Steve Kubby, Mary Ruwart, Ray Carr and Lee Wrights resign from Cannabis Science corporation Board of Directors

Steve Kubby and Mary Ruwart are former candidates for the Libertarian Party Presidential and Vice Presidential nominations, and Kubby was the 1998 Libertarian candidate for Governor of California. Mary Ruwart and Lee Wrights are At Large members of the Libertarian National Committee. Ray Carr is Mary Ruwart’s husband.

From Steve Kubby, via facebook: “Dr. Ruwart, Ray Carr and Lee Wrights joined me in walking out of a company I created. As Libertarians, we all share the same commitment to the same principles. When it became clear that our company had become entangled in fraud and deception, we demanded answers. Instead, those behind the fraud illegally removed me. Yes, we could have fought it and won, but attorneys repeatedly waned us that it is only a matter of time before the SEC will be investigating the company’s many questionable activities. Actually, these guys have done me a great favor, because they have removed me from a stinking mess and assumed the liability for themselves. Is a new company already in the works? Stay tuned…”

This was just followed by an email to Steve’s list: “The Truth Shall Set You Free

Yesterday I thought I had paid a high price by choosing to tell the truth, but today I know it has propelled me to a new level. The response to my resignation has suddenly filled my life with sunshine and amazing new opportunities. Our wonderful project, once mired in fraud, has been cleansed. As one member of our team put it: “We’ve been dragging around a 5,000 pound gorilla and now we’re finally free.”

Karma works!”

A more detailed note about the resignation was posted by Steve Kubby to facebook a couple of day ago:


My Resignation from the Cannabis Science Board of Directors
Share
Thu at 7:30pm

The challenges of launching our company, during the worst financial crisis since the Great Depression, forced us to move quickly and decisively, resulting in a lot of snap decisions and rushed actions that I felt needed to be reviewed. Hence, I recently asked our COO, Ray Carr, to perform an internal review, so we could determine what actually happened and where we are now.

In the course of his review, Ray Carr spoke by phone with Raymond Dabney, who had brought us the deal with Gulf Onshore to do a reverse merger. Our COO wanted to determine what stocks had been issued and to whom. When Mr. Carr attempted to get details about certain unusual consulting contracts, Dabney refused to provide answers and told our COO, “it’s none of your business.”

For Dabney to tell our COO what he did, was disturbing and unacceptable to Mr. Carr, and when I found out about it, disturbing to me, especially since I have been increasingly troubled by Dabney’s demands that we sign stock deals with consultants with vague responsibilities and identities. It was then that our COO advised me that he believed something might be going on that required an internal investigation of Raymond Dabney’s stock deals and the advice of our SEC attorney.

It was our Chief Science Officer, Dr. Robert Melamede, who brought Raymond Dabney to my attention and gave him a strong personal recommendation. Despite the recommendation, I did a search on Dabney and came up with this:

“In November 2005, for example, the commission suspended Ray Dabney, the president of Xraymedia, after he admitted sending out 22 false news releases about the company. Several Xraymedia directors serve on Goldmark’s board, and the two companies share the same Vancouver address, according to filings with the Pink Sheets. Xraymedia was the subject of a 2003 spam campaign, according tospamnation.info, a Web site that tracks penny-stock spam. Shares of Xraymedia are quoted on the Pink Sheets. Although barred from the Pink Sheets, Goldmark shares may still trade if a broker is willing to sell them to investors (few are).”

http://articles.moneycentral.msn.com/Investing/FindHotStocks/TheTruthBehindPennyStockSpam.aspx?page=2

Dr. Melamede and, in particular, Richard Cowan, our CFO, argued that this was only a civil infraction and had more to do with the Vancouver Exchange than any real wrongdoing on the part of Dabney.

However, before I agreed to work with Dabney, I sent our CFO to meet with him in Vancouver. Cowan reported that Dabney was perfect for us and we agreed to work with him.

Recently, I have become increasingly concerned about large blocks of S-8 free trading shares that Dabney insisted I immediately transfer to unknown individuals and companies. Due to the large amounts of stock involved and the lack of any information about the individuals and companies involved, I continually requested opinions by our Board of Directors. In each case, it was the opinion of Dr. Melamede and our CFO that these transactions were necessary and legal. Additionally, I was reassured by Dabney that his scrape with the SEC had been resolved and he had been cleared.

