2003 Worrell 1000 - an ugly subject revisited...

To bring up a very unpleasant topic with many very good people, I write to explain that the 2003 Worrell 1000 victims represented by my law firm have entered judgment against Michael Worrell, both individually and in his capacity as CEO/President/Indian Chief of Worrell 1000, Inc. and Coastal Races, Inc. The judgment for eleven separate plaintiff teams total $65,076.00 or $5,916.00 per team.

I represented the following sailing teams/sailors:

1) Frank Moore and JD Solomon, Team Windy Hill (NC & PA);
2) Doug Kirby, Team Howard’s Pub (NC);
3) Carl Tessiey, Team San Diego (CA);
4) Charles Thuman, Team Outer Banks (NC);
5) Chris Lefferdink & David Cunningham, Team Moxie Racing (IL);
6) Tiffany Beckwith & John Tomko, Team San Antonio(GA & NC);
7) David Lennard & Michael Krantz, Team Lamarck (NC & GA);
8) William Sunnucks, Team Sunnucks (GBR);
9) Iam Sammis & Stuart Bernd, Team Oklahoma Kansas (KS);
10) Hugh Piggin & Warwick Kerr (NZL);
11) J.R. Fowler & Amanda Comunale (OH).

I will finalize the paperwork and get certified judgments in the next couple of weeks. If anyone sees the elusive Mikey, tell him to give me a call. In my fourteen years as a trial attorney, I have never had more difficulty tracking a man down. At one point I thought he might be dead or even worse, opening a new bank account in Bermuda with a $180,000 initial deposit.

I wish all a safe and healthy holiday season and I hope to see everyone at the Steeplechase. JD and I are making our inaugural run around the Island.

Thanks,

Frank M. Moore – Team Windy Hill – USA 271
Frank@mansmann-moore.com
Mansmann & Moore
220 Grant Street
Pittsburgh, PA 15219
800-727-4878

Frank

I hope the lawsuit works out and people get there money back. Thanks for working on this. Looking forward to seeing you guys in FL for the Steeplechase. I think you guys will have a good time it is such a fun race.

Frank,

Thanks for staying on this and trying to help us out. It is really a shame that so few people realize the crime he committed against the sailing community in 2003. See you at Steeplechase and give me a call or e-mail since I may be able to help you find him.

Jon Britt
OBXCC

There is no question that MW screwed up royally. Considering the aggressive direction he was taking with the race, he should have had a plan B, or at least made something up when it was clear that the race would not happen in the form he had advertised. Though the race bore his name, it belonged equally to the sailing community. Just throwing in the towel was stupid and cheated us all out of a great legacy. But was it a premeditated fraud? No.

The W1000 was the premier catamaran race in the world, rivaling the Round' Texal in prestige. It was his name and it was his life and both of those things are gone. Any credibility he had in the sailing community is lost forever and his chances at some other business career are greatly in jeopardy. It's a very long way to fall. Would anyone do that to themselves for a lousy $180,000? To call him a criminal is unjust. Was he a bad businessman? Did he have incredibly poor judgement? Absolutely, and he is suffering the consequences. But to accuse him of a premeditated criminal act and hurl cruel accusations at him is unfair. MW will suffer the consequences of his poor judgement for the rest of his life. He's lost his livelihood and his entire family is dealing with the loss of their good name. The sailors in the race lost $5,000. Get on with the lawsuit and collect what you can, but stop the public stoning.

Steve, The teams that were registered for the 2003 Worrell 1000 lost alot more than $5000 each. Most teams I know had $20,000 invested per team. 1) many of the teams purchased a boat that we would not have purchased otherwise. After the Worrell failure teams tried to sell the boats but the market was watered down since so many of us had our boats up for sale...2) Lots of the teams flew into Virginia beach for a weekend seminar..My team flew in 3 people. Thats hotel rooms, airfare, food, etc. 3)Most teams had already purchased shirts with a huge worrell 1000 logo and sponsors, etc on them. My team has 120 of these shirts still in boxes. 4)stickers, Vinyl logos, etc for sail. 5)an unbeleivable amount of time..Listen I could go on all day long here...Do you actually believe all we lost was $5000?


