Predators' Owner Gets 8 For Financial Fraud
Predators\' Owner Gets 8 For Financial Fraud
Del Biaggio pleaded guilty to one count of forging financial documents. According to the plea, a stock broker with the Merriman Curhan Ford Group who owed Del Biaggio more than $2 million sent Del Biaggio investment statements from wealthy clients. Del Biaggio then doctored the statements to make his own name appear on them and presented the fraudulent statements to investors and to the NHL as proof of collateral for his ownership stake in the Nashville franchise. An audit at the financial firm in 2008 uncovered the deception.
Federal US District Court Judge Charles Breyer ordered Del Biaggio to repay the defrauded banks and two NHL owners more than $47.5 million in restitution. One of the banks Del Biaggio is accused of defrauding is Heritage Bank of Commerce, whch Del Biaggio and his father founded more than 20 years ago. The Securities and Exchange Commission is also seeking to recover more than $20 million of investor funds from Del Biaggio. The SEC contends that Del Biaggio spent those funds on personal purchases.
The case has also raised considerable questions about the control of the NHL franchise and how the asset will be liquidated in the event of a bankruptcy of a franchise owner. The bankruptcy trustee handling the Del Biaggio bankruptcy is considering whether to accept an offer from the remaining owners of the team for Del Biaggio's nearly one-third share, or to auction the ownership stake to an outside bidder.
If you've been arrested for fraud, embezzlement or a similar crime, Los Angeles federal criminal defense attorney Robert Michael Helfend can help you build a successful criminal defense. Put Mr. Helfend's experience of more than 25 years as a criminal defense attorney to work for you. Contact Robert Helfend today for a free consultation on your criminal fraud case.
Photo Credit: Matt Mordfin, via Flickr