Lynx Golf, the British reincarnation of the old U.S. brand made famous by Fred Couples and Ernie Els, has won a major fraud judgment against its former commercial representative and R&D director.
A British High Court last week ruled that longtime Lynx club designer, sourcing agent and commercial representative Kevin Woolgar deceitfully obtained millions in “secret” commissions. The High Court also ruled that Woolgar will have to pay back that money, along with an as-yet-determined amount in damages.
The ruling ends a nearly three-year struggle between Lynx and Woolgar, stemming from inflated invoices and accusations of deceit and breach of contract.
Lynx Golf: Just what happened?
Woolgar, in his capacity as sourcing agent and commercial representative, would source clubheads and components from suppliers in Asia. He would also work with those suppliers to design clubs for Lynx and would negotiate pricing. The High Court found that after agreeing to pricing, Woolgar would then inflate pricing in invoices he provided to Lynx. According to court records, Woolgar had been pocketing the difference for over a decade as “secret” commissions.
The court found those commissions would range anywhere from five to 75 percent over the real factory pricing. Over the period in question, Lynx paid Woolgar over $8 million US. It’s estimated that Woolgar pocketed more than $2 million in fraudulent commissions.
“Bringing someone to book for their wrongdoings, whilst the right thing to do, is never easy,” said a Lynx representative in a prepared statement. “We at Lynx pride ourselves on being honorable people, but nobody should ever mistake being nice for being an easy target.
“We look forward to receiving full recompense in due course.”
The British High Court will determine at a later date the total damages Woolgar must pay.
How it all came to light
According to court records and British news reports, Woolgar had been inflating invoices given to Lynx for more than a decade. Lynx would then pay Woolgar who, in turn, paid his Asian suppliers, and he would pocket the difference.
According to a report in the USA Herald, the scheme fell apart when duplicate and inaccurate invoices were flagged during a random audit by His Majesty’s Revenue and Customs office. HMRC found Lynx had underpaid customs and duties by nearly $270,000. Further investigation found discrepancies in invoicing between Lynx and Woolgar and Woolgar and the Asian suppliers.
Ironically, Woolgar started in golf with the original Lynx Golf company in 1978, working in the warehouse. He eventually transitioned into sales and, ultimately, R&D. He returned to the British reincarnation of Lynx in 2011.
In 2013, Stephanie Zinser and her husband, Steve Elford, acquired the Lynx brand in the UK. They set out to rebuild the brand in the UK and Europe. They would eventually acquire the brand’s global rights (except for South Korea) from DICK’S Sporting Goods. DICK’S had acquired the brand following Golfsmith’s bankruptcy in 2016.
Lynx has a well-established footprint in the UK and Europe. However, it has struggled to crack the North American market through traditional channels. It’s now offered in the U.S. as a direct-to-consumer brand.
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