Correction: A version of this article published on April 14, 2021 incorrectly suggested that all defendants in this lawsuit had been accused of fraud in the complaint. The complaint includes a count of “Fraud and Fraudulent Inducement into Contract” against only McCreless Enterprises, LLC and Caleb McCreless. The Southeast Texas Record did not mean to suggest that Patron Partners, LLC and Rick Figueroa had been sued under a count of fraud.
HOUSTON — A Porter-based company and its owners are facing fraud claims relating to the purchasing, resale and investment of personal protective equipment.
Joel Garza, Sr., and Joel Garza, Jr., filed a complaint April 5 in Harris County District Court against McCreless Enterprises LLC and Caleb McCreless alleging fraud and fraudulent inducement.
According to the plaintiffs' complaint, they entered into "two consecutive 'Side Letter Agreements'" with the defendant McCreless Enterprises for the purchase and redistribution of personal protective equipment (PPE) from China and Vietnam. The Garzas claim that they invested $590,400 and were to receive a combined 40% of the profits. They allege that Caleb McCreless took the investment funds and put them into his personal accounts "to make himself appear wealthier than he actually is" and that McCreless and McCreless Enterprises "frauduently" were "double selling" the PPE which put their investment "in jeopardy."
The Garzas also allege that McCreless and McCreless Enterprises used the funds meant to purchase PPE to try and obtain "preferential consideration" for government contracts. In addition, the plaintiffs claim in their suit that they were also involved in "other PPE business deals" with McCreless and McCreless Enterprises that included a more than $1 million loan to McCreless Enterprises for factories making PPE under the name "Medcare" and other dealings that involved more than $800,000 in earned commissions. The complaint also asserts a single cause of action against Houston-based Patron Partners LLC, and one of its partners Rick Figueroa, for “Money Had and Received” to recover funds allegedly paid by the Garzas to McCreless and McCreless Enterprises.
The Garzas seek monetary relief of more than $1 million, interest and all other legal or equitable relief. They are represented by Brian Buster of Hajjar Peters LLP in Austin.