Boozy Co-Working Startup Comes Apart Amid Fraud Investigation
One of the ever-growing number of co-working businesses in New York might be collapsing under the weight of fraud investigations.
Bar Works, which makes alcohol a prominent part of its pitch to possible members, is based in New York and has two locations in the city: one in the West Village and one near Times Square. It has become the subject of an FBI investigation and multiple lawsuits, and both New York locations have been closed up with padlocks on their doors, Crain's New York reports.
A group of 27 Chinese investors have filed suit against Bar Works, alleging over $3M of their money was used by the company in a Ponzi scheme. A man calling himself Jonathan Black claimed to be the company's chief executive. Based on the account of a former publicist for the company, Black could be a pseudonym for Renwick Haddow, a man from London previously accused of Ponzi schemes.
Bar Works' website lists seven locations as "coming soon," but a planned Bar Works on Eighth Avenue in Chelsea has reportedly ceased construction and is behind on its rent; the landlord told Crain's he has begun eviction proceedings.
The former publicist, Franklin Kinard, claimed he was promoted from publicist to head of management, despite no experience in co-working or building management, before he resigned in May. Kinard claims to be cooperating with both the FBI and lawyers for the Chinese investors.
One of those lawyers, Michael Kapin, claimed the name Renwick Haddow could itself be a pseudonym, saying the person ostensibly responsible for Bar Works' alleged financial crimes "seems to be a ghost."
