James Miles thought he was getting a good deal when he agreed to pay $500,000 for a 30 percent ownership interest in a North Little Rock company that sells wheelchairs and other medical equipment.
But it didn’t turn out that way.
Miles has sued Riverside Medical Distribution Inc. and its owner, Kevin Hinkle, accusing Hinkle of misrepresenting the financial health of the company, according to Miles’ lawsuit, filed last month in Pulaski County Circuit Court.
Miles began working at Riverside in June 2014, after signing a promissory note for the $500,000, said the lawsuit, which was filed by Patrick James of the Little Rock law firm James House & Downing P.A.
Miles, though, didn’t like what he saw, according to the lawsuit. “Miles learned that Hinkle did not operate Riverside in an ethical and legitimate manner,” the lawsuit said.
He accused Hinkle of pocketing cash made from direct patient cash sales, and allegedly failing to properly report sales tax to the Arkansas Department of Finance & Administration.
The final straw came in September 2015 when, Miles said, Hinkle accused him of stealing cash directly from patient cash sales, the lawsuit said.
On Sept. 29, Miles resigned from the company.
Miles is suing for violations of the Arkansas Securities Act, breach of contract, and other counts. He also wants a judge to rescind the stock purchase agreement and the promissory note.
Hinkle didn’t immediately return a call for comment.