Bank accusing Kane of fraud
San Jose Sharks forward Evander Kane continues to find himself in financial trouble, this time as the target of a $15m lawsuit by Professional Bank. The bank filed the lawsuit in the Northern District of California’s federal bankruptcy court, seeking ten times the $1.5m it loaned him in March 2019, plus “punitive and exemplary damages.” Kane’s financial problems allegedly stem partially from excessive gambling.
Professional Bank is accusing Kane of fraud when applying for the loan, saying he inflated his assets and underrepresented his liabilities. Most damningly, the lawsuit alleges that Kane’s plan was to declare bankruptcy after securing the loan and then not pay it back.
Kane intended to declare bankruptcy and intended to take the position that he was not going to pay”
“It appears likely from conduct and circumstances since March of 2019 that Kane intended to declare bankruptcy and intended to take the position that he was not going to pay Professional Bank and Kane’s other creditors,” the lawsuit reads.
The bank also notes that Kane borrowed “enormous amounts of money” from multiple banks, including Centennial Bank, South River Capital, and Zions Bancorporation.
Gambling losses piling up
Kane filed for Chapter 7 bankruptcy in January, which protects the individual from creditors. Chapter 7 places a temporary stay debts, prevents home foreclosures, stops wage garnishment, and more. In exchange, the court takes legal possession of one’s property and can sell whatever is considered non-exempt. It is a last resort for someone over their head in debt.
Zions Bancorporation said that he has a “serious gambling problem.”
In his bankruptcy filing, Kane said that he had liabilities of $26.8m and assets of $10.2m. He has made over $55m in his NHL career and is currently finishing up the third year of a seven-year, $49m contract. Kane listed $1.5m in gambling losses in his filing; in a February motion in bankruptcy court, Zions Bancorporation said that he has a “serious gambling problem.”
There have been rumors that Kane would go so far as to void the rest of his Sharks contract so that creditors can’t go after his future earnings. For his part, Sharks coach Bob Boughner said that any issues Kane has had off the ice have not affected him when it comes time to lace up his skates.
“I haven’t had one issue off the ice with Evander,” Boughner said. “We know that he’s going through stuff in his personal life, but his ability to come here and focus and get the job done and be one of our best players every night is pretty remarkable.”
The Cosmopolitan sued Kane in 2019
This is not the first financial lawsuit Kane has faced, nor the only one with gambling ties. In November 2019, The Cosmopolitan of Las Vegas sued Kane for alleged non-payment of $500,000 in casino markers. The casino said it extended Kane eight markers ranging from $20,000 to $100,000 during an April 2019 visit.
Neither the casino nor Kane’s representatives gave much in the way of details about the resolution of the lawsuit or why The Cosmopolitan dropped it. We do not know if Kane paid back the markers or if there was just some misunderstanding.