Doctor who contributed $321K to company sues business partners for misappropriation of funds

By Kyle Barnett | Dec 23, 2014

GRETNA – A doctor is suing his partners over alleged misappropriation of funds from a business in which they are equal partners.

Eric George M.D. filed suit against Michael Kotler M.D. and Frank Gray Jr. in the 24th Judicial District Court on Oct. 8.

George contends that he invested $321,750 into RMD Technology Group LLC , which was created and incorporated by an operating agreement between he and Kotler and Gray on Sept. 5, 2013, in which the three would have equal ownership. The plaintiff asserts that when RMD Technology Group was created he was the only member providing an investment, however, since founding the company the plaintiff claims he has been excluded from all operational involvement and that his investment has been misappropriated and converted to a salary for Gray.

George claims that at no time was he asked to provide consent for a salary for Gray and that the resulting payments are in breach of RMD Technology Group’s by-laws. In addition, George alleges that Kotler misappropriated $240,000 from RMD Technology Group for separate entities of which George is not involved in. Furthermore, the plaintiff contends that no paperwork was ever created regarding the funds, which he maintains is unethical, deceptive and ignores his interest in the company.

The defendant is accused of breach of contract, breach of fiduciary duty, misappropriation of funds and violation of the Louisiana Unfair Trade Practices Act

An unspecified amount in damages is sought for the recovery of all monies and attorney’s fees.

George is represented by Preston L. Hayes of Chehardy, Sherman, Ellis, Murray, Recile, Griffith, Stakelum & Hayes LLP.

The case has been assigned to Division B Judge Cornelius E. Regan.

Case no. 743-179.

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