Los Angeles Hotel Developer Ezri Namvar Is Convicted of $21 Million Fraud
Ezri Namvar, a Los Angeles businessman and real estate developer, was convicted of stealing $21 million from clients who deposited the funds with his firm for tax-free exchange transactions.
Namvar, 59, was found guilty of four counts of wire fraud by a federal court jury in Los Angeles, U.S. Attorney Andre Birotte Jr. said today in a statement. He faces a statutory maximum of 80 years in prison when he is sentenced Aug. 22, according to the statement.
Namvar misused the money from real estate transactions that four clients deposited with his company, Namco Financial Exchange Corp., for safe keeping until it was reinvested, according to prosecutors.
He used $21 million of the $25 million entrusted to him for unauthorized purposed, including paying creditors at his investment company, Namco Capital Group Inc., according to the government.
Marc S. Harris, a lawyer for Namvar, said in a phone interview that he and his client are disappointed in the jury verdict and confident of winning an appeal.
The developer and an alleged accomplice, who was also convicted, were indicted last year.
Namvar owned LA Hotel Venture LLC, owner of the downtown Los Angeles Marriott Hotel. The company filed for bankruptcy in April 2009. Namvar and Namco Capital were forced into bankruptcy after investors filed involuntary petitions against them in December 2008.
Namvar is also being sued for hundreds of millions of dollars owed investors in Los Angeles’ Persian Jewish community and banks that guaranteed loans to him, A. David Youssefyeh, a lawyer representing 20 clients with claims against Namvar, said last year.
The criminal case is U.S. v. Namvar, 2:10-cr-01055, U.S. District Court, Central District of California (Los Angeles). The Namco Capital bankruptcy case is 2:08-bk-32333, U.S. Bankruptcy Court, Central District of California (Los Angeles)
To contact the reporter on this story: Edvard Pettersson in Los Angeles at epettersson@bloomberg.net.
To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.
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