Argus Realty lured investors with commercial real estate securities it touted as "institutional grade," but it was "a rigged game in which the sponsors made millions in fees while taking savings from people earned over a lifetime," 11 plaintiffs claim in court.
Six LLCs, led by ARI-NBCC 2, and five people sued Argus Realty Investors, Argus Realty, and several affiliated companies and people, in Orange County Superior Court.
"The sponsors and entities behind this offering gorged themselves on unconscionable fees and costs associated with the offering and the management of the properties while placing the investors in a hopeless, fraudulent investment structure that had no chance of providing a reasonable return," the complaint states. "While the investment was touted as 'institutional grade,' it was anything but institutional grade. This TIC was no investment in any sense, but a rigged game in which the sponsors made millions in fees while taking savings from people earned over a lifetime.
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