AEB Investments Focus of Two Lawsuits

Clay Ball and AEB Investments LLC of Springdale might have skipped town leaving some irritated banks and builders behind.

First State Bank of Lonoke filed a lawsuit in Washington County Circuit Court on Nov. 28 to foreclose on a mortgage tied to AEB Investments, Clay Ball and Julie Ball.

The complaint states that the defendants have moved out of state and closed their business.

First State Bank alleges AEB defaulted in its promissory note and owes a principal sum of $61,467, plus interest.

The plaintiff alleges AEB had mislead them on the location of collateral, has defaulted on other agreements with third parties, has been named in other lawsuits and fined by the Arkansas Contractor’s Licensing Board.

Rhino Investment Co. filed a lawsuit against AEB Construction Inc. and Clay Ball on Oct. 6, which is probably the lawsuit First State Bank was talking about.

Doug Maritan is listed as the president and member of Rhino Investment Co. on the Arkansas Secretary of State’s Web site. Maritan was owner of Goldie’s Patio Grill in Fayetteville, which recently became The Boston Mountain Grill.

Rhino claims breach of contract and total damages of $320,404 in addition to fraud and conversion (use of Rhino’s material for AEB’s unrelated projects).

In an Oct. 18 filed response, Ball denied all claims and asked for dismissal.

Rhino alleges Ball charged Rhino’s bank account for duplicate expenses and made draws from the account to pay subcontractors, when in fact the subcontractors weren’t paid. Rhino alleges AEB charged for materials that weren’t installed in any of the houses AEB was building for Rhino in the Sonoma subdivision in Springdale.

More than $107,000 will be required to finish construction on the five lots, of which Ball has refused to finish, the suit claims.