Texas TracGroup problems

[NickHolt]

Chuck,

 

Sounds like you're ready to talk!

 

Nick Holt

[fastoval]

It sounds like they said a whole lot that meant nothing. Very articulate and professianal and gave no information at all. Kind of like asking a lawyer to disclose evidence, 300 words of nothing.

Nick keep us all informed on what you learn so that we can keep TSAR on their toes and on the up & up. Great site this TSZ is, ya'll keep up the great work. Fastoval

[logizmo]

My husband and I have personal experience with Donald Teague and TSAR and I would be happy to share it with anyone who is interested in the truth.

 

I want to thank Chuck for listening to us (I know you've got to be sick of talking about it) and for dinner at Ruth's Chris.

 

fourkidsmom@yahoo.com

[jracer98]

Then let's hear "the truth".

Thanks

Jay

[logizmo]

Not on this forum...otherwise I would have posted it...

[Jason]

Email me with "The Truth".

[Jason]

I decided to go back and reread some of the articles written about convicted felon Donald Teague and his past. Anyways judging from their own website and his past history I think anyone who does research on Donald Teague and his own TSAR will find that investing in the company would be extremly risky. The guy is a convicted felon and still expects to have investors line up and go into his business ventures. I understand he is a good salesman is selling his ideas to people with money. I was sold on the idea of having top quality race tracks around the state with huge purses. One problem. It didn't add up and it never will. Where will the racers come from? Where will the fans come from? Where will the money come from? These questions have NEVER been answered.

 

Bellow are some articles about Donald Teague and his past and maybe soon something will be written about his present.

 

Lufkin Daily News - 3/1/03 Caution is out: Speedway planner has past of troubles

By ROBBIE GOODRICH

Donald R. Teague, who is working with an Austin group to build four motor speedways in Texas -- including one in Nacogdoches -- has two felony convictions; has filed bankruptcy three times; was president of a corporation that filed bankruptcy; and he owes more than a quarter-million dollars to the IRS.

 

Teague calls himself a strategic business engineer and is listed as an associate of Texas Strategic Consultants, LLC. The company's Web site says it works to implement business growth strategies. The group says it's contracted with Texas TracGroup to help with building the racetracks. An announcement to that effect was made Tuesday in Austin.

 

Teague was convicted in 1974 of larceny and forgery in San Antonio and placed on probation, according to the Texas Department of Public Safety Web site. His probation eventually was revoked, and he served four months in prison beginning in February 1977, according to the DPS.

 

Teague also was convicted of driving while intoxicated in 1984 and given two years' probation, according to the DPS.

 

Teague could not be reached late Friday afternoon for comment regarding his arrests, though he did comment earlier in the day about his financial problems.

 

Federal court records show that Donald R. Teague and Beatrice Manley Teague declared Chapter 7 bankruptcy in Shreveport, La., on Aug. 22, 1989, and the couple's debts were discharged on Oct. 25, 1990. Donald Teague and Judith A. Teague declared Chapter 13 bankruptcy in Austin in 1997, re-filed in 1998 and terminated on Feb. 4, 2002. The case was dismissed because payments were not made as agreed, according to court documents.

 

Under a Chapter 7 bankruptcy, all debts are wiped out. Under Chapter 13, the debtors work out a payment plan to creditors with the assistance of a trustee.

 

Courthouse records in Lavaca County show federal tax liens against Donald Teague and Judith A. Teague filed in 1997 totaling $116,539. On Dec. 22, 1998, according to bankruptcy court documents, Teague and his wife owed the IRS $269,462.

 

When questioned about the bankruptcies and tax problems, Teague did not dispute them. He said his financial problems were not a result of personal wrongdoing but came from not getting get paid for services rendered or because a company in which he had financial interest “got in trouble.”

 

“My bankruptcies didn’t happen because of anything I did wrong,” he said. “I live very modestly. But I’m like anyone who doesn’t get paid, and I have worked for companies that have gone through Chapter 11.

 

“It is unfortunate that I have been associated with some companies that didn’t always do so well, but, hopefully, I have learned from that,” he said. “I chose this profession, and those are the risks that come with it. My professional reputation is unblemished.

 

“These things happened, and I don’t hang my head,” Teague said. “But it is not reflected in the competency of my work.”

 

Teague also said that it would be “unfair” to judge Texas TracGroup on the basis of his personal financial problems. He said his role with Texas TracGroup is as a “business engineer.”

 

“I am not an owner, I’m not in management, and I am not an investor,” he said.

 

On Tuesday, Teague, Michael Primrose and Texas TracGroup announced it would build four oval racetracks that, as part of a new racing series, would be one level below the NASCAR-sanctioned series. Texas TracGroup was formed a few months ago to be the development company for several private investors who want to build short-track motor speedways in Texas, according to Teague. The group is based in Austin. The other three locations include Hillsboro, Vernon and Sealy. Neither Teague nor Primrose will reveal who the investors are.

 

The Texas State Racing Association is the newly formed organization that will serve as the “sanctioning body” of the speedways, Teague said, assuming responsibility for scheduling events, officiating, writing the track rules, organizing officials and monitoring the tracks and events.

 

According to developers, the proposed race track will be located on a 150-acre site not yet determined, will be NASCAR quality and will seat up to 20,000 people with plans for expansion to a 50,000-person seating capacity.

 

The project equates to a $15 million capital investment in Nacogdoches, in addition to providing 24 full-time jobs and 50 part-time jobs on race days, according to Texas TracGroup.

 

As a business engineer, Teague described his job as that of conducting planning and research for a venture, gathering together people who have the expertise and knowledge needed in a particular area to make the venture successful, and then providing the general project oversight to make sure contractors are building what they are supposed to build.

