Investors File Suit Against Georgia-Based Bank
Park Ave Bank Linked to Shi Shailendra Real Estate Fraud Lawsuits Collusion Charged in Seventh Lawsuit in Seven Weeks
Online, February 13, 2011 (Newswire.com) - Partners in Shi Investments One LLC today announced it has named Park Ave Bank of Valdosta, Ga., high on the FDIC's 'Watch List' as another possible Georgia community bank failure, in a bank fraud lawsuit as a co-conspirator in colluding with Atlanta real estate developer and political operative "Shi" Shailendra to defraud real estate investors.
In this latest lawsuit filed by Shi Investments One LLC, Park Ave Bank is alleged to have "aided and abetted" by colluding with Shailendra to launder monies away from Shailendra's investors. "Our records show that on October 27, 2007, while acting as a fiduciary and managing partner of Shi One Investments, Shailendra received a $380,000 check from Georgia Transmission as payment for a right-of-way access across land owned by the Shi One partnership in Henry County," said Carlene Kikugawa, a nationally recognized forensic accountant at Singer, Lewak.
The lawsuit alleges that Park Ave Bank allowed Shailendra to endorse the check, made out to the corporate entity Shi One Investment Partnership LLC, and deposit it into his personal checking account (ending in 5808). "The previous six lawsuits carefully document numerous similar actions by Shailendra to divert partnership resources into his own piggy bank," stated Kikugawa. Shailendra never accounted for these monies to the partners nor do the books and records of Shi One Investment Partnership LLC show the receipt of these funds."
Shailendra faces six lawsuits, alleging real estate fraud; money laundering; diverting investor funds to his personal bank account; failing to account for partnership assets; self-dealing property and assets to himself, family and co-conspirators; and colluding with community banks by applying for, receiving and defaulting on personal loans against partnership property.
For more information about related alleged Ponzi schemes visit www.ponziwatch.net.
About Shi Investments One
Shi One is an investment partnership created to purchase, develop and operate land investments. The partnership was created in 2005. Shi Shailendra assumed the responsibility of Shi One's manager from 2005 to 2010. In 2010 he was removed as manager by the investors and subsequently sued for fraud, diverting partnership funds, mismanagement of partnership assets and other causes of action.