The lawsuit alleges the developer's CFO used housing funds to buy luxury items such as a $35,000 Audemars Piaget diamond watch and a $16,839 Birkin for his girlfriend.A lawsuit filed by a Los Angeles developer claims the company's former CFO embezzled millions of dollars designated for low-income housing projects, and instead used it to fund a lavish lifestyle for himself and his ex-girlfriend.
"He took advantage of his position and embezzled millions of dollars using fraudulent and deceptive means to do so," said Brian A. Sun, an attorney representing Shangri-La Industries. " doctoring up signatures, creating documents, and opening up fictitious accounts as detailed in our complaint." But several of the properties are now in foreclosure, including Project Homekey developments at former motels in Redlands and San Bernardino. The company is being sued by the California Department of Housing and Community Development for breach of contract."Besides being shocked, disappointed and horrified with Holmes' actions, we're astounded to the level and degree that he went to achieve and manipulate others besides us in pursuing his fraudulent activities.
Sun said that his client is asking for a temporary restraining order against Holmes and Witt, out of concern that he's liquidating the ill-gotten assets.