 

“It is not my responsibility to actually build or to finance,” he said.

 

Teague said he describes his qualifications as coming from “hands-on education,” with “a broad background.” He said he has had extensive experience in the business world with about 60 or 70 hours of college over the years. He said he has worked with the American Management Association, attended numerous workshops and conferences and was involved in planning while serving in the military in Vietnam.

 

“I’ve been a planner since management by objective was created by the military,” he said.

 

He said he has “assessed hundreds of companies” during the past 35 years as a consultant hired to assess strengths and weaknesses in companies “looking to grow” by evaluating the quality of people, financial situations and market planning.

 

“It is my job to go in and study the nature of a business,” he said, adding that a substantial part of his job involves research.

 

“I approach a client or business with absolute ignorance, then search out the most competent people I can find in that particular industry and draw on their knowledge and input,” he said.

 

Teague said the 1989 Chapter 7 bankruptcy in Louisiana came while he was doing economic development for a 10-parish area in Northwest Louisiana. He said a company he “had an interest in” got into trouble.

 

“I had to file Chapter 7, because too much of the burden fell on me,” he said.

 

The bankruptcy filed in 1997 was while Teague was working for a company called Integrated Production System, formerly called Ostrite Ag System, in Oklahoma. In his position with IPS, Teague approached cities with a plan that included using local farmers and ranchers as contractors to raise ostriches and goats to sell to niche markets. For a franchise fee of $2,500 and 10 acres of land, farmers would be allowed in at the ground floor of the operation, according to a story that appeared in The Daily Ardmoreite in Ardmore, Okla., in October 2001.

 

Teague said he had been contracting with the company for about five years. Teague alleged poor management of the company and its financial difficulties led to his own financial problems

 

In the case of IPS, Teague said the company “didn’t have competent management,” was “under-capitalized,” and that the last few projects of the company “got into serious financial trouble.”

 

IPS is no longer in existence.

 

The case was dismissed and then re-filed on the same date.

 

“We thought it had been resolved, but it turned out that it wasn’t, so we had to re-file for protection,” he said, “which is why you file for bankruptcy in the first place.”

 

He said the only creditor in the second bankruptcy case was the IRS. But court records indicate a number of creditors, including credit card companies, the Ford and Chrysler corporations and some individuals.

 

“We are in the process, as we have been for a number of years, to negotiate a resolution,” Teague said of the IRS debt. “We have not reached a solution. Hopefully, we are getting closer.”

 

Additional information obtained late Friday indicated Teague was president of Venture Management Group Inc., which solicited prospective producers in North Carolina for ostrich farming in 1994. That company filed for Chapter 11 bankruptcy in September 1996. That bankruptcy also was dismissed because payments weren't made as promised.

 

According to information published by Business North Carolina in July 1999, the state Securities Division started looking into Venture Management Group in October 1995. But investigators hit a roadblock because investors would not talk about it, the story said.

 

“The state closed the case in July 1998, unable to obtain evidence from victims,” the story said.

 

Telephone calls made to Teague for comment on this particular venture were not returned.

 

Michael Primrose is listed as member manager of Texas TracGroup, which is a limited-liability company whose investors “wish to remain private,” Teague said.

 

“Owners in limited liability companies do this in many instances, and that’s what they have elected to do,” he said.

 

Primrose said he has been working with Teague a little more than a year, and is currently an associate business engineer with Teague in their company, Texas Strategic Consultants, LLC. He said his duties for Texas TracGroup include writing the checks and making sure everything is in line.

 

In the near future, Primrose anticipates hiring a general manager for the TracGroup.

 

Primrose said that he is aware of Teague's bankruptcy status and the fact that Teague owes the IRS about one-quarter million dollars, but Primrose maintains that Teague's former financial situation has no bearing on the Texas TracGroup's proposed projects.

 

"That is something that happened quite a while ago, and I know the details of that as well," Primrose said of Teague's finances. "But I have no doubt that this project will be completed. It is a viable project."

 

While Primrose and Teague are both associated with Texas Strategic Consultants, LLC., and the Texas TracGroup, Primrose maintains that the two entities are separate.

 

"The only relation between the two is that Texas TracGroup is a client of Texas Strategic Consultants," he said.

 

According to records from the Texas Secretary of State, Primrose is the registered agent for Texas TracGroup, and he and Teague are also listed as management for the company. The last update on the filing was Nov. 21, 2002.

 

Primrose says that he and Teague have equity in the Texas TracGroup, as part of the agreement with the owners, but that neither he nor Teague has invested any money into the company.

 

Primrose declined to name TracGroup's investors and owners.

 

Dale McMichael is a third individual associated with Texas Strategic Consultants, but Primrose said he is not involved in Texas TracGroup.

 

Primrose said McMichael is currently working with a couple of other clients, while Primrose and Teague work with Texas TracGroup.

 

Information in a business pamphlet disseminated by Texas TracGroup says that Engen Contracting Inc. is in charge of site evaluations and construction management for the four tracks with a total value of $60 million. In conducting a Web search on Engen Contracting, limited information is found. The company is described as providing painting, renovation, home repairs and single-family residential construction.

 

An article in the local newspaper in Vernon states that E.W. Construction Inc. is the construction manager for the project. No information could be found on the Web about this company, which is charged with constructing four $15 million speedways.

 

Primrose said both E.W. Constructions and Engen Contracting are the same. The latter is a fairly small contracting company in the Austin area, but it is "very well-versed."

 

Chris Engen, of Engen Contracting Inc., said that his company does not have an official contract with the TracGroup.

