Boxing promoters in litigation over funds

Tuesday, Jan. 23, 2001 | 10:40 a.m.

The Event Inc. of Las Vegas and its president sued a senior executive, Douglas Stewart, alleging he improperly withdrew $966,882 of a $1.549 million loan deposited at a Las Vegas branch of Bank of America.

In a Clark County District Court suit, Camille Gray sued Stewart and a partner, Rose Chu, a chief executive of Promote Classic Sdn. Bhd. of Malaysia, also alleging they defamed her when they accused her of embezzling funds and sabotaging the company's attempt to secure contractual rights for a boxing match between Mike Tyson and Lennox Lewis.

The suit, which said Chu had made the loan to The Event in November 2000 to create a website for the boxing match and other promotional expenses, alleged Gray's reputation was hurt when Chu allegedly claimed Gray stole money from her.

Gray, who said she invested $600,000 of the loan in a 30-day certificate of deposit to safeguard the funds from unauthorized withdrawals, said she found out on Jan. 3 that Stewart had withdrawn $666,882 and that the bank no longer recognized the $600,000 investment.

Gray, who said she contacted a Bank of America manager and requested that Stewart's withdrawal be reversed, alleged the bank breached its fiduciary duties by failing to freeze and safeguard the funds.

The defendants could not be reached for contact.