Sunday, 18 August 2019
Login |  Register 
 
Find Products or Services in your local community
 
MSC News National Headlines U.S Health Tech Talk World Business Sports Top Headlines
Investors file lawsuit connected to former Atchison school
05/08/2019

(KAIR)--A lawsuit is filed in connection with the now defunct Riverbend International School, once based in Atchison.

The STEM focused private high school, which opened in September, 2014 at 1900 North 2nd Street, closed last year.

At the time of its closing, staff worked without pay, and taxes went unpaid.

Now, four residents of China, all named as investors, have filed suit.

The lawsuit, filed Tuesday in Atchison County District Court, lists all four plaintiffs as "members and owners of ownership interests” in Kansas Education Holdings, LLC, which they were told would serve as ownership of the school and its property.

Named as defendants in the lawsuit are two California residents, K.T. Leung and Carol Kwan.

Online business records as of last year named Leung as the Principal of the Riverbend International School, while Kwan's business card listed her as the President and Co-Founder.

The four investors were promised United States immigration status and a green card, as well as 5% membership/ownership interest in KEH, if they each invested $500,000. They were also told the school "would be directly owned and operated by KEH."

However, the lawsuit contends none of the promises were fulfilled, and the school was operated by a separate entity fully controlled by Leung and Kwan.

Additionally, no promised annual reports and updates regarding their investments were delivered, nor was tax information, or information about a fifth investor approved by Leung and Kwan in 2017, in violation of the terms of the business agreement.

The business plan presented to the investors was in English, a language none of them spoke.

The first time the plaintiffs received any information regarding the operations was in August 2016 when they were told by Kwan that the business was failing.

The lawsuit alleges that Lueng and Kwan also promised to maximize profits for the investors, and would “dedicate themselves to the wholehearted management” of the business, both of which they did not do.

Leung and Kwan, the lawsuit says, improperly withdrew nearly $497,000 of funds belonging to the school in March 2017; and instead of paying property taxes owed, or wages due to employees, used the funds to pay themselves, or companies or corporations “in which they have an ownership interest.”

The four investors are seeking 25% ownership each in the Atchison property that housed the school, as well as legal fees, and other restitution, with the amount to be determined by the court following an accounting of Kansas Education Holdings.

© Many Signals Communications
You will need to be logged in to leave a comment.
Please Login

characters left

The posting of advertisements, profanity, or personal attacks is prohibited.
Click here to review our Terms of Use.



MOST VIEWED STORIES
Police: Man intentionally struck by vehicle
No injuries in grain elevator explosion
Rollover wreck causes injuries
Damage reported from severe storms
Hiawatha man facing multiple charges
Kansas City, Kansas, police fatally shoot rifle-toting man
Safety concerns voiced about local highway
One injured in Sunday Jackson Co wreck
Hiawatha man arrested on drug charges
Rural Seneca burglary being investigated
Click Here For All Stories

LATEST STORIES
Boil advisory issued for Winchester
Two killed in Jefferson Co crash
USD 377 board adopts budget
Hiawatha man facing multiple charges
Hiawatha man arrested on drug charges
Plea entered in Jackson Co child sex case
Boil advisory issued for Nortonville
Sheriff offers school safety advice
USD 113 board approves new snow day policy
USD 430 board adopts budget
Click Here For All Stories

©2019 MSC News
Hiawatha, Ks 66434
EEO Public Report
KNZA - KLZA - KMZA - KTNC - KAIR
Powered by Radio Media Group
162.158.79.101