SCOTT COUNTY, KY -- The developer of The 500's on Main condominiums, J. Edward "Butch" Schneider, faces a lawsuit that alleges he "misappropriated" more than $750,000 from an earlier project in Scott County, reports the Lexington Herald-Leader in its Sunday edition.
The estate of the late Lexington developer Donald K. Poole also claims in the lawsuit that Schneider "left the estate holding the bag on more than a million dollars of bank debt."
Schneider, who was Poole's partner in the Villas of Canewood in Scott County, has denied the allegations both in a recent interview and in court filings, the Herald-Leader reports.
He said he has deposit slips and other documents that show how the partnership's money was handled and that Poole was paid all he was owed. The allegations are "one-sided" right now, Schneider said, but "we have all the documentation on it."
In the lawsuit, Poole's widow, Doris, as executrix of the estate, says she thinks Schneider paid himself "excessive management fees and unauthorized advances" during construction of 38 residences in the Villas of Canewood, reports the Herald-Leader.
She also claims that Schneider "fraudulently misrepresented material facts" and refused to give Poole an accounting of how the partnership's money was spent.
The case is scheduled for trial on May 21 in Fayette Circuit Court, reports the Lexington Herald-Leader.
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