Ian Sammis
TKOracing.com

how much are the shirts? serious here, I love sailing shirts

I find it very difficult to feel sorry MW in ANY way. To say he wounldn't toss it all away for 180K is a stretch. A LOT of people would do a lot worse for a fraction of 180K! In my world 180K is a crap load of money!!!

Asking us to feel sorry for MW is like asking the employees of Enron to feel sorry for the scum bags that stole their retirement!!!!

Incompetence is NOT a valid excuse!!!

I think the group that is suing Michael Worrell should advertise that they are putting on a Worrell 1000 in 2005. If Michael doesn't like it, what can he do but sue you? And if he sues you, then you will have re-established contact with him and can serve your judgments on him. Right? And if he does not sue you, you can go ahead and put on the Worrell 1000. Right?

sure I'll take a few myself. Do you want to part with any? How much?

>To call him a criminal is unjust. Was he a bad businessman? Did he have incredibly poor judgement? Absolutely, and he is suffering the consequences. But to accuse him of a premeditated criminal act and hurl cruel accusations at him is unfair. MW will suffer the consequences of his poor judgement for the rest of his life. He's lost his livelihood and his entire family is dealing with the loss of their good name. The sailors in the race lost $5,000. Get on with the lawsuit and collect what you can, but stop the public stoning. >


Interesting, so why didn't MW try to settle out of Court? , or Abitration?

In the 'Judgement' who were the legal fees awarded to?

.

To SteveT....Any chance of you moving to Western Pennsylvania and becoming a professional juror for all of my criminal cases...It only takes one brilliant guy like you to hang up a jury and walk a criminal back onto the street.

Let's pretend I defend the alleged criminal, Worrell. I will make the following closing argument in my defense of Michael Worrell for Felony Theft by Deception, Wire Fraud and Bank Fraud...

MEMBERS OF JURY, LISTEN CLOSELY...A SAILOR FROM COLORADO TOLD ME WHY MY CLIENT IS INNOCENT. I WILL QUOTE HIM DIRECTLY AND YOU MUST ACQUIT MY CLIENT AFTER YOU HEAR HIS LOGICAL ARGUMENT: "...To call him a criminal is unjust. Was he a bad businessman? Did he have incredibly poor judgement? Absolutely, and he is suffering the consequences. But to accuse him of a premeditated criminal act and hurl cruel accusations at him is unfair. MW will suffer the consequences of his poor judgement for the rest of his life. He's lost his livelihood and his entire family is dealing with the loss of their good name. The sailors in the race lost $5,000. Get on with the lawsuit and collect what you can, but stop the public stoning..."

SteveT, 36 sailing teams lost on average $20k per team ($720K+)!!!! They would testify as to their losss. Do you think these men and women are millionaires?

Did you proof read your thoughts before posting? The jury wouldn't even get their butts into the deliberation room...they would convict Worrell in the hallway.

Seriously, I need jurors like you in Pittsburgh. Call me when you get into town.

I apologize for the satire, but I lost over $15000. I ain't no millionaire.

Frank Moore

Steve

If Mike Worrell is not a criminal why didn't he give the $5000 entrance fees back to the teams? What did he spend all that money on? The race never started, so what were his expenses: hotels - none, rental cars - none, charter boats - none.
Mike stole that money from the sailors to pay his back bills and law suits, which is illegal. Mike's luck just ran out when he had spent all the money for the 2003 event and could not find someone to fund it. Steve, since it does not bother you, you can send me $20,000 and then we will see if you change your mind.

Prisons all over the world are filled with people who used "bad judjement" in their decisions. It appears that bad judgement in this Worrell fellow is a chronic state since he doesn't own up to it. I'd say that makes him a criminal. Or a nut.

Ding Ding Ding - we have a winner..

Tracie

Has anyone filed a criminal complaint against Mike Worrell? Has there been any criminal investigation or indictment?

I am very curious about the story; thanks for letting this community know about your class action suit.

GARY

Who wants to take bets that he'll be organizing another "race" with another cash "purse" for the "winners" with an extraordinarily high "entry fee" so he can pay off this lawsuit?

Who thinks anyone would actually sign on for that race?

