiatives are in fact the best means to fund medical research, or are they more about celebrity appeal and, in this case, the cult of personality.

 

[No_Balls]

I see what you mean, it does sound more like he took it off right after the incident.

Video footage from Lance's party last night. Do any of these celebrities even know what they're doing there or do they just show up to be seen? Looking at the faces of those standing behind him make me very sad.

http://www.youtube.com/watch?v=I2JkWR1ZIT8

http://www.youtube.com/watch?v=rOKBU_U9hHA

http://www.youtube.com/watch?v=iVl3O48vLcw

http://www.youtube.com/watch?v=ptlMKf_tZ5o

Looks more like a religious cult above anything.

 

[frenchfry]

This is a slightly different view of the same event.

http://www.pezcyclingnews.com/?pg=fullstory&id=10889&status=True&catname=Latest News

For years Pez was star struck with Armstrong's magnificence. I took them out of my favorites a long, long time ago.

 

[Moose McKnuckles]

Pez is perhaps the most worthless site in cycling. Their reviews are garbage. Every bike is awesome. Every bike rides great.