A wealthy Texas auto dealer is accused in court documents of engaging in a complex, fraudulent real estate scheme.
Bryan Hardeman allegedly conspired to defraud companies out of their equity in real estate holdings in Austin, San Antonio and other parts of Texas, one of the companies claimed in federal court filings Nov. 23.
Hardeman, along with Justin Bayne and Mark Riley, allegedly have been trying to “spoil the market” for the real estate, making it hard for the companies to restructure their finances, 4811 South Congress LLC said in a U.S. Bankruptcy Court Western Division of Texas filing on Nov. 23.
Attorneys for real estate investor Nate Paul, one of 4811 South Congress LLC owners, alleged that Hardeman, through a company called Anonymous Successor Lender, tried to coerce banks to sell loans on properties owned by Paul to Hardeman without Paul’s knowledge.
Hardeman would allegedly then use the loan positions to force the properties into receivership, then conspire with the receiver, their lawyers, and a state district judge to ensure that full equity in the properties are transferred to Hardeman and his investors through a rigged auction scheme.
At an Oct. 20 conference, the bankruptcy judge in the case, Tony Davis, said, “I mean running around trying to spoil the market for the assets before you’ve even gotten your feet on the ground in the bankruptcy case, that’s a pretty serious matter,” according to the Nov. 23 filing.
Lawyers for 4811 South Congress LLC want Hardeman to appear in court to answer questions about the alleged scheme. They are also asking for Hardeman to turn over relevant documents. Despite the previous request for documents, none have been turned over yet, even though Hardeman admitted that they existed, according to attorneys for 4811 South Congress LLC.
Hardeman, Bayne and Riley have formed numerous “shell” companies to pursue the alleged scheme, the Nov. 23 filing claims.