Nah, it's unfortunate, but I would bet that's the last we've heard from MW. His ambition coupled with poor (criminal) decision making cost him lots and took away a lot of recognition our sport. It's a damn shame because the Worrell was really beginning to gain global recognition...but hopefully the Tybee and OBX folks can continue to build an even better replacement. International recognition of the Tybee 500 and OBX500 is gaining - I trust that we will see some solidification the whole 1000 mile combined race in the future.

Frank, JD, see you guys in the Keys in a couple of weeks! Team Seacats will have both our new F18s racing around Key Largo and we're all Steeplechase virgins! I started some planning with bluechart and wow....except for crossing a few channels, maximum depth for 100 miles is roughly 9 feet! Boards UP!

Thanks for your post and efforts to achieve justice and hopefully compensation of some type to the many good people and excellent catsailors you represent.

I also sent in a partial entry fee which was not returned .

Like many teams upon hearing the event was cancelled in 03 simply changed course and raced the Tybee 500, I,m very happy to see the 1000 mile races continueing ,-hopefully well into the future ,though regretfully missed last years race ,having raced the previous 6 1000 mile races and one in 87 when it was known as the World 1000 event .Hoping to race future events with my sons as they become more skilled sailors and able to handle an event with the more extreme demands this 1000 mile race up the Eastern US seaboard offers , and as I,m physically able,-The race is a truely unique experience in life ,each one different .

He deserved some credit for organizing the race event for the years accomplished , but sadly ruined it all at the expence of good people and mostly at his own and the negative effects it will continue to have on him.

wish you well in the refund efforts.
all the best
Carl

Norfolk Virginian-Pilot

November 18, 2004

Court in Pa. issues judgment against Beach's Worrell over sailboat-race funds


A Pittsburgh court on Wednesday issued a judgment against Michael Worrell of Virginia Beach. Worrell is the founder and director of the now-defunct Worrell 1000 catamaran sailboat race.
Brought by attorney Frank Moore of Pittsburgh, the suit sought judgment for 11 plaintiffs for a total of $65,076.
Thirty-six teams paid $5,000 each to enter the 2003 edition of the Worrell 1000, which was canceled by Worrell at the last minute. None of the teams has been repaid its entry fee.
"If I had it, it would have been paid long ago," Worrell said. "All the entry fee money was used in the course of ordinary business. I had a sponsor that left me hanging.
"I'm sorry and I've been working hard to recoup the money and pay the bills. I didn't even have enough money to go to Pennsylvania for court."
Moore, a member of Team Windy Hill, said that teams lost a lot more than the $5,000 entry fees.
"We had about $25,000 to $27,000 invested in get! ting ready for the race," Moore said.
"We had to buy a boat and get equipment and pay for all kinds of stuff that we didn't ever use. We sold our boat and lost money on it. I had sponsors and I'm a lawyer, but some of these teams lost a lot of their own money and they can't afford it."< < - LEE TOLLIVER







Copyright (c) 2004 The Virginian-Pilot
Record Number: 7195074

What amazed me at the time was how many people entered that race. It sounded too good to be true, and apparently it was. How could $5,000 possibly cover the entry fee (usually $1,000?) and also give every team a brand new 18HT to use for the race, and trailer, and rental SUV to pull the boat, and two rooms per team for all the stops of the race? It just seemed mathematically impossible.

Did anybody add up all those costs to see if it was possible?

Mary,

The teams were not going to get a trailer; only a boat, hotel rooms and rental car or truck. If Mike had gotten a rental co. to supply the cars for free (to be a sponsor) and the boat manufacturer to supply charter boats for a small fee, and the hotel rooms at good rate with so many teams, yes, it could be done for $5,000. The biggest expense is usally food for our team. In a Virginia newspaper MW said it was 'spent in the course of ordinary business.' The race never started so where did it all go - possibly to pay past bills and lawsuits??

Dave, if you guys would get nome normal sized people on your team, food wouldn't be such a big expense!

My first year managing, I was in a motorhome full of groceries - biggest road expense? Beer.

David,
Too many "if's" involved. Only $4,000 to include boat, vehicle and two rooms per team for two weeks.

So it is IF the boat manufacturer only wanted a small fee for the use of the boat. (That would be really weird for an expensive, high-tech boat like that.)

It is IF Mike could negotiate really low room prices at 14 beach-resort hotels. (or whatever the number is)

It is IF Mike could negotiate really low prices on vehicles and IF he could even find rental vehicles that will allow towing a trailer, because most do not.

