Usually, thinking twice before making a decision results in the best possible outcome. A Calif. property developer thought twice when it came to finding coverage for a condominium project, however, and now it is costing him.
Bijan Madjlessi, 55, of Strawberry, Calif., had been working on the Belvedere Towers condominium project when a fire occurred on July 29, 2008. Though the blaze was deemed “suspicious,” no arson charges were filed at the time.
When filing claims for the fire, he turned to Travelers Insurance, who covered the north tower, and Fireman's Fund, who covered the whole site. Madjlessi was then paid for damages by both insurers, some of which overlapped.
Madjlessi had informed each insurer that he had no other policies for any part of that property, and as a result, defrauded $1.4 million from the two companies. He denies these allegations, and his attorney stated that the charges were “an invention by the insurance company.”
In the midst of this mayhem, Madjlessi has been dealing with civil litigation involving other properties owned by his companies. Allegedly, the companies defaulted on $11.2 million in loans from Sonoma Valley Bank for projects they were developing in Petaluma, Calif., and that bank has since collapsed.
Westamerica Bank, however, had purchased Sonoma's assets after the collapse, and plans to foreclose on six of Madjlessi's properties. Now, Madjlessi has sued in federal court in an attempt to block said foreclosure so he can repay Westamerica the $4.32 million he originally owed Sonoma.
Authorities arrested Madjlessi on June 1 for the overlapping condominium fire claims. After a $750,000 bail was set, he was released on bond and is due in court June 20 for arraignment.
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