morganm
02-28-2003, 09:42 AM
Here are two articles about the CT International Skating Center owners. WHATTA MESS!
http://www.ctnow.com/hc-budnick0226.artfeb26.story
Rink's Owners Take A Fall
Embezzled Millions To Finance Big-Time Skating Center
February 26, 2003
By LYNNE TUOHY, Courant Staff Writer
The Connecticut International Skating Center in Newington is home to a host of international figure skating champions, but it was built on a foundation of fraud.
Its founders and principal owners - Douglas Budnick and his ex-wife, Denise Budnick - have pleaded guilty in federal court to charges related to the embezzlement of more than $3 million to feed into their financially strapped skating rink.
Denise Budnick, who worked as assistant treasurer for the Connecticut Attorneys' Title Insurance Co., admitted in U.S. District Court in Hartford Monday to embezzling $3,076,325 from the title insurance company between 1998 and 2000 to complete construction of the rink and pay its mortgages.
She said she wrote checks to herself and to the Connecticut International Skating Center, and masked the scheme for several years by altering the title insurance company's monthly financial statements. Because those statements were mailed to the insurance company, she was charged with mail fraud, to which she has pleaded guilty.
Both Budnicks also pleaded guilty to filing a false income tax statement for tax year 1999. They had reported a combined negative income of $59,475, but did not report the nearly $2.2 million in embezzled funds they received that year.
Denise Budnick is scheduled to be sentenced by U.S. District Judge Christopher F. Droney May 15 and faces up to eight years in prison and $350,000 in fines. Douglas Budnick is scheduled to be sentenced May 23 and faces three years in prison and a $100,000 fine on the false income tax charge.
The Budnicks still own the skating rink, but a judge in December placed the rink in receivership after lawsuits revealed a raft of financial woes and back taxes. Two mortgage companies filed suit or notice of intent to sue against the skating center late last year, seeking foreclosure to pay mortgages totaling $5 million. The town of Newington sold the property to the Budnicks in 1998 for $100,000, with the understanding that Newington residents would be charged discounted admission rates and that local hockey leagues, and the Newington High School team, would practice there. The Budnicks owe more than $115,000 in back property taxes.
The two-rink arena opened in February 1999 and soon was home to national and international champions. Russian skater Alexei Yagudin trained there for his 2002 Olympic Gold Medal, and continues to skate there when he is not competing or on tour. His coach, Tatiana Tarasova, also brought Canadian Olympic ice dancers Shae-Lynn Bourne and Victor Kraatz to Newington. Doug Budnick courted them with free accommodations and free ice time. U.S. champions Naomi Lang and Peter Tchernyshev also train there.
The rink's operation now is in the hands of Chicago-based Firland Management Co., which specializes in building and managing ice rinks.
"We're in there operating and protecting the interests of owners, creditors, everyone," Firland President Jim Cain said Tuesday. "Our responsibility is directly to the court."
The rink still boasts its marquee skaters and remains a seven-day-a-week operation. Cain said it can be a financial success story.
"It's been our experience there needs to be some level of restructuring accomplished over the next several months, but it can be a very viable operation in a good market," Cain said. He would not disclose the rink's current debt, saying he considers that to be a private matter.
As for the Budnicks?
"I haven't seen them around that much lately," Cain said.
and
http://www.ctnow.com/news/local/statewire/hc-26033104.apds.m0909.bc-ct--skatfeb26.story
Owners of International Skating Center plead guilty to stealing $3 million
February 26, 2003
Associated Press
HARTFORD, Conn. -- The founders of the Connecticut International Skating Center, home to several figure skating champions, have pleaded guilty in connection with the embezzlement of more than $3 million from a title insurance company.
Denise Budnick admitted in U.S. District Court on Monday that she stole the money from the Connecticut Attorneys' Title Insurance Co. between 1998 to 2000 to pay for final construction costs and mortgages for the Newington center.
Budnick was the title insurance company's assistant treasurer. She said she wrote checks to herself and to the skating center, and hid the scheme by altering the insurance company's monthly financial statements.
Budnick pleaded guilty to mail fraud, because the financial statements were mailed to the insurance company.
Both her and her ex-husband, Douglas Budnick, pleaded guilty to filing a false income tax return for the tax year 1999. They had reported a combined negative income of $59,475, but did not report the nearly $2.2 million in embezzled funds they received that year.
Denise Budnick faces up to eight years in prison and $350,000 in fines when she is sentenced May 15. Douglas Budnick is scheduled to be sentenced May 23 and faces three years in prison and a $100,000 fine.
The Budnicks still own the skating rink, but a judge in December placed the rink in receivership after lawsuits revealed a raft of financial woes and back taxes.
Two mortgage companies filed suit or notice of intent to sue against the skating center late last year, seeking foreclosure to pay mortgages totaling $5 million.
The town of Newington sold the property to the Budnicks in 1998 for $100,000, with the understanding that Newington residents would be charged discounted admission rates and that local hockey leagues, and the Newington High School team, would practice there. The Budnicks owe more than $115,000 in back property taxes.
The two-rink arena opened in February 1999 and soon was home to national and international champions.
Russian skater Alexei Yagudin trained there for his 2002 Olympic Gold Medal, and continues to skate there when he is not competing or on tour. His coach, Tatiana Tarasova, also brought Canadian Olympic ice dancers Shae-Lynn Bourne and Victor Kraatz to Newington.
U.S. champions Naomi Lang and Peter Tchernyshev also train there.
