Club Utopia shareholders sue owner

Grace Leong

Monday, Aug. 21, 2000 | 11:18 a.m.

Three shareholders of the popular nightspot Club Utopia sued its owner, David Cohen, and his business partner, Richard Renner, alleging they hired away the club's employees and misappropriated the club's monies to fund the rival club Drink.

Club Utopia on the Las Vegas Strip is closed for remodeling after a June 12 fire in its air conditioning system caused $100,000 in fire and water damages.

Club Utopia is insured by Fireman's Fund for fire damages of $90,000 and by Reliance Insurance Co. for business income losses with a $450,000 limit, personal property damages with a $65,000 limit and fire damages of $300,000, said the lawsuit filed last week in Clark County District Court.

Shareholders Jerry Nardella, Paul Martinelli and Patrick Scarpa allege Cohen diverted funds from Club Utopia to Drink and say they fear he may also divert insurance proceeds from the June fire to that club.

The plaintiffs are seeking an order to appoint a receiver to oversee the insurance proceeds and to force the defendants to provide a full accounting of Club Utopia and Drink's businesses.

The suit said the plaintiffs were given 30 percent ownership of the club after they helped negotiate a new 60-month lease in 1999 because Club Utopia's landlord, Bret Torino, allegedly appeared unwilling to renew the lease because of his "concerns over the way Cohen was running the club."

Club Utopia was placed on probation on Nov. 2, 1999, by Clark County licensing officials -- nine months after county inspectors at its "Nymphomaniacs Ball" allegedly discovered women dancing nude in cages and performing sex acts.

The defendants could not be reached for comment.