Louisiana Record

Tuesday, March 31, 2020

Wife of partner in apartment investment company sues over funds she alleges were misappropriated

By Louisiana Record reports | Mar 12, 2014

Breach of contract

GRETNA – The wife of a man who quit a business partnership after allegations regarding financial misappropriation arose is suing the businesses remaining partner claiming she is owed over $150,000. 

Carol A. Smuck filed suit against Edwin A. White individually, and Edwin A. White as attorney in fact by virtue of a power of attorney from the putative Yellowstone Investors; MBS-Lodge at Sonterra Ltd.; 210 East Sonterra LLC; MBS-Windsor House Ltd.; 1222 Vance Jackson LLC; MBS-Cornerstone Ranch Ltd.; 2002 South Mason LLC; MBS-Stone Lake Ltd. and 2651 Stone lake LLC in the 24th Judicial District Court on Feb. 19.

Smuck alleges that she made an investment of $154,246 with Edwin White as member manager of Ed White & Associates LLC who was the authorized officer and managing member of the general partner of five apartment complexes in Texas.

The plaintiff asserts that her husband Michael Smuck and White entered into numerous agreements to purchase, refurbish and sell apartment complexes in Texas, which they did on 85 occasions between 1995 and 2008.

Smuck claims that the money she invested into the venture was inappropriately used and that after White and her husband had a disagreement over mismanagement of the apartment complexes and investor funds her husband resigned from the partnership.

The plaintiff alleges that since her husband left the defendant’s business White has continued to sell the apartment complexes she invested in, but has not provided her with the proceeds. Smuck claims she was unaware of any unethical activities her husband may have been involved in during his partnership with White.

The defendant is accused of breach of fiduciary duty and banking of security interest.

An unspecified amount in damages is sought for accounting and return of all distributions from plaintiff’s investment.

Smuck is represented by Emile L. Turner Jr. of the New Orleans-based Law Office of Emile L. Turner Jr. LLC.

The case has been assigned to Division J Judge Stephen C. Grefer.

Case no. 735-625.

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