Despite these assurances, I became so concerned about what was happening, I refused to sign the most recent stock transfer he submitted, which awarded 850,000 shares, per year, to a company that had no clear duties and did not even have an address.

Then, when our COO told me about Dabney’s refusal to answer his questions, I decided to do a another search on Raymond C. Dabney. Within just a few minutes, I was shocked to find new information about him that is, on its own, troubling, but taken in the context of what Dabney has been doing in our company, it appears that immediate action is required.

One paragraph in an SEC report, dated August 8, 2008, on Dabney is especially disturbing:

“The Commission’s complaint further alleges that, from July 2005 to September 2006, Alliance, Richard Dabney, Raymond Dabney, Young, Smith, and O’Neal participated in an unregistered distribution of Alliance securities through a series of purported stock offerings by Alliance to North American Funding, Inc. (NAF), a Texas corporation controlled by Smith. According to the complaint, Raymond Dabney, Young, and Smith arranged for Alliance to issue stock to NAF in offerings that purportedly were exempt from registration. The complaint alleges that, in fact, the transactions between Alliance and NAF were not exempt from registration and were merely a device to evade the registration provisions of the federal securities laws. According to the Commission’s complaint, the stock was immediately distributed to third parties and sold into the market, without being paid for by NAF. Richard Dabney, an officer and director of Alliance, and O’Neal enabled Alliance to engage in those transactions by providing the necessary corporate resolutions and legal opinions, respectively. The Commission’s complaint also alleges that Young, Smith, and O’Neal received some of the Alliance stock through the unregistered distribution and sold it into the market without registration or a valid exemption from registration. According to the complaint, Lewis, Richard Dabney, and Raymond Dabney received a portion of the proceeds that Young obtained by selling the Alliance stock.”

Frankly, this seems to be exactly what Dabney is doing now, with our company. I then advised our COO that we had a fiduciary responsibility to conduct an immediate, confidential internal investigation of Raymond Dabney, to determine the following:

1. Are the stock deals arranged by Dabney legal?

2, Is the stock issued to the consultants that Dabney has recommended being distributed to third parties and sold into the market, without being paid for or properly registered, or exempted by us, as happened in the previous stock offerings by Alliance to North American Funding, Inc. (NAF)?

3. Given that Dabney never disclosed his history of SEC complaints about his attempts to create phony schemes to evade federal securities laws, are we still bound by contracts he created and had us sign, such as the Control Shareholder’s Agreement? That agreement gives Dabney a major role in the operation and decision making of the company, a role he would never had been allowed to assume, had I known the truth about him.

4. What legal options and obligations do we have to deal with this situation?

The results of that investigation are in and it appears that the level of fraud and illegal activities, as well as bogus or incompetent filings, appears to be systemic.

Yesterday, the Dabney group took actions to remove me as a Director, that are clearly a violation of Nevada state law. Dabney and group then contacted the investors and vendors of CSI to tell them I had been removed. By these two actions, I believe this group has so damaged CSI and its reputation, that I have no choice but to resign and do what I can to protect future investors by ending any appearance of support for CSI.

Also, I’ve learned that Dabney et al have issued themselves preferred stock, without my knowledge, any proper authorization, placing themselves in a majority position. If the CEO and COO are being left out of such fundamental actions as the issuance of stock, then the Dabney group is acting so far out of the law that I am again compelled to remove myself.

Furthermore, based on what we learned from our internal investigation, I now believe that the two court cases against CSI are not bogus as we all believed, but are actually the fault of Dabney’s failure to provide proper contracts or safeguards to assure a legal closing of his deal.

Another major problem is S-8 stock issuance with I believe was based on a fraudulent attempt to circumvent SEC rules with bogus contracts and fraudulent misrepresentation of services rendered, in order to create the appearance of legal activity, that was really intended to channel money back to Dabney and to the company.

These is also the matter of the Dabney group directing one of our investors to deposit $200,000 into our company lawyer’s CDN Trust account. However, the account to which our investor was told to deposit the $200,000 was NOT our corporate attorney’s trust account, but was actually Mr. Dabney’s own private attorney’s trust account. Mr. Dabney had attempted the same illegal diversion of funds a few days prior and had been warned by me that he had no authority and to cease any further activities, yet he brazenly repeated his attempt to divert these funds with the assistance of two of our CSI Directors, Richard Cowan and Robert Melamede.

