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

Litigation Trial Attorney with 3-5 years of pleading experience

USA-WA-Seattle

Seattle office of our client seeks litigation trial attorney with 3-5 years of experience. The candi...

Apply Now

Corporate Attorney with mergers and acquisitions experience

USA-CA-Los Angeles

Los Angeles office is seeking a corporate attorney with 1-6 years of M&A, corporate finance, securit...

Apply Now

Estate Planning Attorney with 6+ years of experience

USA-CA-Los Angeles

Los Angeles office is seeking an experienced estate planning attorney with 6+ years of experience. C...

Apply Now

Litigation Associate Attorney

USA-CA-San Diego

San Diego office of our client seeks litigation associate attorney with 4-5 years of experience. The...

Apply Now

RELEVANT JOBS

ASSOCIATE ATTORNEY

USA-TX-Houston

INSURANCE DEFENSE / TRANSPORTATION LITIGATION Law firm located in North Houston seeking an associ...

Apply now

Legal- Disbursal Manager

USA-NV-Las Vegas

Prestigious Personal Injury Law Firm seeks Disbursal Manager Qualified individuals need to have p...

Apply now

Legal- Disbursal Manager

USA-NV-Las Vegas

Prestigious Personal Injury Law Firm seeks Disbursal Manager Qualified individuals need to have p...

Apply now

Litigation Associate

USA-LA-Shreveport

A well-established AV rated defense firm seeking an experienced associate with 1-5 yrs experien...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top