31 Aug FLG Obtains $2.2 million Unanimous Jury Verdict In Real Estate Fraud Case
FLG represented an individual from Beijing, China, who had invested $5.48 million into a property development on Hollywood Boulevard just east of Hollywood and Vine. The investment contemplated the purchase of the property and thereafter entitling it for a 14 story hotel/condominium tower. The investment was sold as a debt-free, all-cash deal with the three investors each contributing cash in proportion to their equity stake. Ultimately, the solicitor of the investment contributed no cash and fraudulently obtained a hard money loan, secured by the property. The loan ultimately went into default.
FLG brought suit on behalf of its client in the Los Angeles Superior Court on June 2018, asserting causes of action for fraud, breach of fiduciary duty, and breach of contract. The case went to trial on August 19, 2019, in Department 34 before the Hon. Michael P. Linfield. The trial resulted in a unanimous jury verdict on all three causes of action in favor of FLG’s client. The jury awarded $2.2 million in compensatory and punitive damages.