I spoke to Annie Chan, secretary to Jeffry Wing, a Vancouver lawyer about the attempted diversion of funds. She told me that although Wing is Mr. Dabney’s personal attorney, he has not done any work for my company, nor, to her best knowledge was such a transfer known or authorized by Jeffry Wing. Mr. Wing and Ms. Chan can be reached at 604 689-2828. believe Mr. Dabney committed bank fraud by representing the account our investor was supposed to send money to was a Cannabis Science trust account when that is clearly not the case. So from my point of view, this attempt to divert funds appears to tie Mr. Dabney and his group to bank fraud, stock fraud, violation of the BC SEC order against him and attempted embezzlement. Not just once, but twice.

Dabney and his group claim they are partners with me, under the terms of a Control Shareholders Agreement I signed. However Dabney’s name appears nowhere in the document. The legal opinion of our corporate attorney, Faiyaz Dean, is that Dabney has no authority to say or do anything under the Control Agreement. According to Mr. Dean, there are at least three clauses that in the Control Agreement that nullify Dabney’s claims. Yet, in fact, Dabney has installed himself as COO, refusing to release files to us, using his own phone number and email to answer all inquiries to Cannabis Science. Dabney has done this with the full support of Melamede and Cowan, who appear to have entered into an agreement to take over CSI through unauthorized and fraudulent activities.

As long as my name is associated with Cannabis Science, innocent investors who know me and my reputation, will be investing their hard earned dollars into a company that is deceptive and fraudulent. Given what I have learned about the activities of Dabney, Melamede and Cowan, I believe it is my duty to resign and call attention to what I believe is an criminal conspiracy to defraud our investors.

Steve Kubby
July 9, 2009

60 thoughts on “Steve Kubby, Mary Ruwart, Ray Carr and Lee Wrights resign from Cannabis Science corporation Board of Directors

  1. Robert Milnes

    Nobody want to comment on this? I don’t bame them. But I’ll take a crack-or should I say toke-at it. What a mess! I proposed Mary & I bolt the part & run Independent & despite being late actually have a crack at winning the 2008 election. & I catch hell. From His IPR Imperial Highness and Know-It-All, Paulie.et al. Instead Mary let’s Barr run the LP down further-possibly I’ve postulated a government covert operation. & joins the Counterrevolution Lackey LNC. & hooks up with Kubby to form the investment ticket from or to Hell. Steve, as president watch out Al-Quaida doesn’t extort, bribe or embezzle nuclear weapons from you, ok? What about your investors now that you’ve left them in these guys hands? If only this was a practical joke from the Libertine Party Caucus. Let’s hope it is a government covert operation to make these & all LP presidential candidates look bad. Incompetent at best. I’d much rather be trashing the government.

  2. Robert Milnes

    paulie (rise to the bait), so bottom line in 2008 after all your bloviating (writing on IPR) you did not vote. & petition signature getter par excellance-which you are-Imperial Hobo with Clipboard-you do not have a laptop? As Jay Leno would say-what is that?

  3. paulie Post author

    I don’t want to have a laptop. If I did, I would have one. What’s so hard to understand?

    By the way, I don’t watch Leno.

    I didn’t vote in 2004 or 2000 either. So what?

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    You’re one for three on that one. I do own and operate several clipboards.

  4. paulie Post author

    BM @5, best comment I can make is to once again quote Mr. Kubby: “The Truth Shall Set You Free

    Yesterday I thought I had paid a high price by choosing to tell the truth, but today I know it has propelled me to a new level. The response to my resignation has suddenly filled my life with sunshine and amazing new opportunities. Our wonderful project, once mired in fraud, has been cleansed. As one member of our team put it: “We’ve been dragging around a 5,000 pound gorilla and now we’re finally free.”

    Karma works!”

  5. Robert Milnes

    Do I sound mad as hell? I say we could’ve won the friggin election in 2008. Instead we have the Ban Bob Barr residue & messes like this. & I catch criticism & just about no support. Do I sound mad? Crazy, am I?

  6. Robert Milnes

    What do you mean, so what? You think I like to vote? Believe in it etc? It is a friggin responsibility we have. Until there is no state. What percentage of what is written on IPR involves a person voting? 100%? 99%? You tell me know-it-all.

