LAS VEGAS (CN) - The much-sued founder of the former Las Vegas Mob Experience at the Tropicana Hotel & Casino faces a class action accusing him of taking investors for $7.5 million.
Lead plaintiff Harold Braxton claims lead defendant Jay Bloom told him and others about "the bright economic future of the exhibit in order to convince the plaintiffs to invest, or to continue to invest in it. Investors were promised a stream of future revenue, including a share in the exhibit's future receivables," according to the complaint in Clark County Court.
But financial statements from Bloom and co-defendant Eagle Group Holdings were not accurate, Braxton claims.
"The exhibit's promised bright economic future never materialized and, based on accurate projections, it never could have," according to the complaint. "The purported capital was not capable of securing the plaintiffs' investments."
Bloom has suffered a series of legal setbacks with the museum. According to published reports, last week Clark County Judge Mark Denton ordered him to pay $33,495 after a lawsuit accused of him of drafting a bogus lease and failing to vacate his foreclosed home.
Bloom raised money from investors to develop the $25 million Mob Experience, which opened in March 2011 but filed for Chapter 11 bankruptcy protection in October 2011 after being hit with a string of lawsuits before it even opened.
A recent lawsuit was brought by marketing agency BTMC LLC, which claims Murder Inc. failed to pay $38,500 for its public relations services.
Previously, Bloom was sued by GC-Global, which claimed he lied about his debts to secure a $3 million loan, then spent the money on himself.
Bloom stepped down in July 2011, 4 months after the exhibit opened.
In August 2011, Bloom was accused of misstating the financial condition of the attraction and diverting money to himself. He fired back with his own lawsuit, claiming he was forced out.
Contractors have also sued, with allegations of unpaid work.
The daughter of late Mafia boss Sam Giancana also sued the exhibit, claiming it owes her $22,300 for her father's personal effects, and another $286,500 for a 5-year consulting contract that was canceled.
In the new class action, Braxton seeks damages for professional negligence, fraud and conversion.
He is represented by Marc P. Cook with Bailus Cook.
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