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Monday, March 4, 2019

MIKE'S SURPRISE? Former Traverse City Film Festival Executive Director Responds To “Traverse Ticker” Report; Lake's Assertion (“TCFF’s distribution of Michael Moore’s 2016 film, MICHAEL MOORE IN TRUMPLAND”) May Solve The Mystery Of The Festival's 2016 $51,627 Expense Line Item For State Run Films Distribution Effort

Back on August 8, 2018, I wrote a story, partly in response to a reader's comment (shown at left), where I examined publicly available financial data of the Traverse City Film Festival.

One line item stuck out in the 2016 Form 990 report: a $51,527 expenditure for a “trial run of distribution services” under the name “State Run Films”.

As I wrote last summer, I was unable to locate any Michigan business entity under the name “State Run Films”.

However, I did find a New York State business with that name, formed by a New York City accounting firm on June 5, 2018 on behalf of its client, Michael Moore. State Run Films' logo, shown at left, leverages the equity ripped off borrowed from the State Theatre's own marquee. 


I think I may have finally found my answer to that so-called distribution effort.

Former TCFF Executive Director Deb Lake, addressing two allegations made by Moore in today's Traverse Ticker story, appeared to cast some light on the “State Run Films” mystery: it may have been a Moore boondoggle and (in Lake's words) a “conflict of interest that was never brought before the board.” 

“It is my understanding that Mr. Moore and Kathleen Glynn donated $200,000 to the TCFF in 2014 as a part of their divorce settlement. Though in press releases Mr. Moore described the donated amount as $250,000, TCFF only received a $200,000 donation as of the date of my termination by Mr. Moore in late December 2017. Mr. Moore allegedly earmarked the funds to be used for three program initiatives: Mike’s Movie Night, the State Theater Project, and distributing films. I use the term "allegedly" because -- while Mr. Moore did unilaterally declare his intentions to use the funds to promote his pet projects during the 2016 board of directors meeting -- the terms of the donation were never put in writing, TCFF never signed a restricted donation agreement with Mr. Moore or Kathleen Glynn, and the board of directors never voted to approve terms of use for the donation. 

I was instructed to earmark this $200,000 donation for actions that, in my opinion, would provide both personal and financial benefit to Mr. Moore, and which therefore constitute a conflict of interest. Nevertheless, between 2014 and 2017, over $200,000 was spent by the TCFF on these projects, including tests for Mike’s Movie Night during the TCFF, staff time developing the State Theatre Project and assisting theaters around the US, and, most significantly, TCFF’s distribution of Michael Moore’s 2016 film, MICHAEL MOORE IN TRUMPLAND – a conflict of interest that was never brought before the board.” 

In her response, Lake states that she is consulting with her legal team and “to determine whether Mr. Moore’s statements on behalf of himself and the TCFF are actionable defamation for which a legal remedy is appropriate. If such legal remedy is necessary, I look forward to disclosing the truth of what happened in 2016 and 2017 in a forum in which all of the facts may come to light, including the way the TCFF board of directors functioned prior to my departure, and Mr. Moore's role in that system of operation.” 

The $51,627 expense associated with the Traverse City Film Festival's 2016 “program service accomplishments” resulted in $37,182 in revenue attributed to “State Run Films Distribution”, for a net loss of $14,445 to the festival.

Stuff's getting real.

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