MTK Global’s efforts to make inroads in the U.S. boxing market has drawn the ire of at least one rival company.

Heredia Boxing Management (HBM) and Moses Heredia have filed a nine-count complaint against the Dubai-based management company, MTK co-founder Daniel Kinahan, MTK Chief Strategy Officer Paul Gibson, law firm VGC LLC and Golden Boy Promotions (GBP). The allegations include four counts of racketeering against MTK, Kinahan and Gibson, four counts of tortious interference against MTK and VGC and one count of breach of promoter-manager contract against GBP.

The case was filed with the U.S. District Court Central District of California on December 18.

Two of the boxers named in the lawsuit include 130-pound titlist Joseph ‘JoJo’ Diaz Jr. and rising 140-pound prospect Luis Feliciano, both of whom remain under contract with Heredia Boxing Management according to the complaint. Diaz was the first U.S.-based major titlist to sign with MTK, doing so this past August in a move that came as a surprise to many in the industry.

Among those stunned by the development was Heredia, who—according to the lawsuit—still has a binding managerial contract with Diaz which runs through February 2022.

“MTK’s management contract with Mr. Diaz was entered into in violation of California law, federal law, and in complete disregard for the established and lawful management contract Mr. Diaz recognized by the State of California with Mr. M. Heredia,” Rajan O. Dhungana, lead attorney for D.C.-headquartered Federal Practice Group representing HBM states in the 32-page complaint, a copy of which has been obtained by BoxingScene.com. “All attempts to resolve this matter with MTK have been met with hostility.

“VGC, LLC, a law firm, has been acting as an agent for MTK to perpetrate its tortious and unlawful activities and is on full notice of their illegality. GBP has also colluded with VGC and MTK to facilitate agreements despite being placed on full notice that neither VGC, nor MTK have lawful authority to conduct and/or engage in the management of Mr. Diaz through either contract or proper licensure.”

Among the pointed claims made in the complaint include allegations of MTK Global’s day-to-day operations. The plaintiffs specifically allege that the company remains under the control of Kinahan, who was previously named by the High Court of Ireland as “a criminal and gang lord” and who has “controlled and managed” the operations of Kinahan Organized Crime Group (KOCG) according to the Criminal Assets Bureau in Ireland.

The complaint references no fewer than three instances alleging Kinahan’s ties to criminal activity, along with claims of KOCG operating “one of Europe’s largest drug trafficking and money laundering networks according to several law enforcement agencies.”

It is noted in the lawsuit that neither MTK Global, Kinahan, Gibson nor law firm VGC, LLC are licensed to perform boxing management functions in the State of California.

From there comes claims that VGC has “on behalf of MTK and at their direction, has conspired with GBP to serve as Mr. Diaz’s managers to negotiate and secure a title defense for Mr. Diaz with full knowledge and disregard for Mr. Diaz’s contractual obligations and without compliance with any of the laws or regulations, that provide the authority to do so and collectively remain subject to both criminal and civil consequences for these alleged violations.”

The lawsuit comes nearly four months after Heredia filed a request for arbitration, immediately following the news that Diaz (31-1, 15KOs) signed an advisory pact with MTK Global on August 20, 2020. The case was approved for review by the California State Athletic Commission, and due to go to arbitration at some point in the New Year.

Meanwhile, Diaz continues to move forward with his career. The 2012 U.S. Olympian claimed his first major title on his second try earlier this year, soundly outpointing Tevin Farmer to win a 130-pound belt this past January in Miami, Florida. His first defense will come February 13 versus mandatory challenger Shavkat Rakhimov, as recently announced by GBP who present the bout live on DAZN from Fantasy Springs Resort Casino in Indio, California.

The bout was under negotiation for several months, well before MTK Global became involved and despite the existence of a contractually bound rematch clause with Farmer. HBM alleges that talks continued without their involvement, with MTK and GBP reaching terms with Rakhimov’s team for the since-announced fight. 

 Heredia claims that “[t]hrough emails obtained, VGC is directly performing a boxing management role through the negotiation of a title bout with GBP, has removed Mr. Diaz’s actual managers (Plaintiffs) from the conversation with GBP, and has explicitly acknowledged they have been hired and funded by MTK.”

It is also claimed that MTK lured Diaz into an advisory pact through a $100,000 advance against the boxer’s next purse, which “essentially caused Mr. Diaz to mortgage his future away, which is why the Federal Government and the State of California created statutes and regulations to protect boxers.

