2B
Tuesday, November 15, 1994
UNIVERSITY DAILY KANSAN
LA Kings owner charged with fraud
The Associated Press
LOS ANGELES — Federal prosecutors filed criminal charges yesterday against Los Angeles Kings president Bruce McNall, ending a lengthy bank fraud investigation.
Peter Spivack, an assistant U.S. attorney, said McNall was charged with one count of conspiracy, two counts of bank fraud and one count of wire fraud.
McNall allegedly defrauded several banks of nearly $236 million during a 10-year period.
He is scheduled for arraignment Nov. 28 before a U.S. magistrate.
If convicted of all charges, McNall faces a maximum penalty of 45 years in prison and a fine of at least $1.75 million, Sptvack said, adding that the fine could be much greater.
"We expect him to plead guilty to the counts charged in the information," Spivack said. "Mr McNall is the primary beneficiary of essentially what was a decade-long bank scheme, and we believe he was the primary motivator and leader.
"What he's charged with is knowingly committing bank fraud, and that means acts that he was fully aware of and that he was aware were completely against the law."
About a potential prison term, Spivack said. "That is not something I can comment on at this point, mainly because I don't know. What it will be primarily dependent on is the amount of money the banks lost."
McNall, 44, has not spoken publicly about his legal problems. He was sole owner of the Kings from March 1988, when he bought the team from Jerry
At that time, McNall was forced to sell a 72 percent interest to investors Jeffrey Sudkoff and Joseph Cohen because of financial problems that eventually led to his filing for protection from creditors in U.S. Bankruptcy Court.
McNall resigned his position as chairman of the NHL's Board of Governors shortly before selling the majority interest in the Kings, saying he was doing so in the best interests of hockey.
It also has been reported that he will
step down as president and governor of the team.
Five others have been charged in the bank loan fraud scam allegedly directed by McNall, with three already entering guilty pleas.
The other two reportedly also have agreed to plead guilty in the matter.
"I think it was a combination of a person who was very good at convincing people to do things that might not have otherwise done and people who were willing to be led in that direction," Spivack said.
$5.75 Per Hour
Pay & Benefits
UP TO $5.00 TO START
(Lunch Availability)
• Health & Dental Insurance
• 50% Meal Discount
• Frequent Performance Reviews
• Great Work Environment
• Paid Vacation
• Flexible Schedule
• S.T.E.P. Tuition Reimbursed Scholarship Plan
Amigos, an expanding quality oriented Mexican fast food chain has excellent part-time and full-time job opportunities available now. If you are an aggressive, customer oriented person and like to work at a fast intense pace, an opportunity to put these skills to work and develop as a leader is available. Explore how you can earn 100% college tuition rebursement simply by working at Ami
Apply now at:
1819 West23rd
E.O.E.
KU Bookstores
Kansas Union,
Level Two
University of Kansas
864-4431
Mon-Fri 8:30-5:00 pm
Sat 10am-4pm
Sun noon-3pm
RAISE YOUR CONSCIOUSNESS
THE ONE CARD FOR CREDIT, CASH & CALLING
The AT&T Universal MasterCard. Call 1 800 438-8627 to apply