BEND, Ore. -

Acrovision Sports Center founder and former co-owner Richard Gustafson pleaded not guilty to 11 counts of sex abuse Monday morning in Deschutes County Circuit Court.

Gustafson was originally arrested in early January, accused of abusing two girls, ages 8 and 9, during a New Year's Eve sleepover party at the gym. Days later, two other alleged victims came forward.

He has has yet to enter a plea in a second felony case. In that, he faces over 120 counts of encouraging sex abuse, which he was re-arrested for on Feb. 14th. Prosecutors say each of those counts represent a different image allegedly found in his possession.

Olympic silver medalist Mohini Barry used to own Acrovision with Gustafson. She told NewsChannel 21 Monday she bought all of Acrovison's assets after Gustafson's arrests and started a new business; Oregon Olympic Athletics.

The new business is still operating out of Acrovison's former facility, but that will change at the end of June, when it will move to a new location.

Barry said Monday she is saddened and embarrassed by what happened. She added she has always done background checks on her employees.

Her new facility will allow parents to look over their children during class, just like at Acrovision's old facility.

Gustafson is still on house arrest, and is due back in court in June for his second plea hearing. His trial on the 11 counts of sex abuse is now scheduled for Oct. 28th.