“McNair Law Firm intentionally withheld material information about the September  Sales from the two mortgage holders to conceal numerous assets in violation of federal and state law”
Lane Jefferies [McNair’s Lawyer] knew about and, more importantly, was concerned about Gabby’s wire. This proves he knew about the illicit funds and was an active participant in the conspiracy to defraud the banks, the Mitchells and Rabon & Rabon, Inc .
Myrtle Beach residents Karon and Kyle Mitchell filed a motion this past week in the Fifteenth Judicial Court to void the fraudulent sale of $777,000 worth of downtown Myrtle Beach real estate they previously owned.
The lawsuit claiming fraud reads: There is no issue of material fact in dispute as to whether the sale of September 3, 2015 was procured by fraud by all of the parties involved and is void and/or voidable under South Carolina law.
The lawsuit states:
Sarah Ginsburg orchestrated a scheme in which $777,000.00 was paid for the two properties owned by Rabon & Rabon, Inc., with $235,000.00 of that money being paid “under the table” to Jack Rabon and others. There are actually two instances of fraud in the transaction.
The most obvious fraud lies in the specific representations of Mr. Jeffries [Lane Jeffries – McNair Law Firm Lawyer at that time] and Mr. Rabon to Plaintiffs and numerous courts that only $542,000.00 was being paid for the two properties. These allegations pertinent to the fraud directly against Plaintiffs [hereinafter the “Direct Fraud”] are verified by Michelle Cohen, (the real estate agent involved in the sale) Jack Rabon (the President and Vice President of the Corporation and primary benefactor of the illicit funds), and the Biderman Defendants (the purchasers of the properties).
The second instance of fraud was only recently uncovered in discovery and deals with fraud perpetrated by the lawyers, at the direction of the client, against the creditors of the Corporation. McNair Law Firm intentionally withheld material information about the September Sales from the two mortgage holders to conceal numerous assets in violation of federal and state law [hereinafter the “Asset Concealment Fraud”].
Jacob Biderman is a citizen of Austria who operates a jewish educational institution in Myrtle Beach through Friends of LBS, LLC. The original written contract with Friends of LBS, LLC was for the sale of Sea Palms #3 and the Brick House for the total price of $542,000.00.
However, the actual deal was for Biderman to pay $777,000.00 for both properties, with the additional $235,000.00 to be paid to Jack Rabon and others (exclusively) via a wire transfer and cash. This payment arrangement cut owners Kyle and Karon Mitchell out of their portion of $235,000 of the proceeds of the entire sale. The lawsuit claims that not only was McNair Law firm aware of the fraud, but a lawyer and perhaps lawyers of the firm actually participated in that fraud.
The downtown Myrtle Beach properties named inthe fraudulent schemes include:
All that certain piece, parcel or lot of land situate, lying and being in the City of Myrtle Beach, Dogwood Neck Township, Horry County, South Carolina, shown and designated as Lot Three (3) of Block Nineteen (19) according to a map or plat of Hotel Section of Myrtle Beach, as made in June and July if 1926, under the supervision of Stanley H. Wright, Engineer, which map or plat is recorded in the Clerk of Court’s Office for Horry County in Plat Book 1 at page 84, reference to which is hereby made as a part and parcel of this description. TMS # 181-11-03-005/ PIN # 444-01-04-0044 [hereinafter the “Brick House”]
All those certain pieces, parcels or lots of land, with improvements thereon, situate, lying and being in the City of Myrtle Beach, Dogwood Neck Township, Horry County, South Carolina, shown and designated as Lot Numbers Seventeen (17) and Eighteen (18) of Block Nineteen (19), as shown on a map of the Hotel Section of Myrtle Beach made in June and July 1926, under the supervision of Stanley H. Wright, Engineer, and recorded in the office of the RMC for Horry County, South Carolina, in Plat Book 1 at page 84, reference to which is craved as forming a part of these presents.
TMS # 181-11-03-002 / PIN # 444-01-04-0051
All that certain piece, parcel or lot of land, with improvements thereon, situate, lying and being in the City of Myrtle Beach, Dogwood Neck Township, Horry County, South Carolina, shown and designated as Lot Number Two (2) of Block Nineteen (19), as shown on a map of the Hotel Section of Myrtle Beach made in June and July 1926, under the supervision of Stanley H. Wright, Engineer, and recorded in the office of the RMC for Horry County, South Carolina, in Plat Book 1 at page 84, reference to which is craved as forming a part of these presents.
TMS # 181-11-03-004 / PIN # 444-01-04-0043[collectively hereinafter “Sea Palms #3”]
*In January 2015, Jack Rabon executed a contract with Shai David for the sale of several Rabon & Rabon, Inc. properties for $1 million. Rabon and David had a separate, unwritten agreement that David would pay Rabon an additional $735,000.00 “off the record” for the properties. Lane Jefferies [McNair Law Firm Lawyer] was present at most of the meetings while these negotiations took place and actually discussed the illicit payments in a text message exchange with Rabon on January 10, 2015.
Officially, Sea Palms #1 was sold to David for $242,000.00 in February 2015 and Sea Palms #2 was sold for $175,000.00 in March 2015. These sales took place without approval from the Probate Court or notice to the minority shareholders. The Sea Palms #2 sale resulted in cash of $128,289.57 belonging to the Corporation that was deposited directly into the McNair Law Firm Trust account. Once Plaintiffs discovered the sales, they filed suit against Rabon.
