Wednesday, February 9, 2011

Federal government asks judge to order 3 defendants to turn over money gained in KU ticket scam


The federal government is moving forward with plans to collect up to $2 million from three defendants convicted in a scam to steal, sell and profit from diverted tickets to Kansas University football and basketball games.

Prosecutors want the three defendants — Charlette Blubaugh, former head of the KU ticket office; her husband, Tom Blubaugh, a former consultant to Kansas Athletics Inc.; and Rodney Jones, former assistant athletic director for the Williams Fund — ordered to forfeit money generated illegally in the scam, which prosecutors say ran from 2005 to 2010.

Prosecutors filed motions this week in U.S. District Court in Wichita, where the three co-defendants already have pleaded guilty to conspiracy to commit wire fraud and await sentencing.

While the co-defendants have agreed not to oppose forfeiture proceedings, only a judge can order the defendants to pay, said Jim Cross, a spokesman for the U.S. Attorney’s Office.

Also convicted is Kassie Liebsch, a former systems analyst who took part in the scam. She already has forfeited a 2008 Toyota Camry purchased with illegal profits.

A fifth defendant — Ben Kirtland, former associate athletic director for development — is scheduled to plead guilty to conspiracy Feb. 24.

Kansas Athletics officials say they will wait until judicial proceedings are complete before deciding whether or how to pursue reimbursement through the courts. The department already has filed an insurance claim for $250,000 on a policy that covers the department against employee theft.


Tony Bandle 9 years, 3 months ago

I guess they'll just go over to the rumpus rooms and break open the piggy bank and count out a mil or two!!!

Need legal interjection here:

I guess the Gov't can seize all their properties and belongings and sell them off?

Is there a pro-rated scale that for every $ collected 2 $s are forgiven?

Will they have to pick up trash along the highway for the next 50 or 60 years?

$670,000 +/- a piece is a lot of jack!!!

amatxjayhawk 9 years, 3 months ago

Don't anyone hold their breath until the money comes in. The young lady with the Camry may be the only one with anything to show for her ill gotten gains. My guess is the only hope is for another car or so and maybe some other real property that may or may not have encumbrances. Thieves have a way of spending more than they take in, even when ungodly amounts are involved.

ahpersecoachingexperience 9 years, 3 months ago

My guess is Tom is hiding his cash in his second chin!

Jeff Coffman 9 years, 3 months ago

I've said it before...just draw the line and move forward. Any money we get back is gravy. If you want any type of true justice, we need to go after the brokers that bought the tickets, but KU can't go after them by themselves you need the whole conference or tons of universities to go after them.

Otherwise we will see a very limited amount of money.

kureader 9 years, 3 months ago

The continuing and unanswered question is when the outsiders will be questioned and whether KU has any recourse there, or if it's only the IRS that will be interested in these interviews.

Danny Hernandez 9 years, 3 months ago

The feds and IRS will go over every bank account, credit card statement and sieze whatever they've found of value...any stocks held in the name(s)of defendants, There will always be a paper trail with the money because it's not that easy to pay for large ticket items like a car with cash....I'm sure much of the cash was deposited slowly into their respective bank accounts and thus the paper trail. Whatever is earned during their stint in prison, a portion will go towards restitution as will a portion of their earnings during probation. And the justice department will not discharge the restitution holding out hope that should someone win the lottery, their proceeds could and would be attached.

kureader 9 years, 3 months ago

Your post immediately followed mine ... you may not have been responding. In case you were, I wasn't curious about the KU employees, I'm wondering when the other shoe will drop (with those who actually sold the tickets to users) and what recourse is available to KU, if any.

Andy Tweedy 9 years, 3 months ago

I want my lunch money back from the third grade, but I bet I've got about as good a chance at getting that back as KU does this...

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