White Bear Lake youth hockey group sues gambling manager who quit

The White Bear Lake Area Hockey Association's Board of Directors is suing its former gambling manager, claiming she secretly sought to bring about the organization's financial demise by setting up her own company and taking clients and revenue with her.

Christine Olson is accused of breaching her fiduciary duty by attempting to woo bars and restaurants that have standing contracts with the association to conduct gambling operations, bringing their business instead to Minnesota Gambling Consultants, the company she formed last fall.

The board in a lawsuit filed Monday in Ramsey County District Court also asserts that Olson retained or destroyed property that belonged to the association, including emails, and that financial records remain unaccounted for.

"That is information that should not be missing," said Janel Dressen, an attorney representing the hockey association. "No money is missing. This is not an embezzlement case. There are red flags as to what happened."

Olson resigned March 28 after 12 years with the association. She refused to comment when reached by phone Wednesday.

According to the lawsuit:

Olson worked as a paid employee of the nonprofit hockey association and oversaw charitable gambling, including sales of pull-tabs, electronic pull-tabs, paddle tickets and raffles. The money raised helps defray costs for the association, which serves about 800 kids.

Charitable gambling accounts for a big part of the association's fundraising. A 2021 audit found gambling produced more than $31.9 million in revenue, $4.6 million in net revenue and $871,362 in profits. In 2022, under Olson's management, total gambling profits dropped to $680,387, despite an increase in revenue.

Trouble began brewing in May 2022, when the board approved opening a bingo hall. Olson, who was paid a salary of $129,000 last year, said with the added responsibility she would need a raise, but none was approved at that time.

The board was unaware that Olson formed her own company in October yet continued to work for the association. Board members became suspicious in January when Olson was directed to seek bids for electrical work to be done at Jimmy's Event Center, where the bingo hall was to open. The three bids Olson received ranged from $40,000 to $50,000, but board members believed they came from friends of hers or her husband.

Board members sought out additional contractors and bids came in at $14,000 for the same work. Olson, who holds the association's only gambling license, accused the association of violating is bylaws.

"That appears to be a flash point," Dressen said.

Olson was told that her husband should not do any construction work at the bingo hall, but he did anyway.

Despite Olson's concerning behavior, the board in January approved raising her salary to $140,000, to "smooth relations with her and move past the hostile relationship that had developed," according to the lawsuit.

On the day Olson resigned, she allegedly deleted all emails she had sent or received. She also told board members that association financial documents and confidential information had been left in storage lockers, but the paperwork was not found.

Olson also allegedly told association employees in an "emergency meeting" that she had recruited four of the association's partner restaurants and bars to follow her. Before she resigned, Olson asked Bear Town Bar and Grill to stop working with the association and instead work with her.

According to the lawsuit, Olson asked the owner, "Do you want to be the only bar to stay with the WBLAHA [White Bear Lake Area Hockey Association]?"

Dressen, the association's lawyer, said the board felt it had to take legal action after discovering the gravity of the situation.

"WBLAHA has suffered and will continue to suffer substantial financial harm as a result of Olson's unlawful conduct," the lawsuit reads. "Not only will there be a substantial decrease in sales resulting from the loss of the WBLAHA partner restaurants and bars and WBLAHA employees, but WBLAHA has also suffered reputational harm because of Olson's disparaging, tortious and unlawful conduct."

The association's partnerships with Doc's Sports Bar, Bear Town Bar and Grill, White Bear Bar and Jimmy's have been restored, the board said in a Facebook posting Tuesday.

Dressen said the board hopes to settle quickly and protect the association for the youth that play in it.

Olson has 21 days to respond to the complaint.