Robert Guenther Named Defendant In Feb. 2 Shareholder Lawsuit That Alleges RICO Violations, Conversion, Unjust Enrichment, Fraudulent Transfer
Robert Guenther and a woman referenced as “Jane Doe” are listed as defendants in a shareholder lawsuit filed Feb. 2 in Arizona by investors in Cheyenne Mountain Games (CMG) and Cheyenne Mountain Entertainment (CME).
Guenther is the de facto head of the ASD Members Business Association (ASDMBA), an entity that came to life in the aftermath of the federal seizure of tens of millions of dollars from AdSurfDaily and a related company, Golden Panda Ad Builder. ASDMBA collected contributions from ASD members, saying it sought to protect their interests in the ASD litigation.
Some ASDMBA members complained that its operations were less than transparent and that Guenther did not provide adequate accounting of how more than $100,000 collected through individual contributions was spent.
Also named a defendant in the Arizona lawsuit was Jaffa Partners, a Texas entity with which Guenther is associated. The plaintiffs said they believed “Jane Doe” was Guenther’s wife. They are among more than 30 defendants listed in the case, which centers on alleged misconduct by Gary Whiting, aÂ CME executive.
Guenther, “Jane Doe,” Jaffa and the other defendants are accused of RICO violations for “participating in a scheme or artifice to defraud”; conversion of assets and refusing to return the assets with an “evil mind”; unjust enrichment for “failing to pay” or provide consideration for assets; and fraudulent transfer/conveyance “with the actual intent to hinder, delay, or defraud.”
CME and CMG are involved in the development of an online game known as “Stargate Resistance.” CME has declared bankruptcy amid a sea of allegations of mismanagement and financial manipulations by Whiting and financial manipulations by others that harmed shareholders, according to court filings.
“Whiting has used CME and CMG as though they were his own piggy bank,” the shareholders alleged.
Among the allegations are that CME stopped paying employees and that Whiting instructed company officers to stop paying payroll taxes, racking up more than $1.5 million in unpaid taxes. More than $3.8 million on other bills also were not paid, according to the shareholders.
Whiting’s actions threatened the release of Stargate Resistance and the viability of the company itself, according to the shareholders.
Side deals kept from shareholders diluted the value of shares, the plaintiffs claimed. They also claimed Whiting may have caused “listening devices” to be planted in CME’s offices in Arizona and telephone calls of key employees to be recorded without their knowledge or consent.
In the ASD case, federal prosecutors alleged that the Florida-based company was a Ponzi scheme. After the seizure of ASD’s assets in August 2008, Guenther solicited contributions for ASDMBA.
Some ASDMBA members demanded their money back, criticizing Guenther for rude and obnoxious behavior and claiming they had received nothing in return for their contributions. They also complained that Guenther did not disclose that he had a felony conviction for bank fraud.
Guenther dismissed his critics as “left wing liberal no balled people,” calling one an “ignorant mouthy broad.” He also claimed ASDMBA was instrumental in returning money to ASD victims, saying the group retrieved funds for retired and active-duty police officers in Texas and California, and for a â€œhigh profile Dallas Cowboyâ€ executive.
ASDMBA’s website urged association members to make an ASD’s promoter’s life “miserable” until he returned funds due another member.
Prosecutors filed a two forfeiture complaints against ASD and Golden Panda’s assets, saying they were in the process of establishing a compensation pool for ASD victims.
Guenther’s name is not listed in court filings as a person empowered to return assets to ASD victims.
Read the Arizona lawsuit filed by CME shareholders in which Guenther was named a defendant. The principal plaintiffs on behalf of shareholders are Keith Deering, Mark Renberg and Chris Lombardo, according to the verified complaint.