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USOC developer Ray Marshall back under scrutiny

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Could the Springs’ former golden boy end up in jail? - BASJAN BERNARD / SHUTTERSTOCK.COM
  • Basjan Bernard / Shutterstock.com
  • Could the Springs’ former golden boy end up in jail?
As former local developer Ray Marshall awaits a preliminary hearing on criminal charges arising in 2012 from his handling of the U.S. Olympic Committee headquarters project, an unrelated lawsuit has been filed against an energy company with which he’s associated.

Price Simms Holdings LLC owns nine auto dealerships in the San Francisco Bay Area that contracted in June 2016 with Candle3 LLC, for which Marshall serves as an officer. The company promised to install LED and HVAC systems costing nearly $5 million. Representations were made by Candle3 official Richard Abbott in meetings and emails and by Abbott and Marshall in a phone call about quality and scope of the work and predicted energy savings, the lawsuit says, adding, “Those representations were false at the time that they were made.”

Price Simms, the lawsuit says, “did not learn of, or have reason to know of, the falsity of those promises until February 21, 2018, when a Candle3 employee provided information to Plaintiffs, that suggested 
that those promises made to induce Plaintiffs to enter into the Agreement were false.” The lawsuit describes the problems as “nonobvious” and alleges Candle3 used Price Simms’ money “to support Candle3 projects for third parties.”

Price Simms filed its suit, alleging breach of contract and fraud, in California state court before it was removed to the U.S. District Court’s Eastern District of California. The judge then dismissed the case, but allowed Price Simms to file an amended complaint. On Sept. 14, Candle3’s attorney filed another motion to dismiss, which is pending.

Candle3 has offices in Irvine, California, and at 1755 Telstar Drive, Colorado Springs, according to its website. Jim White, president/principal of Candle3, tells the Independent, “We have a strong position [regarding the lawsuit]. What you’ll find will be favorable for us.”

Marshall could not be reached for comment but stated in a declaration filed with the court that he’s a founder, principal and “chief science and technology officer” of Candle3.

In a 26-page motion to dismiss, Candle3’s attorney George Wolff of San Francisco argues that Price Simms isn’t a party to the nine dealership agreements, and, therefore, has no standing to sue. The motion also argues the agreements didn’t contain specific dates and times of performance against which to measure achievement. Another Candle3 attorney, Michael Squeri, tells the Indy via email his client plans to file “a Cross-Complaint for damages.”

A November 2009 indictment accused Marshall and a business partner of a pattern of racketeering and defrauding of 15 people through deceptive use of several development entities. He was acquitted in April 2012. Marshall also faced a civil action regarding those activities.

Marshall was accused in a separate criminal case of siphoning $1 million from the city and El Pomar Foundation in the city’s $53 million deal to keep the USOC headquarters in Colorado Springs. The late Judge Barney Iuppa dismissed those charges, but the Colorado Court Appeals reinstated them twice. Now Marshall, 54, awaits a preliminary hearing on Oct. 19 on 41 counts of theft and racketeering, the Gazette reported in July. He’s free on bond.

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