Hearing delayed for man accused in real estate scheme

By Steve Green, Cara McCoy

Published Thursday, Jan. 21, 2010 | noon

Updated Thursday, Jan. 21, 2010 | 1:35 p.m.

The arraignment scheduled this morning for a man suspected of scamming elderly victims out of millions of dollars in a real estate development scheme was postponed.

Jamal Eljwaidi, also known as Jean Marc Eljwaidi, is charged with six counts of elder exploitation, a felony, for allegedly taking investors’ money for a real estate development and spending it on himself.

He was set to be arraigned in district court but the hearing was delayed so Eljwaidi and attorney Steve Wolfson could determine if Wolfson would continue to be retained to represent Eljwaidi in the case.

Eljwaidi is now set to be arraigned Feb. 4.

On Jan. 8, Las Vegas Justice of the Peace Joe Sciscento ordered the case to district court after Eljwaidi failed to repay $338,306.59.

The alleged scam involved short-term loans for a shopping center project on 9.23 acres near Russell Road and the 215 Beltway in the southwest Las Vegas Valley made in exchange for high interest payments.

According to a criminal complaint, Eljwaidi is alleged to have scammed an elderly Las Vegas man who suffers from a diminished mental capacity out of $400,000 by promising to make the man an equal business partner.

Eljwaidi is accused of using up to $600,000, including the man's money, to live a lavish lifestyle while leaving the elderly man destitute. The man is one of at least five alleged victims.

Separately, attorneys for El Jwaidi have asked the U.S. Bankruptcy Court in Las Vegas to convert his personal Chapter 7 liquidation case to a Chapter 11 reorganization.

El Jwaidi filed for personal bankruptcy protection on Aug. 18 and since then creditors asked the bankruptcy court for permission to repossess a Maserati vehicle and to foreclose on El Jwaidi’s home in Las Vegas. The motion regarding the vehicle was granted, while lender HSBC Bank later withdrew its motion to foreclose on the home.

Also, investors and lenders to El Jwaidi’s company Babuski LLC have become involved in his personal bankruptcy, seeking to enforce alleged personal guarantees.

In the motion Jan. 11 to convert the personal bankruptcy to a Chapter 11, El Jwaidi said there is substantial equity in his home that would allow him to reorganize his debts.

In court papers filed Dec. 4, El Jwaidi listed assets of $6.274 million including $4 million for his personal residence and $2.250 million for a rental home vs. liabilities of $31.219 million.

Also, an attorney for El Jwaidi’s company Babuski LLC moved on Jan. 15 that Babuski’s bankruptcy case be dismissed since Babuski’s only asset – land at Russell Road and the Las Vegas Beltway – has been foreclosed on by Vestin Mortgage.

The Babuski case was initially filed as a Chapter 11 reorganization, but was later converted to a Chapter 7 liquidation.

"The debtor has no remaining assets and there is no reason for this case to remain open," Babuski’s filing said.

Eljwaidi was arrested July 29 after returning from London and booked into the Clark County Detention Center. He has remained free on $200,000 bail, which the the district court judge could reconsider.