Las Vegas Sun

March 29, 2024

courts:

Terry Fator accuses ex manager of breach of contract, fraud

Terry Fator

Sam Morris

Terry Fator performs during his opening night in March at The Mirage.

Mirage hotel-casino entertainer Terry Fator is engaged in litigation with his former manager -- apparently after their business and personal relationships soured.

Fator is an impressionist and singer who performs with puppets and a band in "Terry Fator & His Cast of Thousands." With comedic takes on singers such as Cher, Elvis Presley and Garth Brooks, the Las Vegas headliner rose to prominence in 2007 by winning the "America's Got Talent" competition.

In a complaint filed Nov. 19 with the California Division of Labor Standards Enforcement, attorneys for Fator charged that his manager, John McEntee, engaged in fraud by writing the Mirage performance contract to benefit himself to the detriment of Fator; and violated the California Talent Agencies Act.

McEntee, in his own lawsuit against Fator and the Mirage, denies these allegations.

McEntee, who does business as That's Entertainment International (TEI) in Anaheim, Calif., is accused in the California complaint of:

--Having a "blatant conflict of interest" and in an "egregious breach of fiduciary duty ... negotiated and executed on his own behalf" deals with the Mirage in which McEntee inserted himself as the "producer" and therefore entitled himself to extra revenue from Fator's show.

--Failing to segregate into a separate trust account funds earned by Fator "and otherwise properly account for and pay monies to Fator."

--Using a "form of purported management/agency agreement" with Fator that was not approved as required by the California labor commissioner.

--Failing to post or file, as required, with the labor commissioner a schedule of fees charged to Fator.

Fator's California complaint seeks an order voiding his "purported management/agency agreement with McEntee."

Fator alleges in the complaint that during the America's Got Talent competition in 2007, he was represented by manager John Raymond of Butte, Mont. He says that during this period, he was approached by McEntee, who eventually booked Fator for shows at the Las Vegas Hilton and became Fator's manager.

"Commencing in or about December of 2007 and continuing thereafter, and ostensibly acting pursuant to the 'purported agreement,' McEntee seized control of virtually every aspect of Fator's professional and personal life," the complaint charges.

The complaint charges that in negotiating with the Mirage, McEntee made misrepresentations to Fator and an attorney for Fator and that "Fator was never fully or accurately apprised of the actual terms or structure of the proposed agreement with the Mirage."

The contract with the Mirage, the complaint charges, is between the hotel-casino and McEntee's TEI Entertainment as producer for Fator; and is not between the Mirage and Fator, the complaint says. Despite this, Fator charges, obligations under the contract are the responsibility of Fator, not TEI.

Fator specifically complained that McEntee negotiated a deal for himself as "producer" in which McEntee and his company receive 20 percent of revenue under the deal. Fator says his pay is reduced by both this producer fee as well as show expenses.

"McEntee requires Fator alone to pay all of the substantial production costs of his performances from his already reduced share of the Mirage revenues, despite the fact that McEntee is the supposed 'producer' of those performances. As a result of McEntee's financial machinations, the amounts that Fator receives from his own performances at the Mirage are reduced both by McEntee's 'off-the-top' payment of his producer fee/commission and, thereafter, by the payment of all show-related and production expenses," the complaint says.

After Fator started performing at the resort on the Las Vegas Strip in February of this year, disputes arose between Fator and TEI over revenue from the show and McEntee prepared a "sham" amendment to the contract prohibiting the Mirage from dealing with Fator and his representatives, including his brother; and instead requiring the Mirage to deal with McEntee only, Fator alleges.

The complaint claims breach of contract, breach of the implied covenant of good faith and fair dealing, breach of fiduciary duty and fraud.

McEntee has a different take on the dispute and sued Fator and the Mirage on Friday in Clark County District Court in Las Vegas.

His lawsuit says the deal he made with the Hilton paid Fator $50,000 per show for 16 shows and that McEntee successfully "engaged in a sustained and directed effort to make Fator a headliner on the Las Vegas Strip."

McEntee says he disclosed "all relevant details" of the five-year Mirage deal with Fator and his wife, Melinda, whom he says agreed to all the terms and conditions.

The suit alleges that prior to the opening of the show in February, Fator "began engaging in a number of activities which McEntee deemed as harmful to both Fator's personal and professional life."

McEntee's suit says that in response to McEntee's intervention cautioning against this conduct and its moral, professional and personal implications, Fator grew increasingly hostile and installed his brother, Jep Fator, as president of Terry Fator Inc. and as the executive overseeing Fator's entertainment endeavors.

The lawsuit asserts that the Mirage contract includes provisions that any disputes are to be resolved under the laws of Nevada and that the California labor complaint contains "an array of unfounded accusations" and was filed after "months of pretextual complaints and interferences with McEntee's rights and duties by a team of new advisors and employees brought in by Jep Fator."

McEntee's lawsuit says Fator sought to "induce a breach of contract by McEntee through intimidation and the strong-arm tactics of his 'advisors' and attorneys" and that the California complaint was filed after McEntee refused to resign as Fator's manager.

The suit seeks a declaration that the disputes must be resolved in Nevada courts, rather than through the California labor agency.

John Rosenberg, an attorney for Fator, on Thursday characterized as ``nonsense'' the allegations in McEntee's lawsuit that Fator engaged in activities harmful to Fator personally and professionally.

Rosenberg said Fator terminated McEntee as his manager and agent after filing the California complaint; and that the Nevada lawsuit ``is clearly a reaction to the steps Mr. Fator took, and reflects Mr. McEntee's hope he can keep the labor commissioner, who regulates Mr. McEntee's conduct as a talent agent, from hearing these very serious charges.''

TEI and McEntee say on TEI's Web site that the company has been in operation since 1974 and produces hundreds of shows per year involving numerous entertainers such as Air Supply, Barry Manilow, Bette Midler, Garth Brooks, Rita Rudner and Carrot Top.

Join the Discussion:

Check this out for a full explanation of our conversion to the LiveFyre commenting system and instructions on how to sign up for an account.

Full comments policy