In a case where an investor was swindled by his business partner, Adam Leitman Bailey, P.C. was able to quickly secure a settlement saving its client’s investment.
The investor purchased a property with the intent of developing and constructing a residential property to sell. In order to develop this new residential property, the investor entered in a joint development agreement with a builder.
The builder ended up taking out multiple mortgages on the property all to the detriment of the investor. Despite taking out the mortgages to complete the construction on the residential property, the builder did not complete construction of the property. It became apparent that the builder, along with the attorney that was supposed to represent the joint development, was engaging in a scheme to defraud the investor of his equity in the property. It was so blatant that the same attorney represented one of the lenders that gave the builder – who the attorney also simultaneously represented – a mortgage that was secured against the property.
Right on schedule to strip the equity from the investor’s property, the first position mortgage holder commenced a foreclosure action. In response, Adam Leitman Bailey, P.C. filed a comprehensive answer with counterclaims and crossclaims. Adam Leitman Bailey, P.C. brought into the action the builder and attorney as defendants to uncover the fraud that was perpetrated against our client. The first position mortgage holder moved to dismiss the counterclaims set forth in the answer, but Adam Leitman Bailey, P.C. opposed the application recounting all the instances of alleged fraud.
Given the strength of Adam Leitman Bailey, P.C.’s papers, a favorable settlement was reached where the investor client was able to sell the property, satisfy the outstanding mortgages for a significantly reduced amount, and walk away with profits from his investment.