Joshua Allen’s attorney emphatically denied Allen did anything wrong when the limited partnership owning Walk-On’s Sports Bistreaux in Amarillo failed, leaving investors with nothing. Two of them claimed $3 million was diverted from the operation.
Updated story: Judge rules against Joshua Allen in Amarillo Walk-on’s case – must pay former investors for ‘breach’ of duty
Attorney Nick Olguin talked to Lubbock Lights the day after testimony was heard Monday in a Lubbock courtroom. Participants expect judge John Grace to issue a ruling in the next few weeks.
Jeffrey Tait Crow and Raiderland Holdings (owned by Chance Britt) sued in 2023 after the Walk-On’s limited partnership, WTX WO, was insolvent.
“We gave Josh money. We were promised a return on it. That never happened,” Britt told LubbockLights.com the day after the trial.
Allen and his business partner Johnny Qubty were accused of diverting money from the operation ($3 million according to documents) and not telling fellow investors, according to the lawsuit. Qutby settled out-of-court in February. Terms were not disclosed.
“They have to prove Josh Allen did something wrong. They didn’t do it,” Olguin said about his client.
The restaurant opened in 2020. Then in mid-2023 the Amarillo Walk-On’s went back to corporate ownership, according to a video posted to myhighplains.com.
Olguin added the opening was during COVID-19, saying the restaurant started out 25 percent full – later 50 percent.
“Well into 2021, it was still not at full capacity. They lost it. It’s just bad timing as far as the restaurant. No one could have predicted the COVID pandemic,” Olguin said.
Britt strongly disagreed.
“It broke all kinds of records. It broke the Lubbock record for opening,” adding Walk-on’s “annihilated” its closest Amarillo competitor.
Allen is also under investigatation amid allegations of a Ponzi scheme where hundreds of people stand to lose millions of dollars in Ferrum Capital, which Allen co-owned.
Olguin acknowledged serious allegations of wrongdoing in the Ferrum case but said he couldn’t comment on that.
“He is under investigation in the Ferrum deal. I feel like they’re separate and unique,” Olguin said, referring to the Walk-On’s case.
Allen pleaded his Fifth Amendment rights more than 500 times in a deposition this year on Ferrum – meaning he did not answer questions.
To read our complete coverage on Ferrum you can click here.
Taking money or not
The major point of contention in the Walk-On’s lawsuit was whether Allen, Qubty and a company called Quball Holdings, LLC (Allen was listed as company vice president in state comptroller records) transferred more than $3 million out of the partnership.
A tax document entered in court records showed the money was “escrowed” with Quball.
“There’s no evidence that Josh Allen took any money from that for his personal gain,” Olguin said.
“These guys relied on each other. It didn’t work out. It’s unfortunate for everyone. … They have no evidence my guy took money,” Olguin said.
Olguin disputed the idea Allen made guarantees of making a certain amount of money.
“I think that was proven not to be the case,” he said of what happened in court Monday.
Britt thinks he might have been the biggest investor at $600,000. When he lost that investment, he and his wife filed for reorganizational bankruptcy.
“I have to forgive for what’s been done, but I also want to reiterate that justice needs to be served. … Forgiveness and justice are two different things. So, that’s what we’re fighting for is the justice,” Britt said.
There were claims Allen failed to inform his investors and withheld documents even after the limited partnership failed.
Olguin disagreed.
“Nobody issued any subpoena notices. … They had a way to get these records. They didn’t do it,” he said.
“I don’t think the evidence they put on proved my guy was negligent or acted in bad faith. They all lost the money,” Olguin said.
LubbockLights.com reached out to attorneys for Qutby before this story was published. We’ve not heard back but will provide an update if needed.
‘Justice for the Ferrum victims’
While Olguin could not talk about Ferrum, Britt did.
“We want justice. We want justice for the Ferrum victims. … The justice system needs to step in and do its thing.” Britt said.
“There’s elderly people out there that can’t recoup what’s been taken. We’re still young enough, my wife and I, that we can tighten down and buckle down and hopefully work hard enough to restore what’s been taken,” Britt said.
Allen approached people at one of the bigger churches in Lubbock to form relationships and get their money, Britt said. He does not blame the church. He blames Allen, calling him “a bad apple” in a large group.
“We’re grateful for the prayers, the thoughts, the posts, whatever it may be. We’re grateful for our friends,” Britt said.
