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Mizrahi v. Khavari: Partners turned embittered adversaries

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Ephraim Vecina | 22 Jun 2016, 08:15 AM Agree 0
The legal turmoil involving a renowned property developer and his former collaborators reveals the unpleasantness that can stem from a broken business partnership
  • rahim | 22 Jun 2016, 06:54 PM Agree 0
    sam mizrahi is a big false and the thift
  • | 23 Jun 2016, 07:14 PM Agree 0
    Shame on Canadian Government for protecting these thefts in Canada with as safe haven for them with Billions of Dollars of innocent and poor people of Iran.
  • | 25 Jun 2016, 09:10 PM Agree 0
    i don't understand how this deal seems straight forword one can not borrow from one investor and with the credit acquired in this way approach other and borrow additional fund from other investor. Katia seems to have known Sam Mizrahi for long time? i don't know how unbiased this article is?
    • | 26 Jun 2016, 07:43 PM Agree 0
      I agree with you ,
  • | 26 Jun 2016, 07:40 PM Agree 0
    What is her relationship?
    • | 27 Jun 2016, 06:27 PM Agree 0
      sam mizrahi a fraud
  • | 01 Jul 2016, 08:57 PM Agree 0
    The Case

    I was first informed of the case of Khavari against Mizrahi when Financial Post and Bloomberg released an article about the dispute. Having reviewed almost all the files in court I am convinced that the reporter did not have the opportunity to research all the documents simply due to the size of this file.  The article came across as biased in favour of Mizrahi. Further research showed that the author, has known Mizrahi for a while and was indeed a moderator for a panel where Mizrahi was present.

    The number of documents filed by the parties in this lawsuit is staggering. While Mizrahi has filed the same document multiple times, Khavari has managed to provide new pieces of evidence at every step of the way. As you will see under the “Inspection Motion”, Mizrahi must have known the level of access Khavari had to documentation, which explains Mizrahi’s attempt to destroy all of Khavari’s digital documents when the dispute started.

    I’ve been reading these documents over the past few weeks and discussing them with friends who practice law. In the sub-pages to this page I will include a short summary and provide you with links to download a full set of documents I’ve accessed, for your own review. Follow the links below to read further and download the case documents.

    Prior To Lawsuit

  • Scott | 02 Jul 2016, 11:04 AM Agree 0
    What links? I'd love to know how to post them as well moderator(s)? Thanks!
    • | 04 Jul 2016, 07:04 PM Agree 0
      this is the link adrress
      this is all links:
  • Scott | 05 Jul 2016, 10:11 PM Agree 0
    Thanks for the link!

    Wow.......this reads like a bad thriller novel. It's amazing these people had a business partnership in the first place.
  • | 23 Dec 2016, 10:33 PM Agree 0
    Sam is not a builder doesn't have a clue. The people now building 181 are a joke .If it wasn't for his old partner 133 hazelton never would have been completed
  • Schotc | 10 May 2017, 10:38 AM Agree 0
    Developer Sam Mizrahi promised to build another great, Great Lakes skyline.

    But his bid to orchestrate the first step-- a proposed 80-story, 1,000-foot tower in Toronto, some 500 miles to the east of Chicago’s legendary skyscrapers--has been stalled by charges he embezzled as much as $125 million from his lead investor.

    The claims are part of an active lawsuit in Ontario’s Superior Court of Justice, which quietly proceeds as Mizrahi publicly pursues government approval of “The One,” his name for what would be the tallest building in not just Toronto, but all of Canada.

    “We’re an international, deeply multicultural city, similar to London, New York City and Chicago,” Mizrahi said in a local real estate journal. “Toronto should have buildings that have the same kind of ambition and generate the same sense of awe and excitement as found in those cities.”

    “The One” would rank as the sixth-tallest in Chicago, after Willis Tower (1,450 feet), Trump International Hotel & Tower (1,388), Aon Center (1,136), John Hancock Center (1,127) and Franklin Center (1,007).

    If it happens.

    “Luxurious properties and a private jet”

    Plans for “The One” currently sit before the powerful Ontario Municipal Board, a provincial (state) agency with the power to approve its development, overruling objections from Toronto’s City Council.

    Meanwhile, Mizrahi’s lawyers battle claims he is a fraud who stole millions from his partner, “to buy luxurious properties and a private jet,” according to public documents filed in the case.

    The complaint says Mizrahi paid for his children’s private school, bought a lake cottage and made “gratuitous and unjustified payments” to his wife and mother out of company funds.

    “Sam’s story-- that he alone now owns $2 billion of real estate without ever putting a penny of his own money into the business-- defies common sense,” it charges.

    The suit also includes documents that show Mizrahi made large payments to the leader of at least one community group publicly supporting the project, raising questions about its objectivity.

    The ABC Residents Association, or ABCRA, sent a letter to Toronto’s City Council last year expressing its critical support of the “The One,” calling it a “very consequential development whose impact on our city will be felt for a century or more.”

    According to copies of emails provided by Mizrahi to the superior court, he appears to have paid ABCRA’s leader, John Caliendo, who signed the letter, on at least two occasions-- $73,450 in 2013 and $290,000 in 2015.

    Second on the Great Lakes

    Toronto’s skyline ranks second among Great Lakes cities behind Chicago and ahead of Detroit, Cleveland, Milwaukee and Buffalo.

    Toronto has 13 buildings over 700 feet and 30 over 550 feet, compared to 19 and 73 in Chicago.

    Toronto’s tallest include First Canadian Place (978 feet), by Trump International Hotel and Tower (908 feet), Scotia Plaza (902 feet), Aura (892 feet) and TD Canada Trust Tower (856 feet).

    In Detroit, the tallest buildings are the Detroit Marriott and the Renaissance Center (727 feet) and One Detroit Center (619 feet).

    In Cleveland, they are Key Tower (947 feet) and Terminal Tower (771 feet) and in Milwaukee, U.S. Bank Center (601 feet) and 100 E. Wisconsin (549 feet).

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