A Colorado nonprofit that oversees youth hockey has been rocked by revelations that its former president misused hundreds of thousands of dollars intended for young athletes, channeling funds through his private company for personal gain, according to a recent court ruling.
Key Takeaways
- Longtime nonprofit president found liable for misusing over $500,000 in youth hockey funds
- Private business was used to run nonprofit events, circumventing oversight
- Judge ordered restitution and found major breaches of fiduciary duty
Background: Allegations Of Misconduct
Randy Kanai, who led the Colorado Amateur Hockey Association (CAHA) from 2010 to 2023, was found responsible by a Jefferson County judge for running events and programs meant for the nonprofit through his own business, International Sports Event Management LLC. Over two years, he moved significant tournament revenues through his business account instead of the nonprofit’s, without informing either CAHA’s board or national USA Hockey officials of the conflict of interest.
Court Ruling: Civil Theft And Breach Of Trust
After a two-day civil trial, Judge Chantel Contiguglia found Kanai liable for civil theft, breach of fiduciary duty, and unjust enrichment. The verdict requires Kanai to pay CAHA $579,000, cover legal fees, and disclose all relevant business records. The judge noted that even if parts of the business activities might have technically broken even, Kanai was still obligated to disclose any potential conflicts and was prohibited from profiting from programs sponsored by the nonprofit.
How The Funds Were Misused
The misappropriation began in early 2021. When USA Hockey requested that CAHA host a girls’ tournament amid pandemic disruptions, Kanai directed registration payments to his company instead of the nonprofit. He continued this practice for subsequent tournaments and combines. Profits, nearly $360,000, were split evenly between Kanai and a business partner, Jason Schofield, who was also a CAHA board member and Colorado Avalanche executive. Both said they believed their arrangement was known to the board, but the judge found otherwise.
Fallout And Reactions
CAHA’s lawsuit followed a board vote to remove Kanai as president in May 2023. The organization said the legal action was necessary to hold him accountable. Kanai’s countersuit for defamation, directed at his successor Brian Smith, was rejected by the court. The judge affirmed that the concerns raised about Kanai’s financial handling were substantiated by the evidence.
Ongoing Questions In Youth Sports Oversight
This case has highlighted vulnerabilities in financial oversight within youth sports organizations. CAHA and its supporters expressed relief at the court’s decision but acknowledged the importance of stronger controls to prevent future abuse. The proceedings have also sparked concern more broadly about transparency and governance in youth athletic associations nationwide.
