Las Vegas Mob Experience developer hit with two lawsuit judgments
Jay Bloom, founder of the bankrupt Las Vegas Mob Experience tourist attraction, faces new legal problems in the form of two lawsuit judgments requiring that he and one of his companies pay a total of $153,818.
Bloom, however, says he’s going to fight one of the judgments and that the other will be addressed.
Bloom, in the meantime, has been busy dealing with many of the 14 lawsuits filed since 2010 over millions of dollars in unpaid bills and other financial problems at the Experience.
Court records show the attraction, which is unrelated to the Mob Museum opening in downtown Las Vegas on Feb. 14, didn’t perform well financially after its opening last spring because of disappointing visitor counts. Its operations were also marred by fighting pitting certain investors and creditors against Bloom.
Some of the creditors have claimed in lawsuits that Bloom diverted funds from the attraction for his personal use.
They claim he defrauded creditors by misrepresenting the financial position of the Experience and by pledging the same mob artifacts as collateral over and over to multiple creditors and investors.
Bloom has denied the allegations of wrongdoing and says he was induced to leave the Experience under false representations that his leaving would help it gain new financing. He also says that if anyone has looted the business, it is the current management.
In one of the latest legal developments, the Nevada Employment Security Division sued one of Bloom’s holding companies, Eagle Group LLC, on Dec. 20, contending it owed $45,263 in unpaid unemployment compensation fund contributions and interest.
A judgment for the $45,263 was entered Jan. 11 against Eagle Group.
Like other Bloom companies, including Murder Inc. and Order 66 Entertainment LLC, Eagle Group for a time operated out of an address on Reno Avenue in Las Vegas.
Murder Inc. was the parent of the Mob Experience while Bloom used Order 66 in an unsuccessful effort to bring a Star Wars attraction to Las Vegas.
"If there is a tax liability that was an oversight, Eagle Group will make sure it is addressed," Bloom said of the state Employment Security Division lawsuit.
Separately, attorneys in New Jersey for a company called SBA Finance LLC in December won a summary judgment motion against Bloom for $108,555.
Attorneys this week entered the "foreign judgment" in Clark County District Court in Las Vegas, a necessary step for them to try to collect those funds from Bloom.
A judge in Essex County Superior Court in Newark, N.J., ordered Bloom to pay the $108,555 in a lawsuit claiming Bloom had breached his personal guarantee to pay off a $70,000 loan made in 2004 to a company Bloom managed called NAC Technology & Operational Resources LLC of Calabasas, Calif., near Los Angeles.
The loan was made by City National Bank of New Jersey and was later purchased by SBA Finance LLC, a New Jersey company that is owned by an individual named Stanley B. Amsterdam.
Bloom said Wednesday he planned to fight to have the SBA judgment overturned.
He said the SBA lawsuit against him violated a settlement reached in 2009 in a Las Vegas lawsuit filed by businessman Steven Trenk against Bloom.
Trenk’s lawsuit against Bloom, filed in Clark County District Court in 2006, included charges remarkably similar to those against Bloom in the Mob Experience lawsuits — and denials by Bloom similar to his denials in the Mob Experience cases.
In the Trenk lawsuit, attorneys for Trenk said he had invested with Bloom and others in NAC Technology & Operational Resources, which provided photography services at tourist attractions.
The lawsuit claimed Bloom, as one of the NACTOR managers, had "systematically mismanaged NACTOR and used his position as manager for his own personal benefit" to the detriment of vendors, creditors and NACTOR investors.
The suit claimed Bloom failed to pay payroll and sales taxes, didn’t pay workers’ compensation insurance premiums, causing cancellation of the company policy, failed to pay key vendors, gave himself a raise without having authority to do so and paid such personal expenses as his mortgage, auto and nanny expenses with NACTOR funds.
Attorneys for Bloom fired back in that lawsuit, denying the allegations and hitting Trenk with a counterclaim claiming Trenk breached his fiduciary duty to Bloom by trying to evict Bloom as manager of NACTOR, among other things.
By October 2009, court records show, the lawsuit had been settled under undisclosed terms.
Commenting on the new SBA lawsuit that resulted in the judgment against him last month, Bloom said Wednesday, "The SBA Finance litigation was unlawfully brought in New Jersey under SBA Finance as a shell company by Steven Trenk, in violation of and in a deliberate and premeditated attempt by Trenk to evade his preexisting settlement agreement for his 2006 Nevada case that had already been adjudicated here to conclusion."
"We wholly anticipate the Nevada court will enforce the Trenk Nevada settlement agreement by staying domestication of the New Jersey judgment and assessing sanctions against Trenk for his willful violation of his Nevada settlement agreement (which he clearly entered into in bad faith in the course of his scheme)," Bloom said.
"We also have New Jersey counsel reversing the New Jersey judgment obtained improperly through Steven Trenk's intentional deceit of the New Jersey courts in violation of his Nevada agreements," said Bloom, who lately has been involved with a company called Leading Venture & Enterprise Matching .
Seeking to cast doubt on the credibility of Trenk, Bloom noted Trenk ran the Stars & Stripes Air Tours businesses in Southern Nevada, which filed for bankruptcy in 2009.
Bloom also noted that Trenk, between 2006 and 2011, was tied up in civil litigation with the IRS over efforts by the IRS to enforce a summons to Trenk seeking information about Trenk companies Gold Crown Insurance Ltd., Techtron Inc. and TechTron Holding Inc.
Attorneys for the IRS said in a 2006 lawsuit against Trenk it was investigating "what appears to be an abusive tax avoidance scheme" by TechTron — charges denied by Trenk.
A request for comment on Bloom’s assertions about the SBA Finance lawsuit was placed with Trenk on Wednesday.