Las Vegas Sun

March 28, 2024

Businessman accused of fraud reaches $400,000 settlement

Eljwaidi

Jean Marc Eljwaidi, right, appears in court with attorney Steven Wolfson at the Regional Justice Center in Las Vegas on Jan. 21, 2010.

Las Vegas businessman Jean Marc El Jwaidi has reached a $400,000 settlement with one of his disgruntled investors.

El Jwaidi was arrested last year on suspicion of what state investigators called an $80 million investment fraud involving his failed PG Plaza development at Russell Road and the Las Vegas Beltway.

The criminal case was settled when a benefactor stepped up to pay two elderly victims $338,000 in behalf of El Jwaidi.

Now, bankruptcy court records show, an unidentified benefactor is again providing funds to settle one of the lawsuits pending against El Jwaidi.

This development is of interest to creditors in El Jwaidi's personal bankruptcy case.

That's because the money gifted for the $400,000 settlement is earmarked for just one creditor, Rito Favela Jr., not all creditors.

Records show $50,000 has already been paid to Favela in behalf of El Jwaidi and that money was "gifted to El Jwaidi by a third party." Another $10,000 is to be paid to Favela by March 1 and the remaining $340,000 by May 5.

"All proposed settlement funds, including the remaining $340,000, have never belonged to El Jwaidi and El Jwaidi had no legal or equitable interest in these funds as of the commencement of" his bankruptcy, an El Jwaidi court filing last week said.

El Jwaidi listed liabilities of $26.4 million in his August 2009 bankruptcy petition.

Before the settlement was agreed to, attorneys for Favela had accused El Jwaidi and his spouse, Kamila Zakosielna El Jwaidi, of hiding and disposing of assets and to prove that they had been trying to inspect El Jwaidi's two Las Vegas homes, one described as "an approximately 8,000-square-foot gorgeous custom estate in an elite private guard-gated community" and the other described as "another beautiful custom estate in a security guard-gated community."

In his November 2009 lawsuit, Favela charged that he loaned $420,000 to El Jwaidi companies after El Jwaidi and El Jwaidi's brother, Bilal Joueidi, and others employed by El Jwaidi told him in January 2008 that he would earn a "large return" on his loans within only a few months.

"Plaintiff was told that Mr. El Jwaidi’s companies owned large parcels of land that were being developed into a commercial retail center and were poised to construct the center, but just needed short-term capital," the complaint says.

"Mr. El Jwaidi intentionally persuaded plaintiff to give money to Mr. El Jwaidi’s company, JKG Development LLC, with the false promise that the money was going to be used to develop parcels of land owned by Babuski LLC into a commercial retail center and net a large return to plaintiff within only a few months of giving those monies. Mr. El Jwaidi took the money from plaintiff for his own personal gain and to return some money to other creditors," the complaint charges.

A Jan. 25 hearing is planned for U.S. Bankruptcy Court in Las Vegas on El Jwaidi's motion that the settlement with Favela be approved.

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