Mancow Sues Over Investment In Radio Station Acquisitions
July 22, 2014 at 4:36 AM (PT)
The CHICAGO TRIBUNE reports that syndicated talk host MANCOW MULLER is suing RODNEY RAINEY and MAVERICK RADIO PARTNERS for allegedly defrauding him out of $50,000.
MULLER's suit in COOK COUNTY (IL) Circuit Court alleges that in 2011, RAINEY approached him with an opportunity to invest in radio acquisitions, the first being the purchase of News-Talk WFMD-A and Country WFRE/FREDERICK, MD from CLEAR CHANNEL's ALOHA STATION TRUST, for which RAINEY allegedly claimed to have raised $19.3 million in equity and debt as well as $200 million from SPARTACUS PARTNERS CORP. for additional purchases. MULLER says he invested $50,000 under an oral agreement with the understanding it would be held in escrow pending documentation of the financing to buy the stations, but the documentation was not sent and the money never reimbursed.
The suit alleges conversion of the funds for RAINEY and MAVERICK's own use, fraud, and breach of contract.