Houston Tower Owner Bilked Creditors With $6.5M Loan: Suit

Law360, New York (July 2, 2012, 8:50 PM EDT) -- A retail electricity provider on Monday filed suit in Texas state court alleging that the owners of a Houston office tower systematically defrauded creditors by obtaining and hiding more than $6.5 million in loan proceeds secured against the property.

Star Electricity Inc. claims that Northpark Office Tower LP, its principal Mohammed A. Choudhri and members of the Choudhri family were involved in a series of fraudulent transactions using various corporate identities to transfer the proceeds in order to avoid creditors.

“The Choudhri property daisy chain scheme...
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