MADISON — The original developer of a defunct indoor sports complex in Jefferson will spend time behind bars for committing perjury during a bankruptcy proceeding.
U.S. District Judge William M. Conley has sentenced Todd Goldbeck, 46, Middleton, to one year and one day in federal prison and ordered him to pay $2,466,550.46 in restitution to Summit Credit Union.
Goldbeck pleaded guilty to the perjury charge during a combined plea and sentencing hearing on Friday, August 7.
He was the original developer of the Xcel Sports Complex, 200 Pitzner Parkway, in Jefferson, which has sat unfinished since contractors stopped working in May of 2016. Recently, the building was under contract by Keva Sports Center in Middleton, which reportedly plans to focus on soccer, baseball, flag football and lacrosse.
Scott C. Blader, United States Attorney for the Western District of Wisconsin, reported that in 2015, Goldbeck received a $2.4 million government-backed loan from Summit Credit Union and the Small Business Administration (SBA) to build Xcel in Jefferson. Summit and the SBA approved the loan based on a several documents Goldbeck submitted, including a construction contract that estimated the total cost of the building at approximately $2.5 million and a signed lease agreement between Goldbeck and a regional medical center showing the medical center agreed to rent a portion of the completed building.
After construction began, Goldbeck contacted Summit and requested an additional $2.5 million to finish the project. He claimed that Summit knew the sports complex was a two-phase project and supported his request with a second construction contract estimating the total cost of the project at approximately $5 million. However, the new loan was not approved, and Goldbeck never completed the building.
Summit Credit Union filed a foreclosure of mortgage in Dane County Circuit Court against Xcel Sports Complex LLC et al on Dec. 9, 2016.
It filed a civil suit against Goldbeck in Dane County and obtained a monetary judgment of approximately $2.5 million. Goldbeck then filed a bankruptcy petition in the Western District of Wisconsin.
During the proceedings, Goldbeck told the bankruptcy trustee, under oath, that Summit knew the building was a two-phase project when it closed the loan. Goldbeck also said that he did not forge the lease with the medical center.
“During the course of the criminal investigation, law enforcement officials obtained documents and emails showing Goldbeck intentionally misrepresented the cost and scope of the project,” said Blader. “In addition, law enforcement officials received sworn affidavits from employees at the medical center stating they never signed a lease agreement with Goldbeck.”
At sentencing Friday, Judge Conley told Goldbeck that his hubris fueled his scheme to defraud Summit and the SBA. When his scheme failed, Goldbeck “doubled-down” and lied to the bankruptcy trustee.
The charge against Goldbeck was the result of an investigation conducted by the Small Business Administration’s Office of Inspector General and the Federal Bureau of Investigation, with the assistance of the Office of the U.S. Trustee for the Western District of Wisconsin. The prosecution of the case was handled by Assistant U.S. Attorney Chadwick M. Elgersma.
In addition to the Xcel Sports Complex LLC, Goldbeck also had owned Xcel Sports Training Inc.
Phase 1 plans of Xcel had called for an approximately 50,000-square-foot building with indoor batting cages for baseball and softball, golf cages, a virtual golf simulator, two full-sized basketball courts meeting high school regulations, a 24/7 fitness center and a 220-yard running track with a poured-rubber surface. Inside the track was to be an Astroturf field that could be used for football, soccer and baseball.
Phase 2 was to add another eight indoor basketball courts, four indoor tennis courts and four racquetball courts. The fitness center and locker rooms also would have been extended, as well as an area designated as a kitchen and concession stand.