Here's What's Happening at PEP

Spring 2008

In late 2005, following the death of former executive director Alice Frazier, and having secured the promise of a position at Compassionate Listening, Yael Petretti resigned as Executive Director, proposing to dissolve PEP and donate its treasury (over $1 million) to her new organization, which is located in Washington State. At about the same time, a well-known local activist became the newest member of the PEP Board and proposed that PEP donate its funds to the organization of which she was a Board member, the New Haven/Leon Sister City Project (to which PEP presented the Gandhi Peace Award  in 1995).

Both proposals were rejected by the Board. This Board member and three others, with the guidance of Jack Horak, a prominent attorney and a leader of the Yankee Institute, convened a teleconference intended as a meeting of the Board against the instructions of PEP's then- president, Karen Jacob. (The Yankee Institute is a far-right "think tank" based in Connecticut whose then-executive director had publicly sworn to wage war on progressive institutions, including public educations and unions.)

Acting in accordance with Attorney Horak's counsel, they barred PEP's longstanding advisors from participating in the teleconference and induced the remaining Board members to expel PEP's longest-serving Board member, Paul Hodel, thus eliminating all but one of those discussants who opposed the dissolution plan. They did so without proper advance notice--a violation of Connecticut law.

The few Board members remaining in the teleconference (which suffered severe technical problems) then voted to elect the newest Board member to be president of PEP, although her time as a Board member totaled less than six weeks. They then voted to dissolve PEP and distribute its assets to other organizations. They then took control of PEP's financial instruments and relocated PEP's funds to a location she would not disclose. In the following weeks about one-fifth of PEP's assets (over $200,000) was transferred from PEP accounts to Attorney Horak's law firm. (This amount would grow to over one-third of PEP's assets before a settlement was reached.)

Two Board members, Betty Hill (PEP's vice-president) and Paul Hodel, then convened PEP's executive board and advisors and filed a complaint with the Attorney General. A compromise was arranged by Assistant Attorney General Janet Spaulding-Ruddell whereby the illegitimate group would return PEP's assets in exchange for a general release of liability for their illegal and destructive actions.

Before that settlement could be ratified, Attorney Horak terminated the negotiations by filing suit against each of the PEP members who had signed the complaint to the Attorney General, precipitating several years of further mediation attempts and litigation. (The lawsuit made false charges and was filed in the name of PEP. Attorney Cochran, as PEP's true legal counsel, simply withdrew it on behalf of PEP.)

During numerous failed mediation efforts in the following months and years, the illegitimate group spread false rumors in the peace and justice community about the motivations and actions of the Board.

They also sabotaged PEP's attempts to resume its activities. For example, PEP in early 2005 had voted to award the Gandhi Peace Award to a nationally known peace activist. When the Award ceremony was being planned by the 2006 Board, a member of Joy's group secretly contacted that person and persuaded her to decline.

(No PEP funds were ever transferred to either the New Haven/Leon Sister City Project or Com-passionate Listening. After relocating to Washington State, Yael was not hired by Compassionate Listening and returned to New Haven.)

At the 2006 Annual Meeting of PEP, since none of the illegitimate group attended or stood for re-election, the PEP membership voted to replace them with longstanding PEP activists. The officers elected were:
Martin Cherniack, President
  (PEP's longest-serving chief executive)
Betty Hill, Vice-President
  (PEP's longest-serving vice-president)
Paul Hodel, Treasurer
  (PEP's longest-serving Board member)
Bruce Martin, Secretary
  (PEP's former treasurer and de-facto co-executive
   director)
Also elected to the Board were Ronald Santoni, James Clement van Pelt, Kate Frazier, and Frances Frazier Elliott, each of whom had decades of experience in various PEP leadership roles.

The members voted to rescind all actions taken by the group attempting to dissolve PEP. They also voted to retain Attorney Frank Cochran, a well-known advocate for progressive causes, to take action to recover PEP's assets. PEP members and supporters contributed their personal funds to pay for his services.

There was a consensus among the members that the conflict should be resolved as amicably as possible, in accordance with the values and traditions of the peace community, and a strong preference was expressed for continued mediation over court action. In late 2006 Attorney Cochran initiated negotiations with Attorney Horak, which evolved into an ultimately successful mediation process conducted by Judge Emmet Cosgrove of the Connecticut Superior Court and joined by representatives of the Attorney General's Public Charities Unit.

Summer 2008 Update

After nearly two years, an agreement is being finalized that would order the donation of half of PEP's remaining assets to the Community Foundation of Greater New Haven, the the annual income of which is to be distributed as grants to groups doing work "substantially similar" to the traditional activities of PEP. Neither the members of the illegitimate group nor Attorney Horak or his firm would be released from liability for their attempts to disrupt PEP to benefit their favored organizations. However (ironically), to settle the negotiations it was agreed that PEP funds would be set aside for their defense in the event that legal action is taken against them.

Members of the illegitimate group are no longer affiliated with PEP in any capacity. To ensure a clean break, a new corporation essentially identical to PEP has been formed with a nearly identical name ("Promoting an Enduring Peace") and with the same  Board and officers to carry on the work and traditions of PEP, while the original PEP is to be dissolved. Consequently a new application for recognition of tax-exempt status has been filed, even though the original PEP has always been tax-exempt. PEP's remaining assets are to be distributed to the re-formed PEP upon the granting of its tax-exempt status.

Having paid a heavy price for the defense of its existence, including an interruption of its work over nearly three years, PEP is now initiating its long-delayed revitalization. The 2008 Annual Meeting this fall will see the resumption of the Gandhi Peace Awards and the presentation of PEP's revitalized program to the membership. (All members of the original PEP are automatically members of the re-formed PEP.) Further details are to be posted here in the coming weeks.

We welcome your participation as PEP's plans for 2009, are developed.

May-July 2005

Alice Frazier, emeritus Co-Executive Director of PEP, died on May 30 in New Haven.  She was also the widow of Howard Frazier, PEP's longest-serving Executive Director, who served from 1974 until his death in1997. A memorial service for her was held on September 17, 2005 at at the Unitarian Society in Hamden.