A Pennsylvania lawsuit charges that the chairman of United States Cycling Federation Trustees improperly paid himself over $370,000 in Tour de ’Toona funds between 1990 and 2002 while he was president of the Altoona Bicycle Club.

The suit, which the club filed this week in Blair County, Pennsylvania, alleges that Kirk V. Leidy – elected to both the USAC board of directors and the U.S. Cycling Federation’s board of trustees, and appointed chairman of USAC’s ethics committee – wrote 120 checks totaling $370,852 to himself between August 1990 and February 2002.

Thesuit alleges that Leidy “improperly authorized” those payments to himself, and accuses the Altoona resident of “misappropriating funds, failing to notify the club of disbursements he made to himself or his businesses, failing to provide documentation for expenses he claims to have incurred on behalf of the club, failing to charge fair and reasonable prices for the work performed, failing to obtain approval for the services he rendered and the prices he charged, failing to provide documentation to support the hours he alleges to have worked on Altoona Bike Club matters, and falsifying or directing the falsification of invoices to improperly obtain the funds of plaintiff.”

Thesuit also alleges Leidy put club equipment to personal use, including a trailer that he bought in March 1999. Intended for club use, the trailer was put in Leidy’s name, and he “has failed and refused to title trailer in the name of plaintiff as the rightful owner,” the suit contends.

Stephen D. Wicks, attorney for the Altoona Bicycle Club, could not be reached for comment. Meanwhile, USA Cycling CEO Gerard Bisceglia, said he had not seen the lawsuit and would not comment on it.

“We will not take any action until it’s resolved,” Bisceglia said. “However I’m going to talk to Kirk about his status on different committees to see if we might want to make some decision to maintain the integrity of the process.”

Bookkeeper raises questions
In March 2002, Susan Abbott, who was both the bike club’s finance director and the bookkeeper at Leidy’s video and photography business, Photo Specialists, noticed that Leidy had invoiced the Tour de ’Toona for $3700 in services that she claims were never performed. According to a search warrant affidavit for probable cause filed in Blair County Court of Common Pleas, Abbott stated Leidy told her that he “deserved” that money for all the work he did for the race, and created a “fictitious invoice” for a minor edit to a promotional video for the race.

Abbott took this and other allegations of financial irregularities to race promoter Rick Geist, who ordered an audit of the Tour de ’Toona’s books. The next month, the suit alleges, Leidy’s wife, Shawn, conspired with her husband to destroy financial records. Meanwhile, Leidy fired Abbott.

Geist said Leidy lived high.

“He had all the toys – BMW motorcycles, cars, video equipment.” Geist said, adding that he simply assumed the photo business was the source of Leidy's income.

In March 2002, Pennsylvania state police served a search warrant on Leidy’s photography business, seizing computers, videos, discs, photos and financial records. A year later the Pennsylvania Attorney General’s office ended its investigation, concluding there was insufficient evidence to warrant the filing of criminal charges.

Blair County District Attorney Dave Gorman had recused his office from investigating the case because one of his assistant district attorneys, Jackie Barnard, also served on the race steering committee and performed legal work for the Altoona Bicycle Club in private practice.

Not guilty, or not prosecutable?
In the past, Leidy has denied any wrongdoing while pointing to the state attorney general’s decision not to file any criminal charges against him.

But current International Tour de ’Toona race director, Larry Bilotto, said he suspects that the attorney general decided not to prosecute “because the club bylaws do not specifically prohibit the president from writing any checks, nor does it stop him based on a specific amount.”

Bilotto, a former vice president of the cycling club, said he had “no clue” that Leidy had been writing checks to himself.

“When he [Leidy] was asked point blank at a race committee meeting if anyone got paid, he said, and I quote, ‘No.’ Well, if he was approved by someone, then why was the answer no? During my couple of years as vice president, why was I not asked to sign the checks or informed of the monthly charges? These issues lead me to believe that things were not appropriate and needed to be hidden so as to keep the ability to pay himself.”

Leidy is adamant that he did nothing wrong.

"I produced the bike race,” he said. “I took it to the finance committee, they approved it, and they gave me checks. Now what's going on, is all those people are gone, and they want the money back. I was the key person, I ran all the logistics on this thing, so I got paid more than anyone else."

