California Real Estate Fraud Report

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Lennar affiliate committed fraud according to bankruptcy lawsuit

Lennar Corp and its subsidiary LNR Property Corp. have been accused of defrauding CalPERS, California’s public pension fund, in a lawsuit filed in bankruptcy court.

Creditors of the LandSource Communities Development LLC filed suit against LNR and two other defendants, charging them with using the funds provided by the plaintiffs to leverage against $1.4 billion of debt, debt that the defendants knew they could not repay. CalPERS, which is not a party to the suit, lost $1 billion of its employees’ money in the partnership, which was to be used to develop the last major tract of vacant land in L.A. County. Lennar is also not a party to the lawsuit, after being released by the bankruptcy court.

Lennar and LNR are accused of using an inflated appraisal of LandSource’s value.

Read the full article in the Associated Press.

© Copyright 2007-2017 Monique Bryher

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The information and notices contained on The California Real Estate Fraud Report are intended to summarize recent developments in real estate fraud, mortgage fraud, short sale fraud, REO fraud, appraisal fraud, loan modification scams, loan modification fraud and other real estate related crimes occurring in Los Angeles and California. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about real estate fraud, mortgage fraud and appraisal fraud matters or who believe they require legal counsel should seek the advice of an attorney.

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