Judge rules investor in Houston midtown club was defrauded, awards $1.5 million judgment

Judge rules in favor of nightclub investor in defrauding case

A judge ruled an investor in a Houston midtown nightclub was defrauded and awarded him more than $1 million. FOX 26's Randy Wallace has more.

HARRIS COUNTY, Texas - FOX 26 first reported on the lawsuit against PDA Nightclub in April 2024. 

Now, the nightclub appears to be gone, and its owners are hit hard in the wallet by a judge. 

The backstory:

What was it that made Juan Paz think the club would be a good investment?

"The way it was presented, very unique, very upscale," Juan said. "Some credible guys, one is a lawyer, the other one is a broker. I think at one time there was a doctor too."

Dig deeper:

But when he wanted to see where his $500,000 investment was going, Juan says he was not given access to the books.

"It's a blueprint of betrayal," said Juan's attorney, George Edwards. "There were multiple representations made to our client before there was ever a contract signed, and the court found that our client had been defrauded." 

The judgment

The court didn't just award actual damages here, it put something on top, called punitive damages, of a million dollars.

"Unfortunately, we have people who have not been accountable on their own, and they have just stepped away from all responsibility," said attorney Murtaza Sutarwalla. "We are going to stand with our client and makes sure he collects on the judgment. The judge has sent a strong message you have to be accountable in Harris County."

FOX 26 reached out to the attorney representing PDA Nightclub for comment.