JUDGE NIXES BID TO FREEZE MONTAUK FUNDS
NEW YORK — A state court judge here has dismissed a bid by Rick Bacchus, of Montauk Ltd., to freeze the assets of the sportswear company pending litigation of his charges that two partners fraudulently siphoned funds from the company.
Justice Ira Gammerman, in denying the motion, ruled that Bacchus is “sufficiently protected.”
“In addition to that,” Justice Gammerman ruled, “I don’t think he’s clearly proved the chances of success on the merits.” The judge also dismissed Bacchus’s charges against Rosenthal & Rosenthal, the factor for Montauk.
Bacchus sued Stuart and Marcia Kaye last month, claiming the three were partners, and that the Kayes stole the company from him and fraudulently withdrew assets from the sportswear manufacturer.
In court papers, Stuart Kaye, president, denied the charges and said Bacchus never ponied up $95,000 and therefore wasn’t a shareholder in the firm. Kaye claims Bacchus knew Bacchus was never a partner.
Bacchus said he would continue to pursue the merits of his case.
— Fairchild News Service