Blank Rome reaches settlement with investors who claimed they were duped in real estate deal
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Blank Rome has agreed to a settlement with investors who claimed a former partner at the law firm had misled them about a Philadelphia real estate project, costing them millions of dollars in losses.
The law firm agreed to settle for an undisclosed amount after a two-day mediation, the Legal Intelligencer reports.
Another law firm, Cozen O’Connor, remains as a defendant in the case. The lawyer accused of misleading the investors, Charles Naselsky, had worked at both firms.
The investors said they were defrauded of at least $27 million as a result of misrepresentations by Naselsky. Investors had alleged Naselsky knew a pending city ordinance would make it difficult or impossible for the project to proceed. Zoning restrictions later prevented the project from being built.
Naselsky was sentenced to prison and disbarred for an unrelated tax fraud scheme in which he diverted client fees from Cozen O’Connor to himself and failed to pay taxes on the income.
