Wednesday, February 13, 2008

Why is no one suing over Israel baseball debts?

With word that Larry Baras and his Israel Baseball League took the El Al flight back to the State, leaving behind more than a million dollars in debt from their 2007 maiden season of the Israel Baseball League, the big question these days is why none of the vendors, players, businesses or other entities has filed suit against the Boston bagel baron or the IBl organization.

One person who has sued is Natalie Blacher. She's the woman who invested in Baras' "Unholey Bagel" invention, and claims in a federal securities fraud suit filed in Boston that Baras used her bagel-bound money to start up the IBL, and, in an echo of the IBL's former advisory board's complaints about his refusal to give an accounting of what he did with the money:

"The Plaintiff... invested $275,000 in SJR (Foods, Inc.) from September 1999 to October 2000... During 2006 and 2007 it became increasingly difficult for Plaintiff to obtain information from Baras and SJR about the financial condition of SJR... The balance sheet provided by Defendants in May 2007 indicated that as of November 31, 2006, SJR had a negative net worth of $1.5 million, despite the representations of Baras in March 2007 that SJR had a total debt of $400,000.... Furthermore, balance sheets for previous years showed sizable increases in SJR's debt which could not be explained or reconciled. The Plaintiff believes that Baras may have charged SJR substantial amounts for personal living expenses or for expenses which were properly chargeable to other business entities.

"...After the Plaintiff became aware of the Defendant Baras' involvement in the Israeli Baseball League, and said that she was concerned about her investment as a result, Baras represented that his involvement was very limited. All of these statements were false and/or misleading..."

Baras' attorney recently filed a motion to have the case dismissed. The papers posted here make up Blacher's objection to the motion. Baras claims the statute of limitations has run out on her claims. Blacher's attorneys say the clock didn't start ticking until she discovered the fraud. Baras' teams have until the end of the week to respond.

Based on Our Man Elli in Israel's exclusive coverage, we'd venture that the IBl clock started ticking about six months ago. Go to our new Baseball in Israel archive site to see extra large, very readable versions of the complete 10-page response.


Anonymous said...

Nobody has sued because several vendors have been paid in full in recent days and those that have not been paid wont get paid

Anonymous said...

The IBL is starting the season as scheduled.

Anonymous said...

You can't possibly be serious. Assuming that some vendors have been paid recently, there is still significant debt-- not to mention all the questions regarding the lack of financial disclosure, angy investors, problems with the IAB.

Any one who supports the current management of the IBL seems to have lost any sense of right and wrong.

Anonymous said...

The league is still viable till the time that the FAT MAN sings. Long live the IBL. I have full faith in Larry Baras . He is a seasoned businessman and has gone through tuff times before. His bagel business is very successful and knows more than you will ever know. Besides all debts are paid and thats why nobody has sued ,dummy!

Anonymous said...

yeah and now the IPBL has come out with the "tryouts" and we all have to go. HA they have got to be kidding

Listen guys, don't go (yeah Leon you too) whe we do not show up and they have no players we will get another email letter from wilson and gardner (oh is he trying out also) that we will all be invited . If some go then that will be bad. Guys , let's all go back but screw the tryouts . trust me , they will not have players and we will all be asked back.