Article New charges coming in theft case against Bill Hynes, York Dispatch Options

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New charges coming in theft case against Bill Hynes
Aimee Ambrose
York Dispatch
Dec 19, 2023

Entrepreneur Bill Hynes will move forward to a possible trial on corporate theft allegations with two new charges added to his case.

The 51-year-old is accused of stealing $4.4 million from United Fiber and Data, the company he helped found with members of the rock band Live, while he was CEO from 2017 through 2019.

At the second part of a preliminary hearing Tuesday, authorities, following a nearly three-year investigation, detailed a series of financial activity and bank transfers that they said showed Hynes used funds from UFD for personal benefits and then covered his tracks or left the company on the hook for loans.

The largest piece of the case involves a loan that helped secure $3.3 million from a state program. The money helped defray the costs of renovating UFD’s former headquarters at 210 York St. Prosecutors allege Hynes illegally used those funds to purchase new property instead of repaying the loan.

Hynes is also accused of doctoring invoices to disguise truck racing activities; creating app development paperwork to cover the use of company money for personal credit card bills; and taking a loan out in UFD’s name and then making it look like he loaned UFD that money.

He was charged in August with two felony counts of theft by failing to make required disposition of funds and theft by deception.

On Tuesday, attorneys with the York County District Attorney’s Office said they were amending the case to add two further counts of dealing in proceeds of unlawful activities, according to the Pennsylvania state code number that was cited.

The announcement came as Hynes’ preliminary hearing resumed in District Judge Thomas Harteis’ court.

This was the second day of a lengthy, two-part hearing. Testimony was initially given Nov. 21, and after about five hours, Judge Harteis called a halt and rescheduled the rest of the hearing.

When the case resumed Tuesday, witnesses included an FBI agent who assisted the Pennsylvania State Police in their investigation. The testimony was the first confirmation that the FBI was involved in the case.

The second part of the hearing went for about five-and-a-half-hours — or a total of 10+ hours for the preliminary hearing — before Judge Harteis decided the evidence was sufficient to present to a jury if the case goes to a trial.

He sent the case to the York County Court of Common Pleas, and he scheduled the formal arraignment for Hynes there for Jan. 16.

— Reach Aimee Ambrose at aambrose@yorkdispatch.com or on Twitter at @aimee_TYD.

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Prosecutor: Bill Hynes used UFD as 'personal piggy bank' - former CEO ordered to trial
Mike Argento
York Daily Record
December 20, 2023

After five hours of testimony Tuesday – mostly an FBI agent poring through sheaths of bank statements, invoices and associated financial documents – it was time for the lawyers to address whether former United Fiber & Data CEO Bill Hynes should stand trial for allegedly stealing more than $4 million from the company he started with members of the rock band Live.

Hynes' lawyer Jonathan White argued that no crime had even taken place, that UFD wasn’t a victim of a crime and that any discrepancies over the money that Hynes diverted through various business and personal bank accounts was a civil matter and did not warrant four felony charges.

Among the issues was the $5 million that Louis J. Appell III – son of legendary local magnate and philanthropist Louis J. Appell Jr. - loaned UFD and expected to be paid back with money from a state redevelopment grant.

Once the grant money came through, though, Hynes is accused of diverting that money for other purposes, mostly to buy the former Metso building on Arch Street to convert the former industrial site into a retail/commercial/entertainment venue instead of paying Appell back.

White argued that once the state money flowed to the privately held company, UFD, and Hynes as its CEO, was free to spend it how they saw fit. (Later, after some fiscal issues came to light, Hynes was restrained by an agreement that limited his ability to freely spend the company's money.) Appell, as outlined in the loan agreement, expected to be paid back within 15 days of UFD receiving the money, but he testified previously that he still hasn’t been paid back, having reached a settlement in civil litigation over the matter, one of the many lawsuits involving the former '90s rock icons Live.

“The business would have the right to use those funds as they choose,” White argued before District Magisterial Judge Thomas Harteis Tuesday afternoon. “In essence, what we have is Mr. Appell loaned money to UFD and is upset that he hasn’t been paid back. There is no victim here.

“Mr. Appell may not be happy with how that money was spent, but that is a civil matter and has been settled.”

