BEAUMONT – A Port Arthur company’s alleged deceitful and fraudulent actions during the sale of a convenience store has left a Texas businessman “holding the bag” and “out of millions of dollars.”
Through The Ferguson Law Firm, Abdul Rahman filed suit against Osman Swati and his company, Swati Enterprises, on Sept. 28 in Jefferson County District Court.
In his suit, Rahman, who immigrated to the U.S. with nothing, says he trusted the Swati defendants when he went into business with them.
Once here, one of Rahman’s first big investments included property he acquired from Osman Swati for $1.9 million, which included a convenience store with a Church’s Fried Chicken operated by the Swati defendants.
At the time of purchase, the defendants allegedly represented to Rahman that they had full right to transfer the property, specifically the Church’s Chicken, to him free and clear of any encumbrances.
If the Church’s Chicken had not been a part of the sale, Rahman would not have purchased the property at the negotiated price, the suit states.
In 2017, Church’s Chicken informed Rahman that the franchise agreement would be revoked immediately.
“On information and belief, Church’s Chicken terminated the franchise agreement in large part due to the fact the Swati Defendants never had the rights under the franchise agreement to assign their rights to others,” the suit states.
“Now, Mr. Rahman is left holding the bag. He is out millions of dollars due to the Swati Defendants’ deceitful and fraudulent actions.”
The Swati defendants allegedly told Rahman the Church’s Chicken would be his at the time of purchase for the next 20 years.
“On information and belief, Church’s Fried Chicken terminated their franchise agreement because of Swati’s deceitful actions. The property is now worth substantially less than the $1,900,000 the Defendants received,” the suit states.
“As a result of the misrepresentations and fraudulent behavior by Defendants, Plaintiff suffered severe economic losses.”
In addition to his economic losses, Rahman is suing for exemplary damages.
He is represented by Cody Dishon of the Ferguson Firm.
Cause No. D-200748