 

"So far, everything's been done on a handshake," he said.

 

But the understanding between Engen and the TracGroup is that once a potential speedway site is identified, Engen Contracting will come in and do a preliminary site assessment, which Engen referred to as a fact-finding mission.

 

Geotechnical studies at the site will include a Phase 1 environmental study and some boring to test sub-surface conditions.

 

When it is time for actual construction, Engen said his company would not be involved in the actual construction of any speedways, but he would help hire a general contractor for the four racetracks.

 

"We will actually serve as a liaison between the owner and the contractor," he said.

 

When asked if he knew anything about Teague's past business problems and background, Engen said he was not aware of any of the information presented by The Daily Sentinel, but that he was extremely interested in learning more.

 

One of the biggest feathers in the cap of the Texas TracGroup has been the touted involvement of Fink Roberts & Petrie, Inc., the engineering firm of record for the Indy 500 and the California Motor Speedway.

 

However, no formalized agreement exists between those two entities. Brian Waltz, senior project manager at Fink Roberts & Petrie, Inc., confirmed that the TracGroup has been in contact with his firm but nothing has been finalized.

 

"Officially, we have not worked out all of the negotiations, so we are referring all questions back to Texas TracGroup," he said.

 

Steve Farmer, who represents the USAC Racing Series, said he was not aware of the bankruptcies or the money owed to the IRS.

 

"I don't know (Teague's) personal business," he said. "I would have to say it does cause me some concern, but he has some very reputable people involved in this project, including Wally Dallenbach and Wally Dallenbach Jr."

 

Farmer said Teague's past might be attributed to a bad business venture or a bad economy.

 

"The gentleman who owned Interstate Batteries declared bankruptcy six times before he made a success of it," Farmer said. "I still want to see this project move forward, and I still want to be part of it if the tracks are still built in Texas."

 

Dallenbach Jr., a professional race car driver and NBC Winston Cup race commentator brought into the project to oversee speedway track characteristics, said he did not know about Teague's past.

 

"I can't comment on it until I look into it a little bit more," he said.

 

Teague repeatedly commented that it would be unfair to judge Texas TracGroup or the viability of the speedway project on the basis of his personal financial problems. He also said Primrose was aware of those problems.

 

“I deal above-board on these things,” Teague said. “This is unfortunate. I don’t think you will find anyone who will say I don’t do my job.

 

“Unfortunately, people judge others by what the see on the surface and not always by their competencies,” he said. “I am very detailed and knowledgeable, and I question everything. People who deal with me know that to be the truth.

 

“And I’m not going to stop,” he said, referring to the job he is doing for Texas TracGroup. “The only downside to this would be for Texas TracGroup to decide they can't deal with me because of this (article).

 

“We are in a critical stage in the development of this project,” he said. “I’m not saying they couldn’t do without me, but I know how valuable I am to this project. I’m proud of the work I have done.”

 

It is intersting how he can blame it on companies that are not his and how throughout all the articles about his past they insist he is not part of Texas TracGroup management. Guess what folks. TSAR is HIS.

 

Below is a post that Nick Holt made in regards to some of the Donald Teague articles that were posted back in 2003.

The Nacogdoches Daily Sentinel and the Lufkin Daily News have been doing some research into the Texas TracGroup and what they have discoved doesn't look good for the Austin-based group.  Apparently one of the key players in the Texas TracGroup, Donald Teague, has a troubled criminal and financial past.  

 

Accoding to a copyrighted story by Robbie Goodrich in the Lufkin Daily News on Saturday, March 1, 2003, (Lufkin Daily News story by Robbie Goodrich) Teague has two felony convictions, has filed bankruptcy three times, was president of a corporation that filed bankruptcy and owes more than a quarter-million dollars to the IRS. A similar story detailing Teague's previous legal and financail woes was published in the Nacogdoches Daily Sentinel on the same day ( Nacogdoches Daily Sentinal story by Robbie Goodrich)  

 

Another copyrighted story by Emily Taravella about the Texas TracGroup's woes appeared in the the Sunday, March 2, 2003 edition of the Nacogdoches Daily Sentinel (Nacogdoches Daily Sentinal story by Emily Taravella).  Tavavella contacted the development officers of Vernon, Sealy and Hillsboro and reported that each was apparently unaware of Teague's previous legal and financial woes and will be proceding in a "cautious" manner.

 

Also in the Sunday (March 2, 2003) edition of the Lufkin Daily News ( Lufkin Daily News story by Robbie Goodrich)  Robbie Goodrich reports that "an economic development specialist with the University of North Texas questioned the feasibility of constructing tracks in less-populated rural areas and whether or not the tracks could be successful running races only six days a year, as proposed by Texas TracGroup."

 

Perhaps the strongest worded article about Teague appeared in the Sunday edition of the The Nacogdoches Daily Sentinel. (Nacogdoches Daily Sentinal story asking for answers from Texas TracGroup).  In this piece the The Sentinel comes right out and says, "To put it mildly, the folks behind Texas TracGroup have some explaining to do. "

 

Until all the fact come out, no one should rush to judgement about this, but things don't look as promising as they once did for the Texas TracGroup.

 

Nick Holt

 

I urge those who have been affected by TSAR, Texas TracGroup, and whatever other business ventures Donald Teague has been a part of to step forward and provide more information on this subject.

 

To the PR person who works for TSAR. You can dress up a pig all you want because that is your job but ... it is still a pig.

 

 

Everything posted here is factual and I am sick of people hurting racing, tracks, drivers, etc etc and their reputation. It all comes back to you. It all comes back to you.