And what is not yet factored in is the fact that Mike or somebody would have had to pay big money to insure all these brand new boats to race in a notoriously boat-abusive long-distance race on the ocean.

Maybe Mike covered all these things in the pre-race meeting in Virginia Beach? If not, did anybody ask him?

Excellent question Mary, I pondered myself the same question; who would insure those boats? And if someone does insure them, it will likely be at least for 50-65% its price.

Mary

I think you asked if it was possible and I was pointing out that it could be. The teams had to pay the entry fee by a certain date to enter the race. Yes maybe he had to pay some money for the boats wich cost $12,000 at the time less than the I20 that was used before. When the I20's were used as charter boats you paid a charter fee and the boats were taken by different dealers and sold after the race. I don't think the insurance was that much. I don't think the boats are abused but well cared for because the teams want to win so they spend hours and hours getting them prepared and tricked out. I would rather own a worrell boat or a racers boat than a weekend sailor or boat sitting on the beach all the time. I still see old Worrell I20's on the race course doing very well after sailing a couple 1000 miles.

The $5,000.00 entry could never cover the expenses for the "total package" no matter how good you could negotiate with the vendors. In hindsight, my opinion is the Mr. W. was raising funds to bail his own a## out of jepardy. The million dollar purse was just a temptor.

Sorry.
E.

Good grief, David. I didn't mean the SAILORS abuse the boats. It is the ocean, the beaches, the race itself that abuses the boats. Even if there is no boat damage, the time on the water alone is more than most boats do in a whole year.

Also, in my humble opinion, the I-20 seems like a much sturdier boat than the 18HT. I know there was a lot of concern at the time, rightly or wrongly, that the 18HT was not strong enough for a race like the Worrell. I guess we will never know.

But I always kind of wondered whether this concern played any role in the cancellation of the race. Does anybody know whether Bimare backed out on supplying the boats? Or did the boats not get shipped because Mike did not pay Bimare? If Mike was not actually buying the boats from Bimare, and if the boats were not pre-sold, it might have looked like a risky venture to Bimare.

Does anybody (besides Mike) know what the deal with Bimare actually was?

It would be nice if Mike would get on this forum and explain to everybody what happened. More than anything else, it is his silence that makes him look guilty. Maybe for some reason he is protecting the mystery "sponsor" that did not come through for him at the last minute. (Or maybe the sponsor never existed.)

No matter what the reasons or extenuating circumstances, of course, he still has to repay the sailors. But we all still want to know what happened.

Mary,

I talked to Mike a few weeks ago (he was very easy to contact). The main sponsor he had lined up to support the 2003 event pulled out very late in the game - I'd guess sometime in late February or early March. I say this because he hired me to write about the event for his Web site and help produce a book/marketing piece for future events. At first he was eager to have me put this project together and expenses were not a big deal for him. I was charging him a premium fee and he was covering my travel and meals. By March he would not return my calls and would not return a signed copy of the contract. Though I canceled several stories to take on the 2003 Worrel and ultimately realized a loss in terms of foregone income, I never saw a penny from Mike. There's no way of knowing how the entry fees were spent, but it's naive to think there was much left by the time he pulled the plug. I think probably some of it went to pay old debt because he was counting on the new sponsor to cover a big chunk of the 2003 expenses. When it didn't come through, Mike was screwed and so were all the sailors. Most businessmen plan for the worst possible scenario. Either Mike didn't see this as a possibility or he just chose not to look. Either way he is a fool and as I said in an earlier post is suffering far worse than any of the sailors who lost time and money preparing for the event.

Look at it from his point of view: He was the race, the race was him. It was his entire ego wrapped up in one annual event. When he sees a chance to make this one of the greatest sailboat races on Earth, it's easy to understand how is already inflated ego would blind him to the downside of putting all his faith in one sponsor. To believe that he would throw away his entire life for the entry fees just makes no sense.

Let me pose a question to sailors signed up for the 2003 event. If Mike had come to you before canceling the race and honestly laid out what had happened (sponsor pulled out jepardizing the race, etc.) and asked everyone to pay their way with hotels and rental cars in addition to the original fee, would you have done it to save the event?