  7. Robert Milnes

    You seem to have a blythe answer for everything. Yet here we are losers again in another mess with our faces hanging out. What is that? YOU run for president & get us out of this. Or is everything that is going on just fine with you?

  8. Michael Seebeck

    Methinks the bloviating of Milnes the Insane and his obsession with Dr. Ruwart is off the deep end.

    The reason there’s not many comments here is because they’re all over on Facebook, where the original note from Steve is at.

  9. paulie Post author

    bm/BM

    1. Voting is far from the only, or the most significant, method of political participation.

    2. It is not a “responsibility”. And I like having the right not to vote. As a practical matter, due to not using SS numbers and thus not being able to get a current ID, chances are I can’t vote anymore. I haven’t tested it out since my ID has been expired, so I don’t know for sure, but it’s not especially important to me.

    3. I was not born in the US.

    4. Running for office is not my thing. I work on other people’s campaigns.

    5. I’m not even close to having an answer for everything. I have no idea why you would think I do, or keep repeating it. I have my views and advocate for them, same as you have yours and you advocate for those.

    6. In my view, we are nowhere near a point where voting could get us out of a mess.

    7. Yes, you are crazy. Medical professionals have said so, and the stuff you keep writing seems crazy, so I have no reason to doubt their diagnosis.

  10. Robert Milnes

    P.O.,(oh, that’s me)///Peter Orvetti, Bann Bob Barr(I forgot the second “n”) is my wishful thinking conflated with every time I mention his name. RP/RP=Ron Paul/Republican Party. Let’s all follow paulie’s lead & send him/it our change dish contributions that add up to 35 friggin million. & then the rest to Steve Kubby so he can start a new almost certainly canabis related investment scheme.

  11. Robert Milnes

    Michael Seebeck, Facebook, isn’t that the one where college students socialized amongst themselves until outsiders took it over & now anybody/everybody shows their face there? S.K. & the other one was where young people socialized amongst themselves until outsiders took it over & now anybody/everybody has a space. (myspace.com). S.K. I never joined. Now IPR is a place where mostly libs show their face (figuratively) about third party/independent stuff. S.K.?/ As far as my obsession with Dr. Ruwart, she blew it last year. & I’ll admit the child porn thing was a political dirty trick; whether government covert operation origin or not. Now this. She’s damaged goods but I’m still willing to take her on because she has so much support with libs, particularly radical libs. Now Dr. Kwiatkowski is a whole other situation. She has military experience which Sweet Mary (& I) do not. However she writes on Lew Rockwell neo-paleo? & endorsed Ron Paul dixiecrat conservative dinosaur fossil. The person I really had/have my heart set on for vp was/is ENM because she is such a real, good person. I would put up with Susan Hogarth in the best interests of the cause IF I HAD TO because she is insufferable. Similar for Christine Smith. Others have various plusses & minuses. So, obsessed? Nah, I don’t think so.

  12. Robert Milnes

    I worry about KK because with a quick stab in the back, a peaceful non-violent slow revolution COULD turn into a quick violent counterrevolution.

  13. paulie Post author

    Let’s all follow paulie’s lead & send him/it our change dish contributions

    I don’t have a change dish. In fact, I generally leave coins with whoever tries to hand them to me, as they are more trouble than they are worth.

    When I made more money, I also didn’t bother with anything smaller than a $20 bill. There’s a song that describes the approach I used to take (I forget by whom): “Hundreds, fifties and twenties all arranged, anything less than that – you keep the change.” Most of the time, this still applies to anything less than $1.

    then the rest to Steve Kubby so he can start a new almost certainly canabis related investment scheme.

    Not that anyone is likely to take investment from someone who keeps begging for food and rent money, but just for the sake of amusement, why do you think it is a “scheme”?

  14. Robert Milnes

    Go ahead & replace my word scheme with say opportunity. Do you think potential investors are going to think any differently? Unless they are all friends & colleagues.

  15. Michael Seebeck

    Shows you just how STOOPID Silly Milnilli is.

