Lawsuit: Real Agent Agent 'Misdirected' $1M In Downpayment Deposits Held In Escrow Belonging To At Least 15 Homebuyers
In Boca Raton, Florida, the South Florida Sun Sentinel reports:
- Mizner Grande Realty of Boca Raton has filed a lawsuit against one of its former real estate agents for fraud and breach of contract, alleging he misdirected $1 million held in escrow for clients.
- Delray Beach Police are investigating the allegations, said Sgt. Nicole Guerriero, a department spokeswoman. The agency has not made any arrests, and “we’re not releasing any information at this point,” she said.
- In the lawsuit filed Dec. 2 in Palm Beach County Circuit Court, Mizner Grande said former agent Jon Rashotsky had clients put money in escrow accounts. Then Rashotsky instructed Boca Raton lawyer Edgar Benes to disburse the money to “third-party-held banks,” the lawsuit says.
- Benes, the escrow agent, is not a defendant in the lawsuit.The suit says Rashotsky broke his agreement with Mizner by instructing the agent to disburse the money so he “could retain the escrowed funds to his own use.”
- The payments were made without the knowledge of Rashotsky’s clients or other interested parties in the real estate transactions, the suit said. Benes distributed at least $1 million belonging to at least 15 clients, the suit said. The clients have made claims for return of the money, according to the suit. “We’re taking every legal recourse to obtain the money back for the victims,” said Ari Albinder, founding broker of Mizner Grande.
- To cover up the missing money, “Rashotsky would make false representations to the clients regarding the status of their pending real estate transactions, which would often include complete fabrications of the existence of a negotiated agreement for the purchase of real estate,” the suit said.
For more, see Real estate firm: $1 million in homebuyer escrow payments missing.
See also, Boca News Now:
posted by Home Equity Theft Reporter at 4:00 AM
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