Hall-Of-Fame Quarterback's Private-Equity Firm Accused Of Covering Up Fraud

A private equity firm co-founded in 2007 by former San Francisco 49ers quarterback Steve Young has been accused of covering up a massive fraud at one of its portfolio companies. The accusations, which came in the form of a civil suit filed by the acquirer of the firm where the fraud allegedly took place, have prompted the FBI to investigate, potentially placing Young, his partners and his employees in hot water, per the New York Post.

Steve Young

HGGC, where Young is a managing director, purportedly helped falsify test results at Citadel Plastics, according to the lawsuit, which was brought by plastics manufacturer A Schulman, which bought Citadel in 2015 for $800 million.

The PE firm, HGGC (which was formerly known as Huntsman Gay Capital Partners), where Young is a managing director, "falsified test results" at its Citadel Plastics company, according to a lawsuit filed by rival plastic manufacturer A. Schulman, which bought Citadel for $800 million in 2015.

Citadel allegedly had been selling products with the claim that they met Underwriters Laboratories specs, when they did not, according to court testimony.

A civil trial over the alleged fraud started in April, and Judge Travis Laster is expected to rule on the liabilities portion of the suit as early as the end of this month.

Schulman, is seeking damages of up to $275 million. What's worse, federal investigators are probing the alleged fraud. Already, the FBI has issued more than five subpoenas.

Federal investigators are also probing the alleged antics at Lucent Polymers — purchased by HGGC’s Citadel in 2013, court papers reveal. The FBI has issued more than five subpoenas in the matter. Young was not among those subpoenaed — nor is he one of the executives named in the suit, although his PE firm is.

The lawsuit "came back into focus" last week after Young - a hall of fame quarterback - said during an interview that his firm's strengths include its ability to form partnerships with its portfolio companies.

Schulman’s 2016 lawsuit came back into focus last week after Young said in a TV interview that a major ingredient of his PE firm’s recipe for success is forming partnerships with its portfolio companies.

"We’re really attacking the market in an old-school way: We really look for partnership," Young, known for his stand-out years as a San Francisco 49er, told CNBC.

HGGC has denied knowledge of the fraud, arguing that its role has been to provide "financial oversight" of Citadel, as well as "helping with M&A. An executive director at the firm also said he didn't notice any "red flags" when he served as chairman at Citadel.

"I think there is a certain level of arrogance at HGGC that surprises me," said one source close to Schulman, who said Young’s TV appearance caught his attention.

In the court battle, Schulman claims HGGC at least knew about the potential for fraud at Lucent because the PE firm’s Citadel team flagged potential problems with the highly profitable Lucent product lines, according to court filings.

HGGC Executive Director Gary Crittenden, who was also chairman of Citadel, said during court testimony that he did not see any red flags at Lucent when the company was bought - or during the period it owned it.

The trial started in April, and a ruling on whether HGGC is liable for the fraud could be handed down in the coming weeks.


Free This El Oregonian Mon, 07/16/2018 - 16:00 Permalink


All of your supplies can run out or be stolen!

Learn woodworking, gardening, water purification and blacksmithing to be able to survive long term! It boils down to tools and you don't need that many!


And have a means to protect oneself and family.

Hunting is great and all, but trapping will be the key.

You may want to check this video, speaking of prepping:


Self reliance people! I am posting this in multiple threads, so you can down arrow me, no worries. I want as many people to see them as possible.

In reply to by El Oregonian

AsEasyAsPi vato poco Mon, 07/16/2018 - 16:23 Permalink

Naw, I got some Mormons in my family.  They are very honest hard working people.  Can't speak for Steve's fund though.  However, Mormons stick to their own and treat their own above the rest of us.  A bit cultish, but its not bad, just different.

I prefer Mormons over Jihadis in my neighborhood.  Not that I want Mormons ruling my neighborhood, but they are not bad people.  Have found them to be good neighbors, just don't stroll over to their house with a 12-pack and expect to be welcomed ;).

To each his own.

In reply to by vato poco

vato poco AsEasyAsPi Mon, 07/16/2018 - 16:56 Permalink

aw, how wonderfully folksy of ya. 

but the point was 'never trust a mormon', not 'mormons are OK as neighbors', now wasn't it. remember how the mormons - megasuperultrapatriot rockribbed conservatives for generations - behaved in the 2016 election? 

mittens crying out in pain as he (repeatedly) stabbed Trump in the back; egg mcmuffin running with the specifically stated goal of "I know I can't win, but hopefully I'll split the vote & deny Utah to Trump, and then hillary can win!'

so all that 'us mormons sure do love us some America' talk was replaced by 'to hell with the country, what's good for the mormons?'. IOW, the mask came off. ergo: never EVER trust a mormon

In reply to by AsEasyAsPi

Not Too Important The Proletariat Mon, 07/16/2018 - 17:02 Permalink

Same as the Kol Nidre prayer...

