Eldereiny v. MGM Financial CA4/1
Eldereiny invested in a date palm growing operation run by the Fejleh brothers. His close friend Ahmed explained that for a $1,000 investment per tree, he could reap returns of $5,000 in 9 or 10 years through sales of dates and mature palm trees. In 2007, Eldereiny invested in ten trees, offering free school tuition for Ahmed’s two children worth $10,000. Four years later, Eldereiny invested in another 45 trees, paying $40,000 after a 5-tree discount.
A decade passed, but Eldereiny never received any share of the profits. When he approached Ahmed, he was told the companies had no money. Ahmed said that costs were higher and yields lower than expected. Eldereiny received a $25,000 check for a “Loan Payoff,” but the check did not clear.
Searching the internet, Eldereiny learned that the Fejlehs were selling dates and date trees at substantial prices. He concluded he was owed $500,000 under the joint venture agreement.
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