Ray Jafari believes Mohsen Bagherian owes him access to financial records in seven businesses owned by them both.
Bagherian believes Jafari owes him $501,000 in repayment of several loans.
The two business partners have taken each other to court, each alleging the other has harmed the businesses and each asking the court to decide who is right.
Filed in El Paso County District Court, the dispute is in its infancy; it has yet to have a status conference, one of the initial procedures in a civil lawsuit.
Early on, this case was assigned to the Public Impact Docket, a docket of civil cases that typically involve fairly complex issues, said District Judge Tim Schutz.
“These are inherently complex cases,” Schutz said. By using the PID, he adds, “Hopefully we can move the cases along more expeditiously.”
The PID began under the direction of District Judge David Prince in 2007. The docket is designed to hear business cases affecting a large number of people. The cases are handled differently than regular civil cases by the three judges who preside over the court: Schutz, Thomas Kane and David Shakes.
These judges have experience dealing with complex commercial cases, Schutz said. Judges spend more time on the cases and nudge the attorneys to move the cases through the system more quickly.
In the lawsuit, Jafari is listed individually and as part-owner on behalf of seven companies: Raymo Investments LLC; Lavish Restaurant Lounge LLC; Moray Company LLC, Cessna Drive LLC, 8th Street RV Storage Inc., La Montana LLC and Import Source Inc.
Jafari’s suit requests that the companies be dissolved. He also requests financial remuneration as well as attorney’s fees.
The suit alleges Jafari and Bagherian negotiated to become 50-50 partners in their attempt to purchase the businesses from a trust that was set up after the death of Jafari’s brother, Ali Jafari.
Prior to closing on the purchase, Bagherian told Jafari that his (Bagherian’s) bank required him to own at least 51 percent, the suit says.
“As an attempt to ensure that he would ultimately become 50 percent owner, Jafari requested and Bagherian executed an agreement to the effect that he would become a 50 percent owner in at least one of the entities,” the suit said.
“It was also agreed that after closing, the parties would become 50-50 owners in each of the businesses.”
The trust’s beneficiaries are Jenny and Anthony Jafari, whose father was Ali Jafari. The suit mentioned that Bagherian continued to employ the siblings through 2011, but “has since terminated the employment and all benefits to Jenny Jafari and Anthony Jafari.”
The lawsuit also alleges that Bagherian provided financial information, but, “a review of the accounting resulted in a number of questions being asked as to where funds went, why they were spent and requesting an explanation as to a number of accounting irregularities,” the original complaint says.
The disclosed financial information lists Jafari as a shareholder and minority member and Bagherian as the controlling member/manager, shareholder and director of the seven businesses.
Bagherian has not called or conducted annual meetings, “prohibiting Jafari from protecting his interest,” the suit says.
Bagherian has also failed to properly manage the businesses, “by wasting the companies’ assets and resources in a meaningless and frivolous manner,” the complaint says.
In the answer to the lawsuit, Bagherian denies the allegations. The counterclaim further says that any damages suffered by Jafari “are solely the result of their own acts, conduct, and omissions.”
“Plaintiffs’ unclean hands preclude them from the relief they seek,” the counterclaim says. It also states that Jafari has no “legitimate purpose for demanding” the records.
The counterclaim alleges that Bagherian transferred $56,100, $45,000 and $140,000 from his business, Custom Villas.
He also transferred an additional $70,000 from another business, Bagherian Imports, and another $190,000 as well, all “under promise” that Jafari would repay them.
“To date, none of the $501,100 have ever been repaid to Mr. Bagherian,” the countersuit alleges, requesting repayment of the money as well as interest. Neither Bagherian nor his wife Helen would comment for this story.
“This is a private matter. No comment,” said Helen Bagherian.
Jafari could not be reached to comment.
According to documents filed with the Colorado secretary of state, both Import Source Inc., and 8th Street RV Lot Inc., authorized the issuance of 100,000 common shares. For each business, Bagherian and Ray Jafari are listed as the board of directors in the articles of incorporation.
Both Import Source and 8th Street RV Lot list Colorado Springs addresses of operation.
Import Source shows the address as 2265 LaMontana Way, off North Academy Boulevard, which is also the home of Import Auto Technicians, a multiple-bay import car repair shop.
El Paso County Assessor records show that LaMontana LLC, LaMontana Investments LLC and the Laurie Spinato Revocable Trust own the condo property at 2253 through 2270 LaMontana Way, the location of Import Auto Technicians.
Eighth Street RV Lot is a self-storage center at 840 W. Moreno St. on Colorado Springs’ Westside.
The suit also involves the Lavish Restaurant & Lounge at 1448 Market St. in Denver’s Lower Downtown. Colorado secretary of state’s office documents show the business was organized in 2008 by Jafari. According to records from the Denver assessor, Raymo Investments LLC owns 1448 Market St., and its official address is listed as Jafari’s home address.
Moray Company was formed in 2009 and listed its address as Bagherian’s Colorado Springs home address in SOS documents.
In an amendment filed with the state, the name was changed to Moray Company LLC. The Colorado secretary of state listed the company as “delinquent” as of April 1, 2011.
Cessna Drive LLC is a business in good standing, according to the Colorado SOS. Bagherian is the registered agent, and the address is 2265 LaMontana Way. Articles of organization were filed Jan. 26, 2010, and Colorado documents do not list Jafari.
Cessna Drive LLC owns the real estate beneath 8th Street Storage, according to El Paso County Assessor records.
Raymo Investments LLC changed its name to Spenta Group LLC last year. It has its principal office at 1448 Market St., the location of the Lavish Restaurant & Lounge.
Both Jafari and Bagherian are listed on the articles of organization filed with the Colorado secretary of state. The registered agent address is a residential address owned by Jafari in Denver, according to the Denver Assessor.
The next step involves a status conference as part of the case’s PID status.