Bloomberg News

Encap Golf Holdings Former President Charged With Extortion

July 29, 2011

(Updates with charges in second paragraph.)

July 29 (Bloomberg) -- Former Encap Golf Holdings LLC President William Gauger and his brother-in-law were charged with extortion in a criminal complaint filed today by Preet Bharara, the U.S. attorney in Manhattan.

Gauger extorted $100,000 from a financial consultant, according to a complaint filed in federal court in Newark, New Jersey. Gauger hired the consultant and Craig Groce, his brother-in-law, to provide services on redevelopment projects in the state, Bharara said in an e-mailed statement. Bharara handled the case because of conflicts of interest in the New Jersey prosecutor’s office.

Gauger and Groce are scheduled to appear Aug. 3 before U.S. Magistrate Judge Joseph A. Dickson, according to the statement.

Eric Tunis, a lawyer representing Groce, didn’t immediately return a call seeking comment. Laurence Shtasel, who represents Gauger, didn’t immediately return a call seeking comment.

The case is U.S. v. William H. Gauger III and Craig Groce, No. 11-6638, U.S. District Court of New Jersey (Newark).

--Editors: Fred Strasser, Michael Hytha

To contact the reporters on this story: Joel Rosenblatt in San Francisco at jrosenblatt@bloomberg.net Patricia Hurtado in New York at pathurtado@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


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