Two of the four owners of the Whispering Oaks Luxury RV Park development have filed an affidavit in a civil suit they brought against the other two owners alleging damages of almost $340,000.
The suit has also asked the court to order a dissolution of the agreement under which the firm was operating when it shut down.
Duane and Stephanie Smith who live in Baxter County brought the suit against Brian and Stacy Sides of the Branson, Missouri area. In the complaint, the four are each listed as 25 percent owners under an amendment to the operating agreement signed in August 2022.
On Thursday, the Smiths filed the affidavit with the court listing money they allege was lost because of the actions or inactions of Brian and Stacy Sides.
The civil suit alleges that Brian and Stacy Sides misappropriated assets of the business for their own personal gain and benefit, wrote checks when sufficient funds were not in the bank to cover them, refused to account for all the monies and property which were misappropriated and have taken actions designed to “damage and destroy the business known as Whispering Oaks Luxury Parks, LLC.”
Among the items listed were a number of ATM withdrawals made from company funds in Las Vegas and other locations near casinos, diverting funds meant to pay contractors and subcontractors for the Sides personal use, creating false invoices and using payments to benefit Brian and Stacy sides.
Other allegations include the unauthorized sale of equipment owned by the company, operation of a scheme in which a laborer working on the project submitted just over $20,000 in invoices to the company with some unknown portion being paid to Brian Sides.
It is also alleged that Sides attempted to involve other workers on the site in the same type of diversion scheme, that he ordered building materials allegedly for use in the construction of the RV park and then sold the material without paying for it.
VENTURE PROPOSED IN 2022
The lawsuit alleges that Brian and Stacy Sides approached the Smith couple in 2022 about becoming involved in an RV park business opportunity in Mountain Home.
It is alleged the Sides represented to the Smiths that the Baxter County couple would not have to invest any money in the project but would be expected to bring good credit scores and financial credibility to the table in order to support loan approvals needed to finance construction.
The Sides claimed the bulk of construction and start-up cost would come from the sale of their home located along Mission Ridge Lane in Reed Spring, Missouri.
The lawsuit alleges it was discovered that Sides did not really own the house outright. When the residence sold in 2022, none of the money went into Whispering Oaks accounts, according to the lawsuit.
While there was an understanding at the outset that the Smith couple would not be required to invest more money in the project, the lawsuit alleges Brian Sides contacted the Smiths often asking that they cover various shortfalls, generally on an urgent basis. At one point they took money out of retirement accounts to cover deficits.
It is alleged in the lawsuit that Brian Sides and his wife “abandoned” the Whispering Oaks project in 2023 leaving the Smith couple to deal with what was a growing financial mess.
According to court documents, Brian Sides and his wife were both served with notice of the lawsuit in mid-December. There has been no action taken by the Missouri couple since that time and nothing has been filed to indicate an attorney has been hired to represent the couple.
PROJECT CONTROVERSIAL FROM START
The RV park, located off Baypoint Drive in the Mallard Point area, was controversial from the beginning.
Questions were raised about how the development would affect traffic in the area and on other issues such as potential increases in storm water runoff and access to a public use road leading to a boat dock that has been in use since the 1970’s.
There were also questions asked about permitting for water, septic and basic engineering. The Baxter County Planning Commission voted early this year to approve plans for the RV park, pending approval of necessary permits by the Arkansas Department of Environmental Quality.
The civil suit was filed in early December last year. Mountain Home attorney Roger Morgan represents the Smith couple.
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