JOHNSTOWN — Promoters for two sporting events were so worried about losing profits at the Cambria County War Memorial Arena that they brought in their own ticket collectors for two nights, a step that eventually sparked a state police probe.

A first glimpse into that investigation – which subsequently was turned over to federal authorities – emerged last week when Cambria County prosecutors allowed the court-ordered seal to lapse on search warrants.

The warrants authorized the police to seize records in June 2009 at the War Memorial and from the home of the then-General Manager James Vautar.

The allegations were lodged by promoters for the Fists of Thunder II boxing and the Iron Will Fighting championship mixed martial arts fight, both held in May 2009.

Vautar has never been charged with theft of money from the War Memorial. But in July he pleaded guilty to five felony income tax-evasion charges.

Vautar, 55, of East Taylor Township, will be sentenced Oct. 28.

Seized evidence

It was disclosed at the plea hearing that investigators had found more than $500,000 in cash deposits in Vautar’s personal bank accounts over five years.

Among the items seized at Vautar’s house were six checkbooks on accounts at three banks, $17,660 in cash in assorted bills, and various other financial records, according to a police inventory.

Assistant U.S. Attorney Stephanie Haines has declined to comment about the source of that money until after the sentencing.

But Heath Long, Cambria’s first assistant district attorney, has revealed that Cambria will be receiving approximately $183,000 and the promoters, $17,000, apparently from the money seized in the probe.

Long said that the money is for “any money lost during the operation of the War Memorial through Mr. Vautar’s action or inactions.”

Trooper Mark Galli said in a probable cause affidavit that Vautar – who was only told of the private ticket-collectors on the days of the events – “was visibly upset and didn’t want this to occur.”

In the ensuing probe, the police discovered that two sets of tickets were ordered by the War Memorial from a ticket company in Houston for each event.

For the Andres Taylor boxing night, each set consisted of 3,000 tickets. They were for ringside, reserved and general admission. But the second set of tickets showed prices $2 more then the first.

“The Cambria County War Memorial staff had a second set of tickets printed unknown by the promoter and sold them to patrons for a profit,” the trooper alleged.

In addition, Galli said, “Without a specified seat in general admission, Cambria County War Memorial could sell extra tickets without the promoter’s knowledge and conceal the money from the promotor and/or the Cambria County War Memorial.”

The Taylor staff, who monitored the ticket collections, alleged that War Memorial ticket-takers “were stacking ticket stubs and placing them into their pockets instead of the bag at the gate,” according to the affidavit.

The Taylor workers were placing numbered wristbands on the people entering the arena. They issued 164 more wristbands for general admission than the number of ticket stubs counted, it was alleged.

Darcy and David Regala, who were among the promoters for the Iron Will fight, told police that they set up a ticket collection because they had heard from other promoters that the War Memorial was suspected of “skimming from the promotors,” the trooper said.

The  Regalas employed a system that included locked ticket boxes. It is alleged that the promoters believe there was a shortage of $9,289 in what they – along with Josh Breto, another promoter of the event – were paid versus what they were owed.

For the Iron Will event, the police found that one set of 4,000 tickets originally was ordered with 1,800 for general admission at $30 a person; 1,696 for reserved for $45 each; and 504 for VIP for $75 each, the trooper said.

The second set of tickets for the Iron Will event was for general admissions only, and 2,000, or 200 more than the original set – were ordered at the $30-a-ticket price, the police said.

A review of the sequentially numbered tickets revealed that “someone” sold an extra 99 tickets “without the promoter’s knowledge and concealed the money from the promoter and the War Memorial Authority,” Galli said.

Federal case closed

County prosecutors have said that the federal prosecution closed the case.

“The financial case with reams and years of information can be difficult to prosecute and prove,” Long said.

“This was a joint effort by state and federal authorities. Based on the information we uncovered, all the prosecutors felt the best way to bring justice to the case in the form of restitution and punishment would be to press charges through the federal system.”

Vautar’s attorney, Art McQuillan, said he has not yet seen the unsealed records, and, “I would not comment given the status of the federal prosecution because it would be inappropriate to do so at this time.”