Penguins co-founder charged with hiding assets to avoid paying $800,000 judgment

WILLIAMSPORT-A Pittsburgh Penguins co-founder has been charged in a civil lawsuit with concealing assets to avoid paying a judgment of more than $800,000.

DR Bank, headquartered in Darien, Conn., alleges in a lawsuit filed Thursday in U.S. Intermediate District Court that Jack E. McGregor violated Pennsylvania’s voidable transactions law by fraudulently transferring various assets.

McGregor’s wife, Joannah, and son from a previous marriage, Douglas H. McGregor of McLean, Va., are also charged.

They are accused of knowing or should have known that they were participating in a fraudulent scheme.

According to the complaint, McGregor and his then-wife, Mary-Jane Foster, obtained an $800,000 home equity line of credit in 2007.

The payments were timely until they stopped in December 2016 as they finalized their divorce.

On December 18, 2017, the Connecticut Superior Court entered judgment in favor of the bank and against McGregor for $826,571 plus attorney’s fees and annual interest.

Foster eventually agreed to a payment plan, but the bank says McGregor refused to accept responsibility from her.

McGregor moved to Mifflinburg and to a house owned by his current wife sometime after the judgment was delivered, the complaint states.

After learning where McGregor lived, the bank in 2020 filed a lawsuit against him in Union County Court. McGregor sought to reopen the judgment but it was refused.

He argued that he had received a debt cancellation notice from a third party, that the mortgage was based on an inflated appraisal and that the amount owed should be reduced by the amount paid by his ex-wife.

Retired Union County Judge Michael T. Hudock wrote that he gleaned from the case that McGregor had obtained a second mortgage, the creditor had been seized, and a judgment had been entered.

The bank disputes McGregor’s depiction that there are almost no assets, including bonds, stocks, real estate or valuable personal property, except for a few personal artifacts.

Tax returns reflect capital expenditures related to certain rental properties, he says.

In its lawsuit, the bank points out that McGregor, 87, had a successful career in business that included being on the hockey team, being the founder of a minor league baseball team in Connecticut and president and CEO of Aquarion Water Co., which serves several New England states.

He was a state senator from Allegheny County and sought the Republican nomination for governor of Pennsylvania in 1970.

The bank maintains that McGregor has a monthly income of at least $10,000 from various pension and retirement plans.

She accuses him of disposing of his estate by transferring it to his wife and son, placing it in accounts held in trust for their benefit and assuming their debts and obligations.

He notes that he pays his wife $2,500 monthly as rent, and that over the past two years he has spent over $60,000 improving his home.

McGregor made transfers to his son, including two payments of $7,000 in 2020 to his son that were designated as gifts, according to the bank.

The court document also cites McGregor’s 2016 tax returns which show a transaction involving more than $1.3 million in fixed assets.

The bank asks the court:

  • Cancel the money transfer to the extent necessary to satisfy the judgment.
  • Seize the assets that have been transferred and appoint a receiver to take care of them.
  • Enter judgment against McGregor, his wife and son sufficient to satisfy his obligations to DR Bank.
  • Prohibit McGregor from transferring money from his personal bank accounts to those of his wife and son.
  • Award punitive damages.