Pilcher says Racks 'has run its course' at civil bench trial against him, creditors

Racks Gentleman's Club (Google Maps)

CASPER, Wyo. — A bench trial began Monday against Sonny Pilcher, president of CC Cowboys; the club's mortgage holder; and members of Pilcher's family who — at one time, purportedly — owned the assets.

CC Cowboys does business as Racks Gentleman's Club, the adult entertainment bar located at 1910 Talc Road in Natrona County west of Casper. Seventh Judicial District Judge Dan Forgey is presiding.

The plaintiff is Monty Elliott, who sued Pilcher in 2008 for about $39,000 in subcontracted concrete work performed for Pilcher Construction by Elliott's company, Omega Construction. In 2015, Elliott was awarded $120,000 in a civil trial judgement in the case, according to the court documents.

When the judgment was awarded, Pilcher was serving a year in federal prison following an IRS investigation into tax evasion and cash payments to employees, according to court records.

Elliott and attorney Steve Winship are now seeking the satisfaction of the $120K judgment, plus attorney fees and interest at a 10% judgment rate.

Pilcher told Oil City News that the estimate is about $470,000. He also estimated that the Natrona County Sheriff's Office has collected about $136,000 in garnishments on Elliott's behalf over a three- to four-year period.

"They came and took the money right out of the cash register," Pilcher testified Monday.

Elliott is also seeking the satisfaction of those claims through assets held by Linlog LLC. Court records indicate that Pilcher transferred ownership of several properties to Linlog to secure and ultimately satisfy construction loans and other debts, including other civil judgments against him. Those loans were consolidated into a $528,882 note backed by the deed to Racks and the accompanying real estate in 2011, according to Linlog's filings.

Elliott, through his attorney Steve Winship, claims that those property transfers were fraudulent and that Pilcher didn't receive payment for them "reasonably equivalent for their value." Elliott says that these transfers were attempts by Pilcher to divest from assets and escape creditors.

Linlog, through attorney Keith Nachbar, asserts in filings that all these transfers "were supported by consideration reasonably equivalent to the value of the property interests" and not attempts to defraud any of Pilcher's creditors. These assertions are supported by the affidavit of James Coffman, Linlog's bookkeeper.

By asserting that the transfers were fraudulent, Elliott's counsel says the court can, under Wyoming's Uniform Fraudulent Transfers Act, order the satisfaction of Elliot's $120K judgment through those assets themselves and whoever is holding them.

In addition to Linlog, Elliott says that Pilcher's sister and nephew, John and Arta Blake, are also liable.

Before Pilcher pleaded guilty to felony tax evasion in 2014, he asked the Blakes to sign paperwork to become owners of CC Cowboys, though he would effectively run the operation from prison, according to the Blakes’ brief.

The Blakes (through their own attorney, Grant Rogers) assert that the transfer of CC Cowboy's stock was never formally completed and that they were effectively only stewards of the liquor license. They say further that, under the UFTA, the business could not have been fraudulently transferred to them, encumbered as it was by the $582,000 note held by Linlog.

In his brief, Rogers also urged the court to take a "close look" at the amount of any payments Elliott has already received toward satisfaction of the underlying judgment.

In October 2012, a settlement in the original 2008 suit was reached where Pilcher would pay Elliott $25,000, according to the Blakes’ trial brief. That amount was paid in two checks to Elliott and his creditor by Pilcher's former attorney, the brief says.

A stipulated order was entered dismissing the case, but six months later "the dismissal is vacated and Monty's claims against Sonny are revived," the brief states.

In 2021, a settlement had been reached whereby the Blakes would be released from the suit following the agreed-upon transfer of Racks’ liquor license, a valuable asset, to Elliott.

That action needed only the approval of the Natrona County Commission. Despite the district court's ruling, Nachbar argued to the commission that the license was not the Blakes’ to give. Pilcher said the business would be useless without the liquor license.

After tabling the matter and consulting what little statutory guidance existed, the commission ultimately denied the transfer in summer 2021. Among its concerns were that an established business would be deprived of a full retail license and that it would have been "presumably parked" at Elliott's residence, in the words of then–county attorney Eric Nelson.

The final defendant is Anthony MacMillan, Racks’ club manager. Elliott says MacMillan also held an asset of Pilcher's that he didn't pay for — a 2005 Ford F-250 Super Duty. MacMillan said he had been making payments toward the agreed-upon $5,000 for about three months before he hit a deer near Chugwater and the truck was totaled. Pilcher was in prison at the time.

The 1910 Talc Road property, including Racks, was purchased by Wyoming Secure Properties LLC last October, Pilcher testified Monday. The deal would be finalized, following the 90-day redemption period, "any day now."

Pilcher declined to speculate to Oil City News about whether the company had any desire to continue running a strip club.

On Monday, Winship questioned Pilcher about whether any "outlaw motorcycle gangs" he had reputedly done business with might have stepped up to stop the foreclosure.

"I doubt they would loan me any money at this point," Pilcher replied. He further opined that the business has "run its course." In its heyday, Pilcher said the dancers were from out of town; now they are all local and "it's not the same."

Winship asked if that was because the motorcycle gangs had been responsible for securing those out-of-town dancers.

"Like I said, it's run its course," Pilcher said.