Investor says others conspired to kick him out of club

By Kelly Holleran | Jan 23, 2009

MARTINSBURG -– A Berkeley County man who alleges to have his property stolen from him and to be kicked out of a club in which he invested has filed suit against four individuals and a corporation who he claims conspired against him.

MARTINSBURG -– A Berkeley County man who alleges to have his property stolen from him and to be kicked out of a club in which he invested has filed suit against four individuals and a corporation who he claims conspired against him.

Nelson Clark Sr. claims he was the promoter and initial investor in Foxy Lady Gentleman's Club, a business in Bunker Hill that was formed and incorporated on April 23, according to the complaint filed Dec. 11 in Berkeley Circuit Court.

"Nelson Clark Sr. contributed the entire initial paid in capital to the corporation," the suit states.

Deborah S. Curtis, one of the defendants in the suit, was appointed president of the corporation, but did not contribute any cash and did not have any stock in the corporation, Clark alleges.

After the organization of the corporation, Clark sold 20 shares of stock to Harold Earehart, another 20 shares of stock to Charles Neff, a defendant in the suit, and 6.5 shares of stock to Ruth Haines, another defendant, according to the complaint.

Clark still owes 50.5 shares of stock in the corporation, the suit states.

Then, on June 2, Clark and Curtis entered into a lease with Daniels Addition Land Development Corporation, another defendant, for a building at 10491 Winchester Ave. in Bunker Hill, Clark claims.

"All lease payments made to Daniels Addition Land Development Corp. were made by Nelson Clark Sr.," according to the complaint.

Wilber Alger, another defendant in the suit, was visiting Foxy Ladies Gentleman's Club one night and was overheard to say that he was planning to replace Clark as owner and manager of the club, the suit states.

At the time, Clark had no idea that Curtis had sold the company's liquor license and other assets to Alger.

Alger had conspired with Curis, Neff and Haines to defraud other shareholders of the Foxy Ladies Gentleman's Club by selling or converting the assets of the corporation for their personal use, Clark claims.

"On October 3, 2008, Deborah Curtis, Charles Neff, Ruth Haines and/or Wilbur Alger filed a complaint with the Sheriff's Department of Berkeley County West Virginia and alleging that they were the owners of Foxy Ladies Gentlemen's Club Inc., and sole lessees of 10491 Winchester Ave., Bunker Hill, West Virginia," the suit states.

They went on to say Clark was a trespasser and had not right to any of the possession, assets or operations of the club, according to the complaint.

Clark claims that because of the complaint, the Berkeley County Sheriff's Department arrived at Foxy Ladies Gentleman's Club and forcibly removed him from the premises.

After this incident, Curtis, Neff, Haines and Alger conspired to terminate the lease in Clark's name and to release the property themselves, according to the complaint.

They also changed the locks on the doors to the building and removed personal property and cash from the building that belonged to Clark, the suit states.

Because of their actions, Clark claims he lost clients and potential clients and lost his goodwill and business reputation.

Clark claims Curtis, Neff, Haines and Alger have taken the property without Clark's permission and have converted it to their own benefit.

Their actions were designed to interfere with business transactions Clark had with clients, according to the complaint.

In the three-count complaint, Clark is seeking a preliminary and permanent injunction against the defendants and all people acting in concert with them, a court ruling requiring the defendants to return all of Clark's property, unspecified compensatory and punitive damages, plus attorney fees and other relief the court deems just.

He is represented by Floyd McSayre of Bowles Rice McDavid Graff and Love in Martinsburg.

Berkeley Circuit Court case number: 08-C-1402

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