New Lawsuit Gracey v Taylor Options

[I wrote the Hits]

Welp, does this even surprise anyone at this point.
CG suing CT & PD.

https://prothysearchnew.yorkcountypa.gov/(S...shx?vid=3343881


This post has been edited by I wrote the Hits: Nov 22 2022, 3:52 pm

[Overcome2030]

Well, this explains a lot.

No wonder Ed didn't want PD and CG performing with this storm approaching.

If you've got nothing to hide, indeed, you would show CG the company's financials.

[Bob]

There's so much to unpack here it's ridiculous, and I'd probably get it wrong even just trying to parrot it back. Start on page 4 with the Parties section and read 1-56.

It covers:

*CT's failure to produce financial records
*2021 tax returns (Gracey can't submit 2021's taxes because CT won't provide the necessary paperwork and we're about to be at 2022 tax time)
*Delinquent loans to the Company in the amount of 310k (*AND* the Company accepted a $150,000.00 loan from the Small Business Administration on or about August 10, 2020 (the “SBA Loan”) related to the COVID-19 Pandemic, the existence of which Gracey was not informed)
*UFD settlement (Essentially, the Company lost $8,529,000.00 in assets, $1,421,500.00 of which
represents Gracey’s share)
*PD's involvement (CT made Pat a Manager without holding a formal vote, which means he might be involved with any of the above)

"Plaintiff, Chad Gracey, respectfully requests that this Honorable Court grant judgment in his favor and against Defendants in the amount no less than $1,731,988.14, along with all other damages, costs and fees as
the Court deems fit, and enter an order removing Defendants as Managers of the Company and installing Plaintiff as Manager."

[Bremang]

I always knew it would come down to CG vs PD

[mattdm11]

There's so much to unpack here it's ridiculous, and I'd probably get it wrong even just trying to parrot it back. Start on page 4 with the Parties section and read 1-56.

It covers:

*CT's failure to produce financial records
*2021 tax returns (Gracey can't submit 2021's taxes because CT won't provide the necessary paperwork and we're about to be at 2022 tax time)
*Delinquent loans to the Company in the amount of 310k (*AND* the Company accepted a $150,000.00 loan from the Small Business Administration on or about August 10, 2020 (the “SBA Loan”) related to the COVID-19 Pandemic, the existence of which Gracey was not informed)
*UFD settlement (Essentially, the Company lost $8,529,000.00 in assets, $1,421,500.00 of which
represents Gracey’s share)
*PD's involvement (CT made Pat a Manager without holding a formal vote, which means he might be involved with any of the above)

"Plaintiff, Chad Gracey, respectfully requests that this Honorable Court grant judgment in his favor and against Defendants in the amount no less than $1,731,988.14, along with all other damages, costs and fees as
the Court deems fit, and enter an order removing Defendants as Managers of the Company and installing Plaintiff as Manager."

Being a CPA, I understand a fair amount of this.....sort of bizarre they would be taxed as a partnership and not an S corp (bad tax planning), also bizarre that they would own a holding in a fiber optics company inside their band entity, but it may make sense based on TLH really does.

It also seems a little bizarre that CT was able to buy half of the other guys' interests for 50K each, and then they had assets (through their holdings in the other company) of $8M? Imagine giving up another 1.4M of assets for 50K just a few years before? That seems shady on its own, but impossible to say for sure, maybe the company grew like crazy in that short period of time.

If what CG says is true, it's not looking good.....taking a PPP loan? If it was forgiven, as most were, that's free money....what did CT do with it? Probably just distributed it out to him, highly doubt it was left in the company.

CG, if you are reading, happy to help with some forensic accounting and/or tax work if needed. I've got a CPA, masters in tax and 18+ years of experience. Seems like you are getting screwed here. Would like to help.