    Facebook is not anything resembling what Backwoods Bob there sez it is. It is actually a major networking site where plenty of politically-minded people network and communicate, including incumbent politicians, people of all ages and stripes, and in some cases even businesses. The LP has a Facebook page, as does many of its state and local affiliates, as does the BTP. It’s a place where friends (a concept alien to you, Milnes) meet and organize and discuss and do things like be social instead of being O-C trailer nutcases. You’re so obsessed over politically astute women (so astute that they wisely want nothing to do with YOU) that the world has left you behind. Not our fault you can’t get a date you can’t inflate, Bob, but you really need to stop commiserating about it every chance you get with your ridiculous sham of a “Libertarian Progressive Alliance”.

    Sheesh, Bob, your shtick is older than a woolly mammoth, and just as dead, too.

    Paulie’s right, you are nuttier than a Planters factory…

    Thus endeth the Sunday Snark…

  16. Robert Milnes

    paulie, True, I have been unable to fill the f. lib. vp slot yet. However it is your opinion/speculation as to whether or not their not being able to put up with me is the, or a, reason or factor.

  17. paulie Post author

    Go ahead & replace my word scheme with say opportunity. Do you think potential investors are going to think any differently? Unless they are all friends & colleagues.

    We shall see.

    What does “NOT” re: ENM mean?

    It means that she is NOT a real, good person.

  18. paulie Post author

    bm/bm re enm: basis of why she is no good

    We could start with more or less stealing LFV out from under me and then making money selling it, making false claims that I was abusive to her which she did not substantiate, and so on. I could spend a long time typing about it, but it’s old news.

    I’m here at IPR, and so are most people who used to be at LFV. C’est la vie. Of course, it’s quite disconcerting to have thousands of hours of my time and effort taken away from me by someone I made the mistake of trusting, but then the fault is ultimately mine for trusting her in the first place.

  19. Robert Milnes

    I found LFV to be very good when she was there. Now I don’t even go there anymore. You say you had an ownership claim on LFV which she sold? Who’d she sell it to? Maybe it is old news to you but not me. State your grievances against her here for the record, ok? The part where she says you were abusive to her, I’m ready to believe unless you can just more than deny it.

  20. paulie Post author

    You say you had an ownership claim on LFV which she sold?

    I was the remaining co-admin after founder Stuart Richards abandoned it. I promoted her to admin. Then she demoted me and quickly removed and banned me altogether. In the meantime, I had put thousands of hours into promoting and writing for that site, inviting other people to write there, and that includes her.

    State your grievances against her here for the record, ok?

    It’s been stated in considerable detail on old threads here and on Next Free Voice. More than once. As I said, it’s old news and I have moved on. She is not a good person, and this is already far more elaboration than I care for.

    The part where she says you were abusive to her, I’m ready to believe unless you can just more than deny it.

    I don’t give a fuck what you believe.

    Who’d she sell it to?

    Michelle Shinghal.

  21. Robert Milnes

    Lame, paulie. Info flow specialist pc/pc, at least point to a few threads that state YOUR grievances against ENM. & hey, I would think I’m not the only one who finds you occasionally abusive, verbally, hot tempered & could’ve acted that way towards someone you felt aggrieved by. Did you communicate this to her? Miche bought it? Why didn’t she negotiate/arbitrate this transaction better? & where did she(ENM) get the authority to demote, remove & ban you? It sounds like you have a claim based on contribution of time & labor to part of the sale price. That I’d also be ready to believe. You ARE a continuously blogging fool!

  22. paulie Post author

    Info flow specialist pc/pc, at least point to a few threads that state YOUR grievances against ENM.

    Why should I do your homework? If you are so interested, dig them up yourself. I am fairly sure some of them are still on the front page of Next Free Voice. Do a search.

    Did you communicate this to her?

    I’m not sure what “this” is, but I communicated with her until she stopped replying. Incidentally, I found HER to be quite abusive right before that happened. I asked her when and where she thought I had been abusive to her, and told her that it had never been my intention to so be and that, if I had inadvertantly come off that way, I apologized. She blustered that I was intentionally and repeatedly abusive and pointed to an email exchange. I reviewed it, and in no way was I abusive to her.

    She also claimed I was “disparaging her and LFV” and that she received some email I allegedly sent out. The only email I sent out during the time in question was sent to several writers who she either kicked off LFV right before or after me or left on their own as she went on a power trip right around that time. It was a very short note that invited them to blog on my blog, since then renamed Next Free Voice. It did not disparage anyone. In her last reply to me she claimed I had also sent (this?) note to various “groups,” which I did not do; however, one of the people I sent it to, Brian Miller, copied his reply to the Outright Caucus leadership list and George Phillies. Finally, she claimed I lied about why she demoted me at LFV, yet my note did not say anything about why.

