The 13th Regional Corporation

Alaska Native corporation

The 13th Regional Corporation is one of thirteen Alaska Native Regional Corporations created under the Alaska Native Claims Settlement Act of 1971 (ANCSA) in settlement of Indigenous land claims. It was incorporated in Alaska on December 31, 1975. The 13th Regional Corporation is a for profit corporation presently headquartered in Seattle, Washington, with approximately 5,500 Alaska Native shareholders of Eskimo, American Indian, and Aleut descent. Its original enrollment was of Alaska Natives who were no longer resident in Alaska. Unlike the other 12 Alaska Native regional corporations, The 13th Regional Corporation and its shareholders received only monetary compensation, with no land conveyance, in settlement of aboriginal land claims. The 13th Regional Corporation was involuntarily dissolved by the Division of Corporations, Business and Professional Licensing of the Alaska Department of Commerce, Community and Economic Development on December 31, 2013. This followed the resignation of the corporation's registered agent on May 22, 2013. A website claiming no affiliation with The 13th Regional Corporation or its shareholders is attempting to locate shareholders with the intent of "attempt[ing] to revive The 13th Regional Corporation and restore it to working order."

Initially only 12 regional corporations were created after ANCSA's passage in 1971. Its creation was dependent upon how many of approximately 78,000 Alaska Native people eligible for enrollment under ANCSA voted "yes" on Section 22 of the official enrollment form, which read, "Do you elect to establish and be enrolled in a 13th Region?" The initial determination of the Bureau of Indian Affairs was that an insufficient number of enrollees voted for creation of a 13th regional corporation, and each of the "yes" voters was instead designated as a shareholder in one of the original 12 regional corporations. However, a 1975 U. S. District Court ruling by Judge Oliver Gasch overturned the Bureau of Indian Affairs. The 13th Regional Corporation was created under Alaska law as a private for profit corporation on December 31, 1975. and giving it a significant advantage in competing for government contracts. MLK's minority owner, with 49 percent interest, was Michael Kennedy. In 2004, The 13th Regional Corporation bought out Kennedy's shares of MKC for $2.2 million, thus making MKC a wholly owned subsidiary of the 13th. was named as part owner and treasurer of the new venture, an apparent conflict of interest given his involvement shortly before as president and director in The 13th's buyout of MLK. Former MLK employee Jimmy Mortensen was named as a third partner. Complicating the matter was the fact that MLK had only two years remaining to its eligibility in the 8(a) program, which would presumably lower its value, throwing into question its valuation at $4.4 million at the time Kennedy was paid $2.2 million to buy out his shares. Shareholders questioned if $4.4 million was an accurate market value, or if improprieties had occurred.

Kurt Engelstad, on the other hand, was instrumental in bringing The 13th Regional Corporation into the world of Mail Boxes Etc., which would later become UPS Stores. He, along with Bent Petersen (from Montana), was managing the building of the northwest franchise base for Mail Boxes, Etc. While at the same time drawing salaries (which were not reported in annual reports to shareholders), the two received increasing ownership interests in the franchiser operations, then known as NW Business Services Group LLC. The Board of Directors during this period, however, authorized loans for hundreds of thousands of dollars to Engelstad and Peterson, to finance their increasing share of ownership of the operations. These loans were not fully disclosed in annual reports to shareholders. In 2004 the two bought out the 13th's last 66% interest in the operations. The last Audited Financial Statement available to the public (for 2005) reported a net loss of $1,850,166 on net losses of $869,936 on construction contracts, net losses of $185,428 on contract electrical services, and net losses of $794,802 on corporate operations. Revenues for construction and electrical contracting went from $31,835,643 in 2004 to $8,968,568 in 2005. Private quarterly reports detailing continued operations since December 2005 are available to shareholders upon request by calling 206 575 6229 and identifying yourself as a shareholder and requesting the latest quarterly statements. 2004 Audited Financial Statements revealed that in 2004 several checks, most signed by the then CEO (Ken Krajewski) and the office administrative assistant (Suzy Villegas) —and totaling over $2.2 million—left the company over several months in a deal that The 13th's Board of Directors claim that the then acting CEO Krajewski "had no authority to enter into". Liz Ross, Chairman of the Board, relieved Krajewski of his duties with pay pending an investigation. The board hired Jim Fowler as an attorney and appointed Ross as CEO. Also in 2004, the former CEO (Krajewski) "claimed breach of contract and discrimination upon his termination. The 13th settled with the CEO in January 2005 and the settlement amount has been accrued at December 31, 2004." Other highlights in the 2004 Audited Financial Statements include: $130,000 moved from trust for missing shareholders into "operating cash accounts in 2004"; Deficit in operations with Dick Pacific, Ltd., joint venture of almost $375,000, and a reduction of venturers' equity of about 20% in a joint venture with Chugach Support Services (related to another ANCSA corporation).

The 13th Regional Heritage Foundation. A tax exempt, nonprofit providing scholarships to shareholders and their descendants.