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Wednesday, September 15, 2004

Hildebrant partners 'shocked' at questions



By Cliff Peale, Jennifer Edwards and Brenna R. Kelly
Enquirer staff writers

The partners of Chuck Hildebrant, the Morrow man at the center of the Florence Freedom's financial woes, were "totally shocked" earlier this year to hear questions about Hildebrant's financial past, one said Tuesday.

This week, more questions have been raised about Hildebrant's background before he became part owner of the minor league baseball team. Federal court records obtained Tuesday show Hildebrant was convicted of embezzlement for a crime he committed as a bank teller in Lebanon in 1978.

Hildebrant, 45, also the financier of Freedom's uncompleted ballpark, admitted to stealing $3,000 and altering bank records while working at the former First National Bank of Warren County, an FBI agent wrote in federal court records.

His partner, Tom Niehaus, appeared at a bankruptcy court hearing Tuesday representing Northern Kentucky Professional Baseball LLC, the Freedom's owner. Niehaus said the partners didn't know that Hildebrant was being investigated for improprieties in obtaining mortgages to build the stadium, or that he had a 1991 forgery conviction.

It was unclear Tuesday why federal court officials lifted the probation on the embezzlement conviction. In 1991, Hildebrant was convicted of forgery in Warren County for altering county records to buy a car while he worked for the county, court records show.

"We had no idea," said Niehaus.

When Hildebrant came to the other Freedom partners and said he could obtain a loan to finance the stadium, he acquired a 20 percent interest in the team, Niehaus said.

"His whole involvement was based on his ability to finance the stadium," Niehaus said. "We had every reason to believe that Chuck was legitimate."

In a hearing following the baseball club's bankruptcy filing Sept. 3, club attorney John Schuh said he hoped to find a buyer for the team quickly. That could mean a court-supervised auction for the club completed by Nov. 1, Schuh said, allowing the team to play a Frontier League schedule again next year.

Hildebrant was 19 years old when he was sentenced to three years' probation for stealing money from the Lebanon bank, which is now called First National Bank, and altering bank records in an effort to hide the theft.

The court lifted Hildebrant's probation the next year.

He has not commented on the investigation or the series of lawsuits filed against him in recent weeks alleging he owes more than $4.5 million in unpaid loans.

Hildebrant has been sued by two area banks, and judges have ordered that he immediately repay those loans - some of which he told banks were going to be used to help finance the $7-million-to-$8-million ballpark.

On Monday, some of Hildebrant's relatives sued him and others, alleging he mortgaged 204 acres of Warren County land he doesn't own and used faked documents to do so.

Federal authorities also have said that Hildebrant is under a federal white-collar crime investigation into the way he financed construction of the team's stadium.

Hildebrant's attorney, Jack Rubenstein, declined comment Tuesday on the lawsuits against Hildebrant and/or companies he is associated with.

---

E-mail cpeale@enquirer.com, jedwards@enquirer.com or bkelly@enquirer.com




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