Monday, July 4, 2005

Nice House, Good Neighborhood, Needs Work

Jules Fleder of Beverly Hills, CA, was indicted for being the mastermind behind an investment scheme that allegedly bilked investors in the Tyler, Texas, area of almost $6 million for supposed real estate developments in Texas, Virginia, and South Carolina.  The SEC also sued Fleder and three other defendants for securities fraud (Litigation Release here), and Fleder agreed that the SEC could sell his assets, including a $3 million house in Beverly Hills that he shared with his wife, Kayatana Harrison.  Although Harrison initially agreed to cooperate in the house sale, she has been a bit resistant since, and was held in civil contempt for failing to cooperate with the real estate agent.  U.S. District Judge Michael Schneider also threatened to hold her in criminal contempt when she fled the hearing and tried to hail a taxi before her attorney persuaded her to return.  According to a real estate agent, the house has been fouled by some "gifts" from a dog living there, and a hole in the roof has given it a musty smell; the agent also stated that Harrison has removed fliers advertising the house and told potential purchasers that it sits on an earthquake fault line and could slip off the hill on which it sits -- of course, that covers a substantial amount of Southern California real estate. 

The judge has ordered Harrison to vacate the house within two weeks and provide an inventory of goods she plans to take.  Given the overheated Los Angeles real estate market, this may be one of the few bargains available in the area.  A story in the Tyler Morning Telegraph (here) discusses the contempt and prosecution of Fleder. (ph)

Civil Enforcement, Fraud, Prosecutions | Permalink

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