Philip Galfond, of Vancouver, B.C., sued William F. Murphy, of Austin, dba MGH LLC, in Travis County Court.
Galfond claims that he and Murphy they agreed in 2008 to form a joint venture to operate the poker training website, and that he has contributed 150 training videos, hundreds of blog entries, vetted all the professional players hired and was involved in all major decisions.
Galfond is a World Series of Poker bracelet winner, finishing first in the $5,000 Pot-Limit Omaha with Rebuys contest in 2008.
He claims he was to receive one-third of the profits from the site an ownership interest of up to 38.33 percent after vesting.
“Blue Fire has been immensely successful, having thousands of members who pay an initial enrollment fee of $100 in addition to a subscription fee of $30 per month,” the complaint states.
Galfond says Murphy paid him more than $179,000 in profit participation in May 2010, and more than $238,000 in May 2011, but says he was given no accounting records, financial statements or tax returns either time.
He says he resigned as lead professional for the site in November and has not been paid for 2011.
“Upon information and belief, the defendant Murphy has misappropriated and converted to his own use and possession the assets of MGH,” the complaint states.
Galfond seeks an accounting, actual and punitive damages for breach of contract and conversion. He is represented by Richard Villa with Streusand Landon of Austin.
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