Ex-USOC exec, wife accused of kickback

0 Comments | Gazette, The (Colorado Springs), Jun 29, 2001 | by Meri-Jo Borzilleri

As the Salt Lake bid scandal trial looms, a former U.S. Olympic Committee official and his wife stand accused of a "kickback scheme" involving a 2002 Winter Olympics sponsor.

Former USOC marketing chief John Krimsky and his wife, Susan, have been named in court documents filed by defense attorneys for former bid leaders Tom Welch and Dave Johnson, whose trial is slated to start July 30, say newspapers in Salt Lake City.

The lawyers say Susan Krimsky, after a four-year business relationship with Sead Dizdarevic, was paid $225,000 by Dizdarevic when he bought her company in 1995. The company, attorneys contend, was "of little worth."

The business dealings and purchase occurred at a time when John Krimsky was making decisions about contracts between the USOC and several Dizdarevic companies.

Dizdarevic is owner of Jet Set Sports, a $20 million hospitality sponsor of the 2002 Games. Jet Set sells Olympic trip packages that include tickets, credentials, transportation and hotel accomodations.

Dizdarevic has been granted immunity by the Justice Department. He is expected to testify at the trial, which has been moved from its July 16 start to July 30.

Welch and Johnson will stand trial on charges of conspiracy, fraud and racketeering in connection with more than $1 million in bribes to International Olympic Committee members voting on Salt Lake's Olympic bid.

Former Colorado Springs resident Krimsky, who resigned from the USOC in April 1999 and now works for YankeeNets Properties, owner of the New York Yankees, New Jersey Nets and New Jersey Devils, did not return a call seeking comment. Neither did the Krimskys' New York- based attorney, Bill Schreiber, or Jet Set attorney Catherine Brabson in Salt Lake City.

Defense attorneys filed the court documents to imply Dizdarevic's actions show a history of currency violations that should be taken into account when the trial begins.

The USOC conducted two internal investigations in the wake of the bid scandal, which broke in January 1999. Neither investigation turned up any relationship between Susan Krimsky and Dizdarevic.

"I'm not sure there is such a relationship," said Scott Blackmun, USOC interim CEO and former general counsel. "We haven't seen anything to confirm there is.

"The Salt Lake City investigations were focused on bid misconduct. My understanding of the allegations is that this doesn't have anything to do with the bid process."

USOC spokesman Mike Moran dismissed the allegations as "pretrial missiles being fired by attorneys."

"We have no knowledge of these allegations by Welch's attorney and frankly, I agree with John's lawyers to not dignify this with a response," Moran said.

- Meri-Jo Borzilleri may be reached at 636-0259 or merijo@gazette.com