A judgment has been entered in Baxter County Circuit Court dissolving the operating agreement for the Whispering Oaks Luxury RV Park development. The judgment also awards two of the partners damages of about $334,000 and gives those same partners the absolute power to dissolve and liquidate Whispering Oaks Luxury RV Parks, LLC.
The suit was filed by Duane and Stephanie Smith who live in Baxter County against Brian and Stacy Sides of Branson.
In the complaint, the four are each listed as 25 percent owners under an amendment to the operating agreement signed in August 2022.
The Smiths had also filed an 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 have misappropriated assets of the business for their own personal gain and benefit, written 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, diverting funds meant to pay contractors and subcontractors for the Sides personal use, creating false invoices and using the money 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 portion of that money being paid to Brian Sides.
It is also alleged that Sides attempted to involve other workers on the site in the same type of 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.
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, Mo.
The lawsuit alleges it was discovered that Sides did not really own the house outright and when the residence sold in 2022, none of the money went into Whispering Oaks accounts.
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 last year but have failed to file an answer.
The RV park, located off Baypoint Drive in the Mallard Point area, was controversial from the beginning.
Many questions were raised about how the development would affect traffic in the area and on other issues such as potential increases in stormwater runoff and access to a public use road leading to a boat dock which has been in use since the 1970.
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.
There are also a number of lawsuits that have been filed in Missouri with similar allegations. The early suits were related from Sides taking money from victims of the tornado in Joplin but not doing the work or not doing it to standards. Brian Sides was recently indicted by a Texas County, Missouri grand jury and charged with taking $49,000 from a customer to install an off grid solar system, but not meeting his end of the agreement.
Mountain Home attorney Roger Morgan represents the Smith couple.
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