Selig & Loria charge whit fraud

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Frogy

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Former Expos owners to sue

I LOVE THIS ONE :D :D

By JEFF BLAIR
From Tuesday's Globe and Mail


Montreal businessman Mark Routtenberg refused comment Monday night on a report that he and the rest of the former minority partners of the Montreal Expos will file a lawsuit Tuesday charging baseball commissioner Bud Selig and former Expos managing general partner Jeffrey Loria with fraud.

The 14 partners owned a combined 6 to 7 per cent of the Expos and now own an equivalent share of the Florida Marlins. Selig brokered the sale of the Marlins to Loria's holding company in February, at which time baseball's other 29 franchises formed a limited partnership to take over operation ofthe Expos.

The partners called a news conference for Tuesday to announce they will file suit in a U.S. federal court in Miami under the Racketeering Influenced and Corrupt Organizations (RICO) Act, the Associated Press said, citing a person close to the lawyers for the partners, Weil, Gotshal & Manges.

"I've devoted 12 years to this thing, I'm not going to say anything now," Routtenberg said Monday night.

Defendants in the lawsuit will include Selig, Loria, baseball chief operating officer Bob DuPuy, the commissioner's office and Marlins president David Samson, who had been the executive vice-president of the Expos under Loria's ownership. The lawsuit concerns the proposed contraction of the Expos, the group said Monday in a brief statement that did not go into details.

The plaintiffs include BCE Inc., BMO Nesbitt Inc., Cascades Inc., Esarbee Investments Ltd., Fairmont Canadian Resorts and Hotels Ltd., Federation des Caisses Populaires desjardines du Quebec, Fonds de Solidarite des travailleurs du Quebec, Freemark Holdings Inc. (Routtenberg's holding company), Loblaws Inc., M & S Sports Inc., Provigo Inc., Telemedia Communications Inc., 98362 Canada Inc. and 114114 Canada Inc.

Stephen R. Bronfman, the son of former Expos controlling partner Charles Bronfman, is a principal in Esarbee, and L. Jacques Menard, the Expos' former chairman, is principal of BMO Nesbitt, Inc.

Samson and DuPuy declined comment, saying they would first have to see what is in the suit.

Selig and the baseball owners attempted to fold the Expos and the Minnesota Twins during the off-season but contraction was put off until 2003 when Minnesota courts forced the Twins to honour their 2002 lease at the Metrodome. Selig has since said that there is some sentiment among baseball ownership to fold more than two franchises.

Loria, a New York City art dealer who is now under fire in south Florida for the manner in which he is running the Marlins, has been at odds with his limited partners ever since his cash calls diluted the partners' share in the Expos franchise.

The lawsuit will be another public-relations black eye for the beleaguered Selig, who has come under attack for the contraction plan, the slow pace of negotiations on a new collective agreement as well as his decision last week to call off the All-Star Game with the score tied 7-7 after 11 innings.

Selig's family owns the Milwaukee Brewers, who were the host team for the All-Star Game.
 
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