LUBBOCK, Texas (KCBD) – A Lubbock businessman named in multiple lawsuits appeared in the 72nd District Court on Monday.
Trial began at 9 a.m. for Joshua Allen, who Lubbock investors have accused of securities fraud and a breach of fiduciary duties as part of a lawsuit related to the expansion of the Walk-On’s Sports Bistreaux franchise.
The two businessmen claim they gave Allen hundreds of thousands of dollars and lost it all. Chance Britt testified he invested $600,000.
In a previous interview, Britt told the KCBD Investigates Team he eventually had to file for bankruptcy.
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“We never saw a distribution. In fact, we never saw financials on any of it,” Britt said. “Bankruptcy was the hardest thing we have had to do as a family. It was very trying. It is a sense of pride thing because we had done well up until that point.”
Plaintiff Tait Crow told us he invested $150,000.
“Did not receive a dime,” Crow said in a previous interview.
The Walk-On’s in Amarillo did open, but the locations in El Paso never did.
On Monday, Allen’s attorney, Nick Olguin, argued the Amarillo location struggled, especially during COVID, and said Allen lost money, too.
After hours of testimony, there were still questions about where the investors’ money ended up.
Plaintiffs’ attorney Ed Price told the judge his team still does not have what it needs in this case, partially because Allen has been hard to access.
“We noticed him for deposition out of the Michael Cox bankruptcy, but we gave him notice that we were also going to ask him questions about this case, but he simply didn’t show up. There was also mediation scheduled in March of this year in this case, and again he didn’t show up,” Price said.
Allen did appear for a deposition as part of a separate class action lawsuit.
Price is helping to represent dozens of plaintiffs in that case who have accused Allen, his business partner Michael Cox, and others of operating a multi-million dollar Ponzi scheme.
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Price wants the judge to read and consider portions of Allen’s deposition taken in that case.
“In that deposition, he invoked his Fifth Amendment privilege 541 times. The law in the State of Texas and under the federal law is that you can make an adverse inference from that if he could have answered the question affirmatively, then he would have. We think that is going to help our case,” Price said.
Olguin, who declined to comment at this time, argued that the case is not relevant.
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Both sides will file briefs with the judge to make their arguments heard before he issues a ruling in this case. The attorneys have about three weeks to file those briefs and responses before the judge will issue a ruling.
We will let you know what happens.
We did notice plaintiffs in the class action lawsuit in the courtroom on Monday. They are not involved in this case in any way, but we are told they are closely monitoring all of the cases involving Allen.
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We have also learned that one of the defendants in the class action lawsuit, Collins Asset Group, filed for bankruptcy.
Price said he is not surprised.
“We think that could be an advantage because now they are going to have to produce all sorts of documents to the trustees office. We think that may be a plus,” Price said.
A court date has not been set in that case.
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