RCT DEFEATS MOTION TO DISMISS IN $500 MILLION CASE AGAINST EVANS-FREKE, MAYO, AND CELTIC
On November 15, 2018, RCT defeated the motions to dismiss filed by defendants Stephen Evans-Freke, John Mayo, and their Celtic group of entities. The motions sought to avoid liability for the fraud and breach of contract claims asserted by plaintiffs, a group of funds managed by Highland Capital Management. The court rejected both the personal jurisdiction and merits-based defenses asserted by defendants. Plaintiffs’ suit asserts that Evans-Freke, Mayo, and their companies breached their obligations to pay principal and interest due on notes purchased by plaintiffs and issued by one of defendants’ shell companies. Plaintiffs also assert that Evans-Freke and Mayo used the Celtic corporate structure to bleed out the assets of the issuing entity and the related guarantors in an attempt to ensure plaintiffs could not recover the payment due on the notes. Plaintiffs seek to recover over $500 million owed on the notes. The case will now proceed into discovery.
Prior results do not guarantee a similar outcome.