October 29, 2009

Lembi's Fear And Loathing In Las Vegas

"According to the Clark County, Nev., district attorney's office, there is a warrant out for Walter Lembi, managing director of the financially troubled Lembi Group, for allegedly passing $298,500 worth of bad checks earlier this year at Caesar's Palace in Las Vegas."

UPDATE: "Under [a] deal, Lembi has agreed to pay the full amount, plus fees, for a total of $328,450, in a payment plan beginning Friday..."

Real estate leader's name on bad-check warrant [SFGate]
Lembi's markers met [SFGate]
The Chronicle Reports "Dozens," A Plugged-In Source Says Over 100 [SocketSite]

First Published: October 29, 2009 8:10 AM

Comments from "Plugged In" Readers

It's so awful to delight in the misfortunes of others, but it's a joy to see San Francisco's most notorious landlord, after years of complaints about the awful way his tenants were treated, getting his comeuppance.

Maybe if he hadn't gambled his money away he'd be able to return people's security deposits...

Posted by: Dave at October 29, 2009 8:19 AM

hindsight is always 20/20

Posted by: tjg at October 29, 2009 8:31 AM

My favorite quote from the Business Times article from a previous Lembi thread:
“Russell Flynn, who owns about 3,000 units in San Francisco, bought seven of the Lembi buildings, ... Like most buyers in the city, we have been shut out of the market for the last five or six years..."
The Lembis were the Hunt Brothers of the Ess Eff apartment market.

Posted by: EBGuy at October 29, 2009 9:59 AM

Caesar's Palace? Mr. Lembi might want to buy a wheelchair before he does anything. Something tells me these checks are going to be paid, somehow, very quickly.

Posted by: EH at October 29, 2009 10:08 AM

Sounds like he was using them to take out a $300k 60-day loan.

Interesting technique.

Posted by: Jimmy (No Longer Bitter) at October 29, 2009 10:16 AM

For those of you unfamiliar with how the law works in Nevada (which is still basically run by the casinos) exclusively, a signed casino marker is considered a check. Therefore, the casino can pursue the deadbeats who welsh on their markers in criminal court without the hassle of getting civil judgements etc.

I guess Mr Lembi just got used to not honoring the commitments of his signature on documents. If only CitiApt lenders had the same legal rights as the casinos in Vegas this all would have gotten worked out long ago and the Lembis would be in the poor house where they belong.

Posted by: OneEyedMan at October 29, 2009 10:29 AM

I hate to take pleasure in others misfortune, however he deserves all this. They are total slum lords. I have first hand experience.

Posted by: Ryan at October 29, 2009 12:53 PM

Posted by: Dan at October 29, 2009 3:37 PM

Just over a 20% interest rate, since he had the money for around 6 months -- more or less the same as if he had been able to put $300K on a credit card, no? He paid back an additional 10% + $100.

Posted by: sfrenegade at October 29, 2009 3:51 PM

Speaking of Russell Flynn, I heard he just bought a few more Lembi buildings in the past few days. Anyone have any insight into that?

Posted by: Watch out for that bus at October 29, 2009 11:07 PM

Good to see the Lembis continue to get what they're owed:

http://www.sfgate.com/cgi-bin/blogs/bottomline/detail?entry_id=57677

"Three Union Square hotels run by Frank Lembi's daughter, Yvonne Lembi-Detert, are being auctioned off on March 3..."

Bring your checkbooks to city hall!

Posted by: JimBobJones at February 22, 2010 12:12 PM

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