My group of private citizens invested in an entertainment venue to promote 6 concert tours featuring Anthony Hamilton,as the headliner, with Raheem DeVaughn, Avery Sunshine, and Chrisette Michele . The agreement was codified by a notarized agreement with specifications that we would invest $660,000 to promote 6 shows with a guaranteed return from the promoter and co-promoter of the $660,000 plus $50,000 per show ($300,000). The conditions involved the promoter providing the investors with a summary plan for each venue, clearance from the investors of any changes in the performers and reasonable assurance that the venue selected could yield the desired results and a guaranteed repayment of the initial outlay plus a fixed return of $50,000 per show.The first show was held in Huntsville, Ala with disappointing results. The second show in Albany, Ga. was a complete failure. The promoter reported that that show would not count. Instead another show would be added. The third show was held in Mobile , Ala and again with disappointing results and the fourth show in Cincinnati, Ohio, suffered the same fate as the previous shows.At this point, it was clearer that the promoter and his co promoter were unable to deliver, as they promised. So the Investor Group issued a Cease and Desist Order letter to the promoters. The letter indicated that the Investors wanted to terminate the provisions of the contract
and requested that the remaining money, be returned ($294,000) covering two remaining shows and any profits from the previously promoted shows. In addition, we asked that the promoters provide a plan of action to repayment of the investment
for the first four shows plus the guaranteed return.It has been over 3 months since the letter was issued and the promoters have not provided a plan -- In addition, they have advised us that after receiving the cease and desist letter, they used the remaining money to reserve space for events they wanted to plan to help get some of the $660,000 repaid. As such, nothing has been returned to the group.The question to you are what legal options do we have at this juncture. The terms for resolving difference in the agreement or the execution of the agreement provides for "mediation" But we feel that embezzlement and/or fraud may have been committed in that money was used for an unintended purpose after the issuance of the cease and desist letter.I am concerned about legal remedies (vice mediation), if possible and under what authorities -- We want to:1). Recover the funds for the two unexecuted shows which is at least total $210K.
2) Seek restitution for the four shows that were held, but fell below the mark.