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November 10, 2009

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Brief: Stock seller sued

Thursday, Dec. 10, 1998 | 11:54 a.m.

Donohue entered a stock purchase agreement with a company now known as Las Vegas Airlines-Delaware, formerly known as the Heramaton Co., the suit says. LVAL-Delaware bought 51.4 percent of the outstanding shares in the Grand Canyon tour airline for $500,000, the suit states.

However, LVAL-Delaware alleges an audit later revealed financial discrepancies. The suit alleges a $48,000 shortfall between January 1998 and September 1998 and alleges it was caused by Donohue's misappropriation of cash for his use.

Also, the suit alleges a business plan provided to the company stated businesses tax assessments in the $35,000 range when they were in the $100,000 range. It further alleges that that the company had unpaid business taxes of $13,271, unpaid excise taxes of $327,000 and unpaid withholding taxes of $124,000.

The suit accuses Donohue of breach of fiduciary duty, intentional misrepresentation, conversion and unjust enrichment. The suit seeks unspecified damages in excess of $10,000.

Attempts to contact Donohue for comment failed.

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