Mary,
I dont know what the arrangement was between Bimare and Mike Worrell, but purpose build HT's were shipped to the US for the Worrell. These boats were beefed up specifically for the race. The press release said that Bimare had nothing to do with the event being cancelled. I believe that Bimare was acting in good faith and sent a couple of containers full of HT's and then Mike cancelled. The boats were later used for the Alter Cup and the ICCT. I think sail #25-45 are the Worrell built boats.

Bill Vining

I thought I remembered some time prior to the event being formally cancelled that there was a lot of concern because the Bimare boats had not yet left Italy and it was going to be nearly impossible to get them to Florida in time.

Jake,
Yes, you are right, Bimare built the boats but didnt ship them because Mike had not made a payment by the agreed upon date. Bimare had built the boats and was ready to ship them, but waiting for Mike to hold up his end of the agreement.

Some of the beefed up HT's were sold to racers and arrived prior to that shipment, the next shipment was the Alter Cup boats - the boats built for the Worrell, but used for the Alter Cup.

Bill

Correct me if I'm wrong BUT the way I remember it :

Alter Cup 2003 as held in april 2003

Worrell 1000 2003 was to start at may 4th 2003

Alter Cup 2004 was held on Hobie 16's

So : "The boats were later used for the Alter Cup and the ICCT. I think sail #25-45 are the Worrell built boats."

Is nonsense. The boats were first used for the Alter cup and than supposed to be used for the Worrell.

With regard to the ICCT (2003 - 2004). I think only 4 were ever used there. Sailnumbers suggest that these were the Alter Cup boats that were never sold, with the possible exception of the Gunboat.

Correct me again if I'm wrong but were more than 10 boats used in the Alter Cup 2003 ?

Rick White wrote at the time :

"Tomorrow (Sunday) there will be practice races and each team will get to sail the boats two times (there are 20 teams and only 10 boats). "

Source : http://www.catsailor.com/Stories_Temp/2003AlterCup.html#PreRaceStuff

So why would bimare produce sailnumbers #25 to #45 for the Alter Cup ? That would simple make no sense. Bimare is in it to earn money not to give boats aways. If only 10 boats were used then it would be unlikely that 20 were produced.

One explaination might be that the Alter cup boats were only issued odd numbers, for what reason I can only guess.

I spoke to a European team that wanted to do the Worrell 2003 about the cancellation of this event, he is a fellow sailclub member, and his comments prefectly line up along those from Mary, Jake and some other sources. (And no I will not identify them). It was not difficult to recognise a trend.

Even more so I think there are more people out there that "know".

To make things absolutely clear I think the press release that describe the Bimare company as fully in the clear is a correct one. They did what was the only senseble thing to do. On the other hand, blaming everything on Mike may well not be.

What was the saying again.

"Succes has many fathers but failure is always an orphan"

I say the woman who bore the unwanted child probably knew more than 1 "father".

Than the statement of :"sent a couple of containers full of HT's and then Mike cancelled"

Well yes, without getting into juicy details I often wondered one thing. If all these containers were send and the sailnumbers are right (45 boats ?) than why didn't the Worrell 1000 just go ahead but on a smaller budget ? What is the worse that could happen. The things that really costed alot of money were already here (45 * 10.000 = 450.000 US Dollars !). They had to be sold no matter what happened. Cancelling the Worrell would never have solved this issue in any way. Rather, having the worrell 1000 with them would most likely have made selling them alot easier. The costs of running the event would never approach this 450.000 US$ investment. Round Texel, including the week long preceding Dutch open is run on a budget of 350.000 Euro's. And here they need to cater for 500 boats + crews and tens of sponsors. No, the smart thing to do would have been to contact all the teams inform them of a change of plan because a sponsor dropped out, decide to go low budget from them onwards + cancellation of the price. The show must go on ! Theaters have survived set backs like this for centuries and lived through them. There is always a way. The teams would have accepted it when the alternative was no race at all. And it would have worked, afterall the Tybee 500 + OBX 500 were probably done for a similar tight budget. It would have worked unless something absolutely critical was not available. I wonder what that could be ?

Sometimes it is best if the truth is told by the class itself. Truth has a nasty habit of finding daylight on its own accord. Better pre-empt that. You may not have much time left.