Leidy also notes he produced all the commercials for the Tour de ‘Toona that appeared on CBS, Fox, and PBS. "For video production we charge $150-an-hour,” says Leidy.

Leidy is being defended by attorneys hired by the bike club’s insurance company, Erie Insurance. "We had director liability, which covers errors and omissions. I just came out of a meeting with them for an hour this morning,” said Leidy when reached at his home yesterday.

Bilotto, who currently serves as president of the bike club, added that the lawsuit was not intended to be spiteful or vindictive, but rather to recover the club’s funds on behalf of its sponsors.

“It takes money to run a race, and losing funds for this reason hurts directly, let alone what impact may come from the sponsors shying away,” Bilotto said.

Since then, the race and club have instituted procedures to tighten their financial controls, Bilotto added.

“We now require two signatures; we have a race finance committee, a race budget, and now the club bylaws are being changed to limit what the president and officers can spend any time beyond what is approved in the race budget or at a club meeting,” Bilotto said.

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'Toona v. Leidy: A Timeline
Spring 1984 Kirk Leidy starts the Altoona Bicycle Club.
August 1985 Leidy becomes club president and race directorof the In-Town Criterium in downtown Altoona. 72 riders vie for a $750purse on the same course used in the final stage of the current Tour deToona stage race.
August 1988 under Leidy's leadership, the race expands to 2-day event, featuring a road race and criterium.
August 1992 Tim Peddie, a virtual unknown, wins the U.S. OlympicTrials road race held at the Penn State Altoona campus, and automaticallyqualifies for the U.S. Barcelona Olympic team.
Fall 2001 Altoona Bicycle Club Finance Director Susan R. Abbottfinds a $3,700 club check Leidy cashed, but noticed Leidy had not doneany recent work for the race, according to an affidavit for probable causelater filed in Blair County Court of Common Pleas. Abbott also serves asLeidy's bookkeeper at his photography and video business - Photo Specialists- located in Altoona. According to court papers, Leidy assures Abbott he"deserved the money."
Jan. 2002 Abbott informs promoter Rick Geist of financial discrepancies.
Feb. 2002 Geist and Abbott meet with Pennsylvania state police.
March 2002 Geist orders a 5-year fraud audit of club financesto be conducted by accounting firm Young, Oakes, Brown & Co., P.C.
March 2002 Judge Hiram Carpenter in Blair County Court of CommonPleas agrees to seal a search warrant for Leidy's business for a 60-dayperiod. According to the search warrant affidavit of probable cause filedby Blair County District Attorney Dave Gorman, Abbott stated Leidy toldher he would prepare "fictitious invoices" to cover a $10,000 charge claimedon an April 26, 2001 invoice for a minor edit of a promotional race video. According to the affidavit, Leidy told Abbott he wouldn't get his receiptsin order to justify the invoices "unless he was doing it on the steps ofthe Blair County Courthouse."
March 12, 2002 State police serve a search warrant on Leidy'sbusiness, Photo Specialists, seizing computers, photos, discs, videotapes,and documents.
April 2002 Blair County District Attorney Dave Gorman recuseshimself from the investigation and transfers the matter to Pennsylvaniastate Attorney General Mike Fisher. The investigation is assigned to DeputyAttorney General Anthony Krastek based in Pittsburgh.
Sept. 2002 Leidy elected to the Trustee Board for the EasternSection.
Nov. 2002 Accounting firm of Young, Oakes, Brown & Co. presentsthe results of their audit to the Altoona Bicycle Club board of directorsin the presence of Leidy. The board asks Abbott to audit the books goingback an additional 5 years.
Jan. 2003 Leidy resigns as both club president and race directorof the Tour de Toona.
March 2003 Pennsylvania state Attorney General's Office announcesit will not file criminal charges against Leidy.
Nov. 2003 Leidy elected First Vice Chairman of USCF Trustees
Oct. 2004 Leidy elected to a two-year term as Chairman of USCF Trustees
Oct. 2004 Leidy elected to USAC Board of Directors
Nov. 2004 Appointed Chairman of Ethics Committee USAC
Nov. 30, 2004 Altoona Bicycle Club files civil lawsuit againstLeidy in Blair County Court, claiming he embezzled over $370,000 from 1990 to 2002.
Fall 2005 Leidy up for re-election as Eastern Trustee