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N.Y. Jets Fan Sued for Using Loan to Buy $400K Stadium Seats
New Jersey Law Journal
November 05, 2008
New York Jets football fan Davd Findel attracted more attention than he wanted when he paid $400,000 to buy the licenses for the two best seats in the new Giants-Jets stadium to raise his business profile.
A man who did business with Findel says in a suit that Findel reneged on a loan and should have used his money to pay it back, instead of buying the expensive seat leases.
The suit, filed Oct. 31 in Monmouth County Superior Court by Michael Rapf of Brick Township, says Findel, who operates a mortgage company, Worldwide Financial Resource in Morganville, borrowed $380,000 in 2004 to ease a cash flow problem and promised to repay the entire sum within 90 days.
But Findel still owes Rapf $281,500 on the loan, the suit says. Rapf's patience came to end on Oct. 28 when he saw a newspaper article that described Findel as the winner of the auction for the two best 50-yard-line seats in the football stadium the Jets and Giants will open in the Meadowlands in 2010 to replace Giants Stadium.
The article in the The New York Post that got Rapf's attention quoted Findel as saying, "Although part of the mortgage business is in turmoil this is an opportunity to invest in my business -- and to further demonstrate our loyalty to the New Jersey Jets."
He outbid two other high-profile businessmen for the licenses, which entitle him to VIP parking, food and drink at a stadium restaurant and access to the field during the game. Under the stadium ticket plan that has many loyal Jets and Giant fans incensed, fans who want best seats are being required to pay for licenses that entitle them to buy the seats.
In Findel's case, the tickets will cost an additional $7,000 per year.
Findel did not return a message left on his answering machine at Worldwide but The Post quoted him on Monday as saying he had worked out a deal months ago to make payments to Rapf and was doing so on a regular schedule.
Rapf's lawyer, William Katchen of Duane Morris in Newark, says that for Findel to promise huge sums for two football tickets when the deal called for him to pay back Rapf before the end of 2004 "is my definition of chutzpah."
Findel might think he is enhancing his image by spending $400,000 for stadium tickets, "but he isn't, not in this global recession," Katchen says.
The suit says Findel promised to pay back $100,000 of the loan within 60 days and the rest within 90 days, but failed to disclose that his businesses were undercapitalized and insolvent.
"At no time did Findel disclose the true state of facts to plaintiff," the suit says. Findel did repay $31,000 in late 2004, and has made additional payments totaling $67,500 in increments as small as $2,500 as recently as last month.
The suit asks the court to appoint a custodial receiver for Findel and Worldwide Financial Resources to ensure that Rapf gets his money.
Besides paying for Jets seats, Findel used resources at Worldwide to pay mortgages on his personal residence, attorneys' fees for a divorce, support payments to his ex-wife and gifts to his family and friends, the suit says.
