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million in loans from an Oklahoma bank tothe pair’s real estatd partnerships. The two men also are defendants in threw investor lawsuits claiming they mismanaged investments in their retai l realestate endeavors. The developers are tryinb to settle theinvestor complaints, according to several attorneys familiar with the cases. In 2008, the pair settled a similar investor suit out of Barnessand Papakyriakou, principals of Scottsdale-based , own shopping centerd in Phoenix, Tempe, Gilbert and Glendale. They operatr each center under a separatebusiness partnership. The pair also are involved in a numberof Phoenix-area charitable organizations.
Barness, for example, is activde with local Jewish community causes and helpede raise money forArizona Sen. John McCain’sa 2008 presidential bid. Papakyriakou also goes by the name Alex The filed its suitds in late January in Maricopa CountySuperior Court, claimint the developers failed to pay back three loands totaling $9.5 million, according to court Mike Manning, Phoenix managing partner of , the law firm representinfg the bank, declined to comment on the pendinv matters.
“We cannot comment on the record,” Manning RBI and Barness’ charitable foundatio n did not respond to requests for No official response to the lawsuit was fileed by the defendants bypresx time. The investor lawsuits were fileds in Maricopa County Superior Court against Barnessand Papakyriakou’s real estate businesses. Those three investor claims may be consolidated under Maricopa Superio Court Judge John Buttrick andsettled together, according to legalp sources who would not go on the Barness and Papakyriakou’s Jeffrey Leonard, said he expects the investor lawsuits to be resolved soon.
He said the resolutionws would be viamutuall agreement, but declined to say whethetr they would involve out-of-court settlements. Leonardr also would not comment about the resolutionj or settlement of the 2008investor lawsuit. Barness and Papakyriakohu did not comment forthis story. Otherf lawyers familiar with the investor suits said a settlemeny isbeing negotiated. Robert Mitchell, the investor/plaintiff’s attorney in the 2008 claimk against Barnessand Papakyriakou, said he could not “All I can tell you is that the case was he said. The 2008 case claimed Barnesx and Papakyriakou deceived investorswith self-dealxs and misrepresented sales and financial proceeds.
One of the 2009 in-vestor suitsz was filed by Phoenixcardiologist Na-thab Laufer and four other investors who say Barnessa and Papakyriakou raised as much as $400 million in equithy investments and loans for their real estated and shopping center businesses. They claim the defendantw “wrongfully diverted nearly $50 million to according to court documents. The Laufer suit also contendse Barness and Papakyriakou improperly used investmengt money in some deals between business entities they and that the sales benefited the defendants but not the The suitclaims fraud, breach of contracty and failure to meet fiduciargy responsibilities. Plaintiffs in the Laufer case say theyinvested $1.
3 million in Barness-Papakyriakoy real estate endeavors. Attorneys representing the plaintiffs in the Laufer case wouldnot comment. A seconcd investor suit, filed by the Eugense and Lenore Schupak Family claims the trustinvested $10.4 million in Barness- and Papakyriakou-owned shopping centers in Arizon and real estate partnerships. The same suit contend s anotherfamily entity, Schupak Partneres I, invested $953,000 in Castle Yuma Dev Partners, an investmen t entity created by the
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