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Thursday, Jun 30, 2022
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Irvine Apartment Investor Files for Bankruptcy: Report

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Irvine-based Real Estate Partners Inc., an investment and management company, has filed for bankruptcy after charges of securities fraud were leveled against the company and its executives.

Real Estate Partners and seven affiliates have filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Central District of California, according to CoStar Group Inc.

Last month, the company and its president, Dawson Davenport, were among several parties the Securities and Exchange Commission charged with conducting a $50 million real estate fraud scheme.

The SEC says that Real Estate Partners ran a Ponzi-like scheme, where investors were promised huge returns for their investments, which instead were largely used to pay commissions and other investors.

The SEC claims the company failed to disclose that more than half the $50 million it raised from more than 1,600 investors from 2003 to 2006 went to commissions. The suit also charges other local individuals with running boiler-room operations.

Real Estate Partners invests in apartments both locally and out of state. Its biggest buy in the area was San Clemente’s Seacrest Apartment Homes, which it paid nearly $88 million for last year.

Mark Mueller
Mark Mueller
Mark is the Editor-in-Chief of the Orange County Business Journal, one of the premier regional business newspapers in the country. He’s the fifth person to hold the editor’s position in the paper’s long history. He oversees a staff of about 15 people. The OCBJ is considered a must-read for area business executives. The print edition of the paper is the primary source of local news for most of the Business Journal’s subscribers, which includes most of OC’s major corporate and community players. Mark’s been with the paper since 2005, and long served as the real estate reporter for the paper, breaking hundreds of commercial and residential real estate stories. He took on the editor’s position in 2018.

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