Skip to content

Trolling thru the murky world of Lennar

April 24, 2018

by Richard Eber : capoliticalreview. – excerpt

False Claims Act Filed Against Largest U.S. Builder: $1 Billion Abuse Claimed

CalPers, while going after numerous firms that ripped them off, did not request repayment of one billion dollars, taken from the retirees of CalPERS by famed builders Lennar. A False Claims Act was served on Lennar on April 17, 2018.

“It is stated in the False Claims Act suit that Lennar engaged in massive fraud in the inducement of the CalPERS funds in addition to the 1.5 billion they borrowed in a loan syndicate arranged by Barclay’s Bank. It is alleged that Lennar transferred 1.4 billion dollars to themselves and a sister company LNR and caused the bankruptcy of LandSource. Principal assets of LandSource included Newhall Ranch in Valencia, CA. and a massive development on the former military base on Mare Island in Vallejo.

The suit contends after LandSource went under, Lennar allegedly manipulated the bankruptcy process and ended up buying back these two properties at pennies on the dollar from the bankruptcy court in Delaware.  These entities are controlled to this day by LandSource’s successor Five Point Holdings (more)

Trolling thru the murky world of Lennar

At first glance, Lennar Corporation might look like an ideal stock to purchase. Being considered to be the largest home builder in the United States after its merger with Cal-Atlantic last year, and many financial analysts including the Wall Street Journal and Baron’s have recently predicted Lennar to experience positive growth in the near future.

Guess again!  This company under the leadership of Stuart Miller and Jonathan Jaffe has a dark underbelly that threatens not only the recent$ 54.00 dollar per share stock price; but even the long term future for this 9 billion dollar plus concern.

This week Lennar was served with a California False Claims Act lawsuit in Sacramento pertaining to an alleged swindle of the giant California Public Employees Retirement System – CalPERS.  Lennar entered into a contribution agreement with CalPERS through a controlled entity called LandSource. LandSource filed bankruptcy 9 years ago, and the pension fund lost almost a billion dollars…

With such serious allegations, the discovery process involving Lennar and CalPERS should be pretty interesting. At the time of the alleged contribution agreement and fraudulently obtained loan, Fred Buenrostro, now serving time in Federal prison on corruption charges, was at the helm of the pension fund…(more)

Someone must be working on the book and there must be movie rights on this one. This rivals most conspiracy theory plots by a long shot, and, half the names involved in this swindle are famous and the other half are infamous. Read the article for the names. Not many are left out of this picture. One wonders how many political campaigns received payouts from this scheme. How many careers in government were launched.

Here is a typical paragraph:

“Over the past decade Brown, though his company Golden Gate Global, helped arrange nearly one half billion dollars in loans to Lennar projects via EB-5 programs…Under Golden Gate’s deal with Bonner, Brown’s company sold Green Cards for 1 million dollars per family to immigrants primarily from China. The proceeds were used to create construction jobs on work done by Lennar in San Francisco…”

It will be interesting to see where the case goes next.

 

 

Advertisements
No comments yet

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

%d bloggers like this: