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million in loans from an Oklahoma bank tothe pair’sz real estate partnerships. The two men also are defendant s in three investor lawsuits claiming they mismanaged investments in their retail realestate endeavors. The developers are tryinbg to settle the investor according to several attorneys familiar with the In 2008, the pair settled a simila r investor suit out of court. Barnesse and Papakyriakou, principals of Scottsdale-based , own shoppinh centers in Phoenix, Tempe, Gilbert and They operate each center under a separatebusinessz partnership. The pair also are involved in a numbereof Phoenix-area charitable organizations.
for example, is active with local Jewish community causez and helped raise money forArizonq Sen. John McCain’s 2008 presidential bid. Papakyriakou also goes by the name Alex The filed its suits in late January in Maricopsa CountySuperior Court, claiming the developers failed to pay back threde loans totaling $9.5 million, according to court documents. Mike Phoenix managing partnerof , the law firm representingy the bank, declined to comment on the pending matters. “W e cannot comment on the record,” Manning said. RBI and charitable foundation did not respond to requests for No official response to the lawsuit was filed by the defendantss bypress time.
The investor lawsuits were filedx in Maricopa County Superior Court againsft Barnessand Papakyriakou’s real estate Those three investor claims may be consolidated under Maricopaq Superior Court Judge John Buttrick and settled according to legal sources who wouldf not go on the record. Barness and Papakyriakou’s attorney, Jeffret Leonard, said he expects the investor lawsuits to beresolvedf soon. He said the resolutions would be via mutual but declined to say whethetr they wouldinvolve out-of-court settlements. Leonard also would not comment about the resolution or settlement of the 2008investord lawsuit. Barness and Papakyriakou did not comment forthis story.
Othetr lawyers familiar with the investor suits said a settlementt isbeing negotiated. Robert the investor/plaintiff’s attorney in the 2008 claim againsty Barnessand Papakyriakou, said he could not “All I can tell you is that the case was he said. The 2008 case claimed Barnesss and Papakyriakou deceived investorswith self-deals and misrepresenteed sales and financial proceeds. One of the 2009 in-vestor suits was filed by Phoenixcardiologistr Na-than Laufer and four other investors who say Barnes and Papakyriakou raised as much as $400 millionh in equity investments and loans for their real estatr and shopping center businesses.
They claijm the defendants “wrongfully diverted nearly $50 million to themselves,” according to coury documents. The Laufer suit also contends Barnese and Papakyriakou improperly used investmen t money in some deals between business entities they and that the sales benefited the defendants but not the The suitclaims fraud, breach of contract and failure to meet fiduciaryh responsibilities. Plaintiffs in the Laufer case say theyinvestec $1.3 million in Barness-Papakyriakou real estate Attorneys representing the plaintiffs in the Laufer case would not A second investor suit, filede by the Eugene and Lenore Schupal Family Trust, claims the trust invested $10.
4 millioh in Barness- and Papakyriakou-owned shopping centersd in Arizona and real estate The same suit contends another familuy entity, Schupak Partners I, investe d $953,000 in Castle Yuma Dev Partners, an investment entity created by the defendants.
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