 

Jason

[logizmo]

Maybe all of us that have been scammed by TSAR aka Donald Teague should start some kind of support group...it sure would be interesting to compare notes...

[logizmo]

Update to www.texasstateautoracing.com

 

There is a new, additional message on the site

*Special thanks to those of you that have written to share your stories!  We will consider adding you as plaintiffs in pending litigation.

[moe]

Well, I would like to add my personal experience with TSAR and Donald Teague.

 

I was initially contacted by Donald earlier this year for a sales and marketing position with TSAR. Donald mailed me a letter, a "brochure" and a couple of professionally printed business cards. In it he wanted me to describe my experience with racing and to contact him back by email. Naturally I was very excited on the idea of having these tracks built and to be part of it just made it that much better. The website had named big players in the racing industry including the Dallenbachs among others so it appeared to be the real deal. I even did a search on Google for TSAR and nothing negative came back, (more on that later). Anyway, I wrote Donald back an email explaining my history growing up in Houston and my father racing A.J. back in the good old days etc. and how I very excited about TSAR. He calls me up the next to arrange an interview at his house, because, "They were still working out the lease agreement". So, I show up at his house and go upstairs to his office. He has a few plats of racetracks on the wall, we discuss the the development issues, feasiblity studies, how there are going to be facilities for engine programs, shopping centers, just this huge list of things that were going to happen.

He then showed me a picture of an office space on McNeil Rd. here is Austin that was to be the new location for TSAR. He described to me how marketing would be on one floor, operations on another and they should be moving in to the space within two weeks. And, since TSAR would be occuping all three floors, a big TSAR sign would be hung on the outside of the building proclaiming that this was the headquarters of TSAR. We discussed Wally Dallenbach and how Donald helped his career with the Pepsi deal and got him a ride in NASCAR. I must have been there about three hours, just talking about racing. We also discussed salaries and duties about the position. I told him to make me an offer and he said he would think about it and contact me the day after.

 

Of course one of the questions I asked him is "where is all this money coming from?" If you going to spend 60 million to build 4 tracks, (or 6 or 8 depending when you talked to him) plus these huge $300,000.00 purses, advertising, salaries, just where is it coming from? The answer I got was SBC was investing $500,000,000.00 into this project. That's right, A HALF BILLION DOLLARS!!!!! This is when I really started to become suspicious. Think about it for a minute. If there was that kind of money behind this, why was he printing brochures out on an inkjet printer,(when I asked to keep a copy he said that was the only one he had)? Why was he working out of his house? If SBC was involved, they certainally would want the all of the publicity and advertising they could get, not to act as a private investor.

 

After I got home that night I started to do some more digging on the internet. The whole thing of showing me pictures of office spaces, plats etc. just sounded like a typical con job. I came across this site and found the name Texas Tracgroup and did a search with that name on Google. That's when I discovered all of the the newspaper articles and realized my suspicions we correct about him. If you do a search for Donald Teague on Google groups http://groups.google.com/groups?q=donald%2...off&sa=N&tab=wg you see posts from his days pushing Ostrich meat among other things. Someone even called him on the S.B.E. moniker he likes to use and compared it to a garbage collector referring to himself as a "disposal enginneer" or the like.

 

Donald e-mailed me the next day with of course, a very lucritive offer. I would be making $200,000.00 within a year. See email below. (BTW, Chuck, how much were you going to be "paid"?

 

I have never responded to the email or have spoken with him since the night I left his house.

 

I did some more research and contacted people who were listed on the back of the brochure. I wanted to find out as much information as I could about him. One of them was the previous marketing person that Donald mentioned be name quite frequently. After getting his number from information and speaking to him by phone it was pretty clear how Donald was conning businesses and everyone involved including this sales person. He just didn't want to believe that Donald was a con man even though Donald owes him money.

 

One of the other people listed was the owner of Megahaus drives in Houston, that's who owns(ed) the domain name for TSAR. He did not return my phone calls. And I also spoke to Chuck by phone while he was at the TMS. Chuck confirmed what I already thought and told me not to associate with Donald. I could not get in touch with any of the contractors or the company that did the graphics for

TSAR although from what I understand, Donald owes them money as well.

 

Donald was quoted in the news paper articles as not having anything to do with the financial aspects. The fact he owes people money and offering me a salary would contradict that statement.

 

 

My opinion is he's doing basically the same thing here as he did with the Ostrich farms. He cons people to put up front money on big promises and things that will not ever exist. He's very smooth and believable in his approach. What small town would not want to have 15 million in revenue coming to their town? So they pay for the feasiblity studies and get the plats drawn up. Now you have something you can con someone else with and get them involved and so on and so on......................

I've heard this type of con referred to as "Social Engineering". You get people involved by name dropping and association. People are more likely to do something if other people are involved and it just grows from there. As an example, Donald gave me the names of businesses that had already bought into it at $1300.00 each. So if those businesses did he would get others to join just because the others did.

 

 

 

P.S.

Donald, if you are reading this, rest assured that I will continue to do whatever I can to make sure that you are held accountable.

________________________________________________________________________________

______

 

 

xxxxxx, I was very pleased with our meeting this past week. Generally, I was very pleased with all of those that I interviewed for a regional sales position with TSAR.

 

After visiting with all, I would like to give serious consideration to your serving as Regional Sales Director for the Central Texas Region. I have arrived at your compensation package recognizing both your 'individual' sales abilities as well as your 'managerial' position. We will need to discuss this further to decide whether or not you work for TSAR in a managerial or individual sales position.

 

As a Sales person: Regional Sales Executive

 

Your compensation would be as follows:

 

Salary Base: $50,000. (Minimum Per Annum Base)

 

Adjustments: Pay periods are lst and 15th of each month.

