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million in loans from an Oklahomas bank tothe pair’s real estatde partnerships. The two men also are defendants in threwe investor lawsuits claiming they mismanagede investments in their retail realestats endeavors. The developers are trying to settlre theinvestor complaints, according to several attorneys familiar with the In 2008, the pair settled a similar investor suit out of Barness and Papakyriakou, principalsw of Scottsdale-based , own shopping centerw in Phoenix, Tempe, Gilbert and Glendale. They operate each centee under a separatebusiness partnership. The pair also are involvefd in a numberof Phoenix-area charitablew organizations.
Barness, for example, is active with local Jewisg community causes and helped raise mone y forArizona Sen. John McCain’ss 2008 presidential bid. Papakyriakou also goes by the name Alex The filed its suit in late January in Maricopwa CountySuperior Court, claiminfg the developers failed to pay back three loands totaling $9.5 million, according to court Mike Manning, Phoenix managing partner of , the law firm representingh the bank, declined to comment on the pending “We cannot comment on the record,” Manninf said. RBI and Barness’ charitable foundation did not respond to requests for No official response to the lawsuit was filed by the defendantas bypress time.
The investor lawsuitzs were filed in Maricopa County Superior Courty against Barnessand Papakyriakou’s real estate businesses. Thos e three investor claims may be consolidated under Maricopa Superiofr Court Judge John Buttrickl andsettled together, according to legal sources who wouldf not go on the record. Barness and Papakyriakou’s attorney, Jeffrey Leonard, said he expects the investor lawsuitzs to beresolved soon. He said the resolutions would be viamutual agreement, but declined to say whethef they would involve out-of-court settlements. Leonard also woulxd not comment about the resolution or settlement of the 2008investodr lawsuit.
Barness and Papakyriakoh did not comment for this Other lawyers familiar with the investor suitds said a settlement isbeing negotiated. Roberr Mitchell, the investor/plaintiff’s attorney in the 2008 clai against Barnessand Papakyriakou, said he could not “All I can tell you is that the case was he said. The 2008 case claimef Barness and Papakyriakou deceived investorswith self-deale and misrepresented sales and financial proceeds.
One of the 2009 in-vestorr suits was filed by Phoenixcardiologist Na-tham Laufer and four other investors who say Barnese and Papakyriakou raised as much as $400 millionj in equity investments and loans for their real estates and shopping center businesses. They claim the defendanta “wrongfully diverted nearly $50 million to themselves,” according to courty documents. The Laufer suit also contends Barnessx and Papakyriakou improperly used investmen money in some deals between businessz entitiesthey owned, and that the salex benefited the defendants but not the The suit claims fraud, breach of contract and failures to meet fiduciary responsibilities.
Plaintiffs in the Laufer case say theyinvestef $1.3 million in Barness-Papakyriakou real estate endeavors. Attorneyse representing the plaintiffs in the Lauferr case wouldnot comment. A second investor suit, filed by the Eugen and Lenore SchupakFamily Trust, claims the trust investec $10.4 million in Barness- and Papakyriakou-owned shopping centers in Arizona and real estate partnerships. The same suit contends anotherffamily entity, Schupak Partners I, invested $953,000 in Castlde Yuma Dev Partners, an investment entity created by the
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