So lets start by explaining the difference between Ricks comments and the Alter cup 2003 sailnumbers.

Wouter

Wouter

Bimare and Mike Worrell were in dicussions over these charter boats for some time. The fact that the AC was held in April and the Worrell was scheduled in May has no bearing on the fact that the boats were being build in advance, teams were buying them well in advance and Mike and Bimare had a payment agreement well in advance. Mike defaulted at some point in the Spring of 2003.

When the Worrell began breaking down, the Alter Cup opportunity came up (Spring 2003) and since the boats were available, Bimare sent them.

Yes, 10 boats were used for the 2003 AC. That was the agreed upon format. Why would they be purposely made beefier for the AC? They weren't, they were made beefier for the Worrell, but used for the 2003 AC.

Yes - Sail #25-45 were Worrell built, so they are built beefier. Only 10 of these were used for the 2003 Alter Cup and 4 for the 2003 ICCT. Some of the 25-45 were privately owned at that time (Spring 2003). Privately owned HT's were used for the 2004 ICCT.

The sail # in the US are sequential. #13 was skipped.

Your statement about continuing on the Worrell just because the boats were available is ridiculous. Who was supposed to put the event on? Bimare? The class? come on Wouter, that is a silly thing to suggest. Its a huge job to run a 1000 mile race.

And your assumption that 45 boats were available (Spring 2003) is also incorrect. 1-25 or so were privately owned at the time. Some were owned by teams practicing for the Worrell, some were owned by non Worrell racers, some were in the hands of the importer, but who really cares?

The real question is why you have such a hard on for the HT class?


Bill

No...not me if I had paid a $5000 entry fee. I wouldn't compete based on principle alone. Knowing that my money, handed over in good faith, went towards things other than what it was supposed to would have kept me from further supporting the event. Also remember that the Tybee 500 started up that year (could they smell the end?) and gave the racers an alternative.

Frank, thanks for staying on top of this.

SteveT, if MW is so easy to contact, why not give him a call and tell him to visit this forum?

Wouter, your accusations and insinuations are out of line. Your cowardly post doesn't deserve a response.

$180,000.

Having gone along with the race for five years,
1998, 1999, 2000, 2001 & 2002...

I find it particularly difficult to understand
how anyone would have signed up for the 2003
race.

The simple fact that the 2002 event was run was
a miracle - if not for the backroom dealings
between MW and a local Va. Beach businessman, the
"helicopter bill fiasco" would have been this race's
swan song!

$5,000 For a Boat, Transportation and 2 Hotel Rooms
for the entire race? Mary - You are ALL OVER IT!

My question is = In those five years - there is NO
WAY that this man could have possibly spent $180,000
combined, if he then had NO expense (No race) for 2003...

Mike, Where is the Money?

"45 * 10.000 = 450.000" should read "20 * 10.000 = 200.000" and so on.

Of course not all of those 45 boats were owned by Worrell teams.

Wouter

Don't forget, this race was his livelyhood. Over five years that's a pretty modest salary. But the tale of how MW handled his business affairs is much more complex than just the 2003 race. No one will ever know where the money really went, not even MW.

****.

I bet you a second case of your favorite beer that the "big sponsor that fell through" is complete nonsense. This is a beach catamaran race we're talking about, not NASCAR. If he had a sponsor, he would of and should of said who the sponsor was to get some credibility back with the entrants. His silence admits it all - the sponsor was only a dream.

Many good, very well intended people do very bad...very illegal acts when they need something...Stealing is a very natural and self preserving act when you need money to pay your personal bills.

Obviously, the 2003 Worrell entrants helped Mike get through a tough time. Our $180k pulled him through and kept him and the wife fed for a few months.

It is interesting to note that the federal bankruptcy courts in Virginia don't list Coastal or Worrell Inc. or Mike Worrell. So at least we kept the deadbeat from total and complete bankruptcy. At the very least he could call each team and thank us for the $5,000.00 "gifts."

Whoops, I mean "income" to Mike Worrell. I'm sure that Mr. Worrell filed the appropriate tax returns with the State of Virginia and the IRS in 2002 and 2003 to reflect the $180k in income.

Please forgive my rant, but for God's sake try to be intellectually honest and keep the bleeding heart theories to yourself.

Thanks,