Key facts
- An arbitration judge awarded Mohammad Honarkar $1.34 billion.
- The award is for a fraudulent joint venture that seized 20 commercial properties.
- The joint venture allegedly used Honarkar's own property financing to fund its equity contribution.
- 14 of the 21 properties in the portfolio have been foreclosed on.
- Respondent Mahender Makhijani faces federal bank fraud charges.
An arbitration judge has awarded Orange County property owner Mohammad Honarkar $1.34 billion in a dispute concerning a joint venture that allegedly took control of nearly two dozen commercial properties through fraudulent means. The proceedings, which lasted nearly three years, centered on claims of fraudulent inducement, breach of contract, and forcible entry against respondents Mahender Makhijani, his company Continuum Analytics, and their affiliates.
The dispute originated from a joint venture formed in 2021 when Honarkar, owner of 4G Wireless, was facing financial challenges, including pandemic impacts on his properties, a complex divorce, and difficulty repaying a $195 million loan. Honarkar entered into an agreement with Makhijani and Continuum Analytics, contributing stakes in multiple commercial properties in exchange for a $30 million equity contribution and refinancing assistance.
However, the award indicates that a substantial portion of this equity contribution was funded by financing secured by Honarkar's own properties, the origin of which was allegedly hidden from him. The portfolio included the Hotel Laguna and several retail and commercial buildings, valued at $483.6 million, comprising 20 properties. According to court filings, 14 of these 21 properties have since been foreclosed upon, and three are currently in foreclosure proceedings and under receivership.
Honarkar stated that the ruling vindicated him after years of his reputation, business, and properties being "ruined by those I thought I could trust." However, the full recovery of the award is uncertain. Makhijani was recently arrested on federal charges for allegedly defrauding a bank out of nearly $100 million by manipulating title policies to inflate collateral values. Honarkar's legal team is investigating Makhijani's assets to determine the extent to which the award can be satisfied.