November 18, 2008 - American Basketball Association (ABA)
American Basketball Association Chief Operating Officer Quentin Townsend has reached a settlement agreement with Jayhawk Sports, LLC in the fraud and forgery suit brought against the ABA officer earlier this year. Jayhawk Sports is owned by Carter Patterson and Brian Richey, Townsend's former partners in the ABA's Atlanta Vision.Townsend admitted defrauding the pair of $300,000 by coercing them to invest in a mythical NBA Development League expansion franchise for the Atlanta area, according to a Consent Judgment filed with the Gwinnett County (Ga.) courts. As evidence, Jayhawk Sports had presented a forged letter which Townsend claimed had come from the NBA D-League. Townsend's wife had also come forward with further evidence.
According to terms of the agreement, Townsend will pay Jayhawk Sports $300,000 plus interest and attorney fees. Damages will be paid starting December 31 of this year with a payment of $25,000, followed by another $25,000 on March 31, 2009, and the final payment on June 30, 2009 for $150,000.
ABA Chief Executive Officer Joe Newman suspended Townsend as ABA COO last week, just days after Townsend was arrested at a divorce hearing. ABA sources indicated Townsend planned to have his mother and sister operate the Vision this season.
Townsend remains jailed in Forsyth County (Ga.) on criminal charges relating to this case. He is being held on a $600,000 bond.
Patterson and Richey declined comment on the settlement.
Newman would not address Townsend's standing with the league, saying only, "Let's let the judicial process work through this and then we will determine Quentin's standing."
Townsend is still listed as the owner of the Atlanta Vision.
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