LAS VEGAS (Legal Newsline) - The Amateur Athletic Union is suing the estate of a man who borrowed money to keep his basketball academy going during the COVID pandemic.
The Amateur Athletic Union of the United States, Inc. (AAU) filed a lawsuit March 29 in Nevada federal court against the Estate of Matthew Williams and his associated entities, Jam On It Basketball Academy, Inc., and Jam On It, LLC.
AAU alleges that during the COVID-19 pandemic in March 2020, Williams approached it, claiming that his businesses were on the verge of insolvency due to disrupted cash flow.
Consequently, AAU agreed to loan money to these entities on an emergency basis with an understanding that the funds would be used for payroll and refunding deposits, the suit claims.
AAU claims it made 15 monthly loans totaling $435,712.63 from March 31, 2020 until May 31, 2021. Additionally, it paid an $80,000 deposit refund to Select Events on behalf of Jam On It Entities, the suit says.
In return for this financial assistance, AAU states that defendants agreed either to transfer ownership of their businesses or repay the loans. However, Matthew Williams has since passed away leaving these agreements unresolved.
The plaintiff is represented by Michael P. Lowry from Wilson Elser law firm.