Valiant Eagle Inc (PSRU)

[HippyTrades]

The development comes after Sous Chef Llc., a subsidiary of Aldamisa Entertainment, filed a fraud lawsuit against Providence earlier in the week.

According to the complaint that was lodged in L.A. Superior Court, Sous Chef and Providence entered into an agreement together where each was to contribute $3 million to the production of Chef, for a total of $6 million.

Sous Chef had already put up $2.5 million by that time, leaving the company with another $500,000 to go to meet its commitment. On July 10, Sous Chef says it agreed to advance Providence $200,000, reducing the amount it would contribute to the escrow to $2.8 million.

“The parties agreed the ‘production funds’ would be placed in an escrow account and would be distributed to an ‘account of Sous Chef’ to fund the production,” says the lawsuit. “The parties agreed that the funds would not be distributed from the escrow account until both parties passed ‘compliance’ with Rabobank, the bank processing the wire transfers, and Chicago Title received confirmation of ‘compliance.'”

An attorney for Providence (who hasn’t responded to a request for comment) is said to have e-mailed “a purported confirmation of a wire transfer of $2,800,000 to the Escrow Account” on July 10, but what Sous Chef didn’t know at the time was that the money never showed up.

Mitchell then instructed an escrowee agent to transfer $297,175 from the escrow account into two other accounts, “neither of which was the Production Account or an account controlled by Sous Chef,” says the lawsuit.