Argus Realty and Associated Firms Allegedly Ripped Off Investors with High Fees, False Data

Argus CEO Richard Gee

Argus is accused of selling undivided interests in three office buildings in Phoenix, described as "single-story class A back-office" buildings. The complaint calls it "inflated and indefensible" that the Argus team bought the properties for $51,375,000, tacked on millions in fees and then sold them to the investors for $58,240,000. The plaintiffs were supposedly told by Argus the investment was structured to last 10 years, but last June the properties fell into foreclosure, according to the complaint.

In other words, within months, the investment was a total bust.

The Argus companies allegedly misrepresented the facts of the original transaction, their supposed $1 billion in commercial real estate acquisitions and more than 9 million square feet under management, claims the suit, which accuses Argus CEO Richard Gee and other company officers of misrepresentations and omissions about the securities.

Investors are represented by Mark Slater with Slater Hersey & Lieberman in Irvine.
   
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