Attorneys for Newton estate development seek funds recovery
Attorneys for CSD LLC, the bankrupt company that was supposed to redevelop entertainer Wayne Newton’s estate into a theme park and museum, filed a court action to recover money from the former project manager and the majority owner.
Court papers filed Wednesday said Steven Kennedy had used and unspecified amount of company money to pay personal expenses as well as award inflated contracts to friends. This falls in line with complaints that Wayne and Kathleen Newton have voiced for months.
The court papers also said that CSD’s 70 percent owner, Texas businessman Lacy Harber, was an active participant in the project and has a legal responsibility for the allegedly misspent money even if he was not directly involved.
Harber has said the in the past that audits were conducted and found everything in order. Kennedy, on Friday, said the action would “clear the air. I have been audited twice and have nothing to hide.”
In addition, the court papers said that the $58.8 million Harber invested into the project should be deemed an equity infusion, not a loan, thus lowering his repayment priority.
Contact reporter Tim O’Reiley at
toreiley@reviewjournal.com or 702-387-5290.
