Asset Management Consultants v. Kornievsky CA2/1
This appeal arises from a series of real estate investments that cratered during the great recession. The hearings and appeals spawned by these investments are legion. Although there are several different investments and various appellants that comprise the chorus of litigation, each investment was structured the same, and the basic claim asserted by each appellant is the same. Appellant investors claim that respondents, who acted as middlemen between appellant investors and the seller of the property, committed fraud by advertising a purchase price of the property that was higher than the appraised value. Respondents’ covert purpose was to reimburse the seller for fees it was contractually bound to pay to respondents. By reimbursing the seller from the purchase price, the economic effect was to shift the financial burden of paying those fees to appellants.
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