Thursday, March 6, 1997 | 11:59 a.m.
Henry C. Armstrong, 54, of Virginia Beach, was arraigned Wednesday in U.S. District Court. Magistrate Tommy E. Miller set a jury trial for June 12.
Armstrong and fellow referee George T. Toliver of Harrisonburg were indicted Feb. 12 by separate federal grand juries. A third referee, Mike Mathis of Cincinnati, was indicted Feb. 19.
The men allegedly traded in first-class airline tickets provided for NBA travel for cheaper coach-class tickets, pocketed the difference and failed to pay taxes on the money.
While referees are allowed to downgrade tickets, they are required to report the saved money as income and pay taxes on it.
The indictments did not specify how much Armstrong and Toliver allegedly pocketed, although Toliver's indictment indicated he failed to report about $47,000 in two years.
NBA referee salaries range from $77,000 to $224,000, depending on experience.
Russell T. Granik, deputy commissioner of the NBA, said in a statement that the NBA and Armstrong and Toliver "have agreed that they will not be assigned to officiate while the charges are pending."
The men are still receiving salaries and benefits, Granik said.
The NBA had no further comment on the cases, spokesman Seth Sylvan said Wednesday.
Armstrong, in his ninth season with the NBA, faces a maximum of 18 years in prison and a fine of $1.4 million if convicted. He is free on a personal recognizance bond.
Toliver faces up to nine years in prison if convicted and a $750,000 fine.
The indictments were the first to stem from a two-year Internal Revenue Service investigation. Federal prosecutors have said there could be more.
Mathis, 54, was indicted Feb. 19 on five counts of tax fraud for allegedly understating his income by $69,000 from 1989 through 1992. Mathis is president of the referees union.
Mathis faces up to three years imprisonment and a fine of up to $250,000 on each count. His attorney, Terry Grady, said 15 or more referees might be indicted.
Mathis also has been relieved of officiating duties, Sylvan said.
Miller originally said he could schedule Armstrong's trial for May, but defense attorney Franklin Swartz asked for more time to prepare. Swartz said the case is complex and will require travel around the country to interview witnesses.
Swartz declined to comment on the case after the hearing, saying only that the evidence will vindicate his client.
Armstrong and U.S. attorney Jim Metcalfe also declined to comment.
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