DISBARRED- THE SERIES: ALAN EAGLESON

_DSC4179 - Version 2Alan Eagleson graduated from the University of Toronto’s Law School and was a prominent Toronto lawyer and Member of Parliament in Ontario before he began his lengthy career as agent, promoter and hockey guru extraordinaire.

His accomplishments in the world of hockey were pivotal to the growth and stature of professional hockey and its players. It was Eagleson’s impetus to form a union for players that birthed the National Hockey League Player’s Association in 1967.

He became the NHLPA’s first executive director and held that position for 25 years. By 1979, Eagleson was providing financial services to some of hockey’s biggest stars, encouraging them to invest wisely in order to retire financially secure.

It was Eagleson’s foray into internatonal hockey, notably the 1972 match between Russia and Canada, that cemented his now international reputation. His esteem, in his clients’ eyes, was multiplied when he took on one of the off-ice hockey officials in the 1972 game insisting that the referees had missed a Canadian goal.

As matters escalated, soldiers of Russia’s Red Army began to converge around Mr. Eagleson. Canadian fans jumped from the bleachers to intervene on Eagleson’s behalf. After this confrontation he turned on his heels and “fingered” the Soviet hockey fans as he walked back to the bench.

As Eagleson’s power base grew, suspicions arose as to the inner workings of the NHLPA and several American sports journalists began investigating Eagleson and the NHLPA in 1989/1990. By this time, Eagleson was a living legend in Canada and vague allegations of mismanagement were ignored by Canadian journalists, many of whom owed favors to Eagleson. This year also saw Eagleson obtain the Order of Canada and admission into the Hockey Hall of Fame.

The beginning of Eagelson’s demise occurred when evidence revealed that he had been playing around with player’s pension funds such that when Bobby Orr retired he was almost bankrupt, with significant unexpected tax liabilities.

Even more egregious was Eagelson’s skimming of funds from international games, money that was used to provide a lavish lifestyle for Eagleson. The players were told that their salary from international play would be deposited to their pension accounts. Instead, Eagelson embezzled the money for his own use.

Eagleson also defrauded injured players who sought to rely on their insurance funds when their playing days were over. He charged extraordinary fees alleging that it was only through his negotiation with insurers that the players received their settlements. None of it was true.

Eventually in 1993 Canada’s Globe and Mail newspaper ran with the story and began their own inquiries. In 1994 Eagleson was indicted in the United States for racketeering, obstruction of justice, embezzlement and fraud.

It was only after one of Eagleson’s clients wrote a book outlining his criminal conduct that the Royal Canadian Mounted Police began their own investigation and in 1996 Eagleson was charged with eight counts of fraud and theft.

Eagleson managed to avoid extradition to face the US charges for three years, using his considerable clout with Canadian authorities. He later plead guilty to three counts of mail fraud in a Boston court and was fined $700,000.00

Eagleson was charged with eight counts of fraud and embezzlement by the RCMP and was sentenced to 18 months in prison. His disbarment followed, together with the withdrawal of his Order of Canada and his removal from the Hockey Hall of Fame.

To the surprise of many Americans, Eagleson was pardoned in Canada in 2005. Canadian pardons are a dime a dozen, since the central criteria is to “keep your nose clean” for five years.

Just another tale of greed that ruined Eagleson’s reputation and his life. The question is: Why do the most successful fall prey to this avarice?

“Greed is a fat demon with a small mouth and whatever you feed it, it is never enough.”
Janwilliam van de Wetering, Dutch writer

Lawdiva aka Georgialee Lang

Twenty-Year Old Divorce Case Reopened: It’s Not Over Til It’s Over

La Spiga 2011-03-22In 1990 New York securities trader Steven Cohen was just beginning to see the fruits of his Wall Street career ripen. The only bad news was that his marriage didn’t survive and he needed to negotiate a financial settlement with his wife, Patricia Cohen.

At the time he told his wife that he had lost $9 million dollars in a co-op apartment investment he made in 1986, leaving his net worth at a mere $8.1 million. She didn’t believe him, but had no grounds to refute his assertion.

Mr. Cohen remarried two years later and built his business, SAC Capital, growing it from $25 million in assets to several billion dollars. Life was very good for him, until 2008.

It was then Ms. Cohen discovered a court file that revealed her ex-husband had settled the investment loss case with one of his co-op partners and recovered $5.5 million. She filed a lawsuit against him in 2009 alleging fraud.

Unfortunately, the first judge who heard the case threw it out saying the claim was too old to pursue and was unsubstantiated.

The Manhattan Appeals Court saw it differently. This month they reinstated Ms. Cohen’s lawsuit holding that the lack of timeliness in its filing was because she only discovered evidence of fraud eighteen years after the divorce.

My advice to Mr. Cohen: “Settle this case now, after all, you are a multi-billionaire and will likely not even notice a shortage of a couple of million.”

Besides, Cohen’s $15-billion dollar hedge-fund is the target of an insider trading investigation that has already seen the arrest of five individuals related to his Connecticut-based business. As well, two companies affiliated with SAC Capital have recently settled insider trading allegations with the US Securities and Exchange Commission for $614 million dollars, the largest insider trading settlement in the United States.

While there have been no charges laid against Mr. Cohen, the SEC is breathing down his neck. He really doesn’t need the aggravation of his ex-wife’s court action and the publicity that accompanies it.

Family law is different however. Cases that should be settled often are not because of petty vindictiveness and the need to win, and of course, Cohen can afford to bury his ex in legal fees.

Lawdiva aka Georgialee Lang