Investment-scheme lawsuit targets Chester County tavern

The owners of the popular Whip Tavern in the heart of Chester County horse country in 2004 received $100,000 from Tony Young, an investment manager accused in a $25 million Ponzi scheme, to help open the business.

Now the court-appointed receiver, who is gathering money to reimburse defrauded investors, wants the money back, according to a lawsuit filed this week in Philadelphia against the operators of the Whip Tavern, in West Marlborough Township, near Young's former horse farm.

"He was going to be the third partner . . . but a week before we went to closing he backed out," Kenneth C. "Casey" Kulp, one of the Whip's owners, said Friday of Young's involvement. The other owner is Luke A. Allen.

Despite declining to be a partner, Young still provided $100,000 toward the $375,000 purchase of the property and the business, according to the lawsuit. "It was supposed to be a loan, but there was no documentation," said Kulp, acknowledging that the money was not paid back.

The suit in U.S. District Court against the Whip Tavern was among six filed this week by attorneys for the receiver, Louis C. Bechtle. They seek a total of $2.25 million from certain investors and others, including 15 charities, who received money that Young has admitted taking from investors in his Acorn Capital Management funds.

Investors who received more profits from Young's funds than they invested were sued if they refused to sign tolling agreements allowing the receiver to pursue claims for a longer period of time than might otherwise be permitted.

Michael and Billie Bailkin, who invested $115,000 in January 2001 and withdrew $139,832 in February 2002, court documents say, were among those who refused such an agreement.

"We took our money out very early and think he has no right to come after us," Michael Bailkin said Friday.