An arbitrator awarded Mohammad Honarkar and his company 4G Wireless Inc. $1.34 billion in a real estate fraud dispute that led to the collapse of his Southern California commercial property portfolio. Honarkar, whose holdings included Hotel Laguna, was found to have been defrauded by Mahender Makhijani, Continuum Analytics, and affiliated entities. The respondents were found liable for fraudulent inducement, breach of contract, forcible entry and detainer, and related claims arising from a joint venture that took control of properties previously owned by Honarkar. Makhijani has since been arrested on a federal complaint alleging he defrauded a bank of nearly $100 million by manipulating title policies to inflate collateral values.
Honarkar entered the joint venture with Makhijani and other entities in 2021 while facing financial pressure following the pandemic and the maturity of a $195 million loan. He agreed to contribute interests in multiple commercial properties in exchange for a $30 million equity contribution and refinancing support. The arbitrator found that the promised $30 million capital contribution was not made as represented, and respondents instead used financing secured by Honarkar’s properties to fund a portion of the purported equity. Respondents also concealed transaction details, engaged in self-dealing, withheld required records, and stopped making mortgage and tax payments on the properties…