Ex-NBA player Tate George, who was sentenced to nine years in prison for running a $2 million real estate Ponzi scheme, has filed a fraud lawsuit against Jody Kriss and Michael âChudiâ Ejekam.
The pair, who used to work for the Bayrock Group, the firm that co-developed Trump SoHo, was accused of using their affiliation with President Donald Trump to commit fraud.
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âIn 2005, when local real estate investor C. Tate George was handed the business cards of two Trump protĂ©gĂ©s, he viewed them as tickets to the big leagues. Little did George know, however, that Michael âChudiâ Ejekam and Jody Kriss were swindlers who used the Trump brand to lure investors, with no intention of ever turning a profit or returning investorsâ money,â the court filing read.
The case, which was filed in Essex County Superior Court on January 31, focused on a real estate project in the Chicago suburb of Glenview, Illinois. According to court documents, George and Ejekam met through a mutual acquaintance at Goldman Sachs. Ejekam claimed to have a âleading roleâ in several Trump-branded projects, including Trump SoHo in Manhattan. In a previous report from the Real Deal, a representative from Bayrock said that Ejekam was a contractor and not an employee of the firm.
Ejekam served as a conduit between George and Kriss. According to the lawsuit, Kriss repeatedly invited George to his office in Trump Tower. The visits were supposedly meant to highlight Krissâ connection to Trump. Kriss and Ejekam were also said to have repeatedly mentioned âTrumpâ and the âTrump Organizationâ to imply that Donald Trump was involved in the project.
In June of 2006, the parties agreed that Ejekamâs firm Baron Capital Management would be the lead developer in the project. Meanwhile, the former basketball playerâs George Group brought in three outside investors: Ralph Ramsey, Howard Trachtenberg and Dwayne Taylor. In October of that year, Ramsey and Taylor made an initial investment of $50,000 each.
Before even closing on the property, Ejekam said that he already had a buyer lined up, according to court documents. In February of 2007, Ejekam complained of an âeasement issueâ and difficulties in flipping the property. Two months after, the relationship had soured to the point that Ramsey and Taylor asked for a refund. Ejekam refused, urging the investors to roll the funds into two other projects in Illinois. George claimed that he was left alone to deal with disgruntled investors. According to the filing, Ejekam and Kriss soon stopped answering the phone and âabscondedâ with the funds.
The case adds to the long legal history for Bayrock Group. In 2010, Kriss, who now works as a principal and co-founder at residential development firm East River Partners, filed a lawsuit that exposed former Bayrock consultant Salvatore Lauria as a convicted felon turned mob informant. In 2014, Lauria retaliated with a summons that accused Kriss of âmob tactics.â Last year, Bayrock executive Felix Sater was also named in a $250 tax fraud case involving projects such as Trump Soho and Trump International in Fort Lauderdale. In 2010, Kriss and Ejekam jointly sued Bayrock, accusing the company of fraud.
The Tate George lawsuit accuses Kriss and Ejekam of fraud, breach of contract, negligent misrepresentation and unjust enrichment. Ejekam now works as a real estate developer in Nigeria. Kriss did not immediately return a request for comment.
George, who played for the New Jersey Nets and the Milwaukee Bucks during a four-year NBA career, was convicted of four wire fraud counts. He reportedly used the funds for his own expenses such as back taxes and a television pilot. Among his victims were former NBA players Charlie Villanueva and Brevin Knight.
Ex-NBA player Tate George sues, says partners used Trump brand for fraud : Real Estate Weekly
