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money petitioner’s corporations owed Northwest had been
transferred from corporate accounts into individual accounts in
petitioner’s name or the names of relatives or employees.
Throughout the Northwest litigation, petitioner denied any
personal liability to Northwest.
Northwest claimed damages in excess of $17.9 million in its
complaint,17 alleging that petitioner and his corporations had
fraudulently converted, and/or were unjustly enriched by, at
least $14.9 million. Northwest included one count in its
complaint against petitioner alone, based upon the Guaranty.
From the initiation of the Northwest litigation until its
settlement, petitioner and his corporations conceded that his
corporations, but not petitioner individually, were liable to
Northwest for ticket sales proceeds that had not been remitted.
Petitioner and his corporations also did not agree with
Northwest’s calculation of the amount owed Northwest, claiming
that petitioner’s corporations owed Northwest just under $9
million.
On June 23, 1988, Northwest sought a temporary restraining
order (TRO) in an attempt to (i) prevent petitioner and his
17 The $17.9 million included net sales proceeds of $14.9
million that Northwest alleged it was owed for ticket stock sold
by petitioner’s corporations plus an estimated net value of $3
million for 4,800 tickets for which petitioner and his
corporations had not accounted to Northwest.
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