"The Kol Nidre is the holiest Jewish prayer and is recited several times on Yom Kippur, the Day of Atonement. It means "all vows" and is a flat statement that no promise of any kind will be kept for the coming year. It is also sung by the cantor in synagogue, accompanied on the violin and goes like this:
"All vows, obligations, oaths or anathemas, pledges of all names, which we have vowed, sworn, devoted, or bound ourselves to, from this day of atonement, until the next day of atonement (whose arrival we hope for in happiness) we repent, aforehand, of them all, they shall all be deemed absolved, forgiven, annulled, void and made of no effect; they shall not be binding, nor have any power; the vows shall not be reckoned as vows, the obligations shall not be obligatory, nor the oaths considered as oaths."

In reply to by The Proletariat

jcaz Mon, 07/16/2018 - 15:46 Permalink

Steve never got tired of being told that he was better- it's showing......

He literally just cited the Enron playbook as his model- genius.

hongdo Mon, 07/16/2018 - 15:51 Permalink

"selling products with the claim that they met Underwriters Laboratories specs, when they did not, "

Anybody ask whether Underwriters specs were of any value?

helloimjohnnycat Mon, 07/16/2018 - 16:06 Permalink

I've always considered Mormies were heebs pumping an extra wife or two.  They should know with joos you lose.

Carry on you plastic-poncho wearing schlubbs.

" THIS is the place "........where Zero fuckks are given !



highwaytoserfdom Mon, 07/16/2018 - 16:17 Permalink

HOW DOES GE PLASTICS ESCAPE?  How does GE Appliance escape? How does GE systemic risk finance status escape?.  Little tired of the gatekeepers..  


I actually got excited when thought they were talking about Griffin and Bernake at Citadel.  

Bond Wizzerd Mon, 07/16/2018 - 16:42 Permalink

This was easy to see coming. Harris Barton had a PE firm that blew up. Other Niners like Montana, Vardell, Jones all went into PE, but didn't realize that once your Super Bowl ring opens the door, you have to provide value if your going to be responsible for running money. No offense, these guys were awesome with the pigskin, and they are inspired salesmen, but they don't know jack about running money. Scaramucci looks like a rocket scientist in comparison.

Wannabee Mon, 07/16/2018 - 19:51 Permalink

Can vouch for the circle the wagons comment. I’ve had business associates advise that if you want to do business in Utah & Eastern Idaho, you better be wearing white button down shirt & skinny dark tie.

That said, I bet the % of Mormons on EBT & social programs in general are pretty low. Seem to be a pretty industrious group of folks. 

I’m renting a home to a Mormon couple, 4+ years and not late with rent once. Keeping the house & landscaping in good order too. No complaints on my end.

captain whitewater Mon, 07/16/2018 - 20:44 Permalink

I watched Steve Young trash Rush Limbaugh back when Rush was fired from ESPN for doing exactly what he was paid to do...say controversial things that were designed to get discussions started. This effort for a ratings boost was decided by the network management when they hired Rush.  The network execs wanted the cache that a man with 20 million listeners could bring to their business.

When Rush was fired for political correctness considerations (comments about Donovan McNabb) at ESPN, Young lined up, took aim and fired off a dishonest opinion based tirade showing his clear lack of understanding about what Rush said. Largely because idiots like Steve Young are unable to draw enough ratings base to justify their petty existence, ESPN was forced to undertake this experiment. He, Steve Young, wrongly accused Rush of being a racist and showed what a real coward he was then and is now. 

The shoe is on the other foot for Steve Young. I hope he gets his turn to take hostile fire from the justice department and media in front of a jury that won't have any sympathy for this wealthy spoiled, pretty boy thug.

What goes around comes around. You are a jerk and deserve whatever negative effects that come your way Stevie boy.  You played too many football games without your helmet on right.

Versengetorix Mon, 07/16/2018 - 22:09 Permalink

Gosh.....a lying, thieving, deceitful, back-stabbing Mormon making up a story and selling it to people for money in this life?  Apart from Joseph Smith, i can't imagine any of them behaving like that.  Except for Joseph Smith......yeah.....Joseph.