‘RHOBH’ Mauricio Umansky $32 Million Real Estate Lawsuit Dismissed!
Mauricio Umansky’s scandalous real estate lawsuit against him and his real estate company has been dismissed.
Kyle Richards’ husband filed documents on October 22, revealing he has reached a deal that will bring an end to the case he’s been battling for several months with his insurance company, reports The Blast. Both parties, Western World Insurance, and Mauricio mutually agreed to dismiss all claims and pay their own legal bills.
Mauricio’s legal drama stems from a lawsuit that alleges, the Real Housewives of Beverly Hills star misled a client when he conspired with another investor to underpay for a Malibu mansion and then secretly flip it for $70 million — a year later, at a profit of $37 million.
On June 25, Western World filed a lawsuit alleging Umansky failed to communicate the assignment offer or the counteroffer to the United States or the seller prior to the sale closing. In the 33-page lawsuit, the insurance company alleged that Umansky made several misstatements in his application for an Errors and Omissions liability policy, including incorrectly stating that the value of the largest transaction he had completed in the past year was $30 million. He applied for the policy in June 2017, two months after selling the property for $70 million.
Mauricio Umansky responded by countersuing Western World.
The mansion at the center of the battle had been seized by the United States government from Teodoro Nguema Obiang Mangue, who allegedly used funds stolen from his home country Equatorial Guinea (Mangue is the son of the president).
The 48-year-old dad sold the home to a man named Mauricio Oberfeld for $32.5 million. The sale was approved by the United States Government. However, the seller accused Umansky of failing to inform him that prior to the sale, Umansky received much higher side-offers. Umansky also allegedly never disclosed he had partnered with the buyer to purchase the property.
Umansky sold the home for $69.9 million a year later, at a profit of $37 million.
The seller demanded $8 million back from the deal, asking for $5 million from Umansky and the remaining $3 million to come from his insurance company, Western World.
The insurance company then sued the reality star, arguing they should not have to pay for the legal bills in the battle with the seller. They claim due to Umansky’s actions on the sale, they shouldn’t have to continue spending substantial sums to defend Umansky and The Agency.
Mauricio Umansky denied all allegations of wrongdoing and said the entire transaction was subject to terms of a settlement agreement between the seller and the United States Government.