Real Estate Developer Files Multi-Count Lawsuit; Alleges Dr. Rogers Embezzled $3.2 million
Los Angeles, Calif. (August 22, 2016) – Prominent real estate developer Eran Gurion recently filed a multi-count lawsuit against Beverly Hills plastic surgeon Leif Rogers for breach of contract, conversion and constructive fraud among other counts. The lawsuit was filed by the Stone Law Firm in Los Angeles County Superior Court. Gurion alleges that Dr. Rogers, along with his common-law wife and father-in-law, cheated business partner Gurion out of ownership and profits from three residential real estate development projects. According to the lawsuit, Dr. Rogers further attempted to force Gurion out of the real estate deals, and Dr. Rogers acting in concert with the other defendants converted, stole, embezzled, and/or substantially interfered with $3.2 million in partnership cash by completing an unauthorized and improper cash-out refinance.
Gurion is a real estate developer who specializes in “tear-down flips.” This involves the purchase of an older, functionally obsolete residence located in a well-established neighborhood. The home is then torn down and a new, upscale residence, is built in its place. In 2015, Dr. Rogers approached Gurion about a partnership to perform several tear-down-flips. According to the lawsuit, Dr. Rogers agreed to “put up the money and financing as a mostly passive partner,” and Gurion would identify the projects, manage development, oversee construction and supervise the eventual sale of the properties. Dr. Rogers and Gurion agreed to split the profits equally, 50/50, beginning with three projects in Studio City.
Shortly thereafter, according to the lawsuit, Gurion learned that Dr. Rogers had borrowed money for the three projects at excessive “hard-money” or sub-prime interest rates, even though Dr. Rogers told Gurion the investment would be “all cash.” In addition, Dr. Rogers and other defendants stripped more than $3.2 million in equity out of the partnership properties using a cash-out refinance without notice to Gurion. According to the lawsuit, Dr. Rogers also attempted to remove Gurion from title of the properties and changed the locks.
In addition to Dr. Rogers, the lawsuit names as defendants Gary Chamberlain, Robin Chamberlain, LRMD Holdings LLC, Craig Strong, John Aaroe Group, Inc., Samuel H. Kraemer, JT Homes, LLC, and James M. Richards MD, Inc.
Source: The Stone Law Firm
John P. David, LawsuitPressRelease.com