News

The Alberta government has reopened its cold case on Peter Pocklington, joining a lawsuit in U.S. Bankruptcy Court that alleges the former Edmonton Oilers owner is a long-time con artist who owes $12-million to provincial taxpayers and millions more to U.S. creditors.

The complaint has been filed by lawyers representing the Alberta government and seven entrepreneurs who allege that they are victims of “fraudulent schemes.” Two of the U.S. creditors, Naomi Balcombe of Florida and Toru Kamatari of California, are leading the charge, according to a Report on Business magazine investigation that will appear today on ReportonBusiness.com .

After Ms. Balcombe secured court orders last summer, U.S. marshals seized nearly 250 items from Mr. Pocklington and his wife, Eva. Three raids, conducted at the Pocklingtons' posh California condo, scooped up an eclectic array of assets, including Inuit sculptures, pieces of the Berlin Wall, Yves Saint Laurent evening gowns, Chanel women's shoes, two hockey sticks autographed by Wayne Gretzky, a cannon round fired in the 21-gun salute at the 2007 funeral of former U.S. president Gerald Ford, and Andy Warhol prints of Mick Jagger.

None of the allegations have been proven in court, and Mr. Pocklington accuses the plaintiffs of “ganging up” on him unfairly.

“First of all, I'm not a cross-dresser. They can't seize my wife's articles,” he countered in an interview.

Mr. Pocklington, once Alberta's best-known businessman, denies any wrongdoing. He is threatening to seek a $5-million (U.S.) judgment, saying the vast majority of the goods belong to his wife and should be returned. He argues that the possessions were wrongfully seized on July 29, Aug. 6 and Aug. 9. One of the items seized, a lamb's wool winter coat, has been handed back to Mrs. Pocklington, after a judge's ruling in early December.

The plaintiffs are challenging Mr. Pocklington's claim that he is broke, after he filed for personal bankruptcy in California on Aug. 11 – just two days after the final raid. His net worth is listed in his bankruptcy filing at $2,900 and personal liabilities at $19.7-million.

“Pocklington has fraudulently concealed his assets and has failed to explain his alleged inability to pay his liabilities,” according to the lawsuit filed in late November by California lawyers David Casselman and Ryan Stonerock.

In their complaint, the plaintiffs say Mr. Pocklington listed his net worth at $20-million in obtaining a life insurance policy in the past five years. They also allege that he has a holding company in the Bahamas that is wiring $50,000 a month to him to support a “lavish lifestyle.”

Mr. Pocklington, who lived in Edmonton for three decades and in Toronto for two years, began living year-round in California in 2002.

“Swindling scores of people, he fled Canada,” according to the complaint. “He is, literally, a professional con man. Plaintiffs are an unrelated group of victims who have never encountered anyone as blatantly dishonest as Pocklington.”

Mr. Pocklington said he is tired of fighting the plaintiffs and will be voluntarily “unwinding” his personal bankruptcy filing in January. “I'm going to have it dismissed,” he said. “It's a filing, and it can be withdrawn.”

He said the allegations that he has reaped ill-gotten gains are false. “I've read it and laughed at it. It never happened. Do you think I swindled the Alberta government? They were the ones who swindled me, if you want to use the word swindled. Give me a break.”

Until the latest court fight, he had managed to avoid the limelight while in the United States for the past six years.

“They can say I'm a murderer, they can say I'm this, they can say I'm that,” Mr. Pocklington said. “What are you going to do? I mean, if they say it, they say it. Sticks and stones. It's take no prisoners, claim whatever the hell they want. They are mean-spirited.”

He dismissed how the Alberta government is now hot on his trail for debts allegedly dating back to his former Gainers Inc. meat-packing business in Edmonton in 1989. The provincial government is seeking the repayment of $2-million (Canadian) in principal and more than $10-million in interest.

“It goes beyond usury. The Alberta bunch is just pure hatred,” Mr. Pocklington said. “I'm surprised. I don't know why they would bother.”

The lawsuit alleges Mr. Pocklington “failed to repay the loan,” saying the Alberta Court of Queen's Bench issued a court order in 2007 that awarded interest on the principal of $2-million. He argues that the $2-million went to now-defunct Gainers and not to him.

Another claim for repayment comes from Edmonton entrepreneur Ed Moroz, who was awarded an Alberta Court of Queen's Bench judgment in 2005 for $185,000 against Mr. Pocklington and one of his holding companies, Wyngate Ltd., which is now dissolved.

Mr. Moroz's mother-in-law is a childhood friend of Mrs. Pocklington. Mr. Moroz's final claim will be higher because of extra interest since the 2005 judgment, according to court filings.

PETER POCKLINGTON

Born: London, Ont.

Age: 67

Signing: He signed Wayne Gretzky, then 17 years old, to the Edmonton Oilers in 1978. The Oilers, in the World Hockey Association at the time, joined the National Hockey League one year later.

Trade: In 1988, he sold Mr. Gretzky to the Los Angeles Kings.

Sale: Government-owned Alberta Treasury Branches forced Mr. Pocklington to sell the Oilers in 1998. The rest of his business empire later crumbled.

Move: With his wife, Eva, he settled year-round in California in 2002.