Snookered at the Party, Promoter Says

(CN) - The promoter of an NBA All-Star Weekend celebrity bash sued the bar owners that hosted it, claiming they cheated on booze sales, and probably cheated Texas on taxes as well.

All Pro Management sued five people in Harris County Court, Houston: Patrick Jackanich, William Clevenger, Michael Sullivan, Luis Carranza, and Grant Larronde.

They are the only defendants.

All Pro (APM) claims it paid $25,000 to host a party featuring Jay-Z, which was attended by other entertainers including Beyonce, Dwayne Wade, LeBron James, Ne-Yo and Ludacris.

"Per the agreement, APM was to receive 100 percent of ticket sales and table service. Likewise, APM was to receive 35 percent of the net liquor sales and 50 percent of the net liquor sales on Bacardi products, along with any 'buybacks (credit).' Plaintiff and defendants were engaged in a joint venture for this NBA All Star Event," the complaint states.

All Pro claims the party was a hit, drawing "approximately 5,000 customers," with the booze flowing until 5 a.m. the next morning.

But when it came time to settle the liquor sales, "Defendants refused to provide an accurate accounting," All Pro says.

"Defendants brought in outside alcohol that did not have the TABC stamps to accurately track the inventory," the complaint states. "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. ...

"In addition to shorting the liquor sales, defendants also began selling tickets for plaintiff's event. In fact, 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."

All Pro claims the defendants also printed off and sold unauthorized VIP passes through Craigslist and elsewhere, along with at least two party tables.

And, All Pro adds, the defendants committed fraud by falsely claiming that Alicia Keys and other NBA athletes would show up.

All Pro claims it has learned that the defendants' club is broke, owes numerous creditors and is being sued by its landlord.

This "totality of circumstances created an environment in which defendants stole from plaintiff," All Pro says.

It adds: "Defendants have failed to provide plaintiff with an accurate accounting and to allow plaintiff to inspect the books and to pay plaintiff its fair share of profits. Defendants have also failed to properly pay the TABC for sales of liquor through underreported and unreported cash sales."

All Pro says it believes the defendants are in the process of destroying, altering or secreting material evidence, including bar tabs, receipts, time sheets, images and the like.

It seeks an emergency injunction and compensatory, consequential and exemplary damages and court costs.

APM is represented by Michael P. Fleming of Houston, Texas.

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.

Email *

Submit