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National School Fitness Foundation - "Lift America Program"
Under Investigation
In March, 2002 under the header of FREE
Fitness Equipment, our editorial began, "Too good to be
true? That's what many thought when they first heard about an organization
called the National School Fitness Foundation (NSFF)..." At
that time we reported that several schools had received generous
grants from the NSFF to refurbish their exercise rooms with the
latest conditioning equipment. Phone calls to selected schools confirmed
satisfaction with some unusual funding arrangements.
Specifically, when school districts accepted a NSFF grant they had
to sign a lease agreement to purchase the promised equipment. Districts
made monthly payments, then submitted their receipts to the NSFF
for repayment. Districts participating in the program in 2002 reported
prompt repayment from the NSFF. Unfortunately, recent news is less
comforting.
This month PELINKS4U learned that the Minnesota Attorney General
has accused the President of the NSFF with operating a pyramid scheme.
Apparently, the NSFF can no longer afford to reimburse the 600 school
districts in 20 states that signed on to buy $77.5 million worth
of exercise equipment.
The operator of the NSFF has been accused of using money from newly
enlisted schools to make token reimbursements to schools that signed
on earlier.
At this time it appears that the NSFF protected itself legally and
is not obligated to cover the outstanding debt of school districts
now owing thousands of dollars. These bills will have to be taken
from district budgets.
More worrying is the fact that the NSFF
is still operating its web site and attempting to attract new customers.
Please be aware of this situation and let others who might be tempted
to participate know about the recent charges.
Sincerely,
Steve Jefferies
Central Washington University
Publisher PELINKS4U
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