Moberly v. Moberly

In the way of miscellaneous lawsuits there comes this item:
Moberly Properties LLC filed a compliant against Moberly Investment Group LLC, Ben Israel, Lisa Cantrell, Darla Duncan, Ralph Duncan and Tom Muccio (all registered officers in MIG).

Registered officers in Moberly Properties include Israel, Ted Belden, Marvin Moles, Craig Heidinger, Scott Bailey and Julia Hern.

The suit was filed in Benton County Circuit Court on Nov. 25.

It seems that in 2004, Moberly Properties purchased property in Bentonville but before closing, “the final settlement statement inflated the total purchase money contributions by a total of $119,640.64,” which one schedule listed as an unsecured loan from Dixie Development.

“Subsequently, MIG entrusted funds to Dixie Management and Investment LP” which was serving as the general contractor on the project.

Dixie, you’ll remember, was Israel’s Fayetteville company.

Allegations include fraud and breach of fiduciary duty, claiming that MIG allowed five bank draws for a total of $600,000 without an architect’s signature verifying work had been done or paid for.

“The funds MIG entrusted to Dixie Management and Construction LP were squandered on its own operating expenses and projects entirely unrelated to the Moberly Properties LLC Building 3,” the suit states.

Moberly Properties is seeking $500,000 in damages.