Previous Story
Businessman files suit over land lease deal
|
Posted on Oct 03 2000
Businessman David T. Phan has filed a civil case before the Superior Court against Bali Fashion owner Mustafa F. Shakir in connection with the fraudulent acquisition of a land lease in Gualo Rai.
Court records show that Mr. Shakir convinced his former friend Mr. Phan that he will negotiate for the lease of a property in Gualo Rai village with real estate broker Roy Alexander claiming he might be able to obtain the property for a lesser amount.
Mr. Shakir told Mr. Phan that as soon as he has paid Mr. Alexander’s leasehold interest in the real property, the defendant would obtain the assignment of lease and place the leasehold title interest in the property in trust for Mr. Phan.
As a result of the promises made by Mr. Shakir, Mr. Phan issued a Bank of Hawaii check amounting to $25,000. On Feb. 11, 1997, Mr. Alexander and Mr. Shakir executed an assignment of lease.
However, in April 1998, Mr. Phan learned that Mr. Shakir was attempting to lease the property to third parties. Immediately, Mr. Phan demanded that Mr. Shakir transfer the leasehold interest in the Gualo Rai property to him through an assignment of lease.
But Mr. Shakir has continuously refused to assign the lease to Mr. Phan, breaking an earlier promise that once it is obtained, he will execute an assignment of lease transferring the property to Mr. Phan.
What made matters worse was when Mr. Phan later discovered that Mr. Shakir borrowed money from the Citytrust Bank using the assignment of lease as collateral for that loan.
Mr. Phan then demanded the return of $25,000 which was used to finance the acquisition of the lease from Mr. Shakir who until now has refused to do so.
In his complaint, Mr. Phan through his lawyer Eric Smith, asked the court to order Mr. Shakir to pay $50,000 in special damages with 12 percent interest and exemplary damages amounting to $15,000.
