Foley Bezek Behle & Curtis, LLP
Donahoo & Associates
Marquis & Aurbach:
The Law Offices of George O. West, III

UPDATE OF STATUS OF SETTLEMENT

The following is an update on the status of the litigation against Vegas Grand which settled last year.

The settlement approved by the Court provided that when the Developer sold any of the individual condo units at the Project, a portion of the sales proceeds from each condo unit would be deposited into an escrow account to be distributed to the class members.

The settlement agreement also provided that if the Developer sells a portion or all of the land on which the Project was to be developed, a portion of the settlement proceeds would be deposited into an escrow account to be distributed to class members.

The Developer, Del American, obtained a loan from Lehman Brothers to both purchase the land on which the Project was to be built, and also to construct the actual condominiums. We are informed that construction on Bella I has been largely completed. However, we have learned the Developer defaulted on its loans to Lehman Brothers, and Lehman Brothers initiated a nonjudicial foreclosure proceeding to foreclose out the Developer’s ownership of the land. Lehman Brothers had a Receiver appointed by a court to complete the construction of Bella I.

Case Documents

We have been able to verify that the foreclosure sales initiated by Lehman Brothers to take back the land on which the Vegas Grand Project was to be built has now completed. Copies of the two foreclosure deeds and an Affidavit of Sale and Disclosure Receipt by Stewart Title related to the foreclosure are available to be viewed on this website.

The Court has conducted two status conferences to be updated on this situation. Your attorneys requested written confirmation from Christopher DelGuidice, the owner of Del American, to verify that it was in fact an “arms-length” foreclosure and that there were no “side-deals” whereby Lehman Brothers paid some type of consideration to DelGuidice.

Mr. DelGuidice has filed an affidavit under penalty of perjury with the Court in which he states that he did not receive any consideration from Lehman Brothers related to the foreclosure, other that being released from his personal guarantee to Lehman Brothers to repay Vegas Grand’s debts to Lehman Brothers. The settlement agreement approved by the Court specifically provided that in the event of an arms-length foreclosure, that event would not entitle the class members to any funds. A copy of the affidavit filed by Mr. DelGuidice with the Court is available on this website.

If it was in fact an “arms-length” foreclosure, there will likely be no further funds paid by the Developer or by Lehman Brothers to the settlement escrow, and their will be no further payments to any class members or to the attorneys for the class for payment of the legal fees which were approved by the Court, but have not yet been paid.

Once we have further information we will update this website.