I have arrived at your 'base' by assuming that you would produce a minimum $10,000. in sales every pay period (approx every 2 weeks per pay period). That 'Per Annum' would be adjusted every pay period for any amounts above $10,000. in sales that you produce in increments of $2,500. dollars for the pay period. For every $2,500. sales produced above base during the period your per annum Salary for the period would be increased by $10,000. Per Annum.

 

Example: You produce $15,000. in sales for a pay period, your Salary for that pay period would be based upon $70,000. rather than $50,000. ($50,000. Base plus $10,000. for each $2,500. produced above the $10,000. sales base).

 

Thus, your upside Salary has no limits for your personal sales production.

 

Should I place you in the position of: Regional Sales Director, then you would (in addition to your own Sales production) receive another $10,000. Per Annum Salary adjustment for every $10,000. in cumulative sales produced by your: Regional Sales Executive sales team during any pay period.

 

I have 3 maybe 4 Regional Sales Executives ready to bring on-board right away - which would give you a significant team to produce sales with in addition to your own sales.

 

I would like to meet with you at the earliest opportunity to discuss this so that we can reach a decision. I have meetings Monday AM, but would have some time after probably 2:00PM Monday, perhaps around 3:00PM. Please call me on my cell at 924-6441 Monday to let me know if you want to get together for further discussion.

 

Thank you for taking your time to meet with me and for our opportunity to consider you for a position in Sales with TSAR.

 

Donald Teague, S.B.E.

Business Developer, TSAR

(512)257-7758

[logizmo]

Amazing how similar the offer letters are...

 

Subject: Position with TSAR

Date: Thu, 20 Nov 2003 21:44:21 -0600

 

xxxx, sorry it took me this long to work up a brief outline for you. I met with xxxx last evening and we both agreed that you would make an excellent Director of Regional Sales for the Central Texas Motor Speedway Region (CTMS).

 

In that position, briefly, you would be responsible initially for generating sales personal

sales of our 'Inaugural Season Package' (10 Tickets and 1 Speedway Club Membership) to companies. Of course I'll be glad to assist you initially if you will set up the appointments for us. Later on you will also handle sales for regional racing suites, sponsorships, racing school enrollments, merchandise, etc.

 

You will also handle the recruitment development of a regional staff of Regional Sales

Executives (probably 8-10) and manage them for the CTMS market region. Thus, you will initially sale yourself (and probably continue to do some) but you will need to move forward with the development of other sales people where all (most) of your time will be devoted to assisting and managing that regional sale force.

 

Note: I already have 1 Regional Sales Exec who will be starting on Monday - or at least I need to get down to San Antonio Monday to get him started. And - if it works out for you, I'd like you to go with me on that visit. (that will depend how things work out for you getting started).

 

Our overall objective is develop those 8-10 Regional Sales Execs into "sales generators" and ultimately establishing a Regional TSAR Retail Store at strategic locations for each of those Execs - to be a part of their managed area.

 

While initially it is critical that you generate sales at a good level yourself, I do not believe in a commission structure for you as a Regional Director - because you're going to end up doing a lot of managment tasks and other functions it wouldn't be practical. Alternatively, I prefer to put you on a progressive salary schedule that would reflect the results that TSAR would expect from you and that you would earn in your capacity as a Regional Director.

 

While there will be other benefits in the position, presumably the one that I need to address now (I will work up the others for you momentarily) is Salary.

I propose to set your Salary as follows:

 

Initially and lst 60 Days-(until 1st of Month after 60 days) - $40,000. Annual; Next 90 Days - $50,000. Annual; Next 6 Months - $60,000. Annual; Next 6 Months - $70,000. Annual; Next 12 Months - $80,000. with further progressive increases as TSAR grows.

 

If this is acceptable for you, please let me know. Also, call me as soon as you know when you would be available to start so that I can confirm a starting date with you. I'd like it to be Monday, if that will work, but if not we will work with whatever the timing is.

 

I look forward to working with you and I know xxxx does. We have a lot of work to do and we need to get aggressive immediately to accomplish the objectives that must be met in the sales area and to support our other objectives. While that is going to require sincere committment, determination and persistent effort - it will be well worth it for the executive cadre as actual speedway operation takes place in the Summer of 2005. Best regards, I look forward to hearing from you. Donald

 

"Moe", you and I are on the same page. I will continue to do whatever I can to make sure D.T. is held accountable for his actions and do whatever I can to stop him. It's amazing to me that he has been able to go on this long...

[supertx]

Nick

 

So what side of the fence are you on,are you for the track group or you think that it's a scam, couldn't tell by your different postings

[Jason]

That post by him was made back in 2003.

[NickHolt]

I'm for anyone who does his/her best to make stock car racing in Texas better and I tend to give people the benefit of the doubt. But, from all reports, the people behind this effort do not have a very good track record in completing projects they have been associated with in the past.

 

So far the most concrete information we have about TexasTrac Group (now TSAR) and Mr. Teague comes from the investigative reports by the Nacogdoches Daily Sentenal. Those reports painted Mr. Teague and TexasTrac Group in a very poor light.

 

Nick Holt

[NickHolt]

I received this email on 7/21/04 from an individual who recently worked for Mr. Teague and TSAR. Here it is:

 

+++++++++++

 

I have recently read the posts listed on Texas Speedzone.

 

I have been working with Donald Teague the past two months along with Pat Brown. I was completely unaware of what was going on with TSAR & I had no idea about Donald's past. My past two paychecks from TSAR have bounced. TSAR owes me over $2500 currently.

