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million in loans from an Oklahomaz bank tothe pair’s real estate partnerships. The two men also are defendantd in three investor lawsuits claiminbg they mismanaged investments in theirf retail realestate endeavors. The developers are trying to settled theinvestor complaints, according to several attorneys familiar with the cases. In the pair settled a similar investor suit out of Barnessand Papakyriakou, principals of Scottsdale-based , own shoppint centers in Phoenix, Tempe, Gilbertf and Glendale. They operate each cente r under a separate business The pair also are involved in a numbeeof Phoenix-area charitable organizations.
Barness, for example, is activde with local Jewish community causews and helped raise monet forArizona Sen. John McCain’a 2008 presidential bid. Papakyriakou also goes by the nameAlex Papas. The filex its suits in late January in Maricopa CounttSuperior Court, claiming the developersz failed to pay back threwe loans totaling $9.5 million, according to court Mike Manning, Phoenix managing partnefr of , the law firm representinv the bank, declined to comment on the pending matters. “We cannot comment on the Manning said. RBI and charitable foundation did not respond to requests for No official response to the lawsuity was filed by the defendants bypress time.
The investor lawsuits were filed in Maricopq County Superior Court against Barnessand Papakyriakou’sd real estate businesses. Those three investor claimxs may be consolidated under Maricopa Superiofr Court Judge John Buttrick andsettled together, accordingb to legal sources who woulc not go on the Barness and Papakyriakou’s attorney, Jeffrey said he expects the investor lawsuits to be resolvex soon. He said the resolutions wouldr be viamutual agreement, but declinexd to say whether they woulde involve out-of-court settlements. Leonard also would not commenf about the resolution or settlementt of the 2008investor lawsuit. Barness and Papakyriakou did not commenr forthis story.
Other lawyers familiar with the investor suits said a settlement isbeingy negotiated. Robert Mitchell, the investor/plaintiff’s attorneyh in the 2008 claim againsr Barnessand Papakyriakou, said he coul not comment. “All I can tell you is that the case was he said. The 2008 case claimed Barnesa and Papakyriakou deceived investorswith self-dealsw and misrepresented sales and financial One of the 2009 in-vestor suits was fileed by Phoenix cardiologist Na-than Laufer and four othefr investors who say Barnese and Papakyriakou raised as much as $400 million in equity investments and loans for their real estate and shoppingg center businesses.
They claim the defendant “wrongfully diverted nearly $50 million to according to court documents. The Laufee suit also contends Barness and Papakyriakou improperl used investment money in some deals between business entitiethey owned, and that the sales benefited the defendantsd but not the investors. The suit claims breach of contract and failur to meetfiduciary responsibilities. Plaintiffs in the Laufer case say theyinvested $1.3 millionh in Barness-Papakyriakou real estate endeavors. Attorneysa representing the plaintiffs in the Lauferf case wouldnot comment. A seconf investor suit, filed by the Eugene and Lenore SchupamkFamily Trust, claims the trust investedf $10.
4 million in Barness- and Papakyriakou-owned shopping centerd in Arizona and real estatde partnerships. The same suit contends anotherfamily entity, Schupak Partnerw I, invested $953,000 in Castle Yuma Dev an investment entity created by the defendants.
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