The Pig and Pearl opened in November 2013 on West Broad Street. (Kieran McQuilkin)
A partnership that three years ago helped launch a restaurant on the northern border of the Fan has soured, with an investor claiming the proprietors defrauded his company out of more than $100,000 and mishandled the eatery’s finances.
The owners of the Pig & Pearl restaurant, Season and Mathew Appelget, are being sued by Pig And Pearl BBQ LLC for damages it claims the couple owes for breaching its operating agreement.
The lawsuit, filed Sept. 9 in Richmond Circuit Court, also alleges the Appelgets fraudulently used the plaintiff’s consent to refinance a loan on the restaurant space at 2053 W. Broad St., and further claims the Appelgets did not pay the company a $100,000 consultant’s fee as outlined in their initial agreement.
Pig And Pearl BBQ LLC’s managing partner and owner is Jonathan Sethna, who the lawsuit states is a doctor who had previously invested in other restaurants.
He’s seeking a jury trial and more than $550,000 in damages, according to court documents.
Sethna is represented by J.P. McGuire Boyd and Johnathan Lucier of Williams Mullen. They said their client would not comment on the case.
Mathew Appelget also would not comment about the lawsuit, acknowledging that while he was aware of the filing, he and Season have not formally been served.
The 36-page lawsuit alleges multiple counts against the Appelgets and their companies – 2053 W. Broad Street LLC and 2053 W. Broad Street Restaurant & Bar LLC – including fraud and breach of contract.
In June 2013, the lawsuit alleges that Mathew Appelget was looking for investment funding for the Pig & Pearl restaurant, and was introduced to Sethna by an unidentified mutual friend.
During in-person negotiations, the Appelgets allegedly promised to share 33 percent of the restaurant’s profits with Sethna, along with promising to provide regular and ongoing financial updates.
The Appelgets, through 2053 W. Broad Street LLC, would own and retain 67 percent of the equity from Pig & Pearl.
After meeting with the Appelgets during the summer of 2013, Sethna agreed to make a $100,000 investment through the Pig And Pearl BBQ LLC he formed.
With the investment boost from Sethna, Pig & Pearl opened on Nov. 16, 2013.
After allegedly not turning a profit in 2013, the lawsuit claims Appelget reported $1.2 million in gross revenue for Pig & Pearl in 2014 during a January 2015 conference call with Sethna. The lawsuit also states that Mathew Appelget promised to provide 2014 tax returns when they were filed, along with quarterly financial statements.
But the Appelgets deployed stall tactics in providing Sethna with Pig & Pearl’s books, the lawsuit claims.
By June 2015, the lawsuit alleges that Pig & Pearl’s tax returns were submitted through the Appelgets’ businesses’ certified public accountant, which ultimately showed no profit was derived from the $1.2 million in revenue.
Both parties agreed to hire a bookkeeper to oversee Pig & Pearl’s finances in August 2015 after the revelation, the lawsuit alleges.
However, the lawsuit alleges that once hired, the Appelgets did not provide the accountant with access to the restaurant’s financial information, including ledgers and access to Pig & Pearl’s bank accounts despite repeated attempts.
Sethna also requested Pig & Pearl’s financial records, which the lawsuit alleges the Appelgets did not immediately provide upon his request. It was believed the restaurant made $972,466 in gross revenue in 2015, the lawsuit said, but a submitted tax return again showed no profit was made.
Gaining access to finances and a real account of revenue growth at Pig & Pearl continued to be a point of contention, the lawsuit alleges.
During the fall of 2015, the Appelgets were looking to refinance the loan they were paying to maintain ownership of the building that houses Pig & Pearl, the lawsuit said.
The loan required written consent from all of Pig & Pearl’s business partners, which, according to an operating agreement between the Appelgets, included Sethna.
According to the lawsuit, Sethna agreed to provide written consent if the Appelgets provided him with the financial statements and ledgers and granted him access to Pig & Pearl’s banking accounts. He also wanted the Appelgets to allow the newly hired bookkeeper access to the restaurant’s books.
The lawsuit alleges Mathew Appelget agreed to the terms, but still would not provide Sethna and the hired bookkeeper access to Pig & Pearl’s books.
Pig & Pearl was the Appelget’s first restaurant when it launched in the fall of 2013.
Serving up entrees featuring pork and oysters, the restaurant replaced the Republic, which closed in the summer of 2012 after financial troubles.
