Realtor
Yitzy Pearson and Pearson Affiliated has been named as a defendant in a
lawsuit under the Racketeering Influenced and Corrupt Organizations Act
Los Angeles, CA (Sharewellnewswire.com) August 2, 2012 - Realtor Yitzy Pearson and his firm Pearson Affiliated http://www.pearsonpm.com/index.html has been named as a defendant in a civil suit under the Racketeering Influenced and Corrupt Organizations (RICO) Act.
The
complaint (CV12-05244 PA AGRx) filed in the United States District
Court, Central District of California alleges that defendants Pearson
Affiliated Inc., Wilshire State Bank, Keller Williams Commercial -
Pasadena, Dornin Investment Group, et al, used the U.S. Postal system,
the internet and telephone as agents of fear, terrorizing tenants of a
lender-foreclosed property to force them to move.
The
suit alleges that under defendants' “evict and sell” business model,
when they became the owners of the 701 South Mariposa building through
foreclosure, the defendants chose to evict the tenants residing at the
property in order to enhance the property’s sales prospects and to
facilitate the sale of the foreclosed property.
Named
in the lawsuit are Wilshire State Bank, realtor Yitzy Pearson of
Pearson Affiliated, John Safi of SAFCO Capital Group, realtor Seth Polen
of Keller Williams Commercial - Pasadena, Chris Dornin of Dornin
Investment Group and Roman Celusta of 709 South Mariposa Inc.
The
suit alleges that the plaintiff’s mailbox became a source of fear and
intimidation as the defendants misused the U.S. Postal System to pepper
the plaintiff with written notices, demanding that the plaintiff accept a
relocation offer or face imminent eviction. Continuous intimidation,
threats of eviction, threats of homelessness and financial injury were
allegedly directed at the plaintiff to induce the plaintiff to move.
The
alleged scheme which involved 1) Wilshire State Bank, a leading
FDIC-regulated banking institution and 2) Pearson Affiliated Inc., a
full-service property management company and 3) SAFCO Capital Group, a
real estate management firm and 4) Keller Williams Realty, a commercial
real estate firm and 5) Dornin Investment Group, a commercial real
estate investment firm has allegedly defrauded the plaintiff’s neighbors
of their residential dwellings.
The
RICO suit alleges that each defendant was integral to the enterprise’s
objective which was to rid the lender’s foreclosed property of
rent-controlled tenants by any means necessary. The threat of eviction
and the filing of meritless Unlawful Detainer actions against the
plaintiff and the plaintiff’s former neighbors were used as forms of
“extortionist litigation”.
The
suit alleges that the defendants attempted to regain the plaintiff’s
unit by the wrongful use of force, which in this case was harassment and
a constant fear of eviction. A felon currently on parole, was hired by
Yitzy Pearson and Pearson Management http://www.pearsonpm.com/index.html the building's property management firm, to harass and threaten tenants, the suit alleges.
According
to the lawsuit, the proceeds from the defendants’ racketeering
activities allowed them to re-market and re-sell a multi-million dollar
property profitably and allowed the defendants to derive unlawful
proceeds from their unlawful activities.
Source: http://www.sharewellnewswire.com/pearson-affiliated-named-in-rico-lawsuit-2256.htm/#ixzz234BEeikI
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