CHICAGO — The former owner of the Chicago Rush football franchise, DAVID STARAL, was sentenced today to more than three years in federal prison for concealing debts and overstating his net worth during his bankruptcy case. Staral, 38, failed to disclose his probation for theft and a $250,000 restitution order in his 2013 bankruptcy filing. He also did not reveal several bank accounts and falsely represented his net worth as over $5 million when purchasing the Chicago Rush in February 2013, despite having a negative net worth.
Based on this false representation, Staral defrauded the Arena Football League into selling the team to him. However, the league took over the team a few months later, and it disbanded after the 2013 season. Staral pleaded guilty last year to one count of bankruptcy fraud and one count of wire fraud, receiving a 41-month sentence from U.S. District Judge Ronald A. Guzman.
Assistant U.S. Attorney Matthew F. Madden argued that Staral’s ownership was brief but disastrous, causing significant harm to the team’s and league’s brand. In addition to the bankruptcy fraud charges, Staral admitted in his plea agreement to swindling two individuals out of a combined $89,000. He promised investments that he never intended to honor.
The sentence was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois, and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Chicago office of the U.S. Trustee Program provided valuable assistance.
“Given the defendant’s total lack of financial ability to operate the Rush, his ownership was predictably brief and disastrous,” Madden said in the government’s sentencing memorandum. “The defendant caused significant harm to the team’s and league’s brand and reputation.”
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Key Facts
- State: Illinois
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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