Atwater Entertainment Associates

AEA                       Bay Ventures                       BV Atwater

 

This website is an information resource for the Investors in AEA, Bay Ventures and BV Atwater (who choose to become members of the Class) about the Class-Action Lawsuit to be filed on their behalf claiming substantial financial damages suffered as a result of alleged egregious actions of their elected Manager et al., specifically alleging:

  • Conspiracy to defraud the Investors

  • Conspiracy to commit extortion

  • Misuse of investor funds

  • Theft of investor assets

  • Unjust enrichment

  • Betrayal of trust

  • Dereliction of duty

  • Concealing the truth

  • Larceny by conversion

  • Campaign of deception

  • Disloyalty to the Investors

  • Misappropriation of funds

  • Financial mismanagement

  • Falsifying books and records

  • Breach of fiduciary responsibility

  • Obtaining money under false pretenses

  • Intentional mishandling of company assets

  • Using Investor funds for the manager's personal benefit

 

The aforementioned Investors (who choose to become members of the Class), under protection of the Whistleblower Act, seek:

  • The immediate ouster of the Manager

  • Replacement of the Manager by a court-appointed Receiver to take control of what's left of the assets of the Company.

  • Full disclosure of books and records.  Raise the cloak of secrecy and let the sunlight in.

  • Petition the Michigan Supreme Court to appoint a special prosecutor to investigate and take possession of the records and assets of the Company to avoid any further tampering or abuse

  • The immediate closing of the business.  The Company has no assets (except office furniture and an apparently significant, yet undisclosed, amount of the aforementioned Investors' money in a bank account) – its 11.5% equity ownership in MotorCity Casino was sold in full to Marian Ilitch way back in April of 2005 (over 18 months ago).  The Company has not received any casino income since then, nor does it have any prospects for future casino income, because it no longer owns any part of MotorCity Casino.

  • The elimination of any and all expenses of the Company.  The lease of 2 offices and a big conference room in the New Center building, management fees paid by the Manager to the Manager, wages and benefits for a secretary and who knows what all else, all of which are being paid from the aforementioned Investors' money by the Manager with seemingly no accountability to the Investors, are among the expenses which should have been eliminated a long time ago.  The aforementioned Investors demand that this alleged plundering of their funds be stopped immediately by whatever means necessary.

  • A return to the Investors, as per the Redemption Agreement, of their pro-rata share of all as-yet-unaccounted-for money, boldly withheld and retained by the Manager for nebulous "future expenses."

  • An audit of the books by an independent certified forensic accountant

  • A detailed report to the Investors of all income, expenses and distributions of the company from its inception through the current date to see exactly where all the money went including, as just one specific example, a itemization of how $2,909,143.00 in "distributable cash" received by AEA but retained by the Manager supposedly "to pay expenses of the [sale] transaction" was spent.  Over 2.9 million dollars of "expenses" of the sale transaction?  Who received how much, and for what, exactly?  The Investors have been kept largely, if not completely, in the dark as to what came in and where it went – to whom and for what.  It's high time this charade is brought to light.  In fact, it's long overdue.

  • An investigation by the Federal Bureau of Investigation into alleged violations under the Racketeer Influenced and Corrupt Organizations Act (commonly known as the RICO statute) which includes the provision that "... the racketeer must forfeit all ill-gotten gains. The act also contains a civil component that allows plaintiffs to sue for triple damages."

  • A grand jury investigation and criminal indictment by the Michigan Attorney General as to alleged unlawful acts perpetrated by the Manager and culpable co-conspirators

  • An investigation by the Michigan Gaming Control Board into the alleged fraud, collusion, financial shenanigans and malum in se acts of moral turpitude perpetrated by the Manager and culpable co-conspirators

  • An exposé by investigative reporters from local print and television (Hall of Shame; American Greed) media of this whole sordid affair

  • Any other alleged co-conspirator (e.g., secretary, lawyer) who agrees to cooperate with investigators in exchange for reduced charges or a reduced sentence should be given due consideration, otherwise they too should be prosecuted to the full extent of the law.  Unindicted co-conspirators are not immune from civil court action.

  • Recovery from the Manager and culpable co-conspirators of all ill-gotten gains

  • A malpractice lawsuit and disbarment of any attorney who is found to have encouraged, facilitated or participated in the perpetration of this fraud upon the unwitting investors

  • Judgment against the Manager and culpable co-conspirators in favor of the victimized Investors; restitution to the Investors in the form of an award of compensatory and punitive damages in an amount equivalent to not less than $1,000,000 per unit (or portion or multiple thereof) owned by each Investor who is a member of the Class

 

For more information, e-mail: ClassActionLawsuit@AtwaterEntertainmentAssociates.com