Koster sues fantasy football company

JEFFERSON CITY, Mo. -- There is pigskin controversy afoot in Missouri and it has nothing to do with the Chiefs for the Rams.

On Monday, Attorney General Chris Koster filed a lawsuit against the owner of Gridiron Fantasy Sports for allegedly failing to pay the cash prizes it promised to fantasy football participants in Missouri -- as well as other parts of the country.

Gridiron Fantasy Sports, based in Georgia, is known for hosting the World Championship of Fantasy Football and the World Championship of Fantasy Baseball. The company's owner, Dustin Ashby, even appeared on ESPN after Superbowl XLV to present an oversize grand prize check of $300,000.

But that check was never fully honored, nor was some $151,261 of other promised prizes to additional winners. At the end of the 2010 NFL season, the company had promised to pay a total of $389,000 to up to 331 participants. They promised to pay these prizes by Feb. 15, 2011, but that never happened Koster said.

The attorney general's investigation found that fantasy baseball entrance fees were used to pay the fantasy football winners, and vice versa. As a result, Koster said the company could not guarantee prize-winning amounts like it did, since the payouts would be dependent on the total number of participants. The suit also alleges the defendants used some of the entrance fee money for other non-contest purposes, including paying off loans.

The attorney general is seeking preliminary and permanent injunctions to prohibit further violations of the law by the company and asking that the company provide full restitution to victims.