Even as a legal dispute on the ownership of Hotel Riviera in Finasisu is pending in Superior Court, a businessman has filed in the Republic of Korea criminal charges against another businessman who allegedly sold his stock ownership of the hotel to a company despite the fact that the shares have never been transferred to him.
Do Sik Kim, through counsel Michael W. Dotts, has instituted a lawsuit asking the court to declare him as the sole and true owner of all the outstanding shares of Changshin Resort Saipan Corp., owner of the 135-room Hotel Riviera.
Kim is suing Kyung Duk Park for breach of contract. He is also suing Park and the Korea-based Globuil Holdings for unjust enrichment and trespass to chattel.
Dotts also disclosed that Kim filed criminal charges against Park and that the criminal case is currently pending in Korea.
Dotts said Park only paid 50 million Korean Won to Kim out of 2.5 billion Korean Won pursuant to their stock purchase agreement executed in February 2013.
Dotts said despite failure to pay the total amount, Park subsequently sold shares of the hotel to Globuil Holdings in April 2015.
The lawyer asked the court to hold Park and Globuil Holdings liable to pay him damages in an amount to be proven at trial for their interference with his ownership of hotel shares.
Dotts also requested the court to order Park and Globuil to disgorge benefits and profits they received arising out of their purported ownership of the shares and operation of the hotel.
According to Dotts, Kim became the 100-percent owner of Hotel Riviera under subscription and purchase agreement of March of 2009.
Dotts said that, on Feb. 3, 2013, Kim and Park executed a stock purchase agreement.
Under the agreement, Park was to purchase the 12.5 million shares of Hotel Riviera owned by Kim at a total price of 2.5 billion Korean Won.
Dotts said Park was to make a down payment of 300 million Korean Won at the time the agreement was executed, and pay off the balance of the purchase price by June 30, 2013.
Dotts said Kim was to transfer the shares to Park “upon completion of the payment.”
The lawyer said at the time the agreement was executed, Park paid only 1/6th of the 300 million Korean Won down payment (50 million Korean Won).
Dotts said even at the filing of this lawsuit, Park has not paid the balance of what was owed.
“As a result, no closing under the purchase agreement occurred, and the shares have never been transferred to Park,” Dotts said.
However, the lawyer said, Park purported to complete the sale of the shares to Globuil Holdings on April 19, 2015.
He said Globuil Holdings has caused Hotel Riviera to list the company as its sole shareholder in its most recent annual report filed with the Registrar.
Dotts said Park has no interest in the shares because he failed to pay for them.
In 2012, former governor Pedro P. Tenorio and his wife Sophia Tenorio sued Changshin Resort for allegedly failing to pay lease of their land located in the hotel’s premises.