“These funds are directly or indirectly derived from racketeering activity... MTK receives funds directly or indirectly from Mr. Kinahan which are derived from racketeering activity such as drug trafficking and money laundering. MTK itself is laundering the illicit proceeds of the KOCG drug trafficking enterprise.”

Diaz is one of at least eight stateside boxers to have signed with the global managerial conglomerate since entering the U.S. market earlier this year. Several of the clients are currently under the GBP roster, including unbeaten welterweight contender Vergil Ortiz Jr., secondary junior bantamweight titlist Joshua Franco and prospects Hector Tanajara and Jonathan Navarro.

The cluster of boxers collected by MTK will be referenced as part of a racketeering pattern to acquire or maintain “an interest in or control of an enterprise.” All but Diaz are also linked to managerial pacts with Rick Mirigian, who joined forces with MTK Global earlier this fall. The alignment came after MTK had reached out to no fewer than a dozen other managers and mid-level promoters, sources have informed BoxingScene.com.

Mirigian is not tied to Diaz, nor is named in the complaint.

The suit also alleges that MTK's relationship with GBP and securing Diaz has also compromised Heredia's professional relationship with Feliciano (14-0, 8KOs), a Milwaukee-bred Boricua who is now based in Rancho Cucamonga, California. Like Diaz, the 27-year old Feliciano is currently bound to a five-year contract with HBM, with his contract due to expire in March 2022.

Feliciano has not fought since last December, scoring a 10-round unanimous decision over Herbert Acevedo to rack up a five-win 2019 campaign. Like most boxers, his 2020 has been hampered by the coronaviruis pandemic, including a canceled ring appearance from this past March at the start of the ongoing global health crisis.

Efforts to get Feliciano back in the ring are not limited to a lack of available fight dates, according to HBP. Rather, it is alleged that the year-long inactive stretch is born from the strained relationship, which HBM claims was caused by GBP’s alleged efforts to go around the manager to speak directly with Feliciano.

“GBP intended to disrupt the performance of this contract and/or knew that disruption of performance as certain or substantially certain to occur,” alleges the plaintiffs. “GBP’s communications are intended to sow doubt in Mr. Feliciano and the management he receives from Plaintiffs. GBP wants this disruption to occur as their ultimate goal is to cause Mr. Feliciano to breach or not renew his management contract with Plaintiffs.

“The Plaintiffs have been harmed by the actions of GBP. Plaintiffs fulfill a firewall function between the [promoter] and the boxer which is being trampled upon. Plaintiff’s relationship with Mr. Feliciano has been hampered. GBP’s conduct is the substantial factors in causing Plaintiff’s harm. But for the interference of GBP, Plaintiffs’ contract with Mr. Feliciano would not [have] been interfered with and harm would not have been caused. The conduct of GBP is the substantial factor in causing Plaintiff’s harm.”

A spokesperson for GBP informed BoxingScene.com that the California-based outfit has respectfully declined comment on the subject, as it has now become a legal matter.

HBM and Heredia seek compensatory damages awarded in treble, in an amount to be determined by a jury trial which they demand.

Representatives for MTK Global have not yet responded to an inquiry from BoxingScene.com seeking comment. For now, plenty has been said by the plaintiffs about the managerial giant and those with whom they choose to conduct business.

“VGC and MTK intentionally interfered with an economic relationship between Plaintiffs and Mr. Joseph Diaz, Jr. that probably would have resulted in an economic benefit to Plaintiffs. Namely, Plaintiffs had a contract with Mr. Diaz for boxing management and due to the interference Defendants have impacted the future relationship between Mr. Diaz and Plaintiffs. VGC and MTK knew of the relationship. VGC in emails and letters to GBP has unlawfully demanded that GBP declare the promotion contract null and void and declare Mr. Diaz a “free agent.” Similarly in these emails and letters, VGC has referenced the contract/relationship between Mr. Diaz and the Plaintiffs. MTK did so without the knowledge or consent of Plaintiffs and did so with the intent of taking over as Mr. Diaz’s manager.

“At all relevant times, Mr. Diaz was still under contract with Plaintiffs. By engaging in this conduct, VGC and MTK intended to disrupt the relationship or knew that disruption of the relationship was certain or substantially certain to occur.”

Jake Donovan is a senior writer for BoxingScene.com. Twitter: @JakeNDaBox