Arena defendant pleads guilty, agrees to aid prosecutors

Posted on August 2, 2019

*Paul Grazar seen here during an earlier court hearing. (pool photo)*

By Howard Packowitz

BLOOMINGTON – A second person has pleaded guilty and sentenced to probation in a scheme to defraud Bloomington’s city government of revenue generated from the city-owned indoor sports arena.

Paul Grazar, 52, pleaded guilty Thursday to a felony charge of conspiracy to commit tax evasion for under-reporting to the state food and beverage sales at the arena between 2013 and 2016.

Grazar agreed to testify against the remaining defendants, including John Butler, 59, President of Central Illinois Arena Management. CIAM used to run the venue, now called Grossinger Motors Arena.

A grand jury indicted Butler two years ago for allegedly orchestrating the plot to steal about $1.1 million.

Grazar might also testify against another top CIAM executive, Bart Rogers, 49.

Co-defendant Jay Laesch, 39, pleaded guilty last November, and like Grazar was sentenced to 30-months probation.

Grazar and Laesch won’t pay restitution because prosecutors say the pair didn’t benefit financially from their crimes.

It’s not clear whether the state will re-file charges against a fifth defendant, Kelly Klein, 58. A judge dismissed charges against her in May.

Butler is scheduled to appear for a two-day hearing on motions to suppress evidence August 27 and 28. A pre-trial hearing for Rogers is set for October 2.

Howard Packowitz can be reached at [email protected]

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