 

I have been working side by side with Donald, going to companies to try to convince them to become "support companies." This fee can range anywhere from $1300 to $25000. He makes the presentations sound good. He's very smooth & seems to have the answers to everything. I was wondering why these companies wouldn't get online to do research either on Donald Teague or TSAR. Then I've noticed that they're mostly "mom & pop" type operations that either don't have a computer or aren't computer literate.

 

I can't stand by this type of organization & honestly I don't want my name tied to this! in any way. His story is constantly changing depending on who we're talking to. TSAR supposedly was doing land evalution on 400 acres off of Hwy 183 south of the airport. Now Donald has found another piece of land where Hwy 183 & Hwy 21 intersect in Mustang Ridge. He's saying that it will take 3 more months of land study before TSAR can even begin the planning of the track. Donald is telling everyone that TSAR is breaking ground simultaneously in Houston, Dallas, Shreveport & Austin. It's funny how there's no one in the other cities promoting the tracks there or trying to find investors. Things just aren't adding up.

 

I have contacted the Austin Business Journal & the Better Business Bureau. Donald is currently putting the BBB logo on all paperwork, but TSAR is not a member. I cannot work for an organization like this or for a person like Donald Teague. I can't believe that he's gone this long without being stopped.

 

I wanted to contact you because after reading the posts, it looks like you have a lot of information on Donald.

 

Do you know if anything is being done right now to stop him? Please feel free to contact me either by email or the phone number listed below.

 

Thank you,

 

(name and phone number withheld by Texas Speed Zone)

[NickHolt]

Here is the second email I received (7/28/04) from the person whom I quote in the post immediately above this post.

 

I had written to the individual because I did not want to post what she wrote without getting her approval to do so.

 

So, here is what this person had to say in their second email to me:

 

+++++++++++++++++++++++

 

Nick,

 

I'm sorry that it's taken so long to get back with you. Feel free to use any of my information on your Texas Speed Zone website.

 

Donald Teague has absolutely turned my life upside down. Both of my payroll checks in July (1st & 15th) bounced & he currently owes me over $2500. Not only that, he went with me the first part of the month to go car shopping. I purchased a new Jeep Rubicon, but the payments were significantly higher than my previous vehicle. Donald said that TSAR would give me a payraise to make up the difference in my payments. He even faxed the sales manager at Chrysler the paperwork to show that he had given me a pay raise. Now I'm stuck with a vehicle that I can't afford & no job!

 

Seriously, Donald has ruined my life right now. All of the checks that I wrote for bills at the beginning of the month all have bounced because my payroll checks from TSAR bounced. It's left me in a horrible situation!

 

I want TSAR & Donald Teague stopped! I met with Fox 7 News this morning & told my side of the story to them. They are also speaking with a couple of companies that have been burned by Donald. It airs August 9 on the 9:00pm news.

 

I also spoke with Johnny Johnson with the The Daily Sentinel in Nacogdoches, TX. He had written a newspaper article on Texas TracGroup & Donald Teague before. I spoke with him this morning & gave him information. He is currently doing a story on TSAR. He'll let me know when it will be published.

 

Please let me know if there are any groups forming against this organization. More than anything, I want this man & company stopped!

 

Feel free to contact me either through email or the number listed below.

 

Thanks,

 

(name and phone number withheld by Texas Speed Zone)

[Kathy]

Wow!

 

What a mess for this guy.

 

Someone needs to stop Donald Teague.

[sfrebel]

its !#$%Q#$% like that cause the honest racers, promoters, etc. to lose credibility

 

every member on this board should be concerned with this

[NeilTPS]

Nick Holt & Jason of TexasSpeedZone.com and the newspaper writers in Lufkin/Nacadoches deserve "a big thank you" from all the good folks in Texas auto racing.

 

Keeping racing alive doesn't need anything or anybody who would hurt the efforts of those of us who have dedicated our many years to the advancement of our sport in Texas.

 

Neil Upchurch

Race & Administrative Director

Texas Pro Sedans

[tqj3]

Maybe it's time to quit talking to the media and call the cops.

[rebelracewriter]

Or I can give my Uncle Guido a call........he specializes in kneecaps! LMAO

[NickHolt]

This morning I received the following email from Lysa, whose husband worked for Donald Teague a while back.

 

++++++++++++++++++++

 

Nick,

 

Unfortunately for Donald Teague, he lives in Williamson county. Please tell the person that's been writing to you to turn their bounced checks over to the Williamson County Attorney's office ASAP. I think you only have 30 days, so it might be too late for the July 1st check, but there's still time to turn over the July 15th check. We received a check for $1680.00 (my husband's bounced paycheck) last Wednesday from the county attorney's "hot check division". It's not near the amount we're owed, but it was more than we ever thought we'd get from Donald Teague.

 

Also, please let them know to file a wage claim with TWC. I know there are already several filed and we got our determination letter on Friday stating that D.T. owes my husband $1800. We may never see that money, however if enough people file claims he may be able to be stopped. As you know, I would be happy to talk to anyone (other's that have been b! urned, reporters, law enforcement, etc.) about our experience in the hopes of stopping D.T. He should be in jail...I don't know how he has been able to avoid it this long...

Please call me if you have any questions and feel free to pass my number along to D.T.'s recent victim.

 

Lysa

[ProTree]

my brother-in-law is a Chief U.S. Marshal-maybe I need to turn him on to Donald Teague-he likes to get ahold of a--holes like Teague-

[moe]

I just recieved this e-mail from Donald Alyea. I think that the jig is up for Donald Teague.