The rink's operation now is the hands of Chicago-based Firland Management Co., which specializes in building and managing ice rinks.
http://www.ctnow.com/hc-budnick0226.artfeb26.story
Rink's Owners Take A Fall
Embezzled Millions To Finance Big-Time Skating Center
February 26, 2003
By LYNNE TUOHY, Courant Staff Writer
The Connecticut International Skating Center in Newington is home to a host of international figure skating champions, but it was built on a foundation of fraud.
Its founders and principal owners - Douglas Budnick and his ex-wife, Denise Budnick - have pleaded guilty in federal court to charges related to the embezzlement of more than $3 million to feed into their financially strapped skating rink.
Denise Budnick, who worked as assistant treasurer for the Connecticut Attorneys' Title Insurance Co., admitted in U.S. District Court in Hartford Monday to embezzling $3,076,325 from the title insurance company between 1998 and 2000 to complete construction of the rink and pay its mortgages.
She said she wrote checks to herself and to the Connecticut International Skating Center, and masked the scheme for several years by altering the title insurance company's monthly financial statements. Because those statements were mailed to the insurance company, she was charged with mail fraud, to which she has pleaded guilty.
Both Budnicks also pleaded guilty to filing a false income tax statement for tax year 1999. They had reported a combined negative income of $59,475, but did not report the nearly $2.2 million in embezzled funds they received that year.
Denise Budnick is scheduled to be sentenced by U.S. District Judge Christopher F. Droney May 15 and faces up to eight years in prison and $350,000 in fines. Douglas Budnick is scheduled to be sentenced May 23 and faces three years in prison and a $100,000 fine on the false income tax charge.
The Budnicks still own the skating rink, but a judge in December placed the rink in receivership after lawsuits revealed a raft of financial woes and back taxes. Two mortgage companies filed suit or notice of intent to sue against the skating center late last year, seeking foreclosure to pay mortgages totaling $5 million. The town of Newington sold the property to the Budnicks in 1998 for $100,000, with the understanding that Newington residents would be charged discounted admission rates and that local hockey leagues, and the Newington High School team, would practice there. The Budnicks owe more than $115,000 in back property taxes.
The two-rink arena opened in February 1999 and soon was home to national and international champions. Russian skater Alexei Yagudin trained there for his 2002 Olympic Gold Medal, and continues to skate there when he is not competing or on tour. His coach, Tatiana Tarasova, also brought Canadian Olympic ice dancers Shae-Lynn Bourne and Victor Kraatz to Newington. Doug Budnick courted them with free accommodations and free ice time. U.S. champions Naomi Lang and Peter Tchernyshev also train there.
The rink's operation now is in the hands of Chicago-based Firland Management Co., which specializes in building and managing ice rinks.
"We're in there operating and protecting the interests of owners, creditors, everyone," Firland President Jim Cain said Tuesday. "Our responsibility is directly to the court."
The rink still boasts its marquee skaters and remains a seven-day-a-week operation. Cain said it can be a financial success story.
"It's been our experience there needs to be some level of restructuring accomplished over the next several months, but it can be a very viable operation in a good market," Cain said. He would not disclose the rink's current debt, saying he considers that to be a private matter.
As for the Budnicks?
"I haven't seen them around that much lately," Cain said.
and
http://www.ctnow.com/news/local/statewire/hc-26033104.apds.m0909.bc-ct--skatfeb26.story
Owners of International Skating Center plead guilty to stealing $3 million
February 26, 2003
Associated Press
HARTFORD, Conn. -- The founders of the Connecticut International Skating Center, home to several figure skating champions, have pleaded guilty in connection with the embezzlement of more than $3 million from a title insurance company.
Denise Budnick admitted in U.S. District Court on Monday that she stole the money from the Connecticut Attorneys' Title Insurance Co. between 1998 to 2000 to pay for final construction costs and mortgages for the Newington center.
Budnick was the title insurance company's assistant treasurer. She said she wrote checks to herself and to the skating center, and hid the scheme by altering the insurance company's monthly financial statements.
Budnick pleaded guilty to mail fraud, because the financial statements were mailed to the insurance company.
Both her and her ex-husband, Douglas Budnick, pleaded guilty to filing a false income tax return for the tax year 1999. They had reported a combined negative income of $59,475, but did not report the nearly $2.2 million in embezzled funds they received that year.
Denise Budnick faces up to eight years in prison and $350,000 in fines when she is sentenced May 15. Douglas Budnick is scheduled to be sentenced May 23 and faces three years in prison and a $100,000 fine.
The Budnicks still own the skating rink, but a judge in December placed the rink in receivership after lawsuits revealed a raft of financial woes and back taxes.
Two mortgage companies filed suit or notice of intent to sue against the skating center late last year, seeking foreclosure to pay mortgages totaling $5 million.
The town of Newington sold the property to the Budnicks in 1998 for $100,000, with the understanding that Newington residents would be charged discounted admission rates and that local hockey leagues, and the Newington High School team, would practice there. The Budnicks owe more than $115,000 in back property taxes.
The two-rink arena opened in February 1999 and soon was home to national and international champions.
Russian skater Alexei Yagudin trained there for his 2002 Olympic Gold Medal, and continues to skate there when he is not competing or on tour. His coach, Tatiana Tarasova, also brought Canadian Olympic ice dancers Shae-Lynn Bourne and Victor Kraatz to Newington.
U.S. champions Naomi Lang and Peter Tchernyshev also train there.
The rink's operation now is the hands of Chicago-based Firland Management Co., which specializes in building and managing ice rinks.