|Christopher Mallick - Oxymoron Entertainment - ePassporte|
Trust company Fire Glow Holding Inc.'s managing director, Greg Elias, alleges Christopher Mallick lied about the purpose of the loan.
“Mallick's representations regarding... the purpose of the loan, the value of E Passport and the proposed sale thereof were false when made, and were made with the intent to deceive Fire Glow and induce it to make the loan,” the complaint said.
John Christopher Mallick solicited the loan from Elias, saying that he needed the money to pay off a divorce settlement with his ex-wife, according to the complaint.
The defendant said he would give Elias a cut of E Passport's cashflow while the loan remained outstanding, and that the potential sale of the company — which Chris Mallick claimed had been valued by a potential buyer at $80 million — would cover Mallick's debt, Elias alleges.
But the plaintiff says media reports in September 2010 showed that Visa Inc. had severed its relationship with E Passport, with Mallick's company dissolving the next month.
Upon conducting an investigation into Christopher Mallick's affairs, Elias learned in January 2011 that Christopher Mallick had actually settled his divorce for $6.1 million, according to the complaint.
“Mallick used the loan proceeds or most of them for purposes other than the [divorce settlement] including investments in risky movie productions, and had the intent to do so at the time he negotiated the loan,” the suit said.
“As a direct and proximate cause of Mallick's false representations, Fire Glow now holds a worthless loan with a balance due of $12 million from an obliger who claims to have no ability to repay the loan,” the complaint said. However, in 2011 The Fulfillment Fund, a high profile charity of choice for those who wish to be noticed in Hollywood, lists Christopher Mallick and Oxymoron Entertainment as very generous donor's of nearly a quarter of a million dollars.
The plaintiff seeks a judgment of fraud and breach of contract under the laws of Curacao.
Representatives for the parties were not immediately available for comment Monday.
Fire Glow is represented by Aalok Sharma and Charles C. Kline of White & Case LLP.
Counsel information for Mallick was not immediately available.
--Editing by Eydie Cubarrubia.