Response to lawsuit alleges embezzlement

By The Mercury

One of the former owners of Last Chance Saloon has filed an answer and counterclaim to another former owner’s breach of contract suit filed in April. In his counterclaim against Greg Gilman, Pete Anderson disputes the allegations in Gilman’s suit and accuses him of embezzling in excess of $250,000 during the time Gilman had control of the books and assets of Last Chance, Inc. He also asserted that a one-year stalking order obtained against Gilman was imposed because Gilman had threatened to kill Rusty Wilson, who also had a financial stake in the business.

The next court deadline in the case is Oct. 1, the date both sides have been given to obtain evidence from the opposing sides. A pre-trial conference has been set for 1:30 p.m. on Oct. 15.

Anderson, who is represented by Randall Rathbun of Depew Gillen Rathbun and McInteer LC of Wichita, denies that he and Gilman were each 50 percent owners of the stock in Last Chance, Inc., and asserted that at least one other person has claims to the company. That person was not named in the documents.

In the original breach of contract suit, Gilman had alleged that he and Anderson agreed in January to a deal by which Gilman would sell his 50 percent share of the stock in Last Chance Inc, to Anderson in exchange for $150,000 and Gilman’s removal from liability for loans taken out by Last Chance with Kansas State Bank.

He charges that Anderson paid $25,000, but failed to make a second payment of $15,000 that was due March 20.

Anderson admits that he signed a contract in January wherein Gilman had agreed to sell his stock, but argues that the contract is null and void as it was procured by fraud on the part of Gilman. Anderson claims he paid Gilman $25,000 under the agreement before he discovered the fraud.

Now, Anderson is asking for a return of those proceeds.

Anderson also alleges that Gilman embezzled company money while he had control of the books and assets of Last Chance, Inc. He claims he discovered Gilman’s “conversion of assets, breach of fiduciary relationship and fraud” after he obtained the books following the transfer of ownership in January.

Anderson asks for a judgment in excess of $75,000.

In Gilman’s breach of contract suit, he alleged that loans taken from Kansas State Bank are in default and that Gilman had been told that Wilson purchased the assets of Last Chance for $50,000, which he contends in the suit is “far less than adequate consideration.”

In his answer, Anderson claims the loan is in default because of Gilman’s fraud and embezzlement and said the sale of Last Chance, Inc., took place with adequate consideration.

Gilman did not specify in his suit the damages he was seeking.

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