Former Organic To Go catering CEO in court
July 1, 2009
Courthouse News:The former CEO of an Organic To Go's catering business slapped customers with unexpected credit card bills for more than 25,000 transactions that had taken place as long as two years earlier. However, he told the board of directors that the problem had affected only a "few customers," Organic To Go has claimed in California's King County Court.
The late credit card charges stemmed from Jason Brown's mismanagement of the business, according to the complaint. Master Card and Visa placed $300,000 in escrow because of the problem, the complaint says. Brown also told board members that he needed a $5 million loan to expand the business, and then used the money to pay off more than $4 million in outstanding debts, the company claims.