Laguna Beach businessman Mohammad “Mo” Honarkar won a landmark $1.34 billion arbitration award against financier Mahender Makhijani, Continuum Analytics, and affiliated entities. The award includes $652 million in punitive damages and $326 million in compensatory damages following a fraudulent takeover of his Southern California commercial real estate portfolio. 

The dispute centered on the MOM CA Investco joint venture, which took control of Honarkar’s assets, including the historic Hotel Laguna. The arbitrator found the opposing parties liable for fraudulent inducement, breach of contract, and unlawful business practices. Makhijani’s group allegedly forced Honarkar out of his properties, which later led to Chapter 11 bankruptcy proceedings and receivership.