Prosecutor Tim Barker scoffed at that notion. He previously argued that any civil settlement does not absolve Hynes of criminal liability. He further argued Tuesday that Hynes’ seemingly endless movement of money from account to account was “a classic Ponzi, money laundering scheme.”

“UFD is, in fact, a victim,” Barker argued, noting that the company was deprived of money it could have used for other endeavors. “It is sophistry to assert that they are not a victim.”

The arguments came at the end of a two-part preliminary hearing to determine whether Hynes should stand trial on theft charges. During the first part of the hearing, in November, Appell, his wife and an accountant for UFD testified about Hynes' business dealings and how he was evasive and at times deceptive when asked about the money.

Tuesday’s hearing focused on the paper trail with FBI Special Agent Michael Mocadlo going through bank statements that showed money had been moved among various business accounts, and Hynes' personal accounts.

In one instance, Hynes had asked Appell to invest in the redevelopment of the Metso building. Appell had testified that he would consider it if Hynes put $500,000 of his own money into the project. Instead, Mocadlo’s testimony illustrated, Hynes solicited a $500,000 loan to UFD from a trust and then moved the money from a little used company account – one that had a balance of little more than $500 – to his personal account to make it appear the money had originated from him. And then, Barker said, he put the money into a UFD account, noting that it was a loan, from him, making it appear that he had loaned UFD the money while UFD was on the hook for the loan from the trust.

“UFD just loaned $500,000, at 12 percent interest, to itself,” Barker said. “He was using UFD as his personal piggy bank.”

Mocadlo, who had previously investigated financial crimes, including a $59 million Ponzi scheme that targeted Amish and Mennonite families in 2021, meticulously dissected the financial documents to provide evidence to back Barker’s assertions.

In one instance, Mocadlo testified about invoices from a television production company that was providing services for Hynes’ interest in Stadium Super Truck racing. The invoices would be emailed to Hynes, he said, and then Hynes would alter them to remove any references to racing before submitting them to UFD’s accountant for payment. The invoices totaled $275,000 from 2017 to 2019. Mocadlo testified that UFD employees told him that Hynes was not permitted to use company funds to pay for his racing interests.

For instance, one of the invoices, for $50,000, was for television production services for races in Texas and Detroit. When the invoice landed on the accountant’s desk, it had been scrubbed of any reference to racing and mentioned just “TV production.”

White argued that the FBI hadn’t checked the metadata on the emails to prove that Hynes had sent them. He also argued that the racing expenses were for advertising and marketing.

Previously:Louis Appell III, others testify against Bill Hynes at hearing on alleged $4M UFD theft

In another instance, Mocadlo testified about an invoice from YRK LLC, a publishing and marketing company run by Live’s Think Loud companies, that was intended to pay for services to develop an app. The amount of the invoice, though, coincided with the balances on Hynes' American Express cards – one platinum card carried a balance of more than $73,000 – and shortly after the invoice was paid, Hynes’ credit cards were paid off.

Mocadlo and Pennsylvania State Police Trooper Timothy Reynolds both testified that nobody at UFD was aware of any such app in development. Reynolds testified that he spoke with UFD’s head information technology person who said he had never heard of it. The app, Mocadlo testified, was never developed.

The charges:Bill Hynes charged with stealing $4.39 million from United Fiber and Data

At the hearing's end, Judge Harteis ruled the prosecution had supplied enough evidence to justify bringing the charges.

Hynes was scheduled for formal arraignment in Common Pleas Court on Jan. 16. He remains free on $25,000 bail.

Columnist/reporter Mike Argento has been a York Daily Record staffer since 1982. Reach him at mike@ydr.com.

[Pingfah]

Lets hope jail is enough to keep him out of the orbit of this band, although the damage done is likely permanent.

[JonSnow]

Even the shit is sick of this shit.

[Badman]

With all these charges against him, somethin's gotta stick.

[dangum]

With all these charges against him, somethin's gotta stick.

According to Bill Hynes and Chad Gracey the allegations are baseless and complete fabrications. Bill is very confident that he will be exonerated. Check the latest episode of The Gracious Two featuring Bill as the guest if you want to know more. Actually, unless your really are interested I wouldn't waste 2+ hours listening. I just do it because I'm bored while I'm in the office.