KHRISNA RUSSELL

Tribune Chief Reporter

krussell@tribunemedia.net

THE dispute between the founders of the HeadKnowles organisation has taken a new twist with Lia Head-Rigby countersuing her former friend Gina Knowles.

In February, Mrs Knowles sued her former partner Mrs Head-Rigby and her husband, accusing them of using GoFundMe funds for personal use while violating a mandate to send all the donations to The Bahamas.

The lawsuit, filed in Florida, claims Mrs Head-Rigby went from being on the brink of poverty to living like the “rich and famous” at the expense of the Hurricane Dorian victims she vowed to help. At dispute is more than $400,000.

Mrs Head-Rigby had strongly denied the claims at the time and had promised to counter sue – and yesterday details of her court filings emerged.

Mrs Head-Rigby is suing Ms Knowles for fraud, injunctive relief, unjust enrichment, and accounting in excess of $30,000 excluding interest, costs, and attorney’s fees. Mrs Head-Rigby has also asked an Orange County Circuit Court to rule that the HeadKnowles Foundation transfer $1,007,086 held by Ms Knowles and the amount in the court registry, to the Head Foundation to be properly and immediately used for the benefit of the Bahamian people.

She is also asking for further relief, including but not limited to attorney’s fees and costs.

Mrs Head-Rigby further lobbied for the right to have her name removed from the non-profit organisation which the two founded for Hurricane Dorian relief efforts.

In newly filed documents, Mrs Head-Rigby who now resides in Florida and has founded her own non-profit, called the Head Foundation, claims the HeadKnowles Hurricane Dorian fundraiser via GoFundMe last year raised well over $1m. However, requests on how this money were utilised were ignored, she said.

“Pursuant to the GoFundMe attestation, the beneficiary of the Hurricane Dorian fundraiser funds was to be ‘a volunteer run group founded by [Head-Rigby] and Gina Knowles’,” the document read.

“On or about September 13, 2020, Head-Rigby executed documents with the IRS to allow the Hurricane Dorian Fundraiser funds to be transferred to Head Foundation and then to (the) counter-defendant (HeadKnowles Foundation). The IRS’ and Florida’s reporting requirements require charitable organisations to file certain forms and provide information to detail how the organisation’s contributions were used.

“Head-Rigby must comply with these reporting requirements due to the funds sent to (the) counter-defendant. The Dorian fundraiser raised well over $1m. Over $1m (was) transferred from a US bank account, HeadRigby and Head Foundation’s bank account, to a Bahamian bank account at the direction of Knowles. The interactions between the parties are complex due to the transfer of funds internationally and the need to comply with IRS and Florida reporting requirements.

“On multiple occasions, Head-Rigby has requested documents evidencing how the counter-defendant has utilised and/or maintained the funds. To date, (the) counter-defendant and Knowles have failed and refused to provide Head-Rigby with the requested accounting of how the funds were used/maintained and claim that Head-Rigby was not a member of the counter defendant.”

The lawsuit continued: “A remedy at law is inadequate wherefore defendant/counter-plaintiff, Italya Head-Rigby, respectfully requests that the court enter judgment in favour of Head-Rigby and against plaintiff/counter-defendant, HeadKnowles Foundation, thereby ordering counter-defendant to provide Head-Rigby with an accounting, order counter-defendant to produce all original documentation showing how the Hurricane Dorian funds were utilised, and/or maintained and for such further relief as this court deems just and proper.”

On claims of fraudulent misrepresentation, Mrs Head-Rigby accused Mrs Knowles of misrepresenting her at all relevant times in those previously filed documents, adding the act was detrimental.

“To induce Head-Rigby to sign the GoFundMe attestation and to ensure that Head-Rigby would transfer all raised funds collected by Head-Rigby during the Dorian fundraiser to counter-defendant, Knowles knowingly misrepresented to Head-Rigby at all relevant times that she was forming counter-defendant for their joint fundraising efforts and that Head-Rigby was a co-founder of counter-defendant.

“At all relevant times, Knowles was a friend of Head-Rigby whom Head-Rigby trusted. As such, Head-Rigby had reason to believe and believed Knowles’ representations to her when made. These statements and continuous reference to the forming of the counter-defendant and the opening of ‘their’ bank accounts for the benefit of the Bahamian people was at all times materially false when made by Knowles.

“Knowles filed counter-defendant’s incorporation documents in The Bahamas on the same day that Head-Rigby executed the GoFundMe attestation under penalty of perjury. Knowles knew, or should have known, that (the) counter-defendant was not an organisation that was co-founded by Head-Rigby and Knowles, as Knowles affirmatively chose not to include and did not include HeadRigby in the counter-defendant entity. Further, Knowles personally signed the incorporating documents to effectuate this fraud to the detriment of Head-Rigby.”

Because this case is in the early stages of litigation, both parties have said it is difficult to determine the potential costs of the legal action.

At this time, Mrs Knowles estimates that she will incur attorney’s fees and costs of in a range of $200,000 to $300,000 to pursue this matter through trial.

However, Mrs Head-Rigby’s party estimates that they will each incur attorney’s fees and costs in a range of $85,000 - $100,000 to pursue this matter through trial.