The Baltimore City Circuit Court filings, which seek to freeze Baltimore Racing Development LLC’s advanced ticket sales escrow account, states that the account is the entity’s primary asset and contains more than $2.5 million.
The Baltimore Grand Prix is scheduled to be run Sept. 2-4.
Steven Wehner, the man responsible for the original idea to bring auto racing to the streets of downtown Baltimore, filed a nearly $750,000 complaint against the organizers of the Baltimore Grand Prix on Aug. 11. Fellow investor Sean Conley filed a similar action Aug. 16 for a default on the $313,250 owed him under an agreement in which he sold 5.2 percent of his 10.2 percent ownership.
According to Wehner’s complaint, known as a confession of judgment, Baltimore Racing Development was to have paid the Rodgers Forge resident $575,000 over five years to purchase his 10.2 percent interest in the organization. But the filing claimed that BRD had defaulted on its payments. Attached to the filing was an exhibit of the agreement between BRD and Wehner from May 12, 2010.
Wehner and Conley’s attorney, David B. Shapiro of the Law Offices of David B. Shapiro in Baltimore, said last week that to ensure his clients would be paid, he would be requesting the injunction and the temporary restraining order.
The injunction filed Wednesday requested an emergency hearing and a freezing of the BRD’s escrow account for advance ticket sales, since the money is expected to be released Sept. 2.
Baltimore Racing Development CEO Jay G. Davidson said in an emailed response to questions that he was unaware of the injunctive relief filings.
“We have a major event to focus on that will showcase Baltimore to the nation and beyond, and we aren’t going to be distracted from our task,” Davidson said.
Shapiro could not be reached for comment.
The filing also alleges that Baltimore Racing Development received a $1.1 million loan from A.J. Clark. Clark is a shareholder in Pro Sports Management LLC, a Delaware limited liability company that owns 5.7 percent interest in the racing organization. The filing also said the racing organization received a line of credit worth $1.6 million from M&T Bank, a major sponsor of the race.