A group called All Pro Management is suing the owners of Rich's, where Jay-Z (aka Mr. Beyoncé Knowles) hosted an NBA All-Star par-tay, accusing them of cheating All Pro out of proceeds from liquor sales.
The promoters claimed to have paid $25,000 to host the event, according to the Courthouse News Service story. Per the story, All Pro contends in its petition, "Per the agreement, APM was to receive 100 percent of ticket sales and 50 percent of the net liquor sales on Bacardi products, along with any 'buybacks (credit).'"
Approximately 5,000 folks attended the bash, but the owners "refused to provide an accurate accounting" of liquor sales, per the suit. The defendants are Patrick Jackanich, William Clevenger, Michael Sullivan, Luis Carranza and Grant Larronde.
"Defendants brought in outside alcohol that did not have the TABC stamps to accurately track the inventory," the suit alleges, according to the story. "Likewise, defendants did not ring up all liquor sales on their point of sales system. In fact, defendants probably manipulated the POS system to reflect lower sales and pay less taxes and charges to the Texas Alcoholic Beverage Commission."
But the alleged skullduggery doesn't end there.
"In addition to shorting the liquor sales, defendants also began selling tickets for plaintiff's event. In face, defendants sold a four-day pass to events at their club that included Jay-Z. This was unauthorized and constituted another avenue in which defendants siphoned funds away from plaintiff," the suit states.
All Pro also alleged that the defendants fraudulently advertised that "Alicia Keys and other NBA athletes would show up."
The story said the suit was filed in Harris County, but the clerk's office could not find any evidence of it being filed. (That's not totally unheard of, fwiw.)
None of the defendants we tried to reach were immediately available, but we'll update accordingly.
UPDATE: So we found a copy of the complaint, which was in the County Clerk's custody, and not the District Clerk's, so we feel dumb and humbly ask your forgiveness.
Here's what we know: A Harris County judge on Feb. 19 granted an emergency temporary restraining order against the defendants, barring them from destroying evidence or "disposing or secreting any cash funds" from the club. They were also ordered to produce bank statements, receipts and security camera footage, among other things.
Meanwhile, it appears that the entity that ran the club -- Rich's Sacred Ground -- filed for bankruptcy protection on January 13, 2013 -- more than a month before the All-Star party. (The property itself is owned by something called 2401 San Jacinto Holdings.)
We also heard from defendant Clevenger, via his associate Cade Michaels. Clevenger denies the allegations in the suit, and moreover questions the identity of the plaintiff, All Pro Management. Michaels told us that Clevenger says the club's contract was with an entity called Playpen Entertainment, not All Pro. Clevenger also questions why state records show that All Pro dissolved as a corporation in 2006 and did not regroup until after the lawsuit was filed. (Yet somehow we figure that a Harris County Judge is smart enough to recognize a proper plaintiff, making us think that Clevenger -- through Michaels -- wasn't exactly being forthright.)
We'll post more after we've had a chance to sort through this mess.
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