lennykravitz2004 Posted November 12, 2011 Share Posted November 12, 2011 (edited) ETA: sorry, I realized this isn't "new" news, just that things seem to finally be winding down (or really starting up?). This is just "the next step" in the process as a lawsuit has been finally filed. Multi-million-dollar fantasy sports league appears to collapse O'FALLON, Mo. • Tens of millions of obsessed sports fans play in fantasy leagues each week, most investing a pittance to create a prize pool among friends, family and co-workers. But a few join a handful of elite leagues that collect millions of dollars from players who kick in big money for a chance at prizes of up to $300,000. One based here, Gridiron Fantasy Sports, appears to have collapsed — owing hundreds of thousands of dollars to past winners, according to one lawsuit, threats of others and months of complaints posted online. Dustin Ashby of O'Fallon, Mo., Jesse James Herron, who lives in Georgia, and others bought the league in 2007. Neither Ashby nor the company responded to repeated phone calls and emails seeking comment. Other owners, and lawyers reported to be representing them, did not return multiple calls, emails or Facebook messages. The company has used addresses in O'Fallon, Mo., and an office park in Chesterfield. This week, when the website for Gridiron's World Championship of Fantasy Football was still working, it said the 2011 season had been canceled. In a suit filed Nov. 4 in federal court in St. Louis, Cary Katz, who lives in Nevada, demands payment of $95,000, from the World Championship. He claims in court documents that it is really a pyramid scheme, using money from new entry fees to pay off past winners. The suit appears to be the first in Missouri and in the federal courts nationwide against the operation, and came months after World Championship participants first complained online about failing to get some or all of their prize money from the 2010 season. The Missouri attorney general's office said it has received 32 complaints from players who claim they're owed roughly $144,000. Spokeswoman Nanci Gonder said the office is "aggressively investigating." A lawyer in Kansas City, Chris Banks, told a reporter he plans to file suit within weeks in St. Charles County Circuit Court on behalf of two winners owed $150,000 each and a third owed more than $250,000. The Fantasy Players Association has been tracking the controversy and says World Championship players are owed more than $800,000. "It's the biggest black eye in our industry to date," said Paul Charchian, president of the Fantasy Players Trade Association, a different group. Katz's suit says he paid $25,000 to enter one contest last year and $5,000 for another. It alleges he won $65,000 in the first and $30,000 in the second but was never paid. The complaint alleges breach of contract, fraud, misrepresentation and a violation of Missouri law. Banks represents Chad Schroeder of Omaha, Neb., who said he won $150,000 for first place in the $25,000 "Platinum Event," and Tony Windis, of Laramie, Wyo., who said he won $300,000. Schroeder never got paid, Banks said. Banks declined to identify his third client. He said Windis went to the Super Bowl this year and received a giant, symbolic check for $300,000 on the ESPN set by Ashby and the TV network's Suzy Kolber. But Windis received only half, the lawyer said, after "lots of false promises." As for the rest, Banks said his client has been told: "It's coming tomorrow. It's coming next week. It's coming now." Banks said Schroeder also was the world champion of Gridiron's World Championship of Fantasy Baseball. "He was only paid a portion of those winnings," he said. Asked what he thinks happened to the World Championship money, Banks replied, "That's the million-dollar question. Nobody knows where it went." Andy Ritter is one player who complained to the Missouri attorney general. The Georgia resident told the Post-Dispatch he's owed $500. He is particularly distressed that after nine years of flying to Las Vegas for the World Championship's fantasy player draft, he arrived this year to find it had been canceled a few days before. Money that Ritter had prepaid to the league for lodging and other expenses had not been forwarded to the hotel, he said, and Ashby did not respond to calls and text messages. Brian and Kelly Lapidus of Longwood, Fla., won $2,000 and were hoping to use the money to pay their 2010 taxes. They have now given up hope of getting any money. Kelly Lapidus has been following Ashby on Twitter, watching as he boasts of attending the Super Bowl and dining in Las Vegas. Brian Lapidus said they have joined a new league and "have our fingers crossed." Charchian, of the trade association, said that while 34 million Americans and Canadians over age 12 are involved in a fantasy sports league, participation in "high-stakes contests" is a tiny fraction of that. Experienced players want greater opportunities, he said: "You're not going to win $100,000 playing with friends and family." Charchian insisted it is not gambling. "People pay in money to play against other people who are all competing for a cash prize at the end. It's a contest. A game of skill," he said, typically returning 90 percent to players. He said World Championship represented "the biggest failure to meet the obligations ... in the industry, because the size of the jackpots was high." The World Championship website said the league was founded in 2002 as the first "high stakes fantasy contest" offering the chance "to compete against the best of the best accompanied by the largest cash awards available in fantasy sports." Ashby, one of the owners, is a former St. Louis District Golf champion who played at the University of Missouri-St. Louis in the late 1990s, coached golf there from 2004-09 and has hosted a local show on radio. He currently co-hosts a local golf show on ESPN 101.1 FM. Citing Ashby's fantasy sports connection as a violation of its rules, the NCAA placed UMSL on probation for two years and Ashby on probation for three years. He also has to 'show cause" why he should be allowed to coach again. The NCAA banned wagering in sports fantasy leagues in 2007. But Ashby told investigators he didn't know it was against the rules, according to a report that accompanied the sanctions. It faulted Ashby for using a volunteer assistant coach and three UMSL golfers to run part of his operation. The NCAA report, released last year, said the total World Championship league payout was $1.6 million on revenue between $2.8 million and $3 million. Some players have complained that World Championship may have invested too much in signing celebrity deals to try to attract TV attention. Todd Ullman, a former league champion from California, recalled a draft for celebrity participants and other festivities that were held behind a curtain while the regular players were forced to wait. He said he is still owed $4,250. Edited November 12, 2011 by lennykravitz2004 Quote Link to comment Share on other sites More sharing options...
