9 buyers are accusing members of a outstanding North Texas household of participating in securities fraud in reference to a high-profile mixed-use undertaking in Allen and different actual property investments, in keeping with newly amended courtroom paperwork.
The grievance, initially filed in October 2020 by Palazzo Holdings LLC, claims Thakkar relations defrauded buyers who purchased $2.5 million of securities in actual property funding funds, which had been then used to pay entities owned by the household, together with Thakkar Growth Group LLC.
Saumil Thakkar, Poorvesh Thakkar, Mahesh Thakkar and Vaishali Thakkar had been named within the go well with alongside a number of Thakkar family-owned companies. A number of the Thakkars’ best-known ventures, such because the FunAsia Radio Station and Enjoyable Film Grill theaters, weren’t listed within the lawsuit.
Palazzo Holdings was shaped by buyers who collectively put cash right into a fund managed by the Thakkars after reportedly forming sturdy relationships with the relations.
“My purchasers actually trusted and revered the Thakkar household, which is among the causes they invested a lot of their cash within the fund,” mentioned Bajaria & Forgerson legislation agency managing companion Favad Bajaria.
In an announcement, Thakkar Builders refuted the lawsuit’s claims.
“The plaintiff is a gaggle that features skilled doctor buyers who now allege fraud as a result of the Thakkar household refused to purchase them out of an funding wherein they now not want to be a participant,” in keeping with the assertion from Thakkar Builders. “That is an investor group that has made investments with the Thakkars, together with after this lawsuit was filed.”
Traders declare of their lawsuit that they had been advised the fund would elevate $20 million by October 2018 to spend money on 5 North Texas actual property initiatives, together with Park Plaza Tower in Dallas, land in Plano for a mixed-use improvement undertaking and land in Allen for a mixed-use improvement undertaking set to be anchored by a 15,000-seat cricket stadium.
Palazzo Holdings members had been reassured by the fund’s affiliation with Thakkar-owned Good Tax and Finance, a McKinney tax consulting enterprise, the grievance mentioned.
“Most of [the investors] are well being care professionals that had a relationship with the Thakkar household via their accounting agency,” Bajaria mentioned. “They’re simply devastated and floored by what is occurring on this fund.”
In accordance with the lawsuit, Thakkar relations and their affiliated firms misrepresented details about the funding fund, together with how a lot the Thakkar household can be investing and the registration standing of the securities being issued.
The buyers mentioned they got little details about the fund’s actions, which reportedly included “fraudulently transferring property to Thakkar-connected entities.” The lawsuit additionally claimed the fund continued to simply accept new members past the agreed upon date of Oct. 31, 2018, diluting Palazzo Holdings’ possession stake.
In whole, the buyers are suing the Thakkars for what they describe as 17 counts starting from violations of the Texas Securities Act to breach of contract to unjust enrichment. They’re in search of to get better damages from the investments and associated bills.
The lawsuit is within the discovery course of and is ready to go to courtroom in March, Bajaria mentioned.