A newly filed civil complaint has yanked open the velvet rope on what plaintiffs describe as a bruising ownership war that stripped millions from some of Los Angeles’ better-known gentlemen’s clubs. The suit sketches out a tangle of alleged underground poker games, disputed payouts and what lawyers for the Galam family characterize as a bait-and-switch that left corporate accounts drained. With lawyers for both sides now gearing up for a fight, the city’s nightlife scene is getting an unusually public look at an ugly backroom dispute.
Lawsuit Lays Out Broad Allegations
According to the New York Post, plaintiffs Mike and Johnathan Galam accuse manager Craig Franze and an associate of running a fraudulent scheme to wrest control of two clubs while quietly diverting profits for themselves. The complaint alleges sex trafficking, illegal alcohol and drug sales, and high-stakes underground poker that pushed millions of dollars through the clubs’ operations. The Galams are asking a court to unwind the contested transfers and hand ownership of the venues back to them.
Clubs Named, Manager Tied To West Hollywood Venue
The suit specifically names the clubs 4Play and Plan B and places West Hollywood’s Body Shop at the center of the controversy. 4Play’s official site lists its Cotner Avenue address and long run as an L.A. nightlife staple, and public business records show an entity associated with 8250 Sunset Blvd registered to Craig Franze. Together, those locations form the business footprint that the complaint claims was mismanaged and stripped of corporate assets.
Alleged Money Trail, Poker Shortings And Luxury Spending
Per the reporting and the complaint, the Galams say they paid about $2.9 million to secure control of the two clubs, only to later discover that corporate profits had allegedly been drained. The suit estimates that more than $1 million is missing. Players quoted in the coverage and referenced in the filing describe underground poker nights with seven- and eight-figure pots, and one player claims he was shorted after cashing out large chip stacks.
The complaint also points to a series of luxury buys it says were funded with club proceeds, including expensive cars, a diamond ring worth roughly $150,000 and a reported $30,000-a-month rental in Encino. Franze, for his part, has issued a categorical denial, telling reporters that the allegations are false and amount to an extortion attempt. The New York Post reported those allegations and denials.
A History Of High-stakes Nightlife Partnerships
This is not the first time Galam and Franze have collided in messy club litigation. Earlier coverage of their joint ventures, including past run-ins over licensing and operations at the Crazy Horse Too property, describes a pattern of regulatory battles and lawsuits whenever clubs change hands or attempt to reopen. Courthouse News Service has documented litigation tied to those earlier disputes, underscoring the long and litigious history both sides bring into the current case.
What The Lawsuit Seeks And Possible Stakes
The complaint asks the court to return ownership to Mike Galam, restore allegedly diverted corporate assets and award additional, unspecified damages tied to the claimed scheme. Because this filing is a civil action, the immediate battlefront is the civil courts. At the same time, the allegations involving trafficking and illegal sales could, in theory, trigger separate criminal inquiries if investigators later find evidence to back them up. For now, though, it will be up to the civil docket to decide whether the Galams can claw back control of the clubs.
For the moment, both sides are dug in, with the Galams urging a judge to reverse what they call a fraudulent takeover and Franze publicly denying any wrongdoing. The case is new to the system, which means motions, discovery and potentially wider scrutiny of how Los Angeles adult-entertainment businesses handle cash, licensing and private gaming are still ahead. Hoodline will monitor the filings and any official statements as the case moves forward.
