Tony Hsieh-owned building was fraudulently sold, judge rules
A Las Vegas judge ruled that a downtown apartment building owned by the Zappos founder was fraudulently sold for $1.2 million following his death.
A judge has ruled that a downtown apartment building owned by Tony Hsieh was fraudulently sold following the Zappos founder’s death.
Lawyers for Hsieh’s family wrote in court documents that a man named Santiago Espinosa fraudulently sold the apartment building at 319 S. Ninth St. in March for $1.2 million. A signed warranty deed indicated that Espinosa was a managing member of Hsieh’s limited liability company that owned the building, even though attorneys wrote that Espinosa has never been a managing member of the company.
District Judge Gloria Sturman ruled that the sale of the building was “clearly fraudulent” and that the buyers have no right to the property, according to a court order filed on Monday.
The property was sold to Galaxy Home Buyers LLC, and Hsieh’s estate did not learn about the sale until May, according to court documents.
Realtor Sarah Sorrells, identified in court documents as the manager for Galaxy Home Buyers LLC, declined to comment when reached by phone on Wednesday. Attempts to reach Espinosa were not successful.
Attorneys for Hsieh’s estate did not reply to a request for comment.
Property records show that Hsieh’s limited liability company purchased the building, known as the Cassia apartments, in December 2012, the same year the tech entrepreneur invested $350 million into revitalizing downtown Las Vegas. The majority of the Downtown Project’s budget was allocated for real estate and development.
Hsieh was 46 when he died on Nov. 26, 2020, from injuries suffered in a Connecticut house fire.
Since his death, Hsieh’s family and business associates have leveled accusations against each other in lengthy legal battles over creditor’s claims against Hsieh’s estate. Both sides have claimed that other parties took advantage of Hsieh’s fortune.
Court documents have described Hsieh’s erratic behavior in the months before his death, when he was malnourished, barely slept and was abusing ketamine and nitrous oxide.
According to court records, Hsieh’s line of credit reached $250 million before his death as he planned elaborate projects in Park City, Utah, including a cashless theme park dubbed Country Zero.
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