Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, May 25, 1994 TAG: 9405250061
SECTION: VIRGINIA PAGE: B-1 EDITION: NEW RIVER VALLEY
SOURCE: By KATHY LOAN STAFF WRITER
DATELINE: CHRISTIANSBURG LENGTH: Medium
Phil Keith, commonwealth's attorney, said Tuesday that the case had been declined by Betty Jo Anthony of the Roanoke commonwealth's attorney's office, whom Keith had asked to be special prosecutor in the case.
"I hadn't heard," Alcorn said Tuesday afternoon. He declined further comment.
The investigation centered on whether Alcorn wrongfully took money obtained from six limited partners of Homestyle Restaurant Associates - investors in the Blacksburg Big Boy - and sank it into his financially troubled Park Realty. Park filed for reorganization in U.S. Bankruptcy Court in September 1992.
Keith said the Roanoke commonwealth's attorney's office "advised us after a review of the investigation that while there might be grounds for probable cause to think that a crime had been committed, the difficulty in proving the case beyond a reasonable doubt would not justify prosecution," Keith said.
"I agree with them."
Alcorn was the general partner of Homestyle and is president and owner of Park Realty. As general partner, he managed the project, kept the records and books of the partnership and had the authority to make investment decisions. Limited partners are investors but are not involved in day-to-day management.
"The way the partnership agreement is written gives Mr. Alcorn the right to do certain things which arguably means there was no criminal intent in what he did," Keith said.
Alcorn and his attorney, Don Huffman of Roanoke, said earlier this year that the matter simply was a civil dispute among partners and that Alcorn had not done anything that was not documented or covered by the partnership agreement.
According to bankruptcy records, Alcorn invested $273,500 of the partnership funds and was repaying it at 11 percent interest, executing promissory notes.
Carroll Atkisson, a Roanoke real estate developer and one of the six limited partners, said in February that he and the other partners became aware that Alcorn was investing Homestyle money into Park only days before Alcorn filed for bankruptcy protection.
Atkisson and the five other partners, including Del. Jim Shuler of Blacksburg, each had invested $50,000 in the partnership. The restaurant filed for financial reorganization in December 1992.
Keith said a primary reason he asked for a special prosecutor was to avoid any appearance of political motivations behind the investigation. Keith and Shuler are Democrats and Alcorn is a Republican. Keith also was going into the hospital for brain tumor surgery in the middle of the investigation.
The Big Boy franchise was dropped last fall and the restaurant briefly opened as Our House. It closed before the end of last year. The National Bank of Blacksburg resumed ownership of the restaurant and land, which was auctioned in March to a West Virginia restaurant owner.
Park Realty owns apartments, two trailer parks and eight rental units in Blacksburg.
Alcorn also owns majority interest in Hometown Lodging Inc., a management company that operates the Blacksburg Comfort Inn beside the former Big Boy. Hometown Lodging filed for reorganization in December 1992.
Alcorn is majority stockholder in Leisure Way Industries Inc., which owns and operates bowling alleys in Christiansburg and Pulaski.
Memo: NOTE: Shorter version ran in Metro edition.