From October 1998 to May 1999, Michael took $50,000 from a line of credit established by Harshfield at Bank of America that was to be used for Costello's, but instead it went into a bank account controlled by Michael.
Michael also diverted for his personal use a portion of an $85,000 line of credit with Pinnacle Bank that was personally guaranteed by Harshfield and meant for Java Golf Inc., the name under which Costello's is incorporated with the Arkansas Secretary of State.
Finally, Harshfield says that Michael held purported shareholder meetings where he transferred company shares to himself and others, but that Harshfield was never notified of the meetings and never gave his consent to such transfers.
The suit seeks compensatory and punitive damages in excess of $75,000. It also asks the court to restore all Java Golf shares to its original shareholders: Harshfield, Michael Hendrixson and Richard Jenkins.
Hopkins didn't want to comment on details of the suit, but said he would be filing a response within the next couple of weeks.
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|Title Annotation:||misuse of funds|
|Article Type:||Brief Article|
|Date:||Dec 11, 2000|
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