Court rules in favor of Fedorov, others in embezzlement case

Sergei Fedorov can breathe a sign of relief.

On Thursday, the U.S. Sixth Circuit Court of Appeals ruled in favor of Fedorov and other victims in an embezzlement scheme that cost the former NHLer $43 million.

The proprietor of the illegal action, Joseph Zada, was ordered to pay $112 million for selling fake investments in Saudi Arabian oil.

"Zada presented himself to friends and acquaintances as an extremely wealthy man. He owned mansions in Michigan and Florida, hosted extravagant parties and traveled with bodyguards," said the Sixth Circuit. "Zada offered potential investors an opportunity to share in his apparent wealth: through his connections with royalty in Saudi Arabia, he would combine their money with his to make large purchases of oil that would be stored on offshore tankers."

Fedorov sued Zada in 2009 after making a claim that he was owed $60 million. He won the judgment, but never saw a dime.

"Little of what Zada told the investors was true," explained the Sixth Circuit. "Zada's connections with Saudi royalty existed only in his imagination. On one occasion, Zada invited investors to a party, where he paid actors to pose as a Saudi prince and princess. And Zada never bought any oil; instead, he used the investors' money to pay his personal expenses, which were substantial."

Zada is still set to face other criminal charges in Florida for a different Ponzi scheme he operated.