Jon Field, who opened and then abruptly closed the Banana Joe’s and Margarita Mama’s nightclubs in the Denver Pavilions, was indicted Thursday on embezzlement charges.
Field, 49, and Paul Butler, 37, the project manager who oversaw the nightclub construction, funneled $1.3 million of the $1.9 million given them by Pavilions for construction into their own pockets or for the benefit of friends, the indictment said.
The money was meant to go to contractors, who often worked around the clock only to discover they weren’t being paid.
Specifically, the Denver grand jury accused Field of using some of the money for his home and an expensive passion: sports-car racing.
Butler at one time was listed as team manager of InterSport Racing, the sports-car racing team he and Field founded. The grand jury said some of the money went for racing fees, equipment and fuels.
Field and family members own at least 25 Banana Joe’s and other clubs across the country.
The grand jury, which accused the two of racketeering and multiple counts of theft, said Field and Butler used Pavilions’ funds for unrelated projects, including one in Michigan and one in Texas.
Some of the Denver-area contractors who lost money were elated by the indictment.
“After all the battle that we went through … I’m really glad to see it happen,” said Jim Bachman, president of Air West Enterprises, the heating and air conditioning contractor. “Maybe he (Field) can feel a little bit of the stress and strain that I felt for two and a half years.”
Max Minnig, the Denver lawyer who represented Field in civil litigation here, said he hadn’t seen the indictment and couldn’t comment. Attempts to reach Field and Butler were unsuccessful. They are expected to turn themselves in today. Bond has been set at $200,000.
Some of the contractors eventually were paid by Denver Pavilions following a legal settlement.
The settlement cost Denver Pavilions $1.3 million and the contractors thousands in legal fees.
The contractors said not being paid by Field severely impacted their businesses.
Pat Tackwell, owner of SRT Electric, who was owed $300,000 by Field, said the entire experience was a hardship for his company.
“It was a misfortune for all of us,” Tackwell said. “It was horrifying.”
Torrey Cosgrove, owner of Lakewood Plumbing, who was owed $165,000, said he ended up paying money to his suppliers from his own pocket so he “could keep working in this town.”
Staff writer Howard Pankratz can be reached at 303-820-1939 or hpankratz@denverpost.com.
