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FALSELY REPORTS ON NHL SCANDAL TO FAVOR ALLEGED FELON FRIEND

HSK EXCLUSIVE

NY Daily News writer Michael O’Keeffe disregards facts and all journalistic integrity

Ken Jowdy should rightfully be labeled as the sports world’s own BERNIE MADOFF!

Recently legal proceedings even have his attorney implicated in less than fair legal maneuvers that circumvent California law and provide a most unfair advantage to his alleged criminal client who is accused of stealing tens of millions of dollars from numerous NHL players and using the funds to unjustly enrich himself and his family. He also allowed some high profile friends of his such as Reggie Jackson and disgraced Steroid user Roger Clemens to enjoy free trips on the NHL players dimes.

Also, while America is rightfully angered by the preferential treatment banks and various Wall Street firms are getting to shore up their record breaking losses, its people like Ken Jowdy who are defaulting on loans totaling into the hundreds of millions of dollars. Loans obtained by what appears to be questionable means and backed by land purchased solely with investors’ and the lender’s monies.

Below is a fact check of the most recent NY Daily News story. The editor of the NY Daily News should be immediately fired for allowing such a flimsy and false story to be published as fact!

The NY Daily News reported the following on Wednesday February 17, 2010:
(NY Daily News in Italics – The Truth in BOLD)

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Four current and retired NHL players have violated a court order compelling them to appear for depositions in the explosive lawsuit they filed along with 15 other players last year claiming golf course developer Ken Jowdy squandered $25 million of their money on porn stars, party girls and wild parties for Roger Clemens, Reggie Jackson and other baseball stars.

The hockey players are expected to drop the lawsuit to avoid facing sanctions, which could include having the suit dismissed at a hearing scheduled for March 3 in Los Angeles. The players received notices for depositions on Christmas Eve but failed to respond, according to Robyn Crowther, an attorney for Jowdy. On Jan.25, Judge William F. Fahey ordered them to appear for depositions, and the players’ attorney, Ron Richards, provided dates when they would be available, beginning on Feb. 16. So far, four plaintiffs – Chris Simon and Bryan Berard, who both played for the Islanders and Rangers, former Ranger Greg de Vries and Jason Woolley – have failed to appear.

The reason the players cannot attend is because the attorney for Jowdy, deliberately waited 9 months and scheduled their depositions during the Olympics and in the middle of the NHL season. It is a slimy tactic to prevent the players from recovering the money that Jowdy stole from them. The lawsuit is only being temporarily dismissed until after the Olympics and NHL season and Jowdy is trying to spin it as though they filed the lawsuit wrongly.

When contacted for a quote Los Angeles Attorney Ronald Richards had this to say “Contrary to California law, the Court ordered the players to appear for their depositions on nine consecutive days in Los Angeles instead of from their home states and countries. Not so coincidentally, Mr. Jowdy’s attorney cleverly facilitated this unusual court order via an ex parte motion instead of a noticed motion and waited 9 months to do so, during the Olympics and in the midst of the NHL season. Clearly my clients are not going to jeopardize their careers and their participation in the Olympics to chase Jowdy at this time. The shear cost both in legal expenses and personal sacrifices, combined with the fact that Mr. Jowdy testified that he has no personal assets and is on the verge of insolvency, making litigation against him in this forum, at this time cost prohibitive. Mr. Jowdy’s attorneys did everything to delay, obstruct, and prevent the players access to the records of the various entities Jowdy used to accept and spend all the players’ investment capital and continues to provide Mr. Jowdy a forum to exploit his victims. This runs afoul to legal common sense and strategy. Mr. Jowdy promised publicly months ago (in the NY Daily News) to return all of the players’ capital and of course he failed to even begin to deliver on this promise. In fact, he has done everything to block my clients from recovering as evidenced by these tactics.”

The suit alleged that Jowdy blew money the players invested in two golf developments on Mexico’s Baja peninsula on “porn stars, escorts, party girls and other women,” as well as private jets, five-star hotels and golf outings to impress Clemens, Jackson, banned hit king Pete Rose and ESPN broadcaster Joe Morgan.

At this point, the only ones who have profited from this deal are Mr. Jowdy, his friends and family members, all of whom have high paying positions in the project. Mr. Jowdy himself testified in his deposition that he continues to draw one of the highest salaries on the project regardless of the fact that he has consistently lost money in every real estate deal he has ever participated in and hasn’t provided a single dollar return to his investors in seven years. He is the poster child for why banks and investors lose money in these kinds of deals as investors and lenders are typically not good judges of who is and who is not a competent real estate developer.

The players also said that Mexican authorities had issued a warrant for Jowdy’s arrest, and that his development in Cabo San Lucas had been hit by liens in excess of $2.5 million by disgruntled former employees.

“They said there was a warrant for my arrest,” Jowdy said after the lawsuit was filed. “Not true. There weren’t any porn stars, hookers, strippers or anything like that. There were just malicious lies put in a lawsuit.”

There have been no liens on the property, according to Jowdy’s Mexican lawyer, Fernando Garcia.

There is a multimillion dollar lien recorded on the property.

Jowdy said he never met or talked to three-quarters of the 19 players named as plaintiffs in the lawsuit. Instead, he dealt primarily with an unlicensed financial adviser named Phil Kenner, who now calls himself a “lifestyle coach.” Kenner was Jowdy’s partner in the Mexican golf courses, charged with raising financing.

