City of Lawrence files lawsuit against hotel; cites fraud

OREAD HOTEL LAWRENCE

LAWRENCE, Kan. (AP) – The City of Lawrence has filed a lawsuit to terminate an incentive agreement with a hotel, citing personal purchases and falsified retail sales.

The Lawrence Journal-World reports that the lawsuit claims the developers of The Oread hotel fraudulently collected tax rebates for hundreds of unrelated purchases, including landscaping for his home as well as a cabin in Colorado and the rental of a party tent. The lawsuit, filed Wednesday, also says the development group defrauded the city and engaged in activity involving wire and mail fraud.

Lawrence officials are seeking to recoup more than $400,000 in monetary damages as well as an end to the incentive agreement.

The developers have denied the allegations.

 

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