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Trader claims fraud in failed club venture
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Posted on Apr 17 2008
A Japanese businessman has sued a businesswoman for allegedly defrauding him in their joint venture to operate a karaoke/nightclub in Garapan.
Hideyuki Kai, through counsel Robert J. O’Connor, sued Jinxia Liu, also known as Coco, for breach of contract, fraud, and conversion.
Kai asked the Superior Court to order the defendant to return his $16,500 and pay him damages, restitution, court costs, and attorney’s fees.
O’Connor stated in the complaint that in April 2006 Kai entered into an oral partnership agreement with Liu to purchase and operate a small karaoke/nightclub in Garapan.
Kai agreed to pay $16,500 to Liu for her to buy and begin operating the karaoke/nightclub.
O’Connor said that Liu represented to plaintiff in 2006 that she would use the money for the karaoke/nightclub.
The lawyer said the two agreed that when the establishment is eventually sold, Kai would receive the entire sales price from the buyer, including any appreciation in value above the $16,500 sales price.
Kai allegedly transmitted the $16,500 to Liu between April and September 2006.
O’Connor said the defendant did not use any of these funds to acquire or operate a karaoke/nightclub but instead defrauded him by converting the money for her own personal use.
The defendant allegedly then refused to return the money.
