It looks like Disney's shenanigans with the Reedy Creek district are even worse than originally thought, and may well bounce back on the corporation's head in the form of multiple state and federal charges.
The Magic Kingdom has been making a lot of news lately, all of it bad. In December of 2023 the Central Florida Tourism Oversight District published an investigation of the Walt Disney Company’s management of the district once known as the Reedy Creek Improvement District. The Reedy Creek Improvement District was a public government run under the auspices of the Disney Company since 1967 — a power which Florida Governor Ron DeSantis threatened to take from the House of Mouse’s control after he dueled with Disney in a highly publicized political fight over parental rights legislation. The company attempted to use its influence to stop passage of that bill; after this, DeSantis and the Florida Legislature finally ended the company’s hold over Reedy Creek in 2023. They installed the Central Florida Tourism Oversight District in the Reedy Creek government’s place.
. . .
According to The Orlando Sentinel, the Central Florida Tourism Oversight District (hereinafter referred to as the CFTOD), stated in its report that, “[Disney] had established an extra-constitutional governing authority— ‘an experimental absolute monarchy’ — within the borders of the State of Florida, and, accordingly, [sic] the United States —one that strikingly resembled, without exaggeration, a kingdom of yore.”
Since taking control of the district, the CFTOD has said it has found evidence of massive fraud and tax evasion on the part of Disney Company and Reedy Creek ... the accusations include but are not limited to:
1. Theft and Misappropriation of Public Funds,
2. Misuse of Public Position,
3. Bribery,
4. Official Misconduct,
5. Breach of Fiduciary Duty,
6. Fraud and False Statements (which involves Federal law and thus the Federal government as well the laws and government of the state of Florida),
7. Public Offering Fraud,
8. MSRB (Municipal Securities Rulemaking Board) violations,
9. Falsification of Records; Securities Fraud,
10. Misuse of Federal Funds,
11. RICO (Racketeer Influenced and Corrupt Organizations Act).
Additionally, there are reports that Disney paid the property taxes of some government officials, which looks very, very bad indeed.
. . .
At present, Disney is caught between Scylla and Charybdis. Lawsuits on every side, money bleeding out of the company, and competence declining, they are in for a very rough future. One can only hope there will be some way to salvage all the good the company has done when it inevitably falls, because one thing is certain: the Magic Kingdom has become a Magic Dungeon, and they are making Pinocchio blush. The Sorcerer’s Apprentice has flooded the basement and it remains to be seen what will be done to drain the waters.
Whatever is left will need some serious mopping up. Best to grab a bucket, a sponge, and as many rags as one can. This is going to be messy.
There's much more at the link. Recommended reading.
One struggles to find words to describe just how convoluted, criminal, and self-serving Disney's actions appear to have been in the Reedy Creek district. This may be one of the biggest corporate crime sprees in American legal history, if all the allegations are proven in court. I don't know whether Disney can survive as a corporation if it's convicted on all the charges mentioned above. They must surely lead to a breakup of the company, and its division into smaller corporate entities that can be run more honestly and with less institutionalized corruption cross-pollinating between them.
Go read the whole article, and watch the embedded videos as lawyers discuss the situation there. If they're correct, this is likely to lead to multiple marathon sessions in multiple courts for years to come.
The only blessing on the horizon for the rest of us is that Disney is likely to be so busy (and spending so much money on lawyers) defending itself that it's unlikely to be able to afford to continue foisting "woke" propaganda on us under the guise of entertainment. That's a consummation devoutly to be wished, IMHO. There's also likely to be a power struggle within the corporation as its leaders try to weather the storm, and the creative side clashes with the corporate mentality to control Disney's future.
Pass the popcorn . . .
Peter
7 comments:
Hey Peter,
Well that is what happens when in their arrogance they decided go "woke" and put an inaccurate political position out there and rely on a compliant media to push a narrative that is proven to be false. Now it is FAFO time and I have no sympathy for them, they got hoisted by their own hubris.
As soon as it was clear Reedy Creek was a 100% Disney-controlled entity I expected the SEC to come after them for bond fraud. The tax implications are staggering if all their bonds are reclassified as taxable corporate bonds.
I stopped paying attention to Disney years ago. It's been a decade since they got any of my money.
Unfortunately, these crimes don't surprise me - they've been doing what they want and pushing boundaries for decades.
I hope punishment actually comes through; too many on the Left escape the consequences of their actions.
Jonathan
What is sad is that none of this is new information. None of it. People knew about it in the mid 70s. Heck, one of the reasons for Disney importing people to work at the parks was that they had burned through the vast majority of available labor in the state by, you guessed it, the mid 70s.
Forcing land deals, shady business practices, improper medical care for staff, long hours without breaks, crappy work conditions, lying to investors and stock holders. All of this was post-Walt in the 1970s.
And it only got worse over the years.
Remember, it was Disney that most freaked out over Trump's restrictions on H1B visas.
All of this is why it's known as Rat-World by many Floridians.
It is much worse than that. Municipal bonds were issued. Since the early revelation at an investors briefing that Disney controlled Reedy Creek that means Disney issued corporate bonds disguised as tax free municipal bonds. Charges of securities fraud are possible. Serious fines and time for each count.
There's no need whatsoever for any such break-up.
1) Business is business, and government is government. The two should never be made interchangeable. That's the enduring lesson of the Reedy Creek Criminal Enterprise Corp.
2) Prosecute all living guilty parties, to the maximum extent possible.
3) That will include fines, back taxes, and penalties on Mauschwitz Inc. itself, which should speed the removal and replacement of generations of corporate crooks there.
Whether all or any of that turns around the bigger problem of Disney's ongoing flaming woketardedness and the belief that they can do anything they want with no repercussions whatsoever is what will determine either the successful turnaround or flaming destruction of a Fortune 100 company, and tell you whether it survives or dissolves into any remaining viable components.
The criminality of Reedy Creek is but a minor symptom of the greater rot, not the problem itself.
Disney returning to pleasing its audience and providing solid and legal returns to its shareholders, and realizing that's its core business, is all that needs to happen.
The question is whether Disney will figure that out before the run the whole enterprise off the cliff and into the Grand Canyon.
Seeing legions of current and ex-board members and executives of Mauschwitz Inc. frog-marched to serial trials in batches and given lengthy prison terms in Florida's swampiest prisons is just a happy serendipity to the whole morality tale.
If their executives had acted more like Prince Charming and less like Maleficent, they wouldn't be in their current predicament.
The universe chuckles.
I wonder how many of the guilty are registered democrats. Maybe Florida needs another golf course or two.
Post a Comment