An “elaborate shell game”: Miami businessman David Brillembourg sued about alleged real estate expense scheme
Raleigh Miami Seashore lodge performs vital function in go well with
A lover of Miami-centered investor David Brillembourg is suing him for allegedly stealing revenue in a labyrinthine shell business scheme involving the Raleigh Miami Seashore lodge and a vacation resort on the island of Anguilla.
The plaintiff, Crandal Qualities, promises an 88 p.c fascination in Brilla AJ RMB, a Miami-centered LLC launched in 2009 that bought the Raleigh that year. Brillembourg managed the business, which was dissolved in 2014, and Crandal is suing Brillembourg on behalf of all customers of the business. Crandal Qualities is a Panama-centered entity controlled by Jose Eugenio Silva Ritter, records display.
According to the go well with, Brillembourg acquired an $18 million financial loan from JPMorgan Chase utilizing the Raleigh as collateral. Brillembourg’s Brilla Group owned the Raleigh with each other with Chicago-centered AJ Cash Companions, headed by CEO Ben Weprin. AJ Cash Companions offered its situation and “severed all ties with the Raleigh” in 2011, in accordance to Julie Saunders, AJ Capital’s chief advertising and marketing officer. Brillembourg, the go well with states, advised his partners that he would make a brief-expression $12 million expense in a vacation resort referred to as Cap Juluca on the British West Indian island of Anguilla in the form of a financial loan to the builders.
In an “elaborate shell recreation,” Brillembourg allegedly moved the financial loan by way of two entities completely owned by him just before lending it to the Cap Juluca builders, the go well with alleges. The builders place up the floor leases for 3 of the lots of villas that make up the vacation resort as collateral for the financial loan, and when they defaulted, Brillembourg’s exclusively owned organizations took handle of all those floor leases.
In 2012, Brilla AJ RMB offered the Raleigh to a joint venture in between David Edelstein, developer of the W South Seashore, and Sam Nazarian, Chairman and CEO of sbe, in accordance to a press launch about the deal at the time. Brilla AJ RMB then compensated off the JPMorgan financial loan. Crandal promises that simply because that financial loan was utilised to make the Cap Juluca expense, it owned one hundred p.c of the fascination in the Cap Juluca expense.
Brillembourg offered the floor leases to the 3 villas in May perhaps 2017 and allegedly utilised the revenue to “pay his lenders from a unsuccessful banking operation, and stole the proceeds” of one villas, in accordance to the go well with.
In executing so, Brillembourg breached his fiduciary responsibility to Brilla AJ RMB, in accordance to the criticism. Crandal is in search of unspecified compensatory damages, restitution, fascination, and charges.