JM-Ark Sued Over Alleged Misleading Sale

by Arkansas Business Staff  on Monday, Oct. 8, 2012 12:00 am  

Personal Security Products Inc. is suing JM-Ark Acquisition LLC of White Plains, N.Y., alleging a misleading land sale.

According to a lawsuit filed with Pulaski County Circuit Court, PS Products, which designs non-lethal weaponry like electrified knuckle dusters, purchased some fenced-in property from JM-Ark in southwest Little Rock in 2010 for its headquarters. The $250,000 deal included buildings from the bankruptcy estate of the former JM Products. PS Products was allegedly informed that all the land inside the fence was part of the deal.

Apparently, however, JM-Ark sold something it didn't actually own.

PS Products President Billy Pennington told Whispers that "within a matter of weeks" after closing on the sale, the former CFO of JM Products drove by to let Pennington know that part of the lot actually belonged to the nearby Arkansas Trailer Mfg. Co. Inc. To complicate matters, PS Products had already spent $20,000 on clearing a retention pond left by the former owner.

PS Products is suing JM-Ark for fraud, breach of contract, misrepresentation and detrimental reliance.

Other parties involved in the suit did not return calls seeking comment.



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