A California law firm is suing jailed rap mogul MARION 'SUGE' KNIGHT,
accusing him of fraudulently selling or giving away property to avoid paying
them for their services.
Knight, who's serving a 10-month prison sentence, was ordered to pay
nearly $142,000 (GBP88,750) to law firm KOPPLE AND KLINGER in May (03) for
services the firm provided.
In the lawsuit filed yesterday (19AUG03) in LOS ANGELES SUPERIOR COURT,
the firm claims Knight hasn't paid the debt and has sold or transferred at
least four properties in the Los Angeles area for little or no compensation to
"hinder, delay or defraud" his creditors.
The firm seeks payment and is trying to prevent the properties Knight
allegedly transferred from being sold.
The properties in Beverly Hills, Malibu and Encino were transferred
starting in 1999, the lawsuit alleges. It has yet to be confirmed whether they
are homes or businesses.
In one case, Knight and his MHK INVESTMENT company gave away a property in
upscale Encino for "no valuable consideration", according to the lawsuit. The
recipient was aware of Knight's "deteriorating" financial and legal situation,
Knight, who's been in custody since 27 June (03), was found guilty of
violating parole last month (JUL03) for striking a Hollywood nightclub valet.