Chinese investors vs The Bancorp Bank

Filing Date:July 16, 2018

Case:550 Seabreeze Development LLC vs. Las Olas Mezzanine Borrower LLC

Jurisdiction:Federal District Court for the Southern District of Florida

Status:Pending

Civil / Criminal:Civil

Breach of Contract

The EB-5 creditors bring this adversary proceeding to recover money damages against the parent company of the Debtor, Mezzanine Borrower, and the principals of Mezzanine Borrower, Parello, Bernstein, J. Kessler, and E. Kesskler (collectively, "Developer Group") and Bancorp for their fraudulent scheme to include the EB-5 Creditors to each invest $500,000 in the Seabreeze project. Bancopr's interest in the Seabreeze project, a claim secured by real and personal property of the Debtor, has been assigned to OHL. Therefore, the EB-5 Creditors being an equitable subordinate claim against OHL, as successor to Bancorp, to subordinate OHL's claims in the Debtor's estate to the claims of the EB-5 Creditors based on the following conduct of Bancorp prior to the assignment of its secured claim to OHL: (a) at a time when Bancorp was in control of the Debtor and, therefore, was an insider of the Deboter, it engaged in unfair and inequitable conduct in connection with representations made to the EB-5 Creditors that caused harm to the EB-5 Creditors to the extent of their claims in the Debtor's estate; or (b) Bancorp engaged in egregious conduct by defrauding the EB-5 Creditors that caused harm to the EB-5 Creditors to the extent of their claims in the Debtor's estate. The EB-5 Creditors also seek to eqitably subordinate the claims of the Developer Group.