The lawsuit, a consolidation of two suits filed last summer in Los Angeles Superior Court, generated massive headlines for the players’ side. But the case didn’t go well in court for the players: Richards was smacked with admonishments for months by Judge Fahey. At a Dec. 2 hearing, for example, Fahey chewed out Richards for not having all the players’ financial records required to pursue the case.

Why didn’t you get all that before you filed this lawsuit?” Fahey asked. “When I was in practice, before I took on representation and filed a lawsuit, I had all the paperwork.”

When contacted by the Daily News, Richards claimed he was having an allergy attack and couldn’t talk. He did not return subsequent calls and e-mails.

The only attorney throughout this entire case who has been sanctioned by Judge Fahey is Mr. Jowdy’s attorney Robyn Crowther. The judge fined her for refusing to honor her agreement to produce Mr. Jowdy for his deposition. See attached court document supporting this. To date Jowdy has only produced a fraction of the documents and that would clearly implicate him.

The players’ allegations got the attention of federal prosecutors in New York, who launched an investigation last summer. Now, with the hockey players’ lawsuit in shambles, it is possible the focus of the federal probe will shift to Kenner and his associate, a former race car driver named Tommy Constantine, known as Tommy Hormovitis before he legally changed his name after pleading guilty in 1993 in Illinois to one count of delivery of a controlled substance – cocaine.

Mr. Constantine, who is an associate of Mr. Kenner’s was used by the Jowdy camp as a pawn to shift the focus of the current criminal activities that have taken place . Mr. Constantine’s criminal conviction stems from a one-time offense that occurred over 20 years ago. But let’s take a closer look at what the NY Daily News article actually says in this regard.

“it is POSSIBLE the focus of the federal probe will shift to Kenner and his associate, a former race car driver named Tommy Constantine”?! Wow, that’s really heavy.

The players are all being served subpoenas to appear before a grand jury for an investigation against JOWDY. Many have already been interviewed and the topic of the discussions is JOWDY. Jowdy is the only target and is the only person in the investigation that has been issued a Target Letter. The investigation is ongoing and two of the players who currently play for the defending Stanley Cup Championship team (Pittsburg Penguins) were publicly served subpoenas two weeks ago by FBI agents after practice at Madison Square Gardens who clearly stated that the investigation was regarding Ken Jowdy. The players were interviewed last week.

Kenner and Constantine have been involved in several legal battles involving hockey players. Former NHL star Joe Juneau accused Kenner in a lawsuit filed in December of 2008 in U.S. District Court in Los Angeles of bilking him out of millions of dollars in investments. An arbitrator awarded Minnesota Wild right wing Owen Nolan $2.5 million after Nolan claimed he was scammed by Kenner.

Juneau dismissed his lawsuit against Constantine and wrote a public apology for filing the lawsuit against him and the public attacks in the media against him.

Ethan Moreau of the Edmonton Oilers filed a suit at the same time against Constantine. Both suits are ongoing.

Moreau defaulted on the purchase of a condominium from Constantine and is being sued by Constantine for breach of contract.

Meanwhile, Richards told a reporter last summer that Jowdy failed to develop the projects. “The only thing they have to show for it is sand on a beach in the middle of nowhere,” Richards said.

But one course, Diamante Cabo San Lucas, opened in October to rave reviews.

The course is seven years behind schedule and should have cost $6.5M. It was recently completed and Jowdy himself testified in his deposition that it cost twice that. Meanwhile, he has blown through over $35 million of investors money plus $125 million of Lehman’s money with nothing to show for it but this one public golf course. NO homes, NO villas, NO infrastructure etc. The first Jowdy project in Mexico which the players also invested in is being repossessed by the bank and has never been developed. Jowdy has leveraged the property and used the money for his own benefit and there is no more equity left for Mr. Jowdy to encumber on the property.

“All he has wanted from Day 1 is for the players to tell the truth,” a source close to Jowdy said. “They forced him to get a court order after the first time they failed to show up. Now the players not only defy a judge’s court order, but they supposedly withdraw their case. I think that tells you all you need to know about the truth of their allegations.”

Again, the players have been manipulated by a con artist and a swindler who has taken it to a new level within the legal system, knowing the players could not attend at this time.

“The dismissal is without prejudice and is absolutely TEMPORARY. It is based on Jowdy’s and his attorney’s tactics because my clients simply cannot be in two places at once. We will continue to sue Jowdy and his related entities in every available forum until my clients have exhausted every legal remedy to recover their investments,” commented Attorney Ronald Richards regarding the strategic dismissal.

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When contacted for comment on the story journalist Michael O’keeffe hung up on HSK staff. When contacted back Mr. O’Keeffe refused to elaborate on the information published and why it failed to even closely relate to the actual FACTS!

A copy of the transcripts from the Jowdy deposition is HERE and HERE. Only HSK has these. Would you buy property from this guy? He never uses his own money and is living off loans against the real estate bought by the NHL players money.

Finally, HSK exclusively has a copy of the request for dismissal without prejudice which means that the players don’t have to sacrifice their careers and can re-file their suit at anytime without any prejudice to them.

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