Former CAHA president Kanai found liable for civil theft, must pay $540,000 back to association

A Colorado court recently ruled that Randy Kanai, the former president of the Colorado Amateur Hockey Association (CAHA), must pay the organization $544,189 after being found guilty of civil theft, breach of fiduciary duty, and unjust enrichment.

In addition, Colorado District Court Judge Chantel Contiguglia dismissed a defamation lawsuit Kanai filed against his successor, Bryan Smith. The judge ruled that Smith's comments during board meetings -- accusing Kanai of wrongdoing -- were not defamatory, as they were largely based on "substantial truth."

Kanai served as CAHA president from 2010 until his removal in the summer of 2023. Following his ousting, the new CAHA board, led by Smith, filed a lawsuit alleging that Kanai had misappropriated hundreds of thousands of dollars from the organization through his private companies.

Court records show that in 2021, Kanai began running CAHA-sponsored events through his company, International Sports Event Management (ISEM), which also managed several Team Colors girls' hockey teams, a USA Hockey-sanctioned tournament, and a sports combine. The court found that ISEM diverted registration fees from these events, eventually amassing over $1 million in its accounts. ISEM also received nearly $80,000 in apparel sales rebates from vendor Northwest Designs.

The court found Kanai liable for civil theft, conversion, breach of fiduciary duty, and unjust enrichment, and ordered actual damages of $181,396.58, prejudgment interest of $35,111.42, and treble damages of $544,189.74 against Kanai, as well as providing additional injunctive relief and attorney’s fees and costs.