Joseph Zada Indicted for $20 Million Fraud of Former Russian Hockey Star, American Olympic Dressage Rider To Fund Lavish Lifestyle
7 years ago admin Comments Off on Joseph Zada Indicted for $20 Million Fraud of Former Russian Hockey Star, American Olympic Dressage Rider To Fund Lavish Lifestyle
By KENNETH J. BRADDICK
Joseph Zada has been indicted for fraud in allegedly swindling former Russian hockey star Sergei Federov, six-time United States Olympic dressage rider Robert Dover and other investors out of $20 million (€14.8 million) to fund a lavish lifestyle including owning the Olympic gold medal horse Custom Made, dressage and jumper horses and homes in Wellington, Florida and Detroit’s tony Grosse Pointe Shores.
The 55-year-old was a onetime horse trainer who became the financial manager for the former Detroit Red Wings star and was indicted by a federal grand jury for an alleged scheme involving phony oil deals.
According to the indicment, Zada allegedly spent more than $20 million (€14.8 million) to pay for a lavish lifestyle of extravagant parties, homes in Florida and Michigan.
Among the horses he owned was Custom Made that was ridden by David O’Connor of the United States to individual gold at the Sydney Olympics in 2000.
Robert Dover and Sergei Fedorov were among more than 20 people who invested with Zada between 1998 and 2009, allegedly based on Zada’s “materially false statements and omissions of material facts.”
The 27-count indictment charged Zada with “mail fraud, wire fraud, interstate transportation of stolen property, and money laundering in connection with an investment fraud scheme,” according to the U.S. Attorney’s Office for the Southern District of Florida.
“According to the indictment, in order to attract investors to his fraudulent scheme, Zada projected an image of great wealth, portraying himself as a successful businessman and investor with connections to Saudi Arabian oil ventures.
“In this regard, Zada hosted extravagant parties, drove expensive luxury vehicles, and maintained expensive homes in Wellington, Florida, and Grosse Pointe, Michigan. The indictment alleges that Zada told investors that he would invest their money in oil-related ventures.
“Instead of being used to invest in oil ventures, the investor money were used to support Zada’s lavish lifestyle and to make purported returns on investments to prior investors.
“According to the indictment, Zada caused over 20 investors to invest over $20 million in his fraudulent scheme.”
If convicted, Zada faces a maximum penalty of 20 years in prison for each count of mail fraud and wire fraud and a statutory maximum of 10 years in prison for each count of interstate transportation of stolen property and money laundering.
Richard Lubin of West Palm Beach, Florida, Zada’s lawyer, said his client disputed all the allegations and will “vigorously defend against the charges.”
Robert Dover earlier this year was appointed United States dressage Technical Advisor/Chef d’Equipe while Sergei Fedorov is general manager of CSKA Moscow, a team in the Kontinental Hockey League.