    Miche bought it? Why didn’t she negotiate/arbitrate this transaction better?

    I have no idea what you mean by “better” here.

    & where did she(ENM) get the authority to demote, remove & ban you?

    In my opinion, she had no such authority. As a practical matter any admin can demote any other admin. I either did not realize that she could, or never thought she would, do that to me when I (A) invited her to write at LFV and (b) promoted her to admin alongside me and then let her have the chief title because I was on the road with little internet time/access.

    She did, nevertheless, without discussion, first demote me and then very quickly removed and banned me from commenting. Morally,e I think if she had a problem with me she could not resolve, she should have removed herself instead, but what’s done is done and no use crying over spilt milk.

    It sounds like you have a claim based on contribution of time & labor to part of the sale price.

    Morally speaking yes, but as a practical matter it’s not worth the aggravation of pressing such a claim, nor is the case ironclad.

    In any case, the bulk of the conversation and conversationists apparently followed me over here, and LFV appears rather dormant, so what did Michelle really acquire and …what would I be pressing to gain? Nothing much it appears.

    Thus, I no longer care very much, except to dispute any assertion that ENM is a good person of any sort. And really why should I have to do all this elaboration? It’s all been said before.

  23. paulie Post author

    So if Trent goes to sell IPR will you feel you have a similar claim to it?

    No. I was never an admin at IPR. I did not invite Trent to blog here, he was here before me. I did not promote him to admin.

    Not analogous.

    However, last time IPR was sold, I sold my share on the condition/understanding that whoever bought it would not substantially alter what I have written here in the past. I certainly hope that if Trent’s boss sells it that this condition would attach to any subsequent sale.

  24. paulie Post author

    IIRC, Miche stated in so many words she thinks I am cute.

    Maybe she will leave her husband for you and be your VP candidate.

  25. Robert Milnes

    paulie, just about all if not all potential f. lib vps are married. I’m not looking for a date or trouble, just a vp. Maybe if I was not single this would be less of a problem?

  26. paulie Post author

    Can you spell l-a-p-t-o-p?

    Can you spell I–d-o-n-‘-t–w-a-n-t–o-n-e?

    There’s that word TIME in there. It’s a key factor.

  27. Robert Milnes

    Well, I must say my contact with ENM certainly is much different than yours & I came to the opposite conclusion than you as to whether she is a “…real, good person.” I’m open to changing that upon further evidence. But I do not feel the burden is on me to seek out that evidence.

  28. paulie Post author

    I had a long period of seemingly friendly and productive collaboration with her. She turned out to be a backstabber. I’m not trying to change your mind, as I don’t especially care what you think, Milnes. If you don’t believe me, look it up. If you don’t want to look it up, you can’t say I didn’t warn you.

    With any luck, I hope her health gets better and she runs on your ticket in 2012. You deserve each other.

  29. paulie Post author

    Your case of claim to part of sale price I meant not in Court but negotiation/arbitration between buyer (Miche) & seller (owner?) ENM.

    Since neither of them is my friend any longer, apparently they felt justified in making some deal that kept my past writing in Michelle’s property (my name no longer appears, but the articles were still there last time I checked), whatever money that may have changed hands with ENM (assuming any did), and my self banned from LFV.

    As I said – more their loss than mine.

    Not that I’m happy with it, but it’s a dead horse. I’ve moved on. Why do you want to dig it up?

  30. Michael Seebeck

    Notice that he (Cowan)never mentions anything relating to Kubby’s allegations, the audit by Ray Carr, or anything in that vein, and attempts to deflect the situation back on Kubby instead of addressing the allegations…

    Not a good showing of a response, IMO.

  31. Pingback: Cannabis Science Accuses Kubby and Ruwart in SEC Filing | Independent Political Report

  32. Robert Capozzi

    While my practice is to keep an open mind about all things, when I see merger with Vancouver stock market company, I tend to move on. That sort of enterprise is linked with all sorts of shadowy reputation.

  33. Pingback: Interview with Steve Kubby | Independent Political Report

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