Accounting firm files fraud suit

By John O'Brien | Sep 15, 2006

CHARLESTON - A Charleston accounting firm claims a man whose business enterprise it funded defrauded it.

Cline and Associates, PLLC, says Kevin Mullins used its $25,000 credit line to start a computer consulting firm and paid nothing back in a lawsuit filed Sept. 7 in Kanawha Circuit Court.

The firm says it agreed to fund Mullins' venture with the promise of financial returns but has seen no repayment and can't get ahold of him.

The complaint says that in spring of 2005, Mullins "approached Cline and Associates about utilizing its name and credit line to finance the startup of a computer consulting firm known as Premier Consulting Services which would provide computer and network security solutions to commercial and government entities."

It adds that Cline and Associates agreed in July 2005 to allow Mullins to utilize its office, facilities, staff and credit line in the amount of $25,000.

In exchange, Mullins would perform marketing services and all work for customers and secure new clients. The complaint also says that Mullins agreed to pay Cline and Associates 35 percent of the first $100,000 of revenue, 25 percent of the second $100,000 and a decrease of five percent for every $100,000 until the floor of 15 percent.

Instead, Cline and Associates say they never received a payment despite the fact Mullins exhausted the credit line and on Nov. 18 were informed that Mullins had taken another job.

Billy Cline says he tried to contact Mullins for weeks, but was unsuccessful. His firm charges Mullins with breach of contract, fraud, constructive fraud and unjust enrichment and is seeking compensatory damages.

Mark Adkins of Bowles, Rice, McDavid, Graff and Love in Charleston is representing Cline.

Judge James Stucky has been assigned the case.

Kanawha Circuit Court case number 06-C-1829

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