Grand jury investigation adds to
Bal Harbour hotel developer’s woes

Developer sold the Bal Harbour Quarzo to a company tied to Walter Defortuna

TRD MIAMI /
Feb.February 15, 2018 05:45 PM

Quarzo Bal Harbour

A Bal Harbour hotel developer wrapped up in multiple lawsuits alleging fraud has just revealed he is under investigation by a federal grand jury.

Bal Harbour Quarzo LLC is facing 19 lawsuits in Miami-Dade, alleging the company failed to pay back loans for a hotel redevelopment planned for the 2.38-acre site at 10250 Collins Avenue. Because the loans were executed in foreign countries and didn’t have mortgages filed in Miami-Dade, the LLC was able to sell the hotel in July for $18 million. The buyer was Beach Haus Bal Harbour LLC, a company managed by Fortune International Realty developer Walter Defortuna.

Bal Harbour Quarzo LLC, led by principals Juan Arcila and Carlos Mehecha, paid $15.8 million in 2007 for the trio of three-story, mid-rise towers that were converted into the 91-unit Bal Harbour Quarzo.

Some of the lawsuits allege that the Quarzo LLC used other entities hired to manage the hotel to siphon cash, according to the South Florida Business Journal. Now, Arcila, former co-owner of the hotel, told the court he had been subpoenaed by a federal grand jury and as a result, he can’t provide the requested financial records. He is also requesting a judge stay a case in another lawsuit. [SFBJ] – Katherine Kallergis


Related Articles

arrow_forward_ios
The Markers Grove Isle

Grove Isle tennis club lawsuit aims volley against developer’s new project

Muayad “Mo” Abbas and Apeiron at the Jockey Club rendering Category: Residential Real Estate

Apeiron at the Jockey Club developer faces more financial, legal trouble

Mark Notkin, Dina Goldentayer and David Siddons and the Oceana Bal Harbour unit (Credit: Douglas Elliman)

Junk bond manager sells Bal Harbour condo at a loss

Glenn Straub (Credit: iStock)

Wellington developer Glenn Straub charged with larceny

Charles Cohen, Design Center of the Americas

DCOTA refinances, avoids foreclosure

Robert Zangrillo and a rendering of the Magic City Innovation District (Credit: Wikipedia)

Developer Bob Zangrillo faces new charges for website scams

Apeiron at The Jockey Club partners fight over failed $20M deal: lawsuit

Apeiron at The Jockey Club partners fight over failed $20M deal: lawsuit

Oceana Bal Harbour (Credit: iStock)

Online ticketing mogul sells Oceana Bal Harbour condo at a loss

arrow_forward_ios
Loading...