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Real estate · Fraud
Real estate fraud litigation
Real estate fraud covers misrepresenting a property’s condition or value, falsifying documents, diverting funds in a transaction and investment fraud tied to a development or acquisition. Fernald & Zaffos represents buyers, sellers and investors in real estate fraud cases and has tried them to jury verdict in Los Angeles Superior Court.
Leads this practice
Brandon C. Fernald · Founding Partner
Founded the firm in 2009 after seven years at Norton Rose Fulbright.
What real estate fraud looks like
- Misrepresenting a property’s condition, value or income
- Concealing facts a buyer or investor needed to know
- Falsified documents, title or loan paperwork
- Diverting investor or escrow funds to other uses
- Investment schemes tied to a development or acquisition that never happens
We have represented individual buyers and sellers and investors in real estate fraud litigation, including cases involving significant sums and out-of-state or international investors.
Claims and remedies
Fraud claims in California include intentional misrepresentation, concealment and false promise (Civ. Code §§ 1709, 1710). They are often paired with breach of contract, breach of fiduciary duty and conversion claims. Remedies can include compensatory damages, punitive damages where the jury finds malice, oppression or fraud (Civ. Code § 3294), and equitable relief such as a constructive trust over the property or the entity that holds it.
Two recent trials
In an LLC investor fraud case, after a two-week jury trial in Los Angeles Superior Court, we obtained jury verdicts totaling $7.7 million for our clients. In a dispute between an investor and his business partner over a commercial building, after a five-day jury trial, we obtained $2 million in compensatory damages and $200,000 in punitive damages, and the court imposed a constructive trust transferring the entity that held the property to our client.
Real estate fraud results
Real estate fraud · Verdict
$7.7M
Jury verdicts for LLC investors in a fraud and fiduciary duty case
Los Angeles Superior Court
Read the case study
Real estate fraud · Verdict
$2.2M
Compensatory and punitive damages for an investor in a real estate fraud case
California superior court
Read the case study
Prior results do not guarantee a similar outcome.
Common questions
Don’t see yours? Call (323) 410-0300.
What counts as real estate fraud?
Misrepresenting or concealing material facts about a property or investment, falsifying documents, or diverting funds, when someone relies on it and suffers a loss.
Can I get punitive damages?
Possibly. California allows punitive damages when the jury finds by clear and convincing evidence that the defendant acted with malice, oppression or fraud.
I invested in a development that never happened. Do I have a claim?
You may. Investment fraud claims often include fraud, breach of fiduciary duty and conversion. We have represented international investors in these cases.
How long do I have to file a fraud claim?
In California, generally three years from discovering the fraud. Other claims in the same case may have shorter periods.
Do you take fraud cases to trial?
Yes. The $7.7 million and $2.2 million matters described above both went to jury verdict. Prior results do not guarantee a similar outcome.
Related
The information on this page is general and is not legal advice. Contacting the firm does not create an attorney-client relationship. Prior results do not guarantee a similar outcome.