Jackson Jambalaya

Update: The fines have not been paid. The order levying the fines was issued on April 14, 2010. FAIM and Mr. Murphy were given thirty days to pay said fines to the state.

The Fine Arts Institute of Mississippi, the pet project of Tim Johnson and Billy Murphy, just can't seem to stay out of the news. FAIM is a charity whose stated purpose is to assist the arts in Mississippi and provide scholarships for music students. It raised money through a bingo operation in North Mississippi (which requires a charitable gaming license from the Gaming Commission.). Silbrina Wright was an employee of the Ridgeland-based charity. She filed suit in federal court against FAIM after she was allegedly fired for reporting wrongdoing by its President, Billy Murphy. The Secretary of State issued revoked FAIM's charter in April and fined FAIM and Mr. Murphy $25,000 each. Earlier post. The Gaming Commission denied the license renewal for FAIM in March. Earlier post.

The usual legal skirmishing took place in Ms. Wright's suit, including a motion for summary judgement filed by the defendant. Judge Wingate rejected the motion on June 8, stating "The court also finds there to be genuine issues of material fact as to a possible causal connection between plaintiff’s declarations on defendants’ alleged illegal activities and her termination. The court will also allow plaintiff to present her theory that defendants committed the tort of outrageous conduct." Order

However, FAIM filed a petition for Chapter 7 bankruptcy Friday afternoon (June 11) and a notice in Ms. Wright's suit notifying the court of the bankruptcy petition and asking the court to transfer the case to bankruptcy court (Same tactic used in the Steadivest and Evans lawsuits.). Notice, Bankruptcy Petition

What is interesting is FAIM is still classified as a non-profit corporation under Mississippi law and the question must be asked if it has complied with state law. The Secretary of State outlines the procedures for closing a charity on its website (Page 8). The charity must file financial statements, articles of dissolution, and "(iv) A statement signed by an officer of the corporation providing details of the final distribution of assets." (Section 79-11-503 of the Mississippi Code). The assets must go to another charity or the state. Sources have informed this website FAIM has taken none of these actions. It is unknown if the fines have been paid by either FAIM or Mr. Murphy.