A defendant in a gold coin suit will now represent himself, as a Beaumont judge recently granted his former attorney’s motion to withdraw.
As previously reported, First American Gold Exchange, Auburn Ray Busby, Monte McWilliams and Denise Busby filed suit against Donald Scott Rainey on Feb. 14 in Jefferson County District Court.
The company claims it may fail and its customers may lose their retirement accounts if Rainey, 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.
At the onset of the suit, Greg Dykeman, attorney for the Beaumont law firm Strong Pipkin Bissell & Ledyard, represented Rainey.
Court records show that on April 8 an agreed motion to withdraw as counsel was filed, stating that Rainey “has expressed a desire to continue pro se and is in agreement that … Dykeman withdraw as counsel.”
Judge Milton Shuffield, 136th District Court, granted the motion on April 15, court papers say.
According to the complaint, on Feb. 12, the members elected to remove Rainey from his status as president of the company.
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 alleges 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.”
Mel W. Shelander of Beaumont represents the plaintiffs.
Case No. B193-940