Real Estate Agent Must Fight Investors’ Ponzi Scheme Accusations

A dozen investors adequately pleaded that a real estate agent and principal knowingly lured them into a commercial real estate Ponzi scheme.

The investors’ complaint plausibly alleged real estate agent Mark Machlis and his Green Ivy Realty Inc. knew or should’ve known representations about the project’s construction and rent payments were misleading, Judge Tena Campbell said Thursday.

The plaintiffs sufficiently claimed he wrongly omitted Millcreek Commercial Properties LLC was paying him up to 6% in commissions, as one of the investors reasonably believed Machlis was his real estate agent, the US District Court for the District of Utah judge said. ...