COVINGTON, Ky. (CN) – Investors claim a horse racing stable cheated them of their share in the winnings of 25 racehorses. JRT Holdings says it paid Crescent Racing Sables and its owner Nick Kurlas more than $240,000 for an interest in the horses, in exchange for a promise of half of their winnings.
In its federal complaint, JRT says the 2008 deal provided it “a percentage interest in the horse, typically a 50 percent interest,” which “entitled [JRT] to 50 percent of any race winnings, purses, owner’s awards and breeder’s awards … earned by the horse.”
JRT claims Kurlas “presented a business model whereby the purses that would ultimately be won by the horses would more than offset the cost of their feeding, training and racing and yield profits to the owners.”
But JRT says that though “a number of the JRT Horses won purses at the races in which they competed,” Crescent and Kurlas refused to pay JRT its share of the earnings.
The complaint states: “the earnings of the JRT horses included: Hot Like That, $58,130; Satango, $22,543; My Gal Sunday, $5,694; Asheba’s Glitter, $7,315; Shari Bomb, $56,195. The aggregate earnings of the JRT Horses is not less than $149,877.”
JRT Holdings wants the winnings, plus punitive damages, alleging fraud, negligent misrepresentation, breach of fiduciary duty, conversion, breach of contract, and unjust enrichment.
Crescent Racing and Kurlas are based in Aurora, Ind., but primarily do business in Boone County, Ky., according to the complaint.
JRT is represented by Matthew Hemmer with Hemmer DeFrank of Fort Mitchell, Ky.