Agent

Fraud kills $75 million hotel deal

Buyer sued for allegedly 'manipulating' agreement

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In early 2004, Hotels Nevada owned the Alexis Park Hotel and the American Inn Apartments in Las Vegas. Louis Habash owns and controls Hotels Nevada, and he agreed to sell Hotels Nevada to L.A. Pacific Center Inc. for $75 million. Richard Alter and Eddie Chan were L.A. Pacific's authorized agents. At their request, Habash agreed to a $5 million holdback from the purchase price for 12 months after the sale. Purchase Bob Bruss reports online. In March 2004, after the sales agreement and memorandum underwent several drafts, Habash and Alter met at the office of the attorney for L.A. Pacific. Alter then told Habash he wanted the holdback period to be for 60 months rather than the agreed 12 months. Habash refused to agree and walked out. Alter immediately approached Habash in the hallway and told him L.A. Pacific would agree to the 12-month holdback after all. Habash returned to the attorney's office, reviewed copies of the agreement and memorandum to confirm they both contained a 12-mon...