Embattled developer Jeffrey Soffer diverted money from the failed Las Vegas Fontainebleau project to other companies he controlled and much of the $1.6 billion in loans for the failed project cannot be accounted for, according to a new lawsuit.
The trustee overseeing the company once behind the development alleges in the suit filed in bankruptcy court in Miami that Soffer and his companies misled lenders about the “true costs” of the Las Vegas project. The suit claims Soffer and several companies controlled by him failed to properly design, supervise and coordinate the construction work. That led to delays that escalated the project’s cost far beyond its $1.8 billion budget.
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