A family fight spilled over into court after Dr. S.L. Sethi and his wife sued their son in Madison County Chancery Court Friday.
The couple and their son, Sunny, are shareholders in several private companies including R&S Holdings, LLC, Lodging America at Starkville, LLC, Trilogy Holdings, LLC, and Bumpers Drive-in of America, Inc.
The operating agreements state Dr. Sethi is the manager of the company. Dr. Sethi was never removed as manager but such facts did not stop his son from engaging in some (alleged) shenanigans:
8. Despite Dr. Sethi being the sole, duly-appointed Manager of R & S, Sunny is engaged in a pattern of encumbering and transferring properties owned by R & S. He has improperly assumed and used powers reserved exclusively for R & S' Manager and falsely represented himself as R & S' manager to banks and other third parties. For example, Sunny has encumbered property owned by R & S for his own benefit. Additionally, he has signed quitclaim deeds -- prepared by him -- for multiple parcels of valuable Madison County property owned by R & S. The deeds transferred the properties to entities owned and controlled by Sunny orfor Sunny's personal benefit. These property transfers were made without Dr. Sethi's knowledge and without any consideration being paid to R & S or its members. Despite this, tax documents prepared by Sunny show a $4.8 million distribution to Dr. Sethi from R & S, money that was never paid to Dr. Sethi.
The complaint states the operating agreement assigns 70% of the shares to Dr. Sethi with the remainder split evenly between his wife and son. The plaintiffs accuse Sonny Sethi of twice "secretly and improperly" amending the operating agreement without a vote and thus without their knowledge. The (alleged) forgery stated the first amendment changed Sonny's share to 95%, leaving 5% for his parents. The second amendment allegedly divested Dr. Sethi and his wife of all shares.
The company also owned "valuable real estate" in Gluckstadt yet "Sunny claims that R&S has no assets." The complaint says if such is true, the assets were secretly transferred to companies owned by Sunny.
Madison County land records show several properties were transferred to companies owned by Sunny Sethi in the last few years:
Transaction #1: Transferred property on December 31, 2024 from R&S Holdings to Bellamare Development, LLC. Bellamare is owned by Sunny Sethi.
Transaction #2: Transferred deed from R&S Holdings to Bellamare on September 30, 2024.
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6 comments:
This is really unfortunate to see. They are a good family.
2:26 Obviously you never had any business dealings with the "good family".
Wouldn’t say that to anyone that had any association with Heritage Bank.
Strange enough they decided to sue now, about two years after the last transfer. There must be more stories to this.
The leader of the Cartel. The name Dr. Sethi should ring a clarion-bell all over Madison County and beyond. He has been calling the shots for decades regarding Mississippi gas stations, convenience stores, land sales, small restaurant acquisitions, hotels, motels and probably shops that make candlesticks.
And yes, he sold hundreds of swamp-land acres behind the Texaco and Burger King at the Madison entrance, to the Board of Supervisors and others who fell for crap that was too good to be true. The man has an art for knowing suckers when he sees them.
He can pay for this attorney using the contents of one half-gallon jug buried in the back yard.
Explain how they are a good family when he wrecked a business friend of mine in Alexandria, Louisiana but not paying the $5,000,000 he owed him and forced him out of business.
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