A report by the trustees handling the bankruptcies of Ezri Namvar and his investment company portrays the Brentwood businessman as running a slipshod operation that acquired hundreds of millions of dollars of property with little or no due diligence while treating investors’ money as his “personal family piggy bank.”
Even as the portfolio of Namvar and his Namco Capital Group Inc. became increasingly complex and grew to billions of dollars, the report notes that accounting was done with QuickBooks, software designed for small businesses – and he often mixed investors’ money with that of his family.
What’s more, Namvar – whose experience lay in hard-money lending – had a habit of taking little advice and “jealously guarded all decision making.” The trustees said that “incredibly” they couldn’t find a single market or feasibility study on a property acquisition. Instead Namvar was swayed by “brokers or finders with a vested interest” in selling properties.
The result was that Namvar made unwise residential and commercial property investments, loaded up on debt and overleveraged properties to buy even more real estate – causing his enterprise to begin losing money as early as 2006 and hemorrhaging it later.
“The story concerning Namco is one of faulty judgments of monumental proportions mingled with greed and self interest,” states the Feb. 26 report by Namvar trustee R. Todd Neilson and Namco trustee Bradley Sharp. “This headlong fall has decimated the lives of hundreds of creditors/investors, some of whom find that their entire life savings has evaporated in this nightmarish experience.”
The bankruptcy case has been closely followed because Namvar, 58, was a respected member of the Persian-American immigrant community centered in Beverly Hills and personally raised much of his investment money from its members. He did not take money from institutional investors.
The report is the first financial accounting issued by the trustees as part of the December 2008 bankruptcies of Namvar and Namco, which followed a deluge of lawsuits from investors seeking millions of dollars in repayments as the business failed.
Some creditors and lawsuits accuse Namvar and Namco of essentially operating a Ponzi scheme, and he is under federal investigation but no criminal charges have been brought.
The 70-page report confirms much of what the Business Journal has previously reported about Namvar in a series of articles over the last two years, while also providing more detail on his practices.
Among the major conclusions:
For reprint and licensing requests for this article, CLICK HERE.
Stories You May Also Be Interested In
- Another Namvar Business Pushed Into Bankruptcy
- More Namvar Entities Put Into Bankruptcy
- Judge Clears Way For Namvar Sale
- Namco Owes Creditors More than $500 Million
- Line Forms to Recoup Millions Lost by Namvar
- Spotlight Shifts to Bankruptcies in Namvar Case
- Namvar Debts At New Heights
- Fraud Lawsuits Accumulating Against Namvar