As we reported in our blog last week, the Chicago Tribune reached out to WSH Member and Miami-Dade Partner-in-Charge Michael S. Popok for his reaction to the recent indictments of Boca Raton developer Atul Bisaria and contractor Steve Lewis, who are charged with defrauding Chicago’s Mutual Bank and Broadway Bank out of more than $19 million in loans. WSH represents United Central Bank, the successor to Mutual Bank, in a related foreclosure.
On October 15, the South Florida Business Journal published an article detailing Bisaria and Lewis’ alleged fraud. According to the indictment, Bisaria and Lewis contrived false purchase orders and used funds received from the bank for personal expenses and failed real estate ventures. Bisaria and Lewis allegedly created false invoices for renovations to existing hotel properties owned by Bisaria, including $1.9 in invoices for steel to be used in an addition to the Guest Suites at Boca Raton. A receiver appointed by the hotel could not confirm that the steel was ever delivered. In a separate proceeding, Michael S. Popok, John J. Quick, and Eric P. Hockman reviewed dozens of invoices that Bisaria and Lewis submitted to Mutual Bank to justify their expenses. Speaking to the South Florida Business Journal, Michael stated that, in reviewing the records, WSH attorneys could find no evidence that the renovation had taken place. Michael also stated that he forwarded his findings to the Federal Deposit Insurance Corporation for future use by the U.S. Attorney’s Office.
Author(s): Brooke P. Dolara