For what it's worth, I contacted News 8 here in Austin about this story but never heard back. I will contact News 7 to provide what information I can about this.

 

 

http://www.dailysentinel.com/news/newsfd/a....9963.4920.html

[NickHolt]

Here is the whole article written by Johnny Johnson taken from the August 1, 2004, Nacogdoches Daily Sentinel On-line edition

 

+++++++++++++++++++++++++++++

 

 

Teague's checkered past raises caution flag

By JOHNNY JOHNSON, Sentinel Staff

Copyright 2004, The Daily Sentinel

 

NACOGDOCHES, Texas - A little more than a year ago, a company called Texas TracGroup announced its intentions to build four $15-million, 20,000-seat motor speedways in Texas. Nacogdoches, Hillsboro, Sealy and Vernon were the initial sites.

 

The announcements were received with enthusiasm and anticipation, until questionable business dealings and criminal background information on one of the company's partners, Donald Teague was uncovered by The Daily Sentinel.

 

The Sentinel's articles about Teague and the TracGroup, raised questions about the project, and the Nacogdoches Economic Development Corporation pulled its support. Nacogdoches was taken off the proposed race map, almost overnight, before any money exchanged hands.

 

Texas TracGroup disappeared shortly after that, but Teague, undeterred, began a new company, Texas State Auto Racing. It began where TracGroup left off — only this time, there were investors with real money.

 

Dream Job

 

Stephanie Grider hadn't been in Austin long, when she landed what she thought was her dream job.

 

She found a job posting for Texas State Auto Racing on Yahoo, filled out the application and was hired immediately. She bragged to everyone she knew about what a great job she had.

 

"It seemed like a great position with a great company," she said. "I didn't have any background in motor sports, but there didn't seem to be anything shady about it."

 

Grider said she was told that TSAR had about 200 employees, most of whom were based in Indianapolis, Ind., that made sense to her because she knew it was a city famous for racing.

 

She has since learned that there were only three employees, including marketing coordinator Pat Brown.

 

Grider said her job was to travel with Teague to various businesses and try to convince companies to invest in TSAR.

 

"(Teague) would try to get people to invest money in exchange for contracts or other favors," she said.

 

For an investment of about $1,300, Grider said, a small independent company, such as a wrecker company in the Austin area, would be promised that they would be the "official wrecker company" for Texas State Auto Racing.

 

"It was a no-brainer. For a little bit of money, the businesses could make millions," she said.

 

Grider has a list of 28 investors, which she compiled during the two months she worked for TSAR.

 

She didn't notice any red flags, until her last two payroll checks bounced.

 

"That's when I started to do some research," she said.

 

As she perused the World Wide Web, Grider began to unearth some "interesting information" involving Teague and failed ostrich farming ventures, bankruptcies, and an abandoned proposal for a racetrack in a place called Nacogdoches.

 

One Web site, www.texasstateautoracing.com, displays a picture of Donald Teague, with a superimposed circle-diagonal slash, "no" symbol, as a warning against business dealings with the man shown in the photo.

 

"I never told (Teague) about what I found, in hopes that he would pay me," she said. "He owes me almost $3,000."

 

According to Grider's boyfriend, Kris Cantu, Grider is "swimming in debt," because she has not been paid.

 

Her rent check bounced, forcing her to call her parents for money.

 

Grider began to realize that the only money coming in was that from investments she had helped obtain. But apparently, that had run out. Grider thought if she helped get one more support business, she could collect her money and walk away.

 

The deal was to meet with a paving company and offer a chance to be the official TSAR paving company.

 

"But we were sitting there, and it made me sick to my stomach for me to know what was going on," Grider said. "Before we left, I told (the prospective investor) 'I think you really need to look at this Web site before you invest any money.'"

 

Grider said she has contacted everyone she can think of from the FBI to Texas Workforce Commission to the district attorney in Austin about the situation.

 

"I just wish he'd pay me and end all this," she said.

 

Checkered Past

 

Teague was convicted in 1974 of larceny and forgery in San Antonio, and placed on probation, according to DPS records. His probation was eventually revoked, and he served four months in prison.

 

In 1984, Teague was convicted of driving while intoxicated and was given two years probation.

 

Federal court records show Teague and his wife, Beatrice Manley Teague, declared Chapter 7 bankruptcy in Shreveport, La., in 1989. The couple's debts were discharged in 1990.

 

Donald and another wife, Judith Teague, declared Chapter 13 bankruptcy in Austin in 1997, refiled in 1998 and terminated in 2002. The case was dismissed because payments were not made as agreed, according to court documents.

 

Courthouse records in Lavaca County showed federal tax liens against Donald and Judith Teague in 1997, which totaled $116,539. In 1998, Teague and his wife reportedly owed the IRS $269,462.

 

Additional information showed that Teague was president of the now defunct Venture Management Group Inc., which solicited prospective ostrich farmers in 1994 in North Carolina. The company later filed Chapter 11 bankruptcy.

 

Support companies (or Teague's targets)

 

Jim Ramming, owner of Ramming Paving Company already thought the deal Teague offered sounded too good to be true, even before Stephanie Grider confirmed it.

 

"For $1,300 (Teague) said we could be the exclusive paving company for (TSAR's) four tracks," owner Jim Ramming said. "Of course that just included the outside roads, because the tracks themselves could not be done until the engineers' designs were finished."

 

Grider took Ramming aside and told him he might want to do a little Internet research before writing a check.

 

"It sounded too good to be true, and I'm still not sure it's not a good deal," Ramming said. "It sounds like a really interesting thing, and it might be the real deal. But if it's not, a lot of people in Austin have been blind-sided."

