Miami family seeks to recover $6M from alleged home flipping schemers: lawsuit

Family alleges defendants did not purchase and flip houses as promised

Miami /
Jun.June 25, 2020 02:30 PM
A Miami family alleges it was swindled out of millions of dollars as part of an investment scheme to flip houses. (Credit: iStock)

A Miami family alleges it was swindled out of millions of dollars as part of an investment scheme to flip houses. (Credit: iStock)

UPDATED, July 22, 3:35 p.m.: A Miami family that owns an auto parts supply company alleges it was swindled out of millions of dollars as part of an investment scheme to flip houses.

Cipriani Investments LLC, led by Massimo, Domenico, Antonio and Gianluca Cipriani, is suing Mayelin Tirado, Mario Alfonso Santiago and KMTG Property Management and Investments for allegedly funneling the Ciprianis’ cash into personal accounts in a Ponzi-style scheme. The Cipriani family that is suing is not affiliated with the restaurateur family. They own CA Supply USA, which sells tires, engine oil and auto parts, according to its website.

The lawsuit was filed earlier this month in Miami-Dade Circuit Court. The suit seeks to recover $6 million in damages.

Cipriani Investments was created to acquire and sell real estate, and KMTG Property Management and Investments was acting as an investment entity to purchase and flip homes for returns, according to the suit.

But the Ciprianis and investors they brought in never received the returns they were promised, the lawsuit alleges. They began to invest with KMTG in 2018, pumping about $2.4 million into the company to purchase properties in multiple states.

The lawsuit alleges Tirado and her husband Santiago funneled the money into a Wells Fargo account for their personal use. Several of the properties were never purchased, and for those that were purchased, KMTG did not pay the mortgages, taxes or homeowners association fees, resulting in the properties falling into default, according to the suit. All the while, “Tirado and Santiago continued to take monies from KMTG and deposit into their personal accounts,” the lawsuit states.

Tirado and Santiago could not be reached for comment. The Cipriani family declined to comment through their attorney, Armando R. Alfonso of A.R.A Law Group.

Cipriani Investments also alleges that KMTG falsified documents. According to a letter from the Ciprianis’ lawyer to Tirado, attached to the suit, the family even loaned the couple $150,000 that was never repaid.

On July 22, after publication of the article, the defendants’ lawyer, Alexis Gonzalez, said in a statement that “KMTG, Mayelin Tirado and Mario Alfonso Santiago deny and vehemently contest the egregious and libelous allegations” in the lawsuit, and that the complaint is an attempt by the Cipriani family “to cover up its own indiscretions and fraudulent wrongdoings, while siphoning off company funds.” 


Related Articles

arrow_forward_ios
Setai Miami Beach and owners Joe, Ralph and Avi Nakash. (Setai)
Setai Miami Beach bans unwelcome hotel guest from using amenities: lawsuit
Setai Miami Beach bans unwelcome hotel guest from using amenities: lawsuit
Abraham Edgardo Ortega is one of nine people charged in the laundering scheme. (Getty, Department of Justice)
Former Venezuelan oil exec sentenced in $1B money laundering scheme
Former Venezuelan oil exec sentenced in $1B money laundering scheme
East End Capital’s Jonathon Yormak, BentallGreenOak’s Sonny Kalsi and 100 Biscayne Boulevard. (East End Capital, BentallGreenOak)
East End Capital, Australian investors lose suit over $6M deposit in failed downtown Miami office tower sale
East End Capital, Australian investors lose suit over $6M deposit in failed downtown Miami office tower sale
Guess CEO Carlos Alberini (Getty, Google Maps)
Guess it didn’t work out: Guess loses suit seeking rent break at Lincoln Road store in Miami Beach
Guess it didn’t work out: Guess loses suit seeking rent break at Lincoln Road store in Miami Beach
The Coconut Grove Playhouse and Miami Mayor Francis Suarez (Phillip Pessar/Flickr, Getty)
Miami-Dade County wins lawsuit over Coconut Grove Playhouse partial demolition
Miami-Dade County wins lawsuit over Coconut Grove Playhouse partial demolition
(iStock/Illustration by Kevin Rebong for The Real Deal)
Miami Beach agent wins $1M judgment in lawsuit over owed commissions and stolen funds
Miami Beach agent wins $1M judgment in lawsuit over owed commissions and stolen funds
HFZ's Ziel Feldman. (Getty, Shore Club)
HFZ faces lawsuit, unpaid tax bill for Shore Club South Beach hotel
HFZ faces lawsuit, unpaid tax bill for Shore Club South Beach hotel
Jared Galbut, Keith Menin and the Bentley South Beach (The Bentley Hotel)
Lawsuit against Jared Galbut, Keith Menin alleging fraudulent special assessments at Bentley South Beach moves forward
Lawsuit against Jared Galbut, Keith Menin alleging fraudulent special assessments at Bentley South Beach moves forward
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...