COBB COUNTY, Ga. — A civil lawsuit has been filed in the Cobb County Superior Court against the owner of Town Center at Cobb and some of his other companies.
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Attorney Mitch Skandalakis who filed the lawsuit, represents the plaintiff Starrcade, an arcade that rents spaces in the mall.
“Where’s all this money going these tenants are paying? He’s doing something with these funds and not paying the utilities,” said Attorney Skandalakis.
The lawsuit was filed weeks after business owners and customers showed up at Town Center Mall only to be turned away.
While anchor stores remained open, other access points to the mall were prohibited. The doors were locked as signs indicated a temporary closure due to “unforeseen circumstances”.
Georgia Power told Channel 2 Action News it tried to work with the owner numerous times and issued several warnings about the highly delinquent bill.
The owner eventually paid up, after power was disconnected.
“Apparently this money is being diverted. It’s being stolen by Kohan. This is inexcusable. There’s something going on here and he needs to be held accountable for it,” said Attorney Skandalakis.
Skandalakis says his client Starrcade paid everything the business was supposed to regarding rent and utilities.
“I can tell you he has paid on a monthly basis, and he is current on all of his payments...utility payments,” said Attorney Skandalakis.
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Despite that Shane Starrs business was one of numerous others that were temporarily left in the dark, because power was restored.
In the lawsuit, Mike Kohan and some of the other companies he owns are accused of doing the same thing to tenants of other malls in other parts of the country.
Skandalakis said he hopes to get more answers about Kohan’s financial decisions through discovery.
“Through what’s called discovery we will be able to access his books and his records that’s where the rubber meets the road. It’s going to show where this money is going to,” said Attorney Skandalakis.
The lawsuit states Kohan Investment is not licensed to do business in the state of Georgia.
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The lawsuit alleges the conduct of Kohan and some of his other companies constitutes a pattern of racketeering activity under the Georgia RICO Act.
“You need basically two predicate acts to be subject to RICO and each time there is a power bill that is diverted to Kohan or wherever else it is a violation of civil RICO,” said Attorney Skandalakis.
When asked what Attorney Skandalakis’ client is hoping to get out of the lawsuit, he told Channel 2 Action News Cobb County Bureau Chief Michele Newell, “First of all we want to have a receiver appointed. Someone else (was) appointed by a judge to run this mall. We want him out of the picture, we want an accounting, and we want damages.
These tenants are entitled to damages for this type of behavior because this guy’s screwing with their livelihood,” said Skandalakis.
Before Kohan backed out of two scheduled interviews, he told Newell over the phone that he wasn’t sure why the electric bill got so high and said he was looking into that. He said he is current on his water bill and plans to appeal back taxes on the property.
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