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March 5, 2010: Judgment In Excess of $2 Million obtained in Breach of Contract / Fraud Case
Searay Development S.A. de C.V., et al. v. Amerivest Trust Group, et al.
Michael T. O’Callaghan and Brian C. Merges have successfully obtained a $2,046,340 judgment on behalf of their client Searay Development S.A. de C.V. and Nest Egg Properties, Ltd. The Court’s judgment was issued on March 5, 2010.
This matter arose from a financing agreement between our clients and the defendants. Pursuant to the February 2008 agreement, our client were required to provide defendants with $1.4 million collateral for a $40 million construction loan, which was intended to finance a condominium development in Mazatlan, Mexico. After the collateral was deposited, the funds were withdrawn by defendant Reed Diehl (Managing Director of Amerivest Trust Group and ARA Capital, and former University of California and Tennessee Titans football player) and the financing never materialized.
In March 2008, our office filed a Complaint containing causes of action for breach of contract and fraud on behalf of Searay and Nest Egg, we then immediately obtained emergency protective orders freezing numerous bank accounts held by the defendants and attached corporate and personal equipment and real estate. After litigating the matter for over a year, we ultimately obtained a judgment against defendants in the amount of $2,046,340 plus interest with bankruptcy protection applicable to debts arising from fraud. The judgment represents a complete recovery of the plaintiffs’ collateral, as well as the entirety of the attorney’s fees and legal expenses incurred in both the United States and Mexico by our clients.
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