UPDATED Promoter Sues Owners of Club Where Jay-Z, Beyonce, LeBron James, Dwyane Wade Celebrated All-Star Weekend

Categories: Spaced City

jayz.jpg
Photo by Marco Torres
A different club, same NBA All-Star fun.
A group called All Pro Management is suing the owners of Rich's, where Jay-Z (aka Mr. Beyoncé Knowles) hosted an NBA All-Star par-tay, accusing them of cheating All Pro out of proceeds from liquor sales.

The promoters claimed to have paid $25,000 to host the event, according to the Courthouse News Service story. Per the story, All Pro contends in its petition, "Per the agreement, APM was to receive 100 percent of ticket sales and 50 percent of the net liquor sales on Bacardi products, along with any 'buybacks (credit).'"

Approximately 5,000 folks attended the bash, but the owners "refused to provide an accurate accounting" of liquor sales, per the suit. The defendants are Patrick Jackanich, William Clevenger, Michael Sullivan, Luis Carranza and Grant Larronde.

"Defendants brought in outside alcohol that did not have the TABC stamps to accurately track the inventory," the suit alleges, according to the story. "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."

But the alleged skullduggery doesn't end there.

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

All Pro also alleged that the defendants fraudulently advertised that "Alicia Keys and other NBA athletes would show up."

The story said the suit was filed in Harris County, but the clerk's office could not find any evidence of it being filed. (That's not totally unheard of, fwiw.)

None of the defendants we tried to reach were immediately available, but we'll update accordingly.

UPDATE: So we found a copy of the complaint, which was in the County Clerk's custody, and not the District Clerk's, so we feel dumb and humbly ask your forgiveness.

Here's what we know: A Harris County judge on Feb. 19 granted an emergency temporary restraining order against the defendants, barring them from destroying evidence or "disposing or secreting any cash funds" from the club. They were also ordered to produce bank statements, receipts and security camera footage, among other things.

Meanwhile, it appears that the entity that ran the club -- Rich's Sacred Ground -- filed for bankruptcy protection on January 13, 2013 -- more than a month before the All-Star party. (The property itself is owned by something called 2401 San Jacinto Holdings.)

We also heard from defendant Clevenger, via his associate Cade Michaels. Clevenger denies the allegations in the suit, and moreover questions the identity of the plaintiff, All Pro Management. Michaels told us that Clevenger says the club's contract was with an entity called Playpen Entertainment, not All Pro. Clevenger also questions why state records show that All Pro dissolved as a corporation in 2006 and did not regroup until after the lawsuit was filed. (Yet somehow we figure that a Harris County Judge is smart enough to recognize a proper plaintiff, making us think that Clevenger -- through Michaels -- wasn't exactly being forthright.)

We'll post more after we've had a chance to sort through this mess.

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Limelight

2401 San Jacinto, Houston, TX

Category: Music


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6 comments
Jody
Jody

For the record, Rich's closed again on 4-12-2013. These are the third tenants that have had issues with the property owner Nassim Joseph that has resulted in litigation. Wait and watch as the litigation unfolds many problems with the buildings owner. There are already suits and countersuits filed with more to come.

mikemeatmaster
mikemeatmaster

Also, according to TABC records, Rich's Sacred Ground owes $116,993.92 to their liquor distributor. This puts them on the "no-sell" list by law. It is illegal for a distributor to sell them liquor until they pay this bill.

mikemeatmaster
mikemeatmaster

If that is the same Cade Michaels who at one point (maybe still) worked for South Beach and related clubs, as well as worked at the Houston Press, I wouldn't trust anything he says. However, I would be curious what the TABC's take is on this. Might be time for a TABC audit of Rich's.

Anonymous
Anonymous

I am not surprised by this. William Clevenger and his former life/business partner Eddie Rivera have a string of failed businesses. This is just another "notch".

Jody
Jody

@mikemeatmaster FYI. There were more than a dozen clubs that over-ordered their liquor for the NBA events and had to go on the list until resolved. The distributor Mr. B's is working with them and others to get it fixed.

Jody
Jody

@Anonymous How uninformed you are, I worked at the club and know the guys in question. First, Eddie Rivera has NOTHING to do with Rich's, Second William Clevenger was only one of five investors in the club and did not run the operations at and anyone that knows him could tell you he has been extremely successful in business. So get your facts straight.

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