Sandy Relief Investor Wants to See the Books
DALLAS (CN) - An insurance-dispute company formed to represent victims of Hurricane Sandy in property claims misappropriated startup capital, an investor claims in court.
Orum Victus Partnership Ltd. sued Sandy Claim Resolution Co. LLC, owners Bramlette Browder and Brian Revere, and Enterisk Global Advisors LLC in Dallas County District Court on Sept. 26.
Browder allegedly approached Orum in July to invest in a project to "represent victims of Hurricane Sandy in connection with disputed insurance property claims and the appraisal and valuation of property loss."
Hurricane Sandy slammed through the Caribbean and into the northeastern United States in October 2012, inflicting more than $65 billion in damage domestically. New Jersey and New York were particularly hit hard.
Orum's $75,000 investment was intended to hire appraisers, secure office space in New Jersey and market the project, according to the complaint.
"Browder ... represented to Orum that any funds invested by Orum with Sandy would be segregated into a separate bank account, that Orum would have access to such bank account for the purposes of tracking the use of any funds invested by Orum, and that any funds by Orum would be utilized only for the Sandy project and for the purposes set forth in [a] certain business plan delivered by Sandy to Orum," the complaint states.
Instead, the defendants allegedly used the money for their own personal benefit and sent one portion "to Enterisk for the purpose off payment of expenses of Enterisk unrelated to the Sandy project."
Orum says Browder holds a majority interest in Enterisk.
Sandy Claim Resolution did not return a request for comment. It has successfully negotiated thousands of commercial and residential claims, according to its website.
Orum seeks punitive damages and an accounting, alleging fraud, conversion, and other claims. It is represented by Robert Knebel with Fernandez.