Attorney says Chattanooga developer Allen Casey treated property 'like a piggy bank'

Attorney says Chattanooga developer Allen Casey treated property 'like a piggy bank'

February 25th, 2014 by Mike Pare in Local Regional News

A dilapidated former restaurant barge, purchased by Allen Casey, is docked at his property on the North Shore of the Tennessee River.

Photo by John Rawlston/Times Free Press.

An attorney today accused Chattanooga developer Allen Casey and his company of defrauding people related to a tract of riverfront land and running "like a Ponzi scheme."

Gary Patrick, a lawyer for several parties suing Casey and River City Resort, said there is about $6 million to $7 million in money generated from transactions and deals related to the land for which there is no accounting.

"He treated the property like a piggy bank," he said in U.S. Bankruptcy Court in Chattanooga during a hearing.

However, a former attorney for Casey, said he disagreed with Patrick over "about everything that was said."

"I don't know where the proof comes from that Casey took $7 million out of the property," said David Moss.

Casey's company, facing a lawsuit from investors, filed for Chapter 11 bankruptcy protection on Monday.

David Fulton, an attorney for Casey's company, said he wants the bankruptcy case heard before a civil trial goes forward in Hamilton County Chancery Court.

The property located off Manufacturers Road is across the Tennessee River from the Tennessee Aquarium. A rundown barge moored to the tract, which Casey wants to turn into a restaurant, has drawn fire from citizens.

See more in Wednesday's Times Free Press.