Claim about effort to ‘seize control’ of Genesis Commercial ‘is absurd,’ court records show

Respondents have filed an answer to the complaint denying the claim that a deal to combine Bentonville-based Genesis Commercial and Versailles Property Management into a new company was a means to take control of the companies. The claim “is absurd,” according to court records.

New court documents show complainant Grady Mathews gave his interest in the companies to respondent Anchor Asset Management Group, but he did not provide $50,000 as part of the deal. The respondents also claimed that Genesis Commercial’s profits were 90% lower than Mathews had projected, that he became hostile toward company staff and created regulatory risk.

Mathews, Genesis Commercial, and Versailles Property Management are suing Scott Audrain of Fayetteville and Anchor Asset Management Group. The case was filed Jan. 8 in Benton County Circuit Court and assigned to Judge Christine Horwart of the 19th West Circuit Division 7 in Bentonville. Todd Lewis and Brian Thomas, both of Conner & Winters LLP in Fayetteville, are representing the complainants. Kyle Unser of Kutak Rock in Rogers is representing the respondents.

The respondents filed an answer Friday (Jan. 30) that denies and admits various claims in the complaint. The respondents ask that the case be dismissed, for their costs and attorneys’ fees, and “for all other relief to which they may be entitled.”

The claim that the deal was “an effort to ‘seize control’ of Genesis and Versailles is absurd and ignores the fact that the valuable services of Zack Kifer, Mr. Mathews’ former partner in Genesis, was one of the primary reasons why others wanted to invest. These investors paid good money into what they thought would be a collaborative effort, and unfortunately Mr. Mathews decided he no longer wanted to collaborate.”

Another claim regarded a July 1, 2025, contribution agreement in which Mathews agreed to transfer his interest in Genesis and Versailles to Anchor Asset Management Group, a subsidiary of Anchor Asset Holdings. He was also to provide $50,000 to the holding company by Aug. 5, according to the signed agreement. In exchange, he would receive interest in Anchor Asset Holdings.

“To date Mathews has never contributed a penny despite receiving his membership interest in [Anchor Asset Holdings] (meanwhile Mr. Audrain has contributed $30,000),” according to court documents. “The only ‘condition precedent’ to Mathews’ obligation to contribute cash was his receipt of an interest in [Anchor Asset Holdings], which he received without objection.”

One of the claims in the complaint was that Audrain was to contribute $50,000 to Anchor Asset Holdings as part of the deal. He contributed $30,000 to Anchor Asset Management Group rather than to the holding company.

“Mr. Audrain did not contribute the remaining $20,000 because Mr. Mathews contributed zero of his $50,000 contribution obligation, and Mr. Audrain became nervous,” court documents show. “Mr. Audrain stands ready, willing and able to satisfy the remainder of his contribution obligations.”

Court documents show that Mathews was removed as manager of Genesis on Nov. 11. As part of the deal, Mathews expected to continue to manage Genesis and serve as its principal broker, according to the complaint.

“The idea that Mr. Mathews could remain principal broker for life of a company in which he only owned an indirect minority interest, without any regard to his suitability to continue serving is absurd,” the Jan. 30 filing shows. Mathews’ removal as company manager wasn’t about his objection to people being paid for their services, “but everything to do with the performance of Mr. Mathews and Genesis.”

According to the filing, the company’s performance in the second half of 2025 comprised an operating profit of 90% less than what Mathews had projected in his budget. The expectation that Mathews would generate at least half of the projected fees “was materially unfulfilled. Rather than prompting collaborative action to address these shortcomings, Mr. Mathews’ and Genesis’ failures led to internal conflict, operational disruption, and ultimately the breakdown of the parties’ working relationship while Mr. Mathews became increasingly hostile toward the staff of Genesis and Versailles.”

The respondents’ filing shows the executive director of the Arkansas Real Estate Commission has declined to recognize that Mathews was terminated as principal broker “based on telephone calls and text messages with Mathews, but a formal hearing has been requested.”

The executive director of the Arkansas Real Estate Commission sent Unser a message showing that Unser’s letter to the executive director was “the first document I’ve received that pertains to possible ownership of the firm. The AREC position is that we prefer that the ownership of the firm be determined amicably between applicable parties, not the AREC. In the meantime, AREC’s role is to protect the public by ensuring that a principal broker is in place to manage licensees of the firm and to ensure the public always has access to a licensed principal broker.”

The respondents added that Mathews’ refusal to accept his termination as principal broker and his interference with the licenses of other Genesis agents “have created regulatory risk.”

According to the complaint, Anchor Asset Management Group’s membership interest was to be held by Anchor Asset Holdings but was not. The Jan. 30 filing shows that Anchor Asset Holdings is the sole member of Anchor Asset Management Group, “and Mr. Mathews is well-aware of this.”

The filing also noted that Audrain was the sole member of Anchor Asset Management Group “for a very brief period of time as a matter of necessity and Mr. Mathews consented to this arrangement in writing.”

The respondent’s answer included a July 8 email to Audrain and Mathews from Cal Rose, attorney of Wright, Lindsey and Jennings LLP in Rogers, that shows initially listing Audrain as the sole owner of Anchor Asset Management Group would be the “quickest path” to allow the company to open a bank account to meet its payroll obligations that were to become due in the following week.

Afterward, Audrain would transfer all ownership into the holding company. Audrain responded to the email the same day, saying he had a meeting with Legacy Bank in the morning to set up a bank account and make a deposit.

Mathews responded to the email July 9, writing, “This is great Cal! Thank you!” Mathews also noted to Audrain that he’d be “on the road all day as we head home a little early” and to call if needed. “I’m ready to get back to work!”