Devils C Patrik Elias Sues Former Agents Gandler And Diamond

By Liz Mullen, Staff Writer, SportsBusiness Journal

Elias Suing Former Agents For Over $2M

Devils C PATRIK ELIAS has sued former agents MARK GANDLER and TODD DIAMOND and their firm International Sports Advisors (ISA), for more than $2M, alleging fraud, negligent misrepresentation, breach of fiduciary duty and malpractice. The lawsuit, filed last Thursday in Superior Court in Bergen County, New Jersey, alleges that Gandler and Diamond successfully convinced Elias to invest in two start-up restaurants. However, the investments were not in restaurants, but in two limited liability corporations organized by Gandler and Diamond, who were also the LLCs’ member managers, the suit alleges. The lawsuit also alleges that Diamond directed Elias to purchase a “wholly inappropriate and unsuitable” $30M life insurance policy with premiums of $2.5M over five years. The suit also alleges that Elias deposited $1M in a Czech Republic bank and authorized MARTIN STIOUKAL, an employee of ISA who befriended Elias and introduced him to the agents, to write checks on that account for Elias’ activities in the Czech Republic. The funds in that account have been depleted and Stioukal has only been able to account for how he spent $400,000 of that $1M, the suit states. The lawsuit asks for $2M in actual damages and unspecified punitive damages and attorneys fees.

RESPONSES: Gandler, who answered ISA’s phone late Friday evening, read this prepared statement: “Patrik Elias’ lawsuit against me, my partner and my company is completely without merit. We will contest it vigorously and expect a favorable resolution. It appears this is a misguided attempt to evade paying fees after years of receiving our services. It is highly unfortunate that Patrik resorts to this type of conduct.” Elias’ attorney, EDWARD KING, responded, “First of all, Mr. Gandler has never brought an action for fees against Mr. Elias. And secondly, what do you expect him to say?”