Fires ravage LA as agents mobilize; Tracy Tutor trades Douglas Elliman for Compass… and more

THE RUNDOWN:

?? As Southern California grapples with its worst wildfire season in 14 years, local real estate agents and developers are stepping up to provide short-term housing and resources for displaced residents.

?? Former Omnibuild CEO John Mingione is fighting to clear his name after being indicted alongside his company and two employees for allegedly aiding HFZ Capital’s Nir Meir in a multimillion-dollar fraud scheme.

?? Celebrity agent Tracy Tutor, best known for her role on "Million Dollar Listing," has left Douglas Elliman to join Compass.

?? Alon and Oren Alexander, accused alongside their brother Tal in a federal sex trafficking case, remain in custody as lawyers propose house arrest alternatives, including properties in Miami and Manhattan.

?? Jacob Chetrit, one of four brothers in the enigmatic Chetrit family who are major players in New York real estate, has died.

?? Colliers International Group is being sued by investors who claim the brokerage and its affiliates sold unregistered securities, leading to millions in losses.

THE DETAILS:

?? Fires burn through LA neighborhoods as agents mobilize

Shelton Wilder of Christie’s International Real Estate Southern California is part of a network of about 25 agents in the area who created a Google Docs list of staged or furnished homes available for short-term leases.

• Michael Nourmand, president of Nourmand & Associates, said he’s assisting with temporary housing, and Pardee Properties is offering transportation, food, clothing and other essential items.
• The estimated damage is between $52 to $57 billion after destroying multimillion-dollar homes, businesses and cultural landmarks from Malibu to Pasadena.
• The fires add to an already strained real estate market facing challenges like rising insurance costs, Measure ULA and rising interest rates.
• The L.A. hospitality industry is pitching in as well. Airbnb has made free rooms available to evacuees and major hotels are extending discounted rates to displaced residents.?

?? Omnibuild’s John Mingione speaks out about Nir Meir case

Mingione claims he alerted lenders about HFZ’s breaches, accusing the Manhattan DA’s office of withholding letters documenting the company’s attempts to expose the fraud.

• “The only thing I didn’t do is take Nir Meir and hang him out the window like Suge Knight did,” Mingione said, referring to a tale about the former CEO of Death Row Records and Vanilla Ice.
• Meir is accused of misusing project funds and engaging in fraudulent tactics that resulted in a $37 million deficit at HFZ’s troubled XI condo project in Chelsea, while Mingione insists Omnibuild is a victim of Meir’s deception.
• The indictment devastated Omnibuild, leading to nearly $1 billion in lost revenue, mass layoffs and Mingione’s resignation.

?? Tracy Tutor leaves Douglas Elliman to join Compass

Tutor is bringing her 18-person team in Beverly Hills, Dallas and Austin, as well as more than $550 million in active listings.

• The celebrity agent is the most recent addition in a growing number of big names Compass has poached within L.A.’s luxury residential market — including former Hilton & Hyland President David Kramer and Josh Flagg, who left Elliman after two years.
• Among those making the move to Compass with Tutor are the team’s CEO Cody Coffman and CMO Ani Cataldi.
• The move highlights Compass’ ongoing push to dominate the luxury real estate market, attracting top talent with innovative tools like Private Exclusives and Compass Coming Soon.

?? Alexander brother’s house arrest pitch includes Tal’s Manhattan apartment

Defense attorney Howard Srebnick offered a Miami-Dade apartment with 24/7 private security and Tal’s New York apartment, which prosecutors rejected as "self-funded private jails."

• Federal Judge Eduardo Sanchez denied Alon’s house arrest request, citing flight risk concerns.
• Prosecutors argued the Alexanders are leveraging their wealth to avoid detention, with prior house arrest proposals at waterfront properties also dismissed.
• The brothers, who are also battling multiple civil lawsuits over sexual assault allegations, are awaiting upcoming hearings that could determine their detention status.

?? Real estate investor Jacob Chetrit dies

A major investor in Manhattan and South Florida real estate, Chetrit was developing a pair of massive projects in Pompano Beach and Hollywood Beach.

• His Chetrit Organization owns the 366,000-square-foot 1 Whitehall Street in the Financial District and had owned the 617,000-square-foot office building at 850 Third Avenue up until its sale in 2023.
• In 2020, he struck a deal to buy the Daily News building from SL Green for $815 million, but instead it became one of the biggest deals to go bust during the early days of the pandemic.

?? Colliers accused of enticing small investors into shady deals

The suit accuses Utah-based agents and property managers of using Colliers’ branding to entice retirees and small investors into risky medical office investments in Texas.??

• At the heart of the case is a property in Crockett, Texas, that plummeted in value after its tenant, Pulse Healthcare Systems, declared bankruptcy in 2024.
• Investors allege the property was appraised at $9.5 million when they bought in but was listed for just $1.9 million months later, sparking accusations of fraud.?
• The lawsuit claims agents and property managers concealed critical risks and made false promises, with one investor comparing it to a "Ponzi scheme."

THE CLOSE:?

How will the fires in LA affect the already unstable insurance market in the state? Keep reading TheRealDeal.com to find out.

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