Arbitrator awards $1.34B in O.C. real estate fraud case

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.

Following the arbitration victory, Honarkar’s entities successfully moved to dismiss the bankruptcy cases, clearing the path to return to state court and enforce the massive financial settlement.
The legal developments can be tracked through coverage from the Los Angeles Times or the Daily Journal.

Voice Of Laguna Interview with Mohmmad Honarkar Redefines Hearsay

Voice Of Laguna reviews new allegations and brings up those that have long been defined in Superior Court Of California, County of Orange

Tony Fisch

Ed Steinfeld’s radio style is unique. Let the guest talk and praise them. On Thursday, Honarkar in a 39 minute interview shared his opinion, narrative and hearsay about his multiple current lawsuits. Naming many names and even naming resident activists who present facts in council meetings throughout the year. Honarkar made accusations against CM Mark Orgill, mentioned Mayor Sue Kempf and former City Attorney Phil Kohn. Honarkar’s behavior in Laguna Beach since 2021 raises many questions.

California’s “hearsay rule,” defined under Evidence Code 1200, is a law that states that third-party hearsay cannot be used as evidence in a trial. This rule is based on the principle that hearsay is often unreliable and cannot be cross-examined.

To read more on this interview with Mohammad Honarker visit The Patch Laguna Beach website here https://patch.com/california/lagunabeach/voice-laguna-interview-mohmmad-honarkar-redefines-hearsay-nodx

Hotel Laguna – Community Gem

Needless to say, Laguna’s historic landmark gem the Hotel Laguna has been the center of attention locally, regionally and nationally. Sadly, not all good news. The hotel is the subject of illegal construction, unsupervised permit work by city staff resulting in five stop work orders, an investor group take-over involving the police and armed security guards and the decision to shut down the hotel by former Laguna Beach City Manager, Shohreh Dupuis. City documents and local media coverage (below) offers some insight into the ownerships and legal issues surrounding the hotel as well as the City decisions to shut down the Hotel Laguna and the 14 West Hotel in Laguna Beach.

Documents include Mohammad (Mo) Honarker/Laguna Beach Company. inc. and the MOM Group currently operating and managing the Hotel Laguna per a court approval and several other properties formerly operated and managed by Mo Honarker. Here’s one legal court document on the dispute. https://issuu.com/savelaguna/docs/30-2023-01323759-cu-or-njc. Word has it that additional court documents may be available in the first quarter of 2024. Stay tuned!

Here’s an interesting guest letter to the Indy Editor from the MOM Group explaining their position. https://www.lagunabeachindy.com/the-emperor-has-no-clothes/

In case you missed the news, here’s some local coverage by the LB Indy.

Letter: Hotel Laguna Investor Group To Host Town Hall Meeting

Civil Disputes at Hotel Laguna and 14 West Prompt Forced Closure by City 

Hotel Laguna and 14 West Reopen After Court Issues Honarkar Temporary Restraining Order 

Who Owns Hotel Laguna?

Laguna Beach News | April 7, 2023

https://www.lagunabeachindy.com/laguna-beachnews-may-5-2023/

Coastal Commission widens scope of Hotel Laguna beach club probe

Coastal Commission probes “members only” signs on the sand at Hotel Laguna

On a brighter note, hotel managers MOM are hosting and featuring local artists at their ARTSTART event in the Rose Garden at 5:00 p.m. during Laguna’s First Thursday Artswalk. Drop by for a glass of wine and tasty appetizers. https://www.lagunabeachindy.com/hotel-laguna-launches-art-start-for-art-walk/