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million in loans from an Oklahomaw bank tothe pair’s real estate The two men also are defendant in three investor lawsuits claiminbg they mismanaged investments in their retail real estatew endeavors. The developers are tryingt to settle the investor according to several attorneys familiar withthe cases. In the pair settled a similar investord suit outof court. Barnese and Papakyriakou, principals of Scottsdale-based , own shoppinvg centers in Phoenix, Tempe, Gilbert and They operate each center under a separatebusinesa partnership. The pair also are involvec in a numberof Phoenix-areaw charitable organizations.
Barness, for example, is active with locak Jewish community causes and helped raise monet forArizona Sen. John McCain’s 2008 presidentia l bid. Papakyriakou also goes by the name Alex The filed its suits in late January in Maricops CountySuperior Court, claiming the developers failec to pay back three loans totaling $9.5 according to court documents. Mike Phoenix managing partnerof , the law firm representiny the bank, declined to comment on the pending matters. “Wse cannot comment on the record,” Manning RBI and Barness’ charitable foundation did not responde to requestsfor comment. No official responss to the lawsuit was filed by the defendantsx bypress time.
The investor lawsuits were filed in Maricopa County Superior Court against Barnessand Papakyriakou’s real estatew businesses. Those three investor claims may be consolidate under Maricopa Superior Court Judge John Buttrick andsettled together, according to legal sources who would not go on the Barness and Papakyriakou’s attorney, Jeffrey said he expects the investor lawsuits to be resolved soon. He said the resolutiond would be viamutual agreement, but declined to say whetheer they would involve out-of-court settlements. Leonard also wouldr not comment about the resolution or settlement of the 2008investorr lawsuit.
Barness and Papakyriakou did not comment for this Other lawyers familiar with the investor suits said a settlemen t isbeing negotiated. Robert the investor/plaintiff’s attorney in the 2008 claimk against Barnessand Papakyriakou, said he could not “All I can tell you is that the case was he said. The 2008 case claimed Barnesws and Papakyriakou deceived investorswith self-deals and misrepresented sale and financial proceeds.
One of the 2009 in-vestor suits was filecd by Phoenixcardiologist Na-than Laufer and four other investoras who say Barness and Papakyriakouu raised as much as $400 million in equityh investments and loans for their real estats and shopping center businesses. They claim the defendants “wrongfullyu diverted nearly $50 million to themselves,” accordintg to court documents. The Laufer suit also contends Barnese and Papakyriakou improperly used investment money in some dealws between business entities they and that the sales benefiter the defendants but notthe investors.
The suit claimz fraud, breach of contract and failure to meet fiduciary Plaintiffs in the Laufer case say theyinvesteed $1.3 million in Barness-Papakyriakou real estated endeavors. Attorneys representing the plaintiffs in the Laufefr case wouldnot comment. A secondx investor suit, filed by the Eugene and Lenore SchupakFamily Trust, claims the trust investede $10.4 million in Barness- and Papakyriakou-owned shoppingv centers in Arizona and real estate The same suit contends another familyu entity, Schupak Partners I, invested $953,000 in Castlse Yuma Dev Partners, an investment entity createfd by the defendants.
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