A company claims it may fail and its customers may lose their retirement accounts if its former president is allowed to continue his alleged rampage of stealing the company’s assets, including more than $20,000 from its bank account.
First American Gold Exchange, Auburn Ray Busby, Monte McWilliams and Denise Busby claim they are all members of First American Gold Exchange along with defendant Donald Scott Rainey.
On Feb. 12, the members elected to remove Rainey from his status as president of the company, according to the complaint filed Feb. 14 in Jefferson County District Court.
After Rainey was removed as president from the company, he went to Chase Bank in Nederland and withdrew $22,256 from First American’s account, which is a majority of the money in the account, the suit states.
Because Rainey has access to the company’s other accounts, First American fears that he will attempt to deplete the other accounts of their money, the complaint says. In addition, there are gold shipments that are due to arrive at First American’s post office box in Nederland.
“The defendant has access to the box and plaintiff fears that the defendant will attempt to take possession of the gold that is shipped before the company can take possession,” the suit states.
“Much of the money the defendant has converted to his own use and possibly will convert, are funds belonging to plaintiffs’ customers, some of which is their retirement accounts. If these funds are not protected, plaintiff will not be able to conclude pending transactions with these customers which will cause them to lose money and the company to suffer irreparable injury, loss, and harm to the company’s reputation.”
First American says a temporary restraining order must be issued in order to prevent Rainey from taking the company’s assets and from spending the money he took from Chase Bank. The plaintiffs also seek costs and other relief the court deems just.
Mel W. Shelander of Beaumont will be representing them
The case has been assigned to Judge Gary Sanderson, 60th District Court.
Case No. B193-940