Joshua Allen goes to court for civil suit over restaurant franchise expansion

A Texas businessman, Joshua Allen, is currently involved in legal proceedings at the 72nd District Court in Lubbock. The trial, which commenced at 9 a.m., involves allegations of securities fraud and a breach of fiduciary duties by Allen, as claimed by Lubbock investors in connection with the expansion of the Walk-On’s Sports Bistreaux franchise. These investors, Chance Britt and Tait Crow, have accused Allen of mismanaging funds amounting to hundreds of thousands of dollars, resulting in substantial financial losses for them.

Chance Britt, in his testimony, revealed that he had invested $600,000 with Allen and ultimately had to file for bankruptcy as he never received any returns on his investment. Similarly, Tait Crow, who invested $150,000, stated that he did not receive any returns either. Despite the establishment of a Walk-On’s location in Amarillo, the planned locations in El Paso never came to fruition, further exacerbating the investors’ financial losses.

During the trial, Allen’s attorney, Nick Olguin, argued that the Amarillo branch faced challenges, particularly during the COVID-19 pandemic, leading to financial struggles and losses for Allen as well. However, there were lingering uncertainties concerning the whereabouts of the investors’ funds. Plaintiffs’ attorney Ed Price expressed frustration over Allen’s evasiveness, highlighting instances where Allen failed to appear for scheduled depositions, hindering the progress of the case.

Moreover, Allen had previously participated in a deposition as part of another class action lawsuit, where he invoked his Fifth Amendment privilege 541 times. Price emphasized the significance of this deposition, suggesting that it could potentially strengthen their case by allowing adverse inferences to be drawn from Allen’s silence on certain matters.

Despite Olguin’s assertions that the previous class action lawsuit was irrelevant to the current case, Price and his team are preparing to present relevant portions of Allen’s earlier deposition to the judge for consideration. Both parties are expected to submit briefs to the judge to support their arguments, with a ruling anticipated within three weeks.

Observers noted the presence of plaintiffs from the class action lawsuit in the courtroom, although they were not directly involved in this particular case. These individuals closely monitor all legal proceedings involving Allen, reflecting a larger concern within the community regarding the allegations of financial malpractice and potential Ponzi schemes.

Meanwhile, one of the defendants in the class action lawsuit, Collins Asset Group, declared bankruptcy, which Price views as a potential advantage. He anticipates that the bankruptcy filing will compel the production of essential documents that could aid in their legal endeavors. As the legal battle unfolds, stakeholders await further developments in these complex and interconnected cases involving financial malpractice accusations against Allen and his associates.