Investors in revolt! CityGuru Founder, Drew Morrison is facing another round of legal woes as Investors renew litigation in full force. Prospective investors will likely pause before opening their wallets to the Seattle start-up.
Morrison’s troubles began after defaulting on a promissory note and then tried to evade repayment of investors’ retirement funds. The Washington Superior Court of King County summarily awarded a judgment against Morrison who later succeeded with such a smoke screen that the Court vacated the judgment until the facts could be sorted out (See RipOff Report #1109446).
But as more facts began to surface regarding both CityGuru, Inc. and its flamboyant founder, Drew Morrison, the smell of fish in the air was enough to rally the Investors again. The Court granted their motion to amend the Complaint , Cause No. 13-2-03663-1 to include fraud, misrepresentation, conversion, violation of the Washington Consumer Act, and criminal profiteering in addition to the initial breach of contract.
The litigations coincide with similar complaints implicating Morrison’s Seattle start-up company, CityGuru, a.k.a. “CityGuruSeattle” and formerly dba “On The Go Technologies, LLC”. In a complaint filed with the Washington Attorney General’s Office, it has been revealed that CityGuru, Inc. is a Delaware-registered corporation currently owing $77,456.00 in unpaid taxes to Delaware, and has not filed the mandatory 2013 Annual Report. Nor does it seem to be paying taxes to the State of Washington where it bases its business address and operations in Seattle. In fact, the company is not registered or permitted to operate in Washington State.
While under oath during a supplemental exam, Drew Morrison claimed he was “unsure” of who were the officers of CityGuru, Inc. Yet, in a SEC Form D filed in May, 2013, Mr. Morrison, listed as Director, raised $80,000 funding along with Olin Nichols, listed as Executive Officer, and James Billmaier, listed as Executive Officer, Director and Promoter.
Olin Nichols is quick to point out he left the company soon after joining it as Chief Financial Officer. James Billmaier denies ever being anything more than an “Independent Contractor Consultant” even though Drew Morrison enthusiastically endorsed Mr. Billmaier as the Chief Executive Officer of CityGuru, Inc. in a blog dated November 8, 2012. Billmaier claims to have resigned from the position October 1, 2013 while another CEO, Tom Van Horn, promptly took up the reins on that date—only to resign just as quickly around December, 2013.
Even the company’s business address presents a rather murky picture. In its SEC filing of Form D, the CityGuru, Inc. Officers listed 900 First Avenue south, STE 412, Seattle, Washington as its business address. Billmaier now denies this as the actual address and has complained of the voluminous SEC and State correspondence delivered there. The actual physical address of CityGuru, Inc. is currently unknown.
Until further due diligence sorts out these facts, the prospective CityGuru, Inc. Investor would be wise to heed the words of one of the investors who has gone before them who advised: “Put your money in a bank savings account. Sure it will yield very little but at least you will get paid and your principal is still there when you need it.”