Laurance Freed, the Chicago developer with a looming federal prison sentence, faces another legal challenge, this time over his alleged mismanagement of a company that owns a stake in the Vic Theatre.
Freed, who developed the downtown shopping mall Block 37 before losing it in foreclosure, is being sued by David Kirshenbaum, who is a partner of Freed Vic LLC, which owns a stake in the Lakeview theater.
Kirshenbaum claims gross mismanagement by Freed, and accuses his partner of diverting Freed Vic’s funds to other entities, according to the heavily-redacted lawsuit filed in Cook County Circuit Court. The suit asks for punitive damages for Kirshenbaum and for Freed’s removal as manager of Freed Vic.
Kirshenbaum is a former executive of Freed’s now-defunct development company, Joseph Freed & Associates, according to Crain’s. The company is known for redeveloping the former Carson Pirie Scott building on State Street.
The Vic Theatre lawsuit is the latest legal trouble for Freed.
Last year, he was sentenced to three years in federal prison for a fraud scheme involving the Streets of Woodfield Mall in Schaumburg and the redevelopment of the former Goldblatts store in the Uptown neighborhood. He is to report to prison in September, according to Crain’s.
Freed is also ensnared in a legal battle with his sister, who accuses Freed of forging documents and diverting funds from their business ventures.