ORLANDO -- A man is suing after a company goes bankrupt and his investment never was reimbursed.
Plaintiff Philip T. Davies filed a complaint on May 14 in Orange County Circuit Court against defendants Kaplan Young and Molly Parron PLLC for legal malpractice.
According to the complaint, Davies purchased 5% equity interest in BioStat from Fred Pauzar for $200,000 in 2012. In 2013, Pauzar offered and Davies invested another $1 million, receiving two convertible promissory notes for $500,000 each that were secured by receivables and general intangibles.
In February 2014, Pauzar personally guaranteed repayment of the two notes and BioStat ultimately defaulted on the two notes, the suit claims. In addition to BioStat, Davies loaned an additional $100,000 to an affiliate of BioStat and Pauzar called Medical Inventory Capital, LLC, secured by 24% interest in the company, the suit says. Davies also held another 17% in another affiliate known by Blackwood Holdings Group, LLC, the suit says.
Davies learned after his relationship with Pauzar broke down that Pauzar and Bob Carmichael were divesting assets to Blackwood, the suit says. Davies alleged that defendants Kaplan Young and Molly Parron PLLC advised him to settle with BioStat and was negligent in the Blackwood litigation when Davies retained the firm in the suit against BioStat, Blackwood and Pauzar, the suit says.
Davies is represented by Eric M. Bradstreet.