David Griffin of Nashville, Tenn., a business partner of Murray entrepreneur Chuck Jones, has filed a complaint against Jones, Sarah Jones and five companies in U.S. District Court for the Western District of Kentucky in Paducah.
Griffin filed the complaint on Feb. 28, according to court documents. It was served the next day to the defendants, which are named as Charles A. Jones, Sarah C. Jones, C.A. Jones Management Group, LLC; Integrated Computer Solutions, Inc.; Blackrock Investments, LLC; South Eastern Book Company, LLC and College Book Rental Company, LLC. Charles Jones is identified in the complaint as the Chief Executive Officer of C.A. Jones Management, LLC and Sarah Jones is identified as president of the company.
In the multiple-page complaint, Griffin alleges that Charles Jones asked Griffin to invest in several Murray businesses in 2008. The complaint reads, “With Griffin committed financially to those companies by late 2008, C. Jones realized the potential for how lucrative the busineses could be for him if he had complete control and the ability to cause Griffin to provide even more money to make the businesses more valuable. C. Jones took control of the operations on ICS, BRI and SEB soon thereafter.”
Griffin also alleges that Jones utilized the network of companies for “his excessive personal gain” and “in late 2008, C. Jones began to take steps to maximize his financial gain to the detriment of Griffin.”
The complaint also makes several requests, including that the court enter a preliminary injunction against Charles and Sarah Jones and management to prevent them from disbursing any company funds or selling assets. Griffin has also requested that the court appoint a receiver to operate the companies and management.
In the complaint, Griffin alleges 11 counts, which included securities fraud, breach of fiduciary duties, fraud, misappropriation, unjust enrichment, constructive trust and breach of contract dealing with several of the companies. According to the complaint, the plantiff has asked that the case be tried before a jury.
Chuck Jones released the following statement in an email: “David Griffin and I are 50-50 partners in several companies managed by C.A. Jones Management Group. Around a year ago, Mr. Griffin decided he deserved to own more than 50%. After several months of trying to negotiate a suitable resolution to his wishes, he was still not satisfied unless he owned substantially more of the businesses than me. When he determined I was unwilling to give into his demand he decided to file this suit. In my opinion it is baseless and has no merit. I believe that we will prevail in this suit.”
The defendants have 21 days to file an answer to the complaint, it was reported.
Individuals are presumed innocent until proven guilty, and the complaint filed in U.S. District Court represents only one side of an issue.