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Thursday, November 21, 2024

Financial advisory firm accuses energy companies of fraud

Lawsuits
Late 05

CHARLESTON — A financial advisory firm is suing oil and gas companies, alleging breach of contract, intentional tort/fraud, unjust enrichment and violation of the West Virginia Uniform Voidable Transactions Act.

Bordeaux Capital Inc filed a complaint in U.S. District Court for the Southern District of West Virginia against United States Methanol Corporation, United States Methanol LLC, and Petrochemical Holdings Corporation, alleging they evaded their contractual obligations by playing shell games with their assets.

According to the complaint, between Jan. 13, 2016, and Sept. 6, 2017, Bordeaux Capital ws retained by U.S. Methanol (USM Corp) to perform investment banking services for the purchase and operation of methanol plants, in which the terms of the agreement were documented in a contract. 

The suit says BCI received partial payments and inquired about the balance owed. Subsequently, BCI said it was notified by the defendants that they no longer needed the plaintiff's services. The suit alleges tha the defendants did not dispute the equity fee or the invoice and BCI was assured that it would be paid on closing of the debt financing. 

However, the suit alleges the defendants are no longer in communication with BCI. The plaintiff alleges the defendants have failed to perform their obligations under the engagement letter and fraudulently concealed the nature of the corporate structure. Additionally, the defendants allegedly have failed to pay equity fee in full, debt fee owing and the work fee in full.

Bordeaux Capital seeks trial by jury, damages to be proven at trial, punitive, aggravated and exemplary damages, pre- and post-judgment interest, court cost and attorney fees. The plaintiff further seeks an order directing an accounting of all equity investments and debt financing obtained by the defendants on or after Jan. 13, 2016. It is represented by attorneys John H. Tinney Jr., R. Scott Long and Guy Bucci of Hendrickson & Long PLLC in Charleston.

U.S. District Court for the Southern District of West Virginia Case number 2:18-cv-01262

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