Silverman Thompson Secures Rare Sanction in High-Stakes Real Estate Fraud Case

 Posted on June 16, 2025 in Fraud

Silverman Thompson’s business litigation team recently secured a significant and highly unusual sanction in a complex real estate investment fraud case pending in circuit court. The court granted our request to prohibit the defendant—an individual at the center of an extensive real estate fraud scheme—from introducing any testimony or evidence at trial. This extraordinary remedy is rarely granted and underscores the seriousness of the defendant’s discovery misconduct.

For years, the defendant thwarted efforts by numerous parties to obtain documents critical to uncovering the breadth of his fraudulent activity. During discovery, he claimed to possess only 100 documents (screenshots of emails on his iPhone) related to hundreds of investment transactions. Our team knew that claim was implausible.

Through persistent efforts, we implemented a custodian questionnaire to identify electronically stored information, pinpointed the defendant’s iPhone and notebook computer, and successfully obtained a court order compelling forensic imaging of those devices. When the defendant defied that order—at one point seizing a device and fleeing the country—we obtained a contempt ruling, followed by the court’s rare and powerful sanction: exclusion of the defendant’s evidence and testimony at trial.

Ultimately, our forensic review revealed over 500,000 pages of documents, far beyond the 100 he initially claimed. This discovery shed light on the scope of the fraud. The outcome not only strengthens our clients’ position at trial but also exemplifies the firm’s commitment to uncovering the truth, even in the face of extraordinary resistance.

Silverman Thompson Partner Steven Leitess and Associate Meredith McKinnon litigated the discovery dispute and motions that led to this amazing result.

To discuss this case or its implications, please contact Steven N. Leitess at 410.385.6248 or sleitess@silvermanthompson.com.

Learn more about our business litigation practice here.