HOUSTON — Turkey Leg Hut has found itself entangled in yet another legal battle -- this time facing a lawsuit filed by Grammy-nominated gospel singer James Fortune and his wife.
Their company J4 Productions is suing Turkey Leg Hut owner Nakia Price. The Fortunes claim they put more than $300,000 into the restaurant, that their loan was never paid back and that they were defrauded when they invested.
On Wednesday, Turkey Leg Hut remained closed because of 35 health code violations that forced the restaurant to shut down last week.
Fortune is an investor in addition to being a famous gospel singer. In 2018, he and his wife, Rhaquele, met Turkey Leg Hut owners Nakia and Lyndel Price at their popular Third Ward restaurant. At the time, it seemed to be the epitome of success.
"We'd go to their home, we'd spend time (together). Our kids interacted with each other -- so, very close," Rhaquele said.
In December, as the Prices were in the middle of a contentious divorce, the Fortunes said they loaned Nakia as the restaurant’s owner $100,000.
Two months later, Rhaquele said Nakia called again.
"She was hysterical because the controllers were physically there to seize assets and so she needed financial assistance immediately," Rhaquele said.
The Fortunes said they put in $180,000 for 15% ownership of Turkey Leg Hut. They showed us agreements signed by Nakia Price for both transactions.
The next month, the Fortunes said Nakia told them she couldn't pay the bills.
"So she asked if I would use my personal card to purchase food for the business," Rhaquele said.
The Fortunes said they spent thousands paying for food supplies and services.
Then, on March 26, Turkey Leg Hut filed for bankruptcy and declared it had less than $50,000 in assets.
"By then we're, you know, we're $300,000 in. Bankruptcy was filed a month after we had given that money," James said adding, "We come to find out they're millions in debt now."
Nakia Holmes declined KHOU 11 News requests for an interview.
The Fortunes said that in hopes of keeping the restaurant afloat, they even paid some employees when Turkey Leg Hut didn't.
"I think I allowed my friendship to blind me in a lot of areas," Rhaquele said. "No words to describe the level of pain, hurt and frustration."
The Fortunes filed a lawsuit this week against Nakia Price in hopes of getting their money back. The lawsuit alleges they were defrauded concerning the financial state of Turkey Leg Hut and claims Nakia Price falsely indicated the restaurant was "unencumbered and free of all liabilities" when she sold them partial ownership.
Some people involved in the ongoing Turkey Leg Hut saga have criminal convictions, including Fortune. Their crimes occurred several years ago and were unrelated to the restaurant and the lawsuit.