7 Brew Co-Founder Files $2M Embezzlement Lawsuit Against Modular Construction Partner
Summary
A lawsuit filed by 7 Brew co-founder Ron Crume alleges embezzlement of over $2 million by partner Lee Loveall, leading to a legal dispute over company finances and management.
Why It Matters
This case highlights issues of financial governance and accountability within rapidly growing businesses. The outcome could impact the operational integrity of 7 Brew and its modular construction partner, Creative Modular Construction, affecting stakeholders and investors.
Key Takeaways
- Ron Crume alleges that Lee Loveall embezzled over $2 million from Creative Modular Construction.
- The lawsuit includes serious accusations such as fraud and breach of fiduciary duty.
- A judge has intervened to prevent the destruction of company records amid the dispute.
- 7 Brew's rapid expansion could be jeopardized by this legal battle.
- The case underscores the importance of financial oversight in partnerships.
A crane lowers the top section of a 7 Brew Coffee stand at 8023 Cantrell Rd. in Little Rock (Jason Burt) Partners at a modular construction firm powering 7 Brew Drive-Thru Coffee’s rapid national expansion are locked in a legal fight over an alleged embezzlement scheme. Ron Crume has filed a lawsuit alleging that Lee Loveall diverted more than $2 million in company funds for personal uses including family vacations to Hawaii and a truck purchase for his son. The suit accuses Loveall of concealing the transactions and preventing an accounting of losses by blocking access to Creative Modular Construction’s (CMC) records, IT systems and financial backups. Loveall’s wife Leanna, a former CMC employee who had access to its financial systems, was also named as a defendant. A circuit judge in Greene County, Missouri, on Feb. 9 blocked the Lovealls from altering or destroying company records and issued an injunction ordering them to give the plaintiff access to the records. As of Wednesday, the Lovealls had not filed a response to the lawsuit, which accuses them of fraud, conversion, unjust enrichment, breach of fiduciary duty, and breach of operating agreement. The suit seeks compensatory damages, disgorgement, restitution, and punitive damages. Growing Business Crume of Benton County is a co-founder of Springdale-based 7 Brew. He and his wife Lisa launched the brand in Rogers in 2017. The Crumes are the owners of Club 37 LLC, which holds a 50% interest in CMC. Lee Loveall holds ...
