Report: Mancow Sues Maverick Over Investment
| RADIO ONLINE | Tuesday, July 22, 2014 |
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Veteran Chicago air personality Mancow Muller filed a lawsuit in Cook County Circuit Court last week claiming a North Carolina man defrauded him out of $50,000 that was supposed to be used to purchase radio stations, reports the Chicago Tribune. The acquisitions did not happen and the suit alleges Rodney Rainey and his company, Maverick Radio Partners, used the funds for purposes other than station purchases.
The suit claims Muller was approached by Rainey in December, 2011, to invest assembly in a new five- to seven-station group. The offering claimed Maverick Radio Partners had secured $19.3 million to finance the acquisition of WFRE-FM and WFMD-AM/Frederick, MD, from the Aloha Station Trust. According to the suit, Muller struck an oral agreement with Rainey for $50,000 in investment capital, with the understanding it would be held in escrow until the funds to acquire the stations were in place.
After Rainey never provided the required documentation, Muller claims he contacted him "on multiple occasions" to request the return of his $50,000. In an e-mail on July 3, the suit said Rainey sent e-mail to Muller stating Muller was being replaced and his money would be returned. However, the cash was never received and Muller filed the suit.
