Post by QueenCityMotorsports.com on Mar 15, 2010 18:36:25 GMT -5
Suit: Cincy Grand Prix a 'sham'
Mallory fears he may have unwittingly helped man to bilk investors
By Dan Horn • dhorn@enquirer.com • March 15, 2010
Comments (4) Recommend Print this page ShareThis Font size:AA Curtis Boggs made a strong pitch last summer when he met with city officials to talk about his idea for a Cincinnati Grand Prix.
He touted the event as a chance to bring world class "Le Mans style racing" to the Queen City and he shared his vision of Formula One cars zipping past Fountain Square and Paul Brown Stadium. He printed up a colorful poster, hired a track designer and set up a Facebook page with images of drivers uncorking champagne.
"I got really, really excited about bringing a race to Cincinnati," Mayor Mark Mallory said.
But soon that excitement gave way to anger.
Boggs hasn't been seen at City Hall in almost nine months and now faces lawsuits from two people who accuse him of tricking them into investing in the Grand Prix.
The city isn't out any money, but the lawsuit claims Boggs duped city officials so he could use their support for the event to sell the idea to investors. One investor says Boggs showed him a letter from Mallory endorsing the race as proof he had the backing of the city.
"We believe it was a complete sham," said attorney Eric Deters, who filed the lawsuit earlier this month in U.S. District Court in Cincinnati. "We can't find any evidence that he did anything."
Boggs, who could not be reached for comment, listed a Harrison address for his Cincinnati Grand Prix Inc., but the phone number to that address no longer is in service.
Boggs worked for about 10 years as a financial adviser for MetLife, but a company spokeswoman said he left that job in June 2009. She would not discuss the reasons for his departure.
Deters said the lawsuit names Boggs and MetLife as defendants because the company knew or should have known he was misleading clients. The suit seeks unspecified damages and accuses Boggs and the company of fraud, negligence and breach of contract.
Although Boggs is not charged with a crime, Mallory said city officials want to find the would-be race organizer. He said Boggs misled him about his ability to pull off the race and may have used the city's interest to bilk investors.
Mallory said he's a racing fan and always had wanted to bring a big-time race to Cincinnati, so he was receptive when Boggs contacted him about two years ago.
Boggs claimed to be a former race car driver who knew "bigwigs" in the business, Mallory said. He said he even joined Boggs on a trip to the Mid-Ohio race track near Columbus, where they talked more about the prospects for a Cincinnati race.
Those conversations led to the meeting last summer at City Hall, where Mallory said Boggs talked about logistics with representatives from public services, the police and other city departments.
Boggs laid out an ambitious plan to package the race with a music festival.
His Facebook page describes it as "Cincinnati's first annual Blues, Rock and Speed Festival."
"We talked about what it would take to get it done," Mallory said. "We intended to continue to work with him. He was the guy we expected to be the point man."
Mallory signed a letter in June endorsing the plan and stating "the city's intent to formalize a five-year exclusive contract with your company." Deters said. Boggs then used that letter to convince his clients, William Meyer and Julie Jones, to invest in the race, promising them returns of 25 to 40 percent.
The suit says Meyer gave Boggs $18,000 and Jones, who is 85 years old and legally blind, gave him $32,800.
Meyer said Boggs told him several other investors were wealthy celebrities and athletes and that he already had purchased $8 million worth of racing equipment. He said Boggs also showed him the letter from Mallory.
"If he's using that letter to get money out of anybody, that would be an absolutely inappropriate and fraudulent use of that letter," Mallory said.
Mallory said he last saw Boggs a month or so after their meeting last year when Boggs showed up at City Hall with a map of the track design. The map was in a big frame - almost like a keepsake - which seemed a little odd to Mallory.
The track designer called City Hall a short time later. He hadn't been paid for his work and was looking for Boggs.
"That was the beginning of the signs that something was wrong," Mallory said.
The map still is propped against a wall in Mallory's office, but the mayor said he doubts the city will get a Grand Prix race any time soon. The city may not have invested money, he said, but the investment of so much time in the failed effort could delay any future attempt to bring a race to the city.
"He definitely set us back," Mallory said.
