Al Moriarty says Cal Poly scoreboard was the beginning of the end
|By Patrick S. Pemberton, The Tribune (San Luis Obispo, Calif.)|
|McClatchy-Tribune Information Services|
Meanwhile, despite being a convicted felon, the fallen financier's name will likely remain on the scoreboard for the Mustangs' home opener,
"The university has either got to let us sell this scoreboard or pay us the amount (Moriarty paid)," said
Moriarty, 81, pleaded no contest earlier this month to seven felony fraud charges.
Moriarty, who will be sentenced
In his bankruptcy case, filed on the last day of 2012, 103 people are listed as having given him personal loans, some for more than
Moriarty promised lenders their money was secured by real estate, his own
According to a declaration filed this week with the
But while once flush with money, he wrote, his fortunes began to unravel around the time he paid for the 16-foot tall, 28-foot-wide video scoreboard.
"In 2009, I was offered the naming rights to the
The scoreboard cost
Because gold was going up in value, he said, he collateralized
Eventually, he wrote, he sold his gold to pay off those two investors.
"That is where the gold went, and that is where the money from the gold went," the document states.
Moriarty had also used gold to purchase land in the
That land had many water rights, which could have been valuable in the current drought, Stern said.
"He was very prescient," said Stern, noting that Moriarty had made profits for clients for decades.
But the real estate market soured, damaging his credit line, Moriarty wrote.
"When I purchased 41 acres of choice property, I used my resources of
According to records filed in his criminal case, Moriarty, who was not licensed to sell securities, continued to take loans through 2011. During his preliminary hearing,
Chief Deputy District Attorney
The bankruptcy trustee in
If the bankruptcy protection is denied, Moriarty will have to pay off his creditors, a debt amounting to roughly
While the bankruptcy proceedings are ongoing, the scoreboard at
According to a statement from university attorney
"Their position is to not try to work this thing out," Rigby said.
In the suit, Klein's attorneys state that Moriarty was either insolvent at the time he purchased the naming rights or became insolvent as a result of it. "Because the (purchase) was made pursuant to the Moriarty Ponzi scheme, the debtor was necessarily insolvent at the time of the transfer," the suit states. As a result, the suit adds,
The suit further adds that Moriarty should have known he couldn't pay for the scoreboard when he made the purchase.
The bankruptcy trustee has already sold some of Moriarty's properties in an effort to pay some of his debts, according to bankruptcy court documents. But the trustee cannot sell the naming rights to
With litigation pending, Rigby said, it's likely Moriarty's name will remain on the scoreboard when the Mustangs play their first home game against Portland State, three days after Moriarty is sentenced.
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