Lawsuit Against Mauricio Umansky Over $70 Million Malibu Mansion Sale Dismissed

Malibu mansion at center of Mauricio Umansky lawsuit

A lawsuit filed against "Real Housewives of Beverly Hills" star and luxury real estate broker Mauricio Umansky accusing him of misconduct regarding the purchase and profitable resale of a $70 million Malibu mansion has been dismissed after years of disputes between Umansky and the plaintiff real estate investor. Umansky stated he "did not do anything wrong" and is happy the case alleging wrongdoing tied to his involvement with the ultra-luxury hilltop estate has come to an end.

December 15, 2023

According to the LA Times, Mauricio Umansky, a high-profile real estate agent and cast member on “The Real Housewives of Beverly Hills,” will not face trial over a lawsuit accusing him of misconduct in the purchase and $70 million resale of a luxury Malibu estate.

After years of contentious litigation between Umansky and real estate investor Sam Hakim, the case has come to an end with a voluntary dismissal.

Background on Mauricio Umansky

  • Mauricio Umansky is a prominent luxury real estate broker in Los Angeles and a lead cast member on the reality TV series “The Real Housewives of Beverly Hills.”
  • He is the founder and CEO of high-end brokerage firm The Agency, known for selling multi-million dollar properties in affluent areas.
  • Umansky has gained celebrity status in recent years, but his lavish lifestyle and business dealings have also brought legal controversies.

The Malibu Mansion at Center of Lawsuit

The mansion at the center of controversy is a 16.5-acre hilltop property located at 3620 Sweetwater Mesa Road in Malibu. It features panoramic views of the Pacific Ocean.

  • Main residence is a sprawling 15,000-square-foot mansion with 6 bedrooms, 8 bathrooms
  • Additional luxury amenities: Three-hole golf course, multiple guest houses, guard house, tennis court
  • Originally purchased in 2006 by Teodoro Nguema Obiang Mangue, son of the Equatorial Guinea president, for $30 million
  • Later seized by U.S. Department of Justice amidst allegations funds were laundered

Mauricio Umansky’s Initial Involvement

  • Umansky and The Agency were hired to facilitate sale of the seized Malibu mansion
  • In 2016, Umansky teamed up with partner Mauricio Oberfeld to purchase estate themselves for $33.5 million
  • They renovated the property before flipping it in 2017 for $69.9 million

The Core Allegations Against Umansky

Real estate investor Sam Hakim filed a lawsuit against Umansky in 2019 accusing him of misconduct tied to the mansion’s purchase and profitable resale.

Key allegations included:

  • Hakim claimed he offered $40+ million for the property in 2015, but Umansky never presented to sellers
  • Lawsuit alleged Umansky engaged in self-dealing and intentionally bought mansion at reduced price
  • Claimed Umansky made false statements about when he formed intent to purchase the estate
  • Accused Umansky of violating duties owed to clients by not disclosing conflicts

Umansky disputed allegations, stating:

  • He received no $40+ million offer from Hakim in 2015
  • Appropriately disclosed his interest in purchasing property before buying
  • Acted properly as a broker throughout the transactions

Plaintiff Struggles With Text Message Disclosure

A central issue raised during litigation was Hakim’s delayed release of text messages relevant to his communications with Umansky in 2015 and knowledge of Umansky’s involvement in the buyer’s group.

The court threatened sanctions against Hakim multiple times for this issue.

The text disclosure failure remained an ongoing dispute right up until the case dismissal.

Voluntary Dismissal of Lawsuit in Late 2022

In December 2022, just over a year away from a scheduled trial, Hakim’s attorneys abruptly filed to dismiss his lawsuit against Umansky and other defendants.

The dismissal was made “with prejudice,” meaning Hakim is permanently barred from refiling the same claims against Umansky regarding the Malibu mansion sale.

Reasons for the dismissal remain unclear, but potential factors include:

  • Mounting risk of court-imposed sanctions against Hakim
  • Weakening of case through previous dismissed causes of action
  • Private out-of-court settlement reached between parties

Reaction to the Case Outcome

Umansky stated after dismissal:

  • He “did not do anything wrong” and denial of wrongdoing is confirmed
  • Happy to donate to Israel-related charity as part of resolution

Attorneys for Umansky and Oberfeld said:

  • Clients did not pay Hakim to drop lawsuit
  • Dismissal followed threat of evidence sanctions against Hakim

Hakim’s lawyers cited:

  • Client’s wish to focus time/energy on global issues rather than continue legal fight

So in summary, celebrity real estate broker Mauricio Umansky is now free of a major lawsuit alleging misconduct related to the purchase and extremely profitable resale of an ultra-luxury Malibu mansion.

The years-long case came to an abrupt end right before trial.