Cincinnati Enquirer Link:
news.cincinnati.com/article/20100315/NEWS010702/3160346/Suit++Cincy+Grand+Prix+a++sham+
Mallory fears he may have unwittingly helped man to bilk investors
By Dan Horn • dhorn@enquirer.com • March 15, 2010
Comments (4) Recommend Print this page ShareThis Font size:AA Curtis Boggs made a strong pitch last summer when he met with city officials to talk about his idea for a Cincinnati Grand Prix.
He touted the event as a chance to bring world class "Le Mans style racing" to the Queen City and he shared his vision of Formula One cars zipping past Fountain Square and Paul Brown Stadium. He printed up a colorful poster, hired a track designer and set up a Facebook page with images of drivers uncorking champagne.
"I got really, really excited about bringing a race to Cincinnati," Mayor Mark Mallory said.
But soon that excitement gave way to anger.
Boggs hasn't been seen at City Hall in almost nine months and now faces lawsuits from two people who accuse him of tricking them into investing in the Grand Prix.
The city isn't out any money, but the lawsuit claims Boggs duped city officials so he could use their support for the event to sell the idea to investors. One investor says Boggs showed him a letter from Mallory endorsing the race as proof he had the backing of the city.
"We believe it was a complete sham," said attorney Eric Deters, who filed the lawsuit earlier this month in U.S. District Court in Cincinnati. "We can't find any evidence that he did anything."
Boggs, who could not be reached for comment, listed a Harrison address for his Cincinnati Grand Prix Inc., but the phone number to that address no longer is in service.
Boggs worked for about 10 years as a financial adviser for MetLife, but a company spokeswoman said he left that job in June 2009. She would not discuss the reasons for his departure.
Deters said the lawsuit names Boggs and MetLife as defendants because the company knew or should have known he was misleading clients. The suit seeks unspecified damages and accuses Boggs and the company of fraud, negligence and breach of contract.
Although Boggs is not charged with a crime, Mallory said city officials want to find the would-be race organizer. He said Boggs misled him about his ability to pull off the race and may have used the city's interest to bilk investors.
Mallory said he's a racing fan and always had wanted to bring a big-time race to Cincinnati, so he was receptive when Boggs contacted him about two years ago.
Boggs claimed to be a former race car driver who knew "bigwigs" in the business, Mallory said. He said he even joined Boggs on a trip to the Mid-Ohio race track near Columbus, where they talked more about the prospects for a Cincinnati race.
Those conversations led to the meeting last summer at City Hall, where Mallory said Boggs talked about logistics with representatives from public services, the police and other city departments.
Boggs laid out an ambitious plan to package the race with a music festival.
His Facebook page describes it as "Cincinnati's first annual Blues, Rock and Speed Festival."
"We talked about what it would take to get it done," Mallory said. "We intended to continue to work with him. He was the guy we expected to be the point man."
Mallory signed a letter in June endorsing the plan and stating "the city's intent to formalize a five-year exclusive contract with your company." Deters said. Boggs then used that letter to convince his clients, William Meyer and Julie Jones, to invest in the race, promising them returns of 25 to 40 percent.
The suit says Meyer gave Boggs $18,000 and Jones, who is 85 years old and legally blind, gave him $32,800.
Meyer said Boggs told him several other investors were wealthy celebrities and athletes and that he already had purchased $8 million worth of racing equipment. He said Boggs also showed him the letter from Mallory.
"If he's using that letter to get money out of anybody, that would be an absolutely inappropriate and fraudulent use of that letter," Mallory said.
Mallory said he last saw Boggs a month or so after their meeting last year when Boggs showed up at City Hall with a map of the track design. The map was in a big frame - almost like a keepsake - which seemed a little odd to Mallory.
The track designer called City Hall a short time later. He hadn't been paid for his work and was looking for Boggs.
"That was the beginning of the signs that something was wrong," Mallory said.
The map still is propped against a wall in Mallory's office, but the mayor said he doubts the city will get a Grand Prix race any time soon. The city may not have invested money, he said, but the investment of so much time in the failed effort could delay any future attempt to bring a race to the city.
"He definitely set us back," Mallory said.
Cincinnati Enquirer Link:
news.cincinnati.com/article/20100315/NEWS010702/3160346/Suit++Cincy+Grand+Prix+a++sham+