twiley Posted November 12, 2011 Share Posted November 12, 2011 Sad - they really drove the WCOFF into the ground. It truly was the premiere event each year. Every time I hear Ashby on the radio I want to call him up and ask how it feels to swindle all those people out of money. For his sake, I hope our paths never cross in STL. Quote Link to comment Share on other sites More sharing options...
JUMbotron Posted November 12, 2011 Share Posted November 12, 2011 I was a Co-Coordinator of the WCOFF for Lenny and Emil from inception to the day they sold it to Gridiron in 2007. It was a grand ol' time. The best weekend of the year. Everyone got paid too. Everyone. Always. I met David and Whit there in '03 or '04 (?). Quote Link to comment Share on other sites More sharing options...
Bronco Billy Posted November 12, 2011 Share Posted November 12, 2011 The NCAA report, released last year, said the total World Championship league payout was $1.6 million on revenue between $2.8 million and $3 million Where's the rest of the money? Casinos would welcome players with a penchant for spending this kind of money into their building - probably comping most of not all of the event for the opportunity to have them wander their tables for the weekend when not drafting. Pretty obvious fraud of a grand scale going on here - stripping them of all assets isn't enough. A nice stretch in pound-you-in-the-ass prison seems to be appropriate. Quote Link to comment Share on other sites More sharing options...
Big John Posted November 12, 2011 Share Posted November 12, 2011 Where's the rest of the money? Casinos would welcome players with a penchant for spending this kind of money into their building - probably comping most of not all of the event for the opportunity to have them wander their tables for the weekend when not drafting. Pretty obvious fraud of a grand scale going on here - stripping them of all assets isn't enough. A nice stretch in pound-you-in-the-ass prison seems to be appropriate. And the host casino got a sweetheart deal from them too for having a required night stay there as part of the agreement. Quote Link to comment Share on other sites More sharing options...
Bronco Billy Posted November 12, 2011 Share Posted November 12, 2011 And the host casino got a sweetheart deal from them too for having a required night stay there as part of the agreement. I wonder if those rooms came with nekkid asian chicks passed out on the couch... Quote Link to comment Share on other sites More sharing options...
twiley Posted November 12, 2011 Share Posted November 12, 2011 I wonder if those rooms came with nekkid asian chicks passed out on the couch... I can assure you that they didn't. Quote Link to comment Share on other sites More sharing options...
DMD Posted November 12, 2011 Share Posted November 12, 2011 I guess that explains why I ended up with two... Quote Link to comment Share on other sites More sharing options...
cdrudge Posted November 13, 2011 Share Posted November 13, 2011 I guess that explains why I ended up with two... That wasn't a chick. [insert reference to Hangover 2] Quote Link to comment Share on other sites More sharing options...
twiley Posted November 18, 2011 Share Posted November 18, 2011 Ashby is getting his ass taken to court by the Feds for taxes too. When it rains, it pours. Quote Link to comment Share on other sites More sharing options...
Big John Posted December 18, 2011 Share Posted December 18, 2011 OTL at 10am ET on ESPN2 talking about this. Quote Link to comment Share on other sites More sharing options...
Cowboyz1 Posted December 18, 2011 Share Posted December 18, 2011 Where's the rest of the money? Casinos would welcome players with a penchant for spending this kind of money into their building - probably comping most of not all of the event for the opportunity to have them wander their tables for the weekend when not drafting. Pretty obvious fraud of a grand scale going on here - stripping them of all assets isn't enough. A nice stretch in pound-you-in-the-ass prison seems to be appropriate. Why, wall street didn't get a darn day in such a prison. Niether did the bank execs and they stole billions. Quote Link to comment Share on other sites More sharing options...
Cy_Hawk Posted December 18, 2011 Share Posted December 18, 2011 Why, wall street didn't get a darn day in such a prison. Niether did the bank execs and they stole billions. Better lawyers, and friends on Capitol Hill? Quote Link to comment Share on other sites More sharing options...
Bronco Billy Posted December 18, 2011 Share Posted December 18, 2011 Why, wall street didn't get a darn day in such a prison. Niether did the bank execs and they stole billions. WCOFF wasn't considered too big to fail, and Congress didn't have to cover their asses for thier part in doing in WCOFF. Quote Link to comment Share on other sites More sharing options...
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