Brennan accused of fraud, misconduct in new federal lawsuit

Published: Feb. 18, 2019 at 1:12 PM CST
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A Minnehaha County couple is suing Chuck Brennan in federal court, saying he still owes them hundreds of thousands of dollars from a state lawsuit.

According to court documents, in February of 2015 Brennan's Badlands Airtime LLC made an agreement with John and Heidi Small, members of Cup O' Dirt LLC, to purchase Sunny Radio, KZOY.

Brennan and Badlands Airtime allegedly defaulted on the purchase agreement and instead purchased what came to be known as KBAD Radio from the University of Sioux Falls.

COD sued Brennan in state court. The Smalls say in the federal lawsuit that they have not received more than $450,000 in attorney fees and expenses but have been paid more than $300,000 from the state lawsuit.

The federal lawsuit claims Badlands Airtime LLC had no operating funds, bank account or capital when it made the agreement with COD, but Brennan told the Smalls "he personally was good for the payment obligations."

The federal lawsuit says "Brennan has abused the corporate form and otherwise engaged in fraud and misconduct."

After KBAD went off the air, Real Presence Radio agreed to purchase the station in April 2018. The new owners changed the station's call sign to KGWD in 2018.

The lawsuit alleges after the jury entered a verdict in the state lawsuit, Brennan asked for accelerated payments from Real Presence Radio to "hinder, delay, impede and impair the ability of COD to recover on the money judgement and to vindicate the verdict of the jury."