LOS ANGELES, Calif., Mar. 15, 2012 — Los Angeles business litigation attorney Robert G. Klein has filed a lawsuit on behalf of a client who invested more than $1.2 million with a man he trusted as his partner. The investor only later discovered that the former partner kept most of the money for himself and later used it to buy into a company that he now owns. The company now has over 200 employees and receives over $10 million in annual sales as reported by credit reporting agencies.
“This appears to be a clear case of fraud. My client has contracts that identify the lots he was buying and the amount he paid,” said Robert G. Klein. “We then obtained documents from the developer that show that the defendant in our case had the lots registered in his wife’s name and actually paid about one quarter of the price he charged my client. He pocketed the difference.”
The lawsuit seeks to impose a constructive trust on the assets of the business this “partner” now owns, thereby restoring the property to Mr. Klein’s client and preventing any further unjust enrichment by the former partner. The lawsuit is also seeking damages for securities fraud, breach of fiduciary duties and common law fraud.
Los Angeles business litigation lawyer Robert G. Klein has been handling complex business litigation cases since 1987. He has handled cases in state and federal courts as well as the U.S. Supreme Court, and has personally brought more than 40 cases to trial, securing multiple verdicts and settlements of more than $1 million. Mr. Klein founded his law firm in 1994 and works with businesses throughout the Los Angeles area.