By Steve Kilar, The Baltimore Sun
7:19 PM EST, February 21, 2013
The developers of the stalled Westport Waterfront filed a $225 million suit in bankruptcy court Wednesday alleging that out-of-state financiers posed as potential investors in the project and then conspired with others to upend development plans.
Investors based in Utah gained access to confidential information about the project by offering to help refinance it, according to the suit filed by developer Patrick Turner, Thomas Fore, and their companies affiliated with the Westport project. But those investors passed that information to a group from Nevada who used it, the suit alleges, to try to buy the project's loan from Citibank and foreclose.
The Citibank loan is secured by the 43-acre Southeast Baltimore tract where Turner's group planned to build a mixed-use development. Citibank moved to foreclose on the waterfront land because the development group failed to pay off the loan.
The foreclosure was delayed when two creditors, a builder and a land consulting company, filed an bankruptcy petition against the group.
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