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.
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