LOS ANGELES--(BUSINESS WIRE)--On behalf of over 200 investors, a class action lawsuit was filed today in the United States District Court against the Landwin Group LLC, a prominent Southern California-based real estate investment and development company, as well as multiple other businesses and individuals citing they engaged in illegal acts relating to a real estate investment entity that resulted in the loss to investors of approximately $14 million.
The lawsuit alleges that shareholders of Landwin Management LLC, which was formed to purchase and manage investment properties, have lost their entire investment due to improper actions undertaken by some of its officers and board members. Among those cited by the lawsuit are: improper financial compensation to themselves and use of company assets; false representation of business opportunities and potential profits; misconduct resulting in substantial damages to the investment entity; and enrichment through unlawful profits.
In the lawsuit, filed by the Law Offices of Andrew M. Wyatt, a Los Angeles, CA-based law firm, the Los Angeles (Encino)-based Landwin Group and numerous other businesses were charged with 12 illegal claims. They include: Violation of the Securities Act of 1933 and Securities Exchange Act of 1934; Racketeer Influenced and Corrupt Organizations (RICO) Act; Untrue or Misleading Advertising; Commission of Unlawful, Unfair and Fraudulent Business Acts and Practices; Negligent and Intentional Misrepresentation; and Breach of Fiduciary Duty.
Other companies named as defendants in the lawsuit, include: Smith Dennison Capital LLC, Sylvia, Inc., Jack R. Andrew and Associates LLC, CPP Properties LLC, Muir LLC, Marshall Reddick Realty, Inc., Marshall Reddick Seminars, Inc., Marshall Reddick Commercial Real Estate Networks, Inc. and Marshall Reddick Real Estate Properties LLC. Individuals who are defendants in the lawsuit, include: Sean Dennison, Martin Landis, Jack Andrews, Norman Bangerter, Tom Casault, Chris Parnass and Marshall Reddick.
The lead plaintiff in the lawsuit is Michael Kronk of Laguna Hills, CA. On behalf of himself and the other investors, the lawsuit is seeking general, compensatory and punitive damages plus legal and court costs and expenses. In addition, it requests the court impose a constructive trust on all profits, disgorgement of illegal monies and profits, a freezing of the defendants’ assets and a return of all invested funds and earnings to the plaintiffs.