It’s Just a Cocktail Party — Or Is It? Why ILCRA’s Partnership with SITC Deserves Scrutiny

A respectful reply to a comment submitted in support of the entity known as Steno In The City‘s (registered trademark) event partnership with ILCRA

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THE COMMENT:

*”Since this blog is labeled as a safe space, let me ask, could there possibly be a different perspective to consider in regard to the scrutiny of this matter? For example, many non-profits contract with private businesses in order to throw events and such for social networking opportunities. When I looked at the posts it is clear that the $75 ticket is going directly towards the food, drinks and access to the venue. Just because ILCRA is a non-profit does not entitle them to use any event space for free. Food and drinks also come with a price tag. The event is in no way marketed as a fundraising event, nor does it suggest that funds will be distributed to any specific cause other than providing a space and food/drinks to those who voluntarily purchase a ticket.

I do not believe that ILCRA allowing SITC to help organize a social gathering is illicit. The work SITC has done to promote the court reporting industry is invaluable, and their events are notoriously upscale and high quality. Maybe ILCRA wants to partner with an org that has the same goals, which is to advance the industry of court reporting. Sometimes it’s okay to let things be fun. We don’t have to put a magnifying glass on everything, especially not a cocktail party.”*

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Thank you for the comment — you raise points that many people might also be wondering, and it’s important that this conversation happens in a transparent and respectful way. So let’s take a closer look at the assumptions here and break down why this is not just “a fun social event” but a partnership that raises serious legal, financial, ethical, and data privacy concerns.

Let’s walk through this point by point, clearly and without judgment:

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✅ CLAIM: “Nonprofits often contract with private businesses to throw events.”

🔴 WHAT’S WRONG:

You’re absolutely right — nonprofits do contract with caterers, venues, and vendors. But that’s not what’s happening here.

This isn’t just about ILCRA paying a vendor. In this case:

• A third-party for-profit business SITC (short for Steno In The City)is:
  • Branding the event as a co-host
  • Collecting payments from ILCRA’s members
  • Collecting personal data (names, emails, etc.)
  • Potentially profiting from this arrangement

This is not a standard vendor relationship — this is a joint branding and financial arrangement with a private entity. That’s legally and ethically different from hiring a caterer.

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✅ CLAIM: “The $75 ticket just covers food, drinks, and venue.”

🔴 WHAT’S WRONG:

Even if that’s true — that doesn’t justify sending money and data through a private business without transparency, oversight, or board authorization.

Unless:

• There is a written contract outlining the financial arrangement,
• ILCRA has reviewed the pricing and receipts, and
• All proceeds and expenses are tracked for members to see,

Then ILCRA cannot claim this is a simple cost-recovery event. It may actually violate:

• IRS rules for 501(c)(6) nonprofits (regarding private benefit)
• Nonprofit fiduciary duty laws
• State regulations on charitable event reporting and financial accountability

Even for a cocktail party, nonprofits must account for every dollar collected in their name.

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✅ CLAIM: “It’s not a fundraiser.”

🔴 WHAT’S WRONG:

The issue isn’t whether this is labeled a fundraiser — the issue is where the money goes and how it’s handled.

• If SITC is receiving money via its own platform,
• If there is no public disclosure of how the funds are used,
• If ILCRA is promoting the event but has no financial oversight,

Then ILCRA is opening itself up to questions about misuse of its name, lack of board supervision, and possible inurement violations.

Fundraising or not — if money is being collected under the ILCRA brand, members deserve transparency.

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✅ CLAIM: “SITC has promoted court reporting and runs high-quality events.”

🔴 WHAT’S WRONG:

Even if past events were enjoyable, reputation and aesthetics do not exempt anyone from scrutiny.

The concern is that:

• SITC’s founder is currently under active investigation (I can’t disclose the details)
• There are allegations of data misuse, wage violations, unauthorized nonprofit fundraising, gambling, and more.
• ILCRA is associating its name and members with this entity before those investigations are resolved

This is not about whether an event looks upscale — it’s about whether ILCRA should legitimize a partnership with someone facing serious and unresolved legal allegations.

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✅ CLAIM: “It’s just a cocktail party — don’t put a magnifying glass on everything.”

🔴 WHAT’S WRONG:

This is the most dangerous assumption of all.

Even a cocktail party becomes serious when:

• Member data is collected by a third party
• Money is routed through a for-profit business
• A professional association’s name and reputation are attached
• There’s an ongoing investigation into the person hosting it

Professional associations must scrutinize every public-facing activity — especially ones involving finances, branding, and member trust.

Calling it “just a social event” doesn’t make the risk go away.

✅ ADDITIONAL CONCERN: Ongoing Investigations Into SITC’s Founder

While the event may be described as a simple social gathering, it’s important to consider the broader legal context involving the individual co-hosting and facilitating the event.

In addition to the pending COPE complaint filed with the NCRA, there are active and documented investigations into the actions of SITC’s founder by multiple agencies:

• The California Department of Justice, for the hiring of an individual to impersonate an attorney on her behalf;
• The Louisiana Attorney General’s Office, for violations related to improper sponsorship solicitation practices;
• The California Department of Justice, for violations related to improper sponsorship solicitation practices; and gambling violations.
• The Federal Bureau of Investigation (FBI), which has confirmed an open case relating to cross-state cyberstalking and organizational misconduct; transnational criminal gang activity.
• California Division of Labor Standards Enforcement (DLSE), concerning the use of unpaid volunteers to perform labor for commercial benefit – a potential wage-hour law violation.
• And the U.S. Department of Labor under the Fair Labor Standards Act (FLSA), concerning the use of unpaid volunteers to perform labor for commercial benefit — a potential wage-hour law violation.
• Important Note: These matters are the subject of active investigations and are based on allegations. To date, no criminal charges have been filed. The individual is entitled to the presumption of innocence until proven otherwise under the law. This discussion is offered solely in the context of organizational risk, and fiduciary responsibility, and professional ethics, not as a presumption of guilt.

These investigations are not speculative or anecdotal. They are based on formal complaints, documented communication with agencies, and direct confirmations. The existence of these ongoing inquiries underscores why ILCRA — as a professional nonprofit bound by fiduciary duty — should be exercising extreme caution before associating its name, membership, and data infrastructure with this individual or her organization.

All of the allegations outlined herein are based on Shaunise Day’s own public admissions and documented activity across her social media platforms, where she has personally posted evidence of the events, practices, and representations in question.

In March 2025, a formal and confidential complaint was submitted to NCRA through the COPE process. That complaint included detailed allegations and supporting documentation of the above-listed allegations and investigations. NCRA Executive Director Dave Wenhold was directly informed of these matters at that time in his NCRA leadership capacities, and at the time, he was also the ILCRA Executive Director.

At no point was confirmation given that these concerns would be escalated to ILCRA leadership — and to be clear, COPE matters are confidential. However, given that Mr. Wenhold was fully informed of the nature and scope of the allegations in March 2025, he was in a position to ethically and prudently advise against any formal partnership with the subject of the complaint while serious legal and ethical concerns remained unresolved.

While he may have been limited in what he could disclose due to COPE rules, he was not prevented from exercising sound judgment or advocating that ILCRA avoid affiliations with individuals under known investigation — especially when those affiliations involve handling member funds and personal data.

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🚨 Volunteer Labor and Wage Violations

✅ 1. Federal Law (Applies in Chicago): Fair Labor Standards Act (FLSA)

The FLSA, enforced by the U.S. Department of Labor, strictly limits the use of unpaid volunteers to:

• Nonprofit or governmental organizations,
• For public service, religious, or humanitarian objectives,
• Where the individual freely offers services without coercion and without expectation of compensation (for non-profits only)

🔴 For-profit businesses may not legally use volunteers to perform work that benefits the company.

Even if someone says they’re “volunteering,” if they’re doing productive work (e.g., planning events, staffing tables, promoting a brand), they are considered employees and must be paid at least minimum wage.

Under both federal (FLSA) and Illinois law, a for-profit entity cannot legally use unpaid volunteers for work that benefits the business.

Even nonprofits must be careful, but a for-profit like the entity known as Steno In The City (registered trademark) using unpaid labor for event work could be in serious violation of Illinois labor law, especially if the work replaces what would otherwise be paid labor (e.g., registration, marketing, set-up, etc.). If the $75 admission is run through SITC, then her for-profit can’t use volunteers for the event.

These labor law concerns are not isolated to a single event or jurisdiction. Based on available documentation and first-hand reports by Day herself, SITC has held events in multiple states — including California, Louisiana, Texas, New York — as well as internationally in Cancun, Mexico, where unpaid individuals were used to perform event-related labor (such as marketing, setup, logistics, and staffing).

Under both federal law and each of these states’ respective labor codes, for-profit businesses may not legally use volunteer labor. These actions may constitute systemic wage and hour violations, particularly under the Fair Labor Standards Act (FLSA) and equivalent state labor laws. Investigations are ongoing in some jurisdictions, and complaints have been submitted to various agencies.

* Important Note: These matters remain under investigation. The subject of these allegations has not been formally charged and is entitled to the presumption of innocence. This information is shared in the context of risk disclosure, member protection, and nonprofit governance standards, not as a legal conclusion.

✅ BONUS CONCERN: What About Data Privacy?

This wasn’t addressed in the comment, but it’s critical:

• The SITC site collects names, emails, phone numbers, job titles — all of which are considered personally identifiable information (PII).
• If ILCRA encourages members to register through this system, they are jointly responsible for what happens to that data.

Under:

• Illinois Personal Information Protection Act (PIPA)
• FTC Safeguards Rule
• And basic ethical responsibility,

ILCRA must ensure that members’ data is:

• Collected legally
• Stored securely
• Not shared, sold, or misused

🤝 Final Thought — A Safe Space for Truth

This space is a safe one — for truth, for accountability, and for the court reporting community to ask difficult questions and expect honest answers.

Enjoyable events and fun moments are important — but fun doesn’t override fiduciary duty. Ethical leadership means ensuring every member’s data, trust, and money are protected, no matter how casual the setting may seem.

This isn’t just a cocktail party — it’s a liability event in the making.

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**(“Steno In The City is a registered trademark of its respective owner. StenoImperium.com is not affiliated with or endorsed by that brand.”)

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