Jefferson County investor accuses business partners of fraud

Andrea Dearden Sep. 15, 2014, 12:30pm

A Jefferson County investor alleges his financial interest in dozens of companies has been fraudulently managed. 

Joe R. Chapman filed a lawsuit Aug. 18 in Jefferson County District Court against Qamar U. Arfeen, Arfeen Properties, Harbor Healthcare System and dozens of Harbor Hospice facilities in different cities in Texas. 

According to the complaint, Chapman was a partner or member in all of the hospital and hospice companies listed as defendants. He says Arfeen Properties purchased his share in some of the properties but has not provided him with any "consideration for said interests." 

Chapman accuses the defendants of breaching the duty of loyalty by allegedly improperly transferring his interest in certain defendants and entering into unreasonable contracts with others. As a result, Chapman says the defendants have "misappropriated funds" and violated their fiduciary duty to him. 

Chapman also accuses the defendants of fraud. He says the companies have failed to account for profits from the alleged improper transactions. He demands an accounting. He also seeks more than $200,000 in damages. 

Attorneys Chris M. Portner, J. Trenton Bond and Scott W. Browne represent Chapman. They request a jury trial. 

The case number is Jefferson County District Court case A196-015

This is a report on a civil lawsuit filed at Jefferson County District Court. The details in this report come from an original complaint filed by a plaintiff. Please note that a complaint represents an accusation by a private individual, not the government. It is not an indication of guilt and it represents only one side of the story.

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