The Pig and Pearl opened in November 2013 on West Broad Street. (Kieran McQuilkin)
A partnership that three years ago helped launch a restaurant on the northern border of the Fan has soured, with an investor claiming the proprietors defrauded his company out of more than $100,000 and mishandled the eatery’s finances.
The owners of the Pig & Pearl restaurant, Season and Mathew Appelget, are being sued by Pig And Pearl BBQ LLC for damages it claims the couple owes for breaching its operating agreement.
The lawsuit, filed Sept. 9 in Richmond Circuit Court, also alleges the Appelgets fraudulently used the plaintiff’s consent to refinance a loan on the restaurant space at 2053 W. Broad St., and further claims the Appelgets did not pay the company a $100,000 consultant’s fee as outlined in their initial agreement.
Pig And Pearl BBQ LLC’s managing partner and owner is Jonathan Sethna, who the lawsuit states is a doctor who had previously invested in other restaurants.
He’s seeking a jury trial and more than $550,000 in damages, according to court documents.
Sethna is represented by J.P. McGuire Boyd and Johnathan Lucier of Williams Mullen. They said their client would not comment on the case.
Mathew Appelget also would not comment about the lawsuit, acknowledging that while he was aware of the filing, he and Season have not formally been served.
The 36-page lawsuit alleges multiple counts against the Appelgets and their companies – 2053 W. Broad Street LLC and 2053 W. Broad Street Restaurant & Bar LLC – including fraud and breach of contract.
In June 2013, the lawsuit alleges that Mathew Appelget was looking for investment funding for the Pig & Pearl restaurant, and was introduced to Sethna by an unidentified mutual friend.
During in-person negotiations, the Appelgets allegedly promised to share 33 percent of the restaurant’s profits with Sethna, along with promising to provide regular and ongoing financial updates.
The Appelgets, through 2053 W. Broad Street LLC, would own and retain 67 percent of the equity from Pig & Pearl.
After meeting with the Appelgets during the summer of 2013, Sethna agreed to make a $100,000 investment through the Pig And Pearl BBQ LLC he formed.
With the investment boost from Sethna, Pig & Pearl opened on Nov. 16, 2013.
After allegedly not turning a profit in 2013, the lawsuit claims Appelget reported $1.2 million in gross revenue for Pig & Pearl in 2014 during a January 2015 conference call with Sethna. The lawsuit also states that Mathew Appelget promised to provide 2014 tax returns when they were filed, along with quarterly financial statements.
But the Appelgets deployed stall tactics in providing Sethna with Pig & Pearl’s books, the lawsuit claims.
By June 2015, the lawsuit alleges that Pig & Pearl’s tax returns were submitted through the Appelgets’ businesses’ certified public accountant, which ultimately showed no profit was derived from the $1.2 million in revenue.
Both parties agreed to hire a bookkeeper to oversee Pig & Pearl’s finances in August 2015 after the revelation, the lawsuit alleges.
However, the lawsuit alleges that once hired, the Appelgets did not provide the accountant with access to the restaurant’s financial information, including ledgers and access to Pig & Pearl’s bank accounts despite repeated attempts.
Sethna also requested Pig & Pearl’s financial records, which the lawsuit alleges the Appelgets did not immediately provide upon his request. It was believed the restaurant made $972,466 in gross revenue in 2015, the lawsuit said, but a submitted tax return again showed no profit was made.
Gaining access to finances and a real account of revenue growth at Pig & Pearl continued to be a point of contention, the lawsuit alleges.
During the fall of 2015, the Appelgets were looking to refinance the loan they were paying to maintain ownership of the building that houses Pig & Pearl, the lawsuit said.
The loan required written consent from all of Pig & Pearl’s business partners, which, according to an operating agreement between the Appelgets, included Sethna.
According to the lawsuit, Sethna agreed to provide written consent if the Appelgets provided him with the financial statements and ledgers and granted him access to Pig & Pearl’s banking accounts. He also wanted the Appelgets to allow the newly hired bookkeeper access to the restaurant’s books.
The lawsuit alleges Mathew Appelget agreed to the terms, but still would not provide Sethna and the hired bookkeeper access to Pig & Pearl’s books.
Pig & Pearl was the Appelget’s first restaurant when it launched in the fall of 2013.
Serving up entrees featuring pork and oysters, the restaurant replaced the Republic, which closed in the summer of 2012 after financial troubles.