LITTLE ROCK -- Arkansas Attorney General Tim Griffin's office has asked a Pulaski County Circuit Court judge to hold Big Country Chateau's owners in criminal contempt of court, claiming they have failed to provide records to the court-appointed receiver of the troubled Little Rock apartment complex.
The motion filed Friday by Assistant Attorney General Amanda J. Wentz asks that the judge at minimum issue an order to show cause for the three corporate defendants -- Big Country Chateau, LLC; Apex Big Chateau AR, LLC; and Apex Equity Group, LLC -- to appear and explain why they should not be held in contempt while awarding the state $1,000 in attorney's fees and costs incurred as a result of pursuing the motion.
The judge is asked to hold the defendants in criminal contempt and fine them $1,000 per day until they provide the receiver "with an accounting of assets and financial records, bank records, tax records, entity formation articles, and purchase agreements pursuant to this Court's Order."
According to the motion, Apex Big Chateau AR has provided the receiver with a resident ledger, a rent roll and some invoices, but the other two named entities have not provided the receiver any records.
The receiver appointed to oversee the 6200 Colonel Glenn Road apartment complex is Sal Thomas, the executive vice president of multifamily operations for Houston-based real-estate firm Tarantino Properties.
"Big Country Chateau and its New Jersey-based owners have repeatedly defied the court's orders and are refusing to cooperate with the receiver," Griffin said in a statement issued Friday. "This is an insult to both our justice system and the tenants of Big Country Chateau, and my office is seeking to hold the owners in contempt of court and sanction them."
The three entities tied to Big Country Chateau were sued by Griffin's predecessor, then-Attorney General Leslie Rutledge, in August 2022 over alleged violations of the Arkansas Deceptive Trade Practices Act.
The case has picked up speed under Griffin.
In a Feb. 22 order, Circuit Judge Cara Connors appointed Thomas as receiver for the 151-unit apartment complex in response to a request by the state, giving Thomas the authority to manage the property and collect rents.
He submitted his acceptance and oath of receivership the next day.
The state's motion Friday noted that the judge's receivership order required Apex Equity Group to provide an accounting of assets and all financial records related to the two other corporate entities as well as the property, setting a deadline of 21 days after the entry of the order.
Additional language in the order required the three defendants to cooperate with the receiver and provide various records related to Big Country Chateau.
It had been 58 days since the judge's receivership order, the motion said.
"Defendants' failure to provide these records is willful disobedience of this Court's Order and should be punished as criminal contempt, a Class C misdemeanor, pursuant to Ark. Code Ann. § 16-10-108," the motion said.