In their Answer, the McNair Firm misrepresented to the court and creditors that the money obtained from the sale of Sea Palms #2 was used “to preserve assets of the Corporation.” In fact, McNair actually held more than $120,000.00 in Rabon & Rabon, Inc. funds in its trust account at the time it made this representation. Ultimately, only $48,460.30 the $128,289.57 was spent towards expenses for the Corporation.
Michelle Cohen was the realtor involved in the deal and the primary representative of the Biderman Defendants. Ms. Cohen confirmed the conspiracy to pay the additional illicit funds via affidavit.
Jacob Biderman, Atid Properties, LLC, Friends of LBS, LLC and Sarah Ginsberg admitted in their joint answer that the additional $235,000.00 was paid for the two properties outside of the closing.
Therefore, the payment of the illicit and undisclosed $235,000.00 in funds is admitted by all of the parties directly involved. There is a dispute as to who received $50,000.00 of the illicit funds, but all parties agree that $185,000.00 went to Jack Rabon through Daisy Ridge, LLC and cash.
On August 20, 2015, Lane Jefferies made a motion in the Horry County Probate Court to sell two properties owned by Rabon & Rabon, Inc. In the motion and in direct representations to Plaintiffs, Lane Jefferies represented that Friends of LBS, LLC agreed to pay $145,000.00 to Rabon & Rabon, Inc. for the Brick House and $397,000.00 for Sea Palms #3, for a total of $542,000.00. These representations were false. Jack Rabon and Lane Jeffries knew the aforementioned representations were false at the time they were made to the Mitchells and the Probate Court.
Both the corporate resolution drafted by Jefferies and the Consent Motion signed by the Probate Court represented that only $542,000.00 was being paid for the property as opposed to the actual agreed upon price of $777,000.00. Due to the impending loss of the property to BB&T, and the false understanding that no better offer existed, the Mitchells signed the Resolution and the Consent Order on August 25, 2015.
Upon the executed Resolution and Consent Order, the final stages of the conspiracy were set into motion. Biderman formed a new LLC, Atid Properties, LLC, for the sole purpose of taking title to Sea Palms #3 and the Brick House. Jack and Nicole Rabon formed a new company, Daisy
Ridge, LLC, for the sole purpose of receiving the illicit funds via wire from Biderman. The formation of Daisy Ridge, LLC was suggested by Lane Jefferies who referred the Rabons to Robert Frenz, an attorney in Columbia, for its formation. Jefferies actually provided the fraudulent address for Rabon to use as the office for Daisy Ridge, LLC via text message.
After the LLCs were formed, the last piece of the conspiracy involved the money. The money from Biderman would be transferred through three wire transfers.
The First Wire consisted of the legitimate funds under the contracts and transferred to the Emery Law Firm Trust Account from a newly created Bank of America bank account in the name of Atid Properties, LLC. This total of $527,627.77 arrived no later than September 2, 2015.
The Second Wire in the amount of $100,000.00 was wired from Biderman’s account in Austria to a bank account in Chile in the name of Gabby Yosef, Michelle Cohen’s brother.
These funds were withdrawn in cash to be handed to Jack Rabon.
The Third Wire was in the amount of $135,000.00 and was transferred to a PNC Bank Account in the name of Daisy Ridge, LLC. Due to the anti-money laundering regulations in the U.S., the Third Wire had to go through a clearinghouse in New York and it did not arrive by September 3, 2015.
This caused a ripple in the plan, resulting in Jack Rabon demanding that additional security be paid for the illicit funds in the amount of $135,000.00. Biderman wrote three checks for $45,000.00 each that were given to Lane Jefferies as security for the illicit funds.
Lane Jefferies signed a receipt for these three checks on September 3, 2015. Jefferies asserted that these checks were for “security for the brick house,” but this is false. All funds necessary for the closing of both properties arrived in the trust account of the Emery Law Firm no later than September 2, 2018, the day before the three checks were handed to Lane Jefferies.
On September 2, 2015, Lane Jefferies engaged in a series of texts with Jack and Nicole Rabon. These texts are the proverbial “smoking gun” with regard to proving Lane Jefferies’ knowing and intentional involvement in the conspiracy.
These texts demonstrate his knowledge of both wires involving the illicit monies from Biderman. The single text that conclusively proves Lane Jefferies’ direct involvement reads as follows: “Damn. Jack, can you get Michelle on the phone and see if gabby got his wire?”
The only “gabby” involved was Gabby Yosef, the brother of Michelle Cohen. The only way Gabby Yosef was involved with any party in general, or with the real estate transaction on September 3, 2015 in particular, was through the wire of $100,000.00 to his bank account in Chile.
Lane Jefferies knew about and, more importantly, was concerned about Gabby’s wire. This proves he knew about the illicit funds and was an active participant in the conspiracy to defraud the banks, the Mitchells and Rabon & Rabon, Inc.
*EDITOR’S NOTE – The statements in this legal complaint concerning Shai David were taken as a sworn affidavit by Jack Rabon. Mr. David disputes those statements as factually untrue and not accurate.