NEW ORLEANS – Several disgruntled investors say they’re out over a million dollars after giving money to a local event promoter who they said promised to double their investments.
The promoter says all the investors will get their money back – and then some – once an often-delayed concert with rapper 50-Cent is held in the city.
All told, promoter Marcel Morton said 20 people have invested over $1.5 million in his events.
First investment paid off
Some of the investors first signed on for the Mary J. Blige concert that Morton put on in the New Orleans Arena in November 2006.
Will Batiste said he invested $20,000 with the promise that he would get double his money back.
While it may sound too good to be true, Batiste, who is a floor manager at a local car dealership, said the promoter signed a contract that promised just that – an investment of $20,000 would bring a return of the original investment, plus another $20,000.
Batiste said he did get a check for $40,000, but it took much longer than the 45 days written in the contract.
“We finally caught him at his home and he gave us a check a couple of months after that,” he said. “It was for $40,000.”
Stakes get higher
After a successful deal with the Mary J. Blige concert, Morton offered Batiste and his mother-in-law the same kind of deal if they invested in another concert featuring the entertainer 50 Cent. They bought in.
“The money we invested, that we got back, we put it back into the 50 Cent concert,” said Batiste.
In fact, Batiste and his mother in law - Antoinette Francis King - invested $50,000 then $25,000 and finally another $20,000, for a total of $95,000.
Within two months of the 50 Cent concert scheduled September of 2007, they expected to get a payout of $190,000.
However, two years later, there still hasn’t been a 50 Cent concert and Batiste said he thinks Morton simply took his money.
“I think it was theft,” he said. “I think he stole from me. I think he had no intention of giving our money back.”
Delays, not defrauding
Morton said investors have not been defrauded.
“Will Batiste did invest with me,” he said. “He’s lying about me defrauding him.”
Morton said at that time that the 50 Cent concert would take place next month. He said when it does, Batiste and his mother-in-law will get twice their original $95,000 investment.
Others upset too
Will Batiste isn't the only one saying Morton has cheated him out of an investment.
Three lawsuits in Orleans Civil Court and one in Jefferson Parish accuse Morton and his firm, Down South Entertainment, of everything from fraud and misrepresentation to breach of contract.
Jermaine Tigler said he invested $100,000 with a guarantee that he would double his money.
Ronald Jones said he invested $150,000 in a boxing match with the guarantee he would double his money.
James Brown III said he invested $120,000 for three pro boxing matches and was promised a return of $800,000.
And in Jefferson, Maxima Group Investments said it put up $55,000 for a Mary J. Blige concert with a guaranteed return of $165,000.
And other investors are also speaking out.
“I’ve been robbed,” exclaimed Lynette Theodore.
A transit driver, Theodore said she invested $15,000 in that Mary J. Blige concert. And after the concert, she says Morton made her feel good about it.
“I didn’t see any money, but he told me I did well and I doubled my money,” she recalled.
She said Morton offered her another investment opportunity with her $30,000.
Theodore invested in the 50 Cent concert, but as Batiste pointed out, the concert - originally scheduled sometime in 2007 - still hasn't taken place.
Theodore said every time she ran into Morton he had an excuse for her.
“I’m disappointed,” he said. “I didn’t think he would do that.”
UPS driver Erneston Arnold invested $12,000 in February of 2006.
He also said he had a contract that promised a huge profit of $5,000 to $10,000 on a $2,000 investment.
Arnold added to his investment.
“I looked at getting maybe $50,000 to $55,000 off of that – to no avail.”
He said the concert in April 2006, featuring Keyshia Cole and other entertainers took place, but didn’t sell out and Morton kept his money.
“He just took the money and reinvested it,” said Arnold. “It kind of upset me, because he didn’t inform anyone.”
Morton said another man who brought Arnold into the investment was supposed to tell him about the reinvestment.
About a year and a half ago, Arnold says he was able to get $6,000 from Morton so he could buy a car.
But beyond that, more than three years after he first invested, Arnold said he hasn't seen the rest of his initial investment and none of the profit he says he was guaranteed.
Morton defends himself
When told about the allegations from his investors, Morton said they weren’t true.
“I have full intentions of paying them every cent I promised them,” he said.
In a more extensive interview done later on, Morton again defended himself.
“Some things happened beyond my control,” he explained. “I’m not in control of an entertainer’s schedule.”
When asked why he didn’t just give the investors their original investment back, Morton said he doesn’t have the money.
“The money was paid for deposits toward the event,” he said, adding that the 50 Cent concert is now scheduled for next year.
Morton doesn't deny that he promised to double the money that many of his investors gave him.
And, he said the 50 Cent concert wasn't cancelled but is just rescheduled.
“The event is based upon 50 Cent releasing a CD,” said Morton, explaining the two-year delay. “He don’t release a CD every month.”
Batiste contends that he and his mother-in-law received checks from Morton to show good faith on their investments in December 2007. They said the $15,000 check bounced.
Morton said the check was written as collateral, and not for cashing that day.
He said his disgruntled investors should be paid by the end of this month when a new investor comes on board, though he said he can’t guarantee that.
“Until you have it in hand, it’s not really done until you have it in hand."
Court records show Morton's attorney has withdrawn from the four cases in Jefferson and Orleans civil courts. Morton says he hasn't been able to pay him.
