Rick S. Rein and Nathan E. Delman successfully secured a nondischargeability finding on a $10 million claim in the U.S. Bankruptcy Court District of Nevada in a significant win on behalf of Ezra and Cathy Ilani.
After a two-day trial, the team obtained a judgment from the Bankruptcy Court in favor of Ezra and Cathy Ilani. The Bankruptcy Court found that the Defendant’s debt to the Ilanis and the Ilanis’ claim in the Defendant’s Chapter 7 case for $10,197,362.71 is nondischargeable and is excepted from discharge in the Defendant’s Chapter 7 case.
In 2016, the Ilanis lent $2 million to the bankrupt debtor Simon S. Abraham’s company. Abraham had promised to use their loan to obtain a $200 million hedge fund loan to purchase and develop a Las Vegas hotel. However, when the loan was not repaid on time, the Ilanis began to make numerous inquiries to Abraham, who kept making promises but not repaying the loan.
The Ilanis later discovered the real estate acquisition loan was never funded and their loan was used for other purposes. The Ilanis sued Abraham in the United States District Court of Nevada and obtained $10 million judgment. The Bankruptcy Court has now found this judgment is nondischargeable as it was a result of the Ilanis' justifiable reliance on Abraham’s false representations.