New filings in the Stronach family lawsuit suggest the group is no closer to easing tense relations. Frank Stronach, who is suing daughter Belinda and The Stronach Group chief executive Alon Ossip, lays out allegations of false profit reports and inappropriate expensing in the latest round of paperwork dated May 14 in the Ontario Superior Court of Justice.
Thoroughbred Daily News detailed the filing, in which Frank Stronach says the $500 million Belinda and Ossip reported to the court as revenue increases for TSG over the past six years is inflated. The figure, Frank says, does not take into account rebates offered to high-volume customers on the company's advance deposit wagering platform.
Further, Frank alleges daughter Belinda allocated expenses from her daughter's show jumping activities to the company, and that these expenses total “millions of dollars.” Frank Stronach's grandchildren Nicole Walker and Frank Walker are named as co-defendants in the suit.
“Under Alon's leadership, the racing and gaming business saw a stellar improvement, both financially and operationally,” said Paul Deegan, spokesman for Alon Ossip. “All revenues and expenses were booked in strict accordance with Generally Accepted Accounting Principles. To suggest otherwise is false. The net effect was that key financial indicators that indicate the actual performance of the business, such as EBITDA – which increased by roughly US$70 million in six years, improved significantly.”
Frank Stronach also alleges the recent crisis from equine fatalities at Santa Anita is a result of years of malfeasance by Belinda and Ossip, but apparently did not offer evidence on that claim.
Belinda Stronach has stated in previous filings that Frank's passion projects have cost the family $850 million (CAN).
Both sides in the dispute have been trading accusations and responses since the suit was filed in October. Frank Stronach is demanding a trial to remove Belinda and Ossip from their corporate positions and seeking damages.
Read more at Thoroughbred Daily News
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