Amazon fraud case against Denver developer Brian Watson reinstated

An appeals court reinstates civil claims against Denver developer Brian Watson

An appeals court has overturned a lower-court ruling in favor of Denver developer Brian Watson, reinstating a host of civil claims against him. The Fourth Circuit Court of Appeals decision means that Watson, the owner and CEO of Northstar Commercial Partners, must defend himself against fraud and racketeering allegations made by Amazon in connection with the development of data centers in northern Virginia.

The appeals court found that “genuine disputes of material fact” exist regarding these claims, leading to a continuation of the legal battle that began in April 2020. Despite a parallel criminal investigation that federal prosecutors abandoned, the case will proceed to trial.

The lawsuit revolves around payments made by Watson’s firm to a trust, which were later shared with two Amazon employees, Carl Nelson and Casey Kirschner. Amazon alleges that these payments were kickbacks for steering contracts to the tech giant.

Watson maintains that the payments were legitimate referral fees to compensate Christian Kirschner, Casey’s brother, for introducing him to Amazon. He denies directing any portion of the fees to Nelson and Kirschner.

The appeals court decision allows Amazon’s lawsuit to move forward in federal district court in Virginia, where only two of the claims against Watson were previously permitted. The case had been on hold for two years pending the appeal.

In the meantime, Watson has taken legal action against a former Northstar employee, IPI Partners, and Amazon itself. The appeals court also reopened Amazon’s claim against Rod Atherton, a local attorney involved in creating the shell companies used for the payments.

Amazon expressed satisfaction with the court’s decision and looks forward to presenting evidence of the defendants’ alleged misconduct. Nelson’s attorney, Alex Little, called the ruling disappointing and plans to request an evidentiary hearing to investigate related matters.

Overall, the legal battle between Watson, Amazon, and other parties involved continues to unfold, with each side asserting their position and seeking a resolution through the legal system.