California Real Estate Fraud Report

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Commercial Real Estate Firm Marcus & Millichap Target of Class Action Lawsuit

Encino-based Marcus & Millichap, a prominent commercial real estate brokerage, has been accused along with a former Long Beach businessman and a Florida businessman of conspiring to defraud investors out of millions of dollars by purchasing and reselling small commercial properties at inflated values.

The lawsuit, filed as a class action in federal court in San Jose, alleges that brokers at Marcus & Millichap, Paul A. Morbito and Jack Waelti devised a scheme “with nearly mathematical precision” that began with the purchase of Jiffy Lube and Church’s Chicken franchises and the real estate on which they were located. The properties were first sold to a subsidiary of Marcus & Millichap, which leased them at inflated rates, then used those established above-market rates to sell the properties to the unsuspecting investors.

The lawsuit is seeking up to $70 million in compensatory damages and up to $200 million altogether with punitive damages and treble damages under the Racketeer Influenced and Corrupt Organizations law (RICO).

Read the Full Article in the Los Angeles Times.

© Copyright 2007-2018 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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