Biglaw

Blank Rome Settles Lawsuit for Real Estate Scheme
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Blank Rome

Summary: Blank Rome is settling a lawsuit filed by investors alleging the law firm was involved in a real estate investment scheme.

In a filing late Tuesday in the U.S. District Court for the Eastern District of Pennsylvania, a group of investors moved to dismiss their lawsuit against Blank Rome. The investor plaintiffs had sued the law firm, alleging they were involved in real estate investment scheme that caused the investors to lose millions of dollars.

  
What
Where


The investors – Kilbride Investments Ltd., Busystore Ltd., and Bergfeld Co. Ltd. – agreed to a settlement after engaging in mediation for two days with the firm. A federal judge must sign off on the agreement. “Blank Rome agreed that any judgment in the lawsuit would be reduced by the percentage share of liability attributed to Blank Rome,” according to Law.com. The amount must not be less than what they have agreed to pay in the settlement.

Of the three other defendants in the lawsuit, two are agreeing to sign a stipulation for Blank Rome’s dismissal. Cushman & Wakefield and JFK BLVD Acquisition GP acknowledged that the final judgment will deduct the amount of Blank Rome’s liability. The other defendant, Cozen O’Connor, will not sign a stipulation.

The lawsuit alleged that former Cozen O’Connor and Blank Rome attorney Charles Naselsky conspired with developers to get money from investors for projects they knew were bad. The now disbarred attorney is accused of working with Philadelphia real estate developers on a project that would end up being barred because of zoning restrictions. The investors had put up over $27 million for the project.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




The investors claim that Eliyahu Weinstein used the law firms to operate the Ponzi scheme. He was convicted of fraud for operating the scheme that targeted the Orthodox Jewish community. Weinstein was sentenced to 22 years behind bars for running a scheme under the facade of being an investment in Philadelphia real estate projects.

Blank Rome and Cozen O’Connor fought back against the claims. Last year they filed motions for summary judgment, alleging that the only reason they were included in lawsuit was because the investors were unable to recover money from Weinstein. U.S. District Senior Judge Jan DuBois of the Eastern District of Pennsylvania gave Cozen O’Connor part of the motion, agreeing that the law firm was not responsible for Naselsky’s actions during the time he was not employed with their firm.



Blank Rome is being represented by John Harkins Jr. of Harkins Cunningham. William Harvey of Klehr Harrison Harvey Branzburg represents Cozen O’Connor. The plaintiffs are represented by Mary Kay Brown of Brown McGarry Nimeroff and Cushman & Wakefield is represented by Jayne Risk of DLA Piper.

Do you think law firms should be responsible for their current attorneys and how they practice law? Share your thoughts with us in the comments below.

To learn more about other real estate schemes, read these articles:

Photo: businesswire.com



 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Personal Injury Attorney with 3+ Years of Experience

USA-CA-Sherman Oaks

Sherman Oaks office of our client is seeking a personal injury attorney with 3+ years of CA experien...

Apply Now

Senior Trust and Estate Attorney/ Of Counsel

USA-CA-San Diego

San Diego office is seeking a trust and estate attorney at either the senior associate or of counsel...

Apply Now

Mid-level Litigation Securities Associate Attorney

USA-NY-New York City

New York City office of an AmLaw firm seeks Mid-level Litigation Securities Associate Attorney with ...

Apply Now

RELEVANT JOBS

Legal Secretary / Assistant / Office Manager

USA-CA-Sunnyvale

Seeking a long-term candidate for a part-time Receptionist / Legal Secretarial / Assistant position ...

Apply now

Legal Assistant

USA-OR-Portland

We are a small but busy law firm located in Downtown Portland and are looking for a full-time Legal ...

Apply now

Attorney at Law - Criminal Defense

USA-OH-Ravenna

Well-established Portage County law firm based in Ravenna, Ohio has an immediate opening for a full-...

Apply now

Surety Counsel

USA-DC-Washington

Summary Reporting to SFAA’s General Counsel, the Surety Counsel supports the Association...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top