 

Mike Schultz, with Austin Fuel Injection had no concern that he might be "blind-sided," until he was contacted by The Daily Sentinel.

 

Because Schultz did not know Teague, he said he did some checking with people in the racing industry who were "in the know."

 

"This is supposed to be a legitimate group. They have the backing of Gov. Perry, they have chosen a site in Austin, and construction has started," Schultz said. "I haven't actually seen it, but I just talked to people in the racing circuit, and they tell me they broke ground about a month ago. So far, everything has checked out."

 

Schultz said he invested $1,200 in the track, and although "all kinds of stuff" was promised to him he was really interested in advertising his diesel fuel injection business, getting first choice of sign placement at the new track.

 

"I'm definitely interested in finding out more information," he said. "If I've been scammed, I want to know about it."

 

A spokesman for Gov. Rick Perry's office said he had no knowledge that the governor was supporting TSAR.

 

After speaking with the Sentinel, Schultz contacted Teague and was informed that the proposed site at state Hwy. 21 and 183, had an environmental issue and that there was an alternate site, 1 mile east on state Hwy. 21, and a ground-breaking ceremony was not anticipated until January or February.

 

Truth and consequences

 

Ten months ago, Donald Alyea was marketing director for Texas State Auto Racing. He defended the company, when interviewed, saying that the design and building plans of TSAR were "on plan and according to schedule."

 

His story was different Friday.

 

"I spent about five months working with (Teague) and that organization, from May to November," Alyea said. "During that time, I did a lot of work for them, and am owed over $30,000 in compensation. I had two checks that bounced, and I was asked to lie on (Teague's) behalf."

 

Alyea still owns the rights to www.texasstateautoracing.com, which he now uses to warn people about the history of his former employer Donald Teague.

 

According to Alyea, Teague locates privately owned sites, pitches his concept and gets plans drawn up. He then approaches potential investors, or as Teague calls them "support companies," for money.

 

Alyea said design and construction companies are usually excited about drawing the plans, because it seems like a solid concept that could turn into a multiple design project, when additional tracks are needed.

 

Teague then approaches potential investors with a good concept and a convincing set of plans.

 

Tracy Dorman, executive vice president for Lee Construction Management in San Diego, Calif., said Teague owes the firm more than $300,000 for design plans his firm did for one of the racetracks. Teague has not made even one payment.

 

But Alyea has yet to file suit against Teague.

 

"I know I could get a decent civil judgment immediately," he said. "But there's nothing to collect on. I do know that several people are considering pursuing criminal litigation."

 

Alyea said he left TSAR after five months with no pay.

 

"I kept seeing money coming in, but none of the bills were getting paid," he said.

 

To the best of his knowledge, Alyea said Teague never purchased any land. Instead, he would contract the land for purchase and then conduct soil samples and tests that would ultimately disqualify the site and require them to relocate to another property.

 

Alyea knows he will never see any money from the venture, but hopes his Web site and stories published through the media will help keep anyone else from becoming involved.

 

"I think the most unfortunate part of this is that the idea is a really sound idea," Alyea said. "Many people are interested in the sport in Texas, and they want to see it exist on a greater level. But Teague was using that to play on people’s emotions. And that's unfortunate, because it will be difficult, if not impossible, for someone else to legitimately do this in the future."

 

Enforcement

 

John Morgan hears stories about business ventures like Texas State Auto Racing on a daily basis. It never ceases to amaze.

 

Morgan heads the Texas State Securities Board enforcement division, which is charged with detection and prevention of violations of the Securities Act, including illegal sales of unregistered, nonexempt securities, sales of securities by unregistered dealers and fraud committed in connection with the sale of securities.

 

Morgan does have a file on Donald Teague, but it only contains limited information, and some newspaper clippings.

 

When asked how it is that someone can move from place to place using the same technique and soliciting investments without a license, Morgan's response was simple — "there is no death penalty for securities fraud."

 

The SSB leads the nation in prosecuting securities fraud, according to Morgan. There's simply too much of a workload to take a more proactive stance and to stop fraud before it happens.

 

"We've got a really good track record with enforcement," he said.

 

David Weaver, general counsel for the SSB, said those who solicit investments must have a license from the state.

 

Teague has no such license.

 

"One of our goals is to get everyone to call us and check things out and not take someone's word for it," Weaver said. "A lot of these people know how to smile and dress nice, so people need to check with us and see if they are registered or have any disciplinary background."

 

Anyone thinking of investing any money should at least check the Internet, to see if there is any information about a person or group, Weaver said.

 

Morgan, took some of the information that The Daily Sentinel gathered and then contacted Teague's former employee Stephanie Grider, who shared her information with the board.

 

An investigation is currently pending.

 

No comment

 

TSAR communications director Pat Brown was contacted Thursday on her cell phone. She said she would call back later in the day.

 

Instead, Brown sent the following e-mail:

 

"At this time, TSAR has no news for public release other than we have assembled our executive staff and are on schedule in the pre-development stage of our track and series planning. We hope in the very near future to have significant news to release to all media outlets, and I will make sure that you are on the mailing list."

 

An e-mail response requested additional information.

 

Additional phone calls were placed to both Brown and Teague, but neither phone call nor e-mail communications were returned.

 

No hope

 

Ten months ago, the people of Hillsboro, one of the original track sites, were still hopeful they would get their racetrack.

 

That hope has since disappeared.

 

Jim Wehmeier, executive director of the Hill County Chamber of Commerce, said although he did not know of any financial investments made or solicited, he had not heard anything from TSAR in five months.

 

"It (the racetrack) would still be nice to have," Wehmeier said, "But I'm certainly not counting on it, at this point."