[Article] Bill Hynes charged with stealing $4.39 million from UFD, York Daiy Record Options

[PillarofDavidson99]

More charges were filed. Maybe this is why it was taken down.

https://www.ydr.com/story/news/local/2023/0...so/70644633007/

[Edit dangum: thread split from #37 Chad Taylor Sold the Drama, We want a Refund!, feat. Chad Gracey and Bill Hynes

This post has been edited by dangum: Aug 22 2023, 5:46 am

[dangum]

https://www.pennlive.com/crime/2023/08/form...ain-police.html

Former CEO of central Pa. company embezzled millions: police

Updated: Aug. 23, 2023, 9:15 p.m.|Published: Aug. 23, 2023, 8:37 p.m.

Police say the former CEO of a telecommunications company stole over $4 million from the business by funneling money into personal accounts and unrelated businesses he was also involved in.

William “Bill” Hynes, 51, of York, served as the CEO of United Fiber & Data, LLC (UFD) – a company aiming to build and manage a fiber optic line from New York to Virginia – from 2015 through 2019, according to court documents.

From 2015 through 2017, UFD was solely operated by Hynes – even though Hynes only owned 25% of the company – giving him unrestricted access to the company’s money, resources and assets until he resigned in 2019 following unrelated charges, a criminal complaint form says.

Hynes and his three business partners in UFD were also equal owners of two other LLCs, Think Loud Development (TLD) and 120 York, which aimed to renovate a blighted property located at 210 York St. in York.

On July 7, 2013, and Oct. 18, 2013, Hynes made a $3 million and $24 million sponsorship agreement with Andretti Autosport without consulting any of the other UFD owners, court documents say.

UFD had not made any money at the time of the Andretti Autosport deals and all of its operational funding was from private loans, the majority of which had been obtained through prominent York businessman Louis Appell Jr., the documents stated.

Although there was no operating agreement requiring Hynes to get approval for the Andretti deals at the time, court documents say Hynes still breached his fiduciary responsibility to the company. They added that the sponsorship led to UFD branding on Andretti Autosport-operated Indycar race cars, paddock and garage credentials for Hynes, access to special hospitality events during Indycar races, and close access to the Andretti family. These benefited Hynes, the documents said, but “offered no benefit to UFD.”

On Nov. 6, 2020, two of Hynes’ business partners reported Hynes to the Pennsylvania State Police, saying he stole about $3.73 million in company money for personal purchases from 2017 to 2019, the affidavit says.

The company funds in question were:

• $250,000 in services from Indianapolis Motor Sports Productions via falsified invoices
• $179,490 in services from YRK Magazine
• $50,000 to open a corporate American Express account
• $3,388,027 in a Redevelopment Assistance Capital Program (RACP) for the purchase of a building

Think Loud Development was awarded a RACP state grant of up to $5 million on July 3, 2014, to redevelop the building at 210 York St., the criminal complaint says.

However, Hynes controlled Think Loud Development, United Fiber & Data (UFD) and 120 York at the time, and UFD and 120 York did not have the funds to take advantage of the grant, leading Hynes to take a private loan of just over $4 million.

The money from the loan was wired to Kinsley Construction, who performed around $14 million worth of services at 210 York St., court documents say.

When the renovation funds were reimbursed under the RACP grant, Hynes transferred $3,388,027 into accounts for his other businesses in structured payments to avoid detection by the bank, the affidavit says.

Court documents also say Hynes transferred hundreds of thousands of dollars to his personal accounts to pay off his credit card debt.

Hynes is also accused of making illegal transfers regarding funds for another property at 240 Arch St. while lying to his lender about when the state would release funds to him.

Court documents also detail $500,000 from a trust that Hynes requested a loan from that he transferred into his personal account.

A preliminary hearing for the theft charges is scheduled for Nov. 3 in front of Magisterial District Judge Thomas Harteis.