A California real estate investor linked to Zions and Western Alliance has reportedly become entangled in lawsuits over USD 270 million in troubled debt.
According to Reuters, between April and August, Banc of California, Enterprise Bank & Trust, and Nano Banc initiated separate legal actions seeking repayment of loans totalling around USD 108 million. The investor, who has long operated in California’s property market and also owns a local high school football club, was listed as a guarantor and named among the defendants. PMF CA REIT, another real estate investment firm, has also filed a separate case for nearly USD 7 million.
lawsuits widen scrutiny of troubled real estate debt
These cases have drawn renewed attention to recent filings by Zions and Western Alliance that unsettled markets earlier this month. The two banks disclosed lawsuits against investment funds tied to Cantor Group LLC, alleging that the funds misrepresented collateral used for real estate loans. Both banks are seeking to recover combined losses of about USD 160 million tied to California commercial properties, including retail and office spaces.
Zions claimed that the borrowers and guarantors had moved or subordinated collateral without disclosure, while Western Alliance alleged that forged title insurance documents concealed prior claims by other lenders. The investor named in these cases is also a defendant in both, alongside another California real estate developer.
Cantor Group, which operates independently from Cantor Fitzgerald, was incorporated in 2015 and is registered in Newport Beach, California. A legal representative for the investor disputed Western Alliance’s allegations, describing them as inaccurate. Other banks involved declined to comment on ongoing litigation. It’s worth noting that Zions noted in a regulatory filing that it became aware of several lawsuits involving affiliated parties, but did not provide further detail.
