PORTLAND, Ore. (CN) – Investors in Kensington Green Assisted Living Property say law firm Davis Wright Tremaine helped property management company Sunwest Management trap them in a real estate Ponzi scheme.
According to the lawsuit, Sunwest sold the plaintiffs shares in a multi-property senior living facility. Each of 15 plaintiff companies bought one property, but Sunwest and Davis Wright allegedly concealed that only a small number of the properties were making money. Sunwest allegedly used the profits from successful properties to subsidize the others.
Once the plaintiffs bought the properties, Sunwest no longer had the duty or the financial ability to continue the secret subsidies, plaintiffs say.
Timothy Dozois, a partner at Davis Wright Tremaine, allegedly helped sell the properties by preparing misleading sales documents and giving them to investors and by helping to form the plaintiff companies.
The plaintiffs want undisclosed damages. They are represented in Multnomah County Court by Michael Esler.