Len Barrie under more scrutiny; is he on the way out?

Posted Sep 1, 2009 by Erik Erlendsson

Updated Sep 1, 2009 at 02:16 PM

According to a published report in today’s Globe and Mail, Len Barrie has been accused of misappropriating funds in order to buy his stake in the Tampa Bay Lightning. Here is an exerpt from the report based on the findings of an audit company that withdrew itself from the job back in April:

“The auditor’s report listed more than 20 transactions going back to 2007 that it found questionable. In several instances, the report said, “we encountered several instances where we believe that Len [Barrie] used his authority as Chief Executive Officer to override or otherwise circumvent the internal control system of the partnership, to misappropriate partnership funds for personal purposes.”

Among the transactions, the auditor said it discovered that almost $2.5-million in construction costs on Mr. Barrie’s personal residence was charged to the partnership. The report also said $2.5-million was funnelled from Bear Mountain to pay for Mr. Barrie’s share of the Lightning through Scansa Construction Ltd., a company owned by Kory Gronnestad, Mr. Barrie’s brother-in-law.’‘

The report also suggests that Len Barrie has already informed Commissioner Gary Bettman that he will not be able to buy out co-owner Oren Koules during his 60-day allotted window of time to due so, although there has been no confirmation as of yet.