California Investor Files Complaint Against Behn Associates Over Crypto and Real Estate Losses
On Tuesday, October 22, 2024, Clifford Martin III filed a complaint in the California Superior Court against Chozan G. Behn Sr. and Behn Associates R.E. Investments Inc. The complaint accuses the defendants of multiple counts, including breach of contract, intentional and negligent misrepresentation, and negligence, stemming from financial agreements related to real estate investments and a cryptocurrency venture.
The case outlines a series of transactions in which Martin claims to have invested a total of $100,180 across various projects. According to the complaint, Martin engaged in a Private Placement Memorandum Agreement along with an Operating Agreement and Securities Subscription Agreement with the defendants on August 30, 2020. In these agreements, Martin asserts that he invested $70,000 for the purpose of purchasing and redeveloping residential properties.
The properties in question include two locations in Baltimore, Maryland. Martin alleges that he was promised monthly interest payments calculated at a rate of 10% annually, equating to approximately $486 per month. Additionally, the agreements stipulated a lump sum repayment of at least $20,000 upon the sale of each property.
Despite these agreements, Martin claims that the defendants failed to make the promised monthly payments and did not return his initial investment, which was due following the expiration of the agreement in August 2021. The complaint asserts that both properties were sold at a loss in mid-2022, yet Martin has not received any payments as outlined in the contracts.
Furthermore, Martin alleges that in September 2020, he invested an additional $27,000 in a cryptocurrency platform recommended by Behn. He claims that he was misled into believing that this investment would yield substantial returns. Martin was later informed that his investment had been stolen and was advised to pay an extra $3,180 to recover his funds through a “crypto recovery agent.” The complaint states that Martin has since discovered that no cryptocurrency investment was made on his behalf and that the defendants allegedly absconded with his money.
In the complaint, Martin states that he has met all contractual obligations but has received no responses from the defendants regarding his inquiries about the status of his investments. As of the filing date, he claims to be owed a total of at least $144,729.06, including his principal investments and accrued interest.
The legal document outlines five causes of action against the defendants:
- Breach of Contract: Martin claims that the defendants did not fulfill their obligations under the agreement, which included making monthly interest payments and returning his initial investment. He asserts that the total amount due exceeds $114,549.06, with interest continuing to accrue.
- Breach of Implied Covenant of Good Faith and Fair Dealing: The complaint states that the defendants failed to act in good faith and deal fairly with Martin, violating the implied terms of their contractual agreement.
- Fraud: Martin accuses the defendants of making false representations regarding their trustworthiness and the nature of the investments, which induced him to invest his funds.
- Intentional Misrepresentation: The complaint alleges that the defendants knowingly misled Martin about the success and safety of the investments, particularly regarding the cryptocurrency platform.
- Negligent Misrepresentation: Martin contends that the defendants lacked reasonable grounds for their claims about the investment opportunities they presented to him.
Martin is seeking compensatory damages, including the amounts owed and interest, as well as punitive damages against the defendants for their alleged fraudulent actions. He is also requesting attorney’s fees and costs incurred during the litigation process.
Please contact BlockTribune for access to a copy of this filing.
