Owners of Provincetown hotel, drag show venue sue each other over alleged fraud, mismanagement
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The competing lawsuits were previously reported by the
In federal court in Puerto Rico, Cirino asked for the court to affirm her right to sell the hotel, as well as order Horgan and Bente to 'immediately' pay the outstanding debts accrued under their management. The group has co-owned Pilgrim House since 2017.
Established as a hostel in 1810, Pilgrim House gained prominence as a performance venue, according to its
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Cirino and Barbeau met Horgan, a tennis instructor in Provincetown, in 2015, according to court records. Two years later, they agreed to partner with Horgan and Bente to buy Pilgrim House, then operating as the Sage Inn and Lounge.
Cirino and Barbeau said they also loaned their partners money to start a local clothing store and for a down payment on their home in Truro.
According to court filings, Cirino and Barbeau put the hotel up for sale after discovering it was behind on its bills and that its creditors had threatened legal action. In February, the two accepted an offer to offload the property for $4.5 million — a sale they say has been blocked by Horgan and Bente.
'It is a top-notch, but rare, opportunity, given the financial woes plaguing the Pilgrim House Hotel,' read Cirino's complaint in federal court. 'Mr. Horgan, however, unfoundedly believes the offer to be unsatisfactory when the reality is that the proceeds from the offer will barely pay the creditors.'
Cirino accused Horgan and Bente of improperly funneling hotel funds towards various unrelated expenses, including a separate hospitality business in Palm Springs, Calif., a legal dispute over
Cirino is a managing partner of .406 Ventures, a Boston-based venture capital firm; she was recognized as one of the Globe's
Reached by phone Tuesday, she deferred comment to her attorney, Bruce Bierhans.
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Bierhans, who also represents Barbeau, said that, while his clients were the chief investors in the Pilgrim House venture, Horgan and Bente were charged with managing day-to-day operations.
'The one mistake that [my clients] made, unfortunately, was entering into a variety of agreements that provided them with equal ownership in addition to Horgan and Bente — who put no money into the original investment,' he said.
Nevertheless, the arrangement was not unique, Bierhans said.
'You just hope when these things happen, if you're the investor, that the people that you have brought on as partners don't misappropriate funds,' he added.
Horgan and Bente, who are married, have denied many of the allegations of financial misconduct. Responding to Cirino's complaint in Barnstable Superior Court, the two said they have successfully managed Pilgrim House 'at a profit and in a consistent manner' since buying it in 2017.
'It's only upon Cirino's recent insistence on selling the business that she now alleges improper operation,' read the response.
Horgan and Bente have accused Cirino of trying to sabotage the business, alleging that she contacted over a dozen artists booked to appear at Pilgrim House and pressured them to back out of their appearances. According to a countersuit filed in Puerto Rico, she told the performers that Horgan characterized Horgan was 'an embezzler, a criminal, and a person soon to be serving jail time.'
Cirino and Barbeau requested that a Massachusetts judge issue an injunction to stop their partners from acting on behalf of Pilgrim House. But Horgan and Bente suggested the request was not motivated by genuine concern for the business.
'To be candid, plaintiffs really just want to sell the business unilaterally and seek injunctive relief to do so,' read the response.
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The judge declined to bar Horgan and Bente from managing the business, but ordered them to turn over financial information and refrain from making further irregular expenditures.
That order, Cirino and Barbeau argue, has been ignored. A contempt hearing is scheduled for Aug. 12, according to court records.
Horgan and Bente could not be reached for comment. Their attorney did not return a request for comment.
Performance area at the Pilgrim House.
John Ciluzzi / Premier Commercial
Camilo Fonseca can be reached at
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