New York, NY (PRWEB) August 14, 2009
SKI & Company, LLC and its parent 600 Management LLC today announced that they filed a complaint in the suit recently commenced against Christopher J. Lencheski concerning his acquisition of the Mallards professional hockey team and have added as co-defendants his wife, Sharon Morris-Lencheski, his minority co-owner in the Mallards, Eric S. Galler, his hockey advisor and attorney, Steve M. Ryan, and his financial advisor, Kenneth S. Frebowitz.
The complaint alleges that, starting less than a year after he sold SKI to 600 Management for substantial cash and equity, and while he was SKI's and 600 Management's full-time President and CEO at a significant salary, Mr. Lencheski took for himself the valuable corporate opportunity of purchasing the Quad City Mallards hockey team, established a competing business with the other defendants, and then succeeded in purchasing that team through the repeated use of SKI's various resources and assets. The suit claims Mr. Lencheski engaged in multiple acts of misappropriation and the flagrant breach of his non-compete agreement and other restrictive covenants and his fiduciary duties as an officer and director.
The complaint further alleges that, as part of his scheme, Mr. Lencheski secretly increased SKI's line of credit by $250,000 and then misappropriated $150,000 of SKI's funds by transferring that amount over a few days to his wife's personal checking account. He is also alleged to have used SKI employees to work on the Mallards transaction and disclosed proprietary SKI materials and traded on SKI's goodwill in order to acquire the Mallards franchise.
The additional defendants are alleged to have actively assisted and participated in Mr. Lencheski's wrongdoing as part of an overall agreement among them to acquire the Mallards at SKI's expense and to wrongfully compete with SKI and 600 Management.
SKI and 600 Management seek in excess of $5 million in compensatory damages and imposition of a constructive trust over defendants' ownership of the Mallards, as well as punitive damages. The complaint was filed yesterday with the Supreme Court of the State of New York, County of New York in case no. 602353/09. A copy of the complaint is available upon request.
Ski & Company® is a diversified, worldwide management and marketing enterprise in sports, entertainment, and media. SKI & Company is focused on the development of content, sponsor affiliation and activation, and business development in these industries. The company operates on a global platform from its offices in New York, London and Bethlehem, PA. The company offers a diverse portfolio of services through the integrated group of companies that comprise the SKI & Company family.