FREE Sign upLogin
Judge transfers Tribune Tower and other holdings of prominent Oakland investor to appointed receiver

Judge transfers Tribune Tower and other holdings of prominent Oakland investor to appointed receiver

EB-5 Visa, EB5 Visa, EB-5 Investment

A legal dispute between prominent Oakland real estate investor Tom Henderson and one of his business partners has boiled over, with an Alameda County Superior Court judge transferring control of the Tribune Tower and three other Oakland properties to a court-appointed receiver, the East Bay Times reported.

The judge acted on the request of Allan Young, Henderson’s former business partner in CallSocket, a call center business inside the Tribune Tower where about 175 employees made an estimated 100,000 calls per day on behalf of clients including Deutsche Bank and the University of Phoenix.

Young has accused Henderson of siphoning off millions of dollars intended to create local jobs. He reportedly asked the judge to transfer control of the properties after Henderson recently flipped the four-story I. Magnin building at 2001 Broadway Street, selling it for nearly $19.5 million — more than double what he paid for it three years earlier.

Young was reportedly concerned that Henderson would sell other properties while the two are entangled in a bitter legal dispute.

In a lawsuit filed in August 2015, Young claimed that Henderson used funds, which were primarily raised from Chinese investors under the EB-5 foreign investment program, for personal use and buying real estate. The complaint also names Henderson's sons, Matthew and Michael, as defendants.

CallSocket and its affiliates bought the Tribune Tower at 409 13th St., as well as 517 17th St., 1740 Broadway and 2001 Broadway in Oakland.

Court-appointed receiver Susan Ueker now has total control of the nine separate CallSocket corporate entities set up by Henderson, the Times reported. That includes any associated bank accounts, rent rolls and the four prominent Oakland properties.

In a written statement given to the East Bay Times, Henderson said he will seek to remove Ueker or diminish her authority at a hearing this Thursday. "We are challenging the relevancy and the scope of the receivership ... and we'll see what changes result from that hearing," he wrote.

The judge’s order is not related to any insolvency or bankruptcy, Henderson said.


http://www.bizjournals.com/sanfrancisco/morning_call/2016/04/tom-henderson-allen-young-lawsuit-tribune-tower.html

Mentions

States

  • California

Subscribe for News

Site Digest

Categories

Free eb5 consultation

Securities Disclaimer

This website is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities. Any such offer or solicitation will be made only by means of an investment's confidential Offering Memorandum and in accordance with the terms of all applicable securities and other laws. This website does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. EB5Projects.com LLC and its affiliates expressly disclaim any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in the website, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.