James Clark, former owner of KC Knights pleads guilty to tax evasion

The former owner of the Kansas City Knights professional basketball team pleaded guilty Wednesday in Kansas to tax evasion and bank fraud.
The U.S. Attorney's office says 52-year-old James Clark, of Overland Park, entered the pleas Wednesday in federal court in Kansas City, Kan.
Clark admitted withholding more than $500,000 in payroll taxes from employees of his company, SWISH Holding Corp., but failing to pay the money to the Internal Revenue Service. He used the money for other purposes, including operation of the basketball team.
Clark also admitted submitting false information to a bank in May 2004 while trying to obtain a line of credit from UMB Bank worth more than $1 million. Personally guaranteeing the loan, he provided documents overstating the value of the basketball franchise and misrepresenting that he held an ownership interest in the American Basketball Association, prosecutors said.
The bank issued nearly $1.4 million on that line of credit, but Clark made only one payment of $6,368.43.
A judge set sentencing for July 16.
The Knights were active in Kansas City in the first half of the last decade at Kemper Arena. The team won the American Basketball Association championship in 2002, finishing the season by winning 24 games in a row.