Sikh Dharma International

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Status Update for SDI Corporation: September 24, 2010

September 24, 2010

Dear members of the Sikh Dharma International Community,

Wahe Guru Ji Ka Khalsa, Wahe Guru Ji Ki Fateh.

Sikh Dharma International is aware how difficult the events of the past year have been and does not wish to add to the acrimony in our community. However, developments since December 2009 require that we now take action to account for and, if appropriate, recover SDI property and funds.

In December 2009, when the former board and several officers were removed by SDI's sole Member, several of those former directors and officers are believed to have taken property, including files and financial records, computers and other electronic equipment, PO Box keys and other property of SDI, including records and passwords for the Sikhdharma.org and Dasvand.org websites.

Additionally, the former board members took control over accounts containing SDI funds, including Dasvand donations. While the exact amount in these accounts has yet to be accounted for, SDI estimates that it was likely between $850,000.00 and $1,500,000.00.

After the Judge in the Oregon lawsuit dismissed SDI as a Plaintiff in the suit, finding that the sole Member did have legal authority to remove the former board members, there appeared to have been an agreement between the parties that all SDI property should and would be returned to SDI. In fact, $373,595.26 was returned to SDI on July 2, 2010. SDI appreciates the cooperation of the former board members in making that return possible. However, no other property or funds have been returned nor has any accounting or access to financial records been provided to SDI. Recently the former board members have, through their attorneys, indicated to SDI that, absent a lawsuit, they would not provide any other property, records or accounting.

SDI would much rather focus its energies and resources on pursuing the mission for which the Siri Singh Sahib created it - delivering the technology and experience of the Siri Guru Granth Sahib as expressed through his teachings. However, the Board of SDI also has a duty imposed by California Nonprofit Corporations Statutes to account for the receipt and disposition of donated funds. Given that it is likely that more than a million dollars of donated funds remain unaccounted for, SDI cannot fail to take appropriate legal steps to determine the disposition of those funds and, if appropriate, to recover them. SDI’s current directors and officers would be remiss in their fiduciary duties to SDI if they failed to take all reasonable, legal steps to secure that accounting and recover those funds.

SDI continues to urge its former directors and officers to return all SDI property and to account for those funds under their control since December 2009. However, SDI’s legal ownership of this property is clear and SDI must meet its legal obligation to account for such a significant amount of donated funds that currently remain unaccounted for.

To that end, Sikh Dharma International filed a lawsuit in the Circuit Court of the State of Oregon for the County of Multnomah to determine the whereabouts and disposition of its property that has been kept by the former board members and officers of Sikh Dharma International and, if appropriate, to recover that property. A copy of SDI's Complaint listing the specific individuals named as defendants and the specific legal claims may be found here.

SDI continues to believe that the best manner to resolve this dispute would be by sincere and honest communication between the parties. To facilitate that return, we, as the directors and officers of SDI, remain open to that dialogue.

Please feel free to contact me if you have any questions regarding this situation.

Yours sincerely and humbly,

 

Ajai Singh Khalsa, President and CEO

Sikh Dharma International

ajaisingh@khalsa.com