Man arrested in scam filed for Chapter 11 bankruptcy shortly before arrest

(Source: Las Vegas Sun)

Investor lawsuits are piling up against a Las Vegas man who was arrested last week in what investigators are calling a massive real estate investment scam involving dozens of victims worldwide.

But investors and other creditors hoping to recover anything from the suspect, Jean Marc El Jwaidi, may have to line up in bankruptcy court.

That’s because one of El Jwaidi’s companies, Babuski LLC, filed for Chapter 11 bankruptcy reorganization in Las Vegas on June 29 — just weeks before his arrest.

Court records show the company filed for bankruptcy in order to block foreclosure proceedings by creditor Vestin Mortgage involving land Babuski said it is developing at Russell Road and the 215 Beltway.

The bankruptcy filing listed $10 million to $50 million in both estimated assets and estimated liabilities.

Read Steve Green’s full article “Lawsuits pile up in Las Vegas real estate investment scam” in the Las Vegas Sun (August 2, 2009).

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