Attorneys for AEA and Top of the Kress feud over payments made
Yuma, AZ--News 13 first reported the Top of the Kress will soon be shutting down after the owner, Frank Ruiz, lost in bankruptcy court last week. AEA Federal Credit Union, who supplied the funds for the establishment, now wants another investor to run the night club.
KSWT News 13 also reported allegations that Desert Best Enterprises, owned by Ruiz wasn't paying another tenants rent to AEA for sometime.
Well those allegations had documents sent to News 13 by Ruiz's attorney Robert Cook regarding Da Boyz Pizza's rental payments.
He states comments from our story that Da Boyz Pizza's rental payments were not making it's way to AEA were utterly false.
In the 4 page document -- Cook attached several checks showing payments to AEA of more than 11, 000 each from March 2011 until September 2011.
That's when Da boyz Owner Christine Dawson says she was approached by AEA to make her payments directly to the credit union and they have done so ever since.
News 13 learned from AEA's attorney, the reason these checks during this time can be accounted for is because it was court ordered for cook to open a trust account.
Which now raises questions about Dawson's suspicions of her payments to Desert Best Enterprises prior to March 2011 not getting into the hands of AEA. .
In a court order news 13 obtained, Desert Best Enterprises owner Frank Ruiz must pay all rent received for the property at 284 S. Main street, Yuma, AZ, Which includes Top of the Kress and Da Boyz Pizza before March of this year.
It states Ruiz wrongfully collected from it's bottom floor tenant for personal use.
Michael King, AEA's attorney said from July 2010 when Desert Best Enterprises filed for bankruptcy, all of the Da Boyz rent payments were being pocketed by Ruiz.
However Robert Cook, Ruiz's attorney said his client was not using the funds from Da Boyz Pizza for personal use.
"At that time it appeared that Desert Best Enterprises was entitled to use those funds to operate its business and it did thereafter the attorney for AEA and attorney for Frank Ruiz and Desert Best Enterprises entered in agreement that thereafter because now as it appeared to make the entire monthly payment received by Desert Best from Da Boyz would be in fact remitted to AEA and it was done," Cook said.
According to AEA's files, King says the credit union has not received any payments from Desert Best Enterprises owed before March of this year.
King said payments were received for the months between March 2011 to September 2011, In which Cook proves in these documents.
However Cook says it was unclear how the rental payments could be handled.
"That is not prior to March of 2011 there was no agreement between AEA and the debtor as to what constitute the AEA was well aware that those funds were being used each and every month in operation of the business, as reported to the business to the Bankruptcy court for the months prior," Cook said.
Cook said everything owed has been paid.
"I wanted to clarify that after the AEA and Desert Best Enterprises entered in agreement that in the future everything will be paid, we did, we paid it all every month," Cook said.
We do want to make it clear, Michael King AEA's attorney said Christine Dawson, owner of Da Boyz Pizza is in good standing with the credit union and makes her payments directly to them.
Da Boys Pizza is not affiliated with Top of the Kress, they are just located in the same building.
Email Alert Sign Up
Sign up here to receive breaking news stories from KSWT.com and morning updates to your email inbox.
BLYTHE, Calif. — U.S. Border Patrol agents from the Blythe Station found multiple weapons during a traffic stop. Agents pulled over a 2013 Ford Taurus near Blythe, Calif., and got consent to search theMore >>
U.S. Border Patrol agents from the Blythe Station found multiple weapons during a traffic stop.More >>
YUMA, Ariz. (13 On Your Side) – A man is facing first degree murder charges in connection to a San Luis stabbing that left one man dead and another wounded. Salvador Sigala, accused of stabbing a 25-year-oldMore >>
A man is facing first degree murder charges in connection to a San Luis stabbing that left one man dead and another wounded.More >>
On December 4, 2013, at 02:30 pm, Elizabeth Romero was abducted from Kennewick, Washington. Elizabeth Romero a 14 year old, Hispanic, female, 5 feet 3 inches tall, weighing 130 pounds, brown hair, andMore >>
The suspect is Eduardo Flores-Rosalas, a 19 year old, Hispanic, male, 5 feet 9 inches tall, weighing 200 pounds, with black hair, brown eyes, unknown clothing.
Former Cocopah police chief James Spurgeon will not face charges for shooting and killing 25-year-old josh collins. Police say Spurgeon acted in self defense. The deadly shooting happened on SaturdayMore >>
Police say Spurgeon acted in self defense. The deadly shooting happened on Saturday October 26th. More >>
PHOENIX (AP) - Phoenix police say a 3-year-old boy being pushed in a stroller in a crosswalk was fatally injured when he was struck by a pickup truck at a midtown intersection. Sgt. Steve Martos saysMore >>
Phoenix police say a 3-year-old boy being pushed in a stroller in a crosswalk was fatally injured when he was struck by a pickup truck at a midtown intersection.More >>
YUMA, Ariz. (13 On Your Side) - More than 30 teams showed up to Yuma Catholic's annual Rachel Determan Rib Cook-Off, ready to grill and show off their best ribs. This year, "the Chicharones" took homeMore >>
More than 30 teams showed up to Yuma Catholic's annual Rachel Determan Rib Cook-Off, ready to grill and show off their best ribs.More >>
TEMECULA, Calif. (AP) - A Riverside County father and teen daughter have each been placed on four years' probation after pleading guilty to charges in a vigilante attack on a man the girl had accused ofMore >>
The girl claimed Cruz raped her in November 2012 after she passed out after drinking alcohol at his home.More >>
YUMA, Ariz. (13 On Your Side) – In a massive drug sting aimed at one of the most powerful Mexican drug cartels, the Imperial Valley Narcotics Task force arrested ten drug smugglers trafficking meth andMore >>
In a massive drug sting aimed at one of the most powerful Mexican drug cartels, the Imperial Valley Narcotics Task force arrested ten drug smugglers trafficking meth and cocaine across the border from Mexicali.More >>