Should Chris and Rhea Reaves Face Criminal Charges? Was it all really a big scheme to defraud hockey families?

For hundreds of aspiring hockey players and their families, the last 120 days have brought a painful and costly lesson in misplaced trust. What began as a season full of promise, with investments made in developing a child's passion and future, has allegedly unraveled into a wake of lost dreams and significant financial hardship. Reports suggest that a junior hockey enterprise, Blade Edge Ventures, was responsible for the collapse of numerous teams within the United States Premier Hockey League (USPHL). This was all overseen by principals Chris and Rhea Reaves. It appears the entire operation was formed to generate maximum revenue with zero intention of delivering on the promises of a complete hockey season. This devastating sequence of events has left families scrambling, with many left without refunds, answers, or a team to play for.

The alleged scheme rapidly acquired existing teams and announced new ones within the USPHL in a period of just a few months, collecting thousands of dollars in deposits from unsuspecting parents. According to reports, eleven teams across multiple divisions were impacted, causing significant disruption to players' development and aspirations. Former owners of acquired teams have also voiced frustration, alleging that sale agreements were never finalized, only adding to the confusion and financial disarray.

While many disputes involving broken promises are civil matters, the collapse of this junior hockey organization could escalate to a criminal case if prosecutors uncover evidence of fraudulent intent, a higher legal burden than simple breach of contract. The key lies in proving that Chris and Rhea Reaves acted with a knowing and willful intent to deceive from the outset, a much higher legal burden than simple breach of contract. A pattern of misrepresentation, evidenced by the rapid rise and fall of multiple teams, could suggest a pre-meditated scheme rather than simple mismanagement. Evidence that officials within the organization knew they could not fulfill their promises, yet continued to collect fees, would be critical.

For example, if the scheme is viewed as a "bait and switch" operation, it could be considered a form of wire or mail fraud if interstate commerce was involved. The numerous, consistent stories from affected parents could serve as evidence of a coordinated effort rather than isolated incidents. Furthermore, any lack of corporate formalities, such as commingling player fees with operational funds for personal use, could suggest criminal intent. To move toward criminal prosecution, law enforcement will require substantial evidence. This could include direct proof of intent, such as emails or texts where the deceptive plan is discussed. Circumstantial evidence, such as any sudden unexplained increase in personal wealth around the time the organizations collapsed, would also be relevant. A large number of consistent victim testimonies can be crucial in persuading a prosecutor to pursue a criminal case. Federal law enforcement, like the FBI, may become involved if the alleged fraud crosses state lines or involves large sums of money, fitting the criteria for wire fraud. A financial fraud investigator at the FBI can be reached at 202-324-3000.

For the families and entities impacted, pursuing justice requires a concerted, multi-pronged approach. First, families who paid by credit card should immediately initiate a chargeback with their credit card company. This is often the most direct route for recovering funds. Beyond that, official reports are critical. Victims can file a report of fraud with the Federal Trade Commission, which helps track and investigate patterns of scams. Reporting to the Internet Crime Complaint Center, a division of the FBI, is also vital, as the alleged fraud occurred across multiple states. Contacting state attorneys general in the states where teams operated could also prompt an investigation into the company's business practices. Lastly, affected families may consider joining a civil lawsuit. While costly and time-consuming, a class-action suit or individual civil claims could serve as another mechanism for recouping financial losses.

In the end, what separates a civil dispute from criminal charges and potential jail time for Chris and Rhea Reaves is the calculated use of multiple LLCs as a shield. While forming separate LLCs to limit liability is standard business practice, it becomes a criminal act when a prosecutor can prove the Reaves' created these entities with the deliberate intent to defraud customers and evade responsibility. By proving that the couple treated these LLCs as one personal piggy bank, intentionally undercapitalized them to fail, or used them to hide assets, a court can "pierce the corporate veil." This action removes the limited liability protections, exposing Chris and Rhea Reaves personally to financial judgment and, crucially, forming the basis for criminal fraud charges. In this scenario, the multiple business entities are not just a legal shield, but evidence of a pattern of deception designed to maximize illicit gain while ensuring victims are left with nothing.

Evidence of undercapitalization is a strong indicator of fraudulent intent. If investigators find that the Reaves' intentionally created the various LLCs with insufficient operating capital to run even a single hockey season, it would support the claim that they never intended for the teams to succeed. The sheer number of team failures and the rapid timeline suggest a pattern of creating shell entities, collecting fees, and then letting the organizations wither rather than making them viable.

 A forensic accounting analysis could uncover the commingling of funds, where business and personal finances were mixed across different LLCs. If player tuition money, meant for specific team operations, was used for personal expenses or moved between the different business entities, it would show a blatant disregard for corporate separateness and a deliberate intent to misuse funds. This practice helps prove that the Reaves' treated the various business entities not as separate legal operations, but as personal bank accounts to maximize their own gain.

Fraudulent intent is shown if a representation is made with reckless indifference to its truth or falsity. Prosecutors would look for evidence that the Reaves' made material misrepresentations to families regarding the teams' stability, resources, and future. For instance, promises of a "complete hockey season" or assurances about the USPHL affiliation made with the knowledge that the teams were on shaky financial ground would be evidence of intentional deception. Emails, text messages, or other communications where the couple is aware of the instability but continues to promote the ventures misleadingly could serve as direct proof of this intent.

As mentioned, the creation of multiple LLCs can be seen as an act of concealment. However, further evidence of concealment could involve moving assets out of the failing entities as they neared collapse. If investigators find evidence of suspicious transactions, large cash withdrawals, or assets transferred into different names as the teams began to fold, it would suggest a deliberate effort to shield resources from creditors and victims. These "badges of fraud" are often considered in criminal fraud cases to determine if there was an intent to evade obligations.

Prosecutors will also analyze the Reaves' financial records for any evidence of a "sudden and unexplained increase in personal wealth" during the period of the alleged scheme. Discrepancies between their legitimate income and lifestyle could strongly suggest that they were siphoning money from the hockey operations for personal enrichment, providing a clear motive for the alleged fraud. This circumstantial evidence can paint a compelling picture for a jury, showing that their actions benefited them personally at the expense of the victims.

In the end, it is my opinion that this organization was little more than a web of deception designed to extract the maximum amount of player fees while paying the least amount of money out to vendors, arenas, and facilities.  It is my hope that the couple spend a few years in federal prison as a result.