Subway President Sued for Fraud

On December 3rd, 2009, the Subway co-founder and president, Fred DeLuca, was sued by his previous partner of separate business ventures, Anthony V. Pugliese III for $5 billion. DeLuca is being sued for scheming his partner, Anthony, out of a multi-billion dollar business venture in a fraudulent manner. The two worked together on a 41,000 acre land development in Florida. The project valued at about $9 billion.Anthony and his attorneys argue that Fred DeLuca and his company took his investment out of the business venture through Fraud. They are officially suing for breach of fiduciary duty, breach of contract, predatory lending, breach of Florida Deceptive and Unfair Trade Practices Act, breach of the covenant of good faith and fair dealing, fraud in the inducement, negligent misrepresentation, quantum merit and unjust enrichment. Willie Gary, Anthony's attorney stated "Fred DeLuca stole our client's dream. He became a partner in a multi-billion dollar business deal with our client and made empty promises." Anthony had dreams of a green community called Destiny, but he believe DeLuca stole that from him and took him out of the investment.

They are suing on account of many violations. Breach of fiduciary duty is the obligation to act in the best interest of another party and he violate this by taking Anthony out of this investment so he could make more money. Breach of contract simply means he defied the contract and partnership he had with Anthony. Fred also violated the Florida Deceptive and Unfair Trade practices act by misleading his service. He failed to give good faith in the project and to his partner and will now pay the consequences pending the result of the lawsuit.

I believe that Fred should be charged and convicting of the many fraudulent conducts that he has been accused of. The green village was Anothony's idea and they were partners going in on it, but because of DeLuca's unfair and illegal dealings, Anthony was unable to continue being a participant in the investment. In other words, he was kicked out of the project. I don't think this is right at all and greedy billionaire Fred DeLuca could end up losing a lot more money than he would have made from kicking Anthony out of the project.