The Irvine firm that has been trying for more than a year to raise funds to purchase the famous Mustang Ranch brothel has been sued for allegedly failing to pay for a smaller Nevada bordello it acquired last year.
Strong Point Inc., which made the widely publicized bid to buy the Mustang for $18 million in 1985, allegedly failed to pay the purchase price of $1 million for Sue’s Bar & Bordello in Elko, Nev., according to the Orange County Superior Court lawsuit.
The complaint was filed by Robert and Joan Churik, who asked for almost $2 million in damages.
Strong Point lawyer John Joseph Matonis said Wednesday that the Churiks weren’t paid for the bordello because they failed to disclose that they did not hold legal title to the land.
He said Strong Point will press for damages against the Churiks.
Matonis also said Wednesday that Strong Point plans to reduce its emphasis on the brothel business but intends to continue operating Sue’s Bar & Bordello.
Strong Point last month announced its intention to sell a substance that it claims improves the human immune system, and Matonis said the new product line will involve a ‘de-emphasis’ of the brothel business. But he said the company also intends to continue its efforts to purchase the Mustang Ranch.