Las Vegas real estate brokerage files for Chapter 11

By Steve Green

Friday, April 1, 2011 | 12:27 p.m.

Editor's note: The new owners of the RE/MAX EXTREME real estate brokerage in Las Vegas say their company is not involved in the bankruptcy filing by the former owners.

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With two of its owners already in bankruptcy, a Las Vegas real estate brokerage filed for Chapter 11 bankruptcy reorganization Thursday.

The filing was by EXTREME TEAM, also known as BARBIE Ltd. and doing business as RE/MAX EXTREME. It listed assets of nearly $495,000 and liabilities of about $896,000.

The company owns its office property at 107 E. Warm Springs Road, with its interest there valued at nearly $456,000. Wells Fargo Bank holds a $474,000 note against the property, the filing says.

Another creditor listed is Nevada State Development Corp. of Reno, owed about $392,000.

Barbie Ltd. generated income of $225,000 so far this year, the filing says. In 2009 its income was $2 million, declining to $1.5 million in 2010.

Records show the company is owned by Barbara Reed, Edward Reed and Irene Klein.

In 2009, the Reeds, RE/MAX Extreme and others were sued by Tae-Si Kim and Jin-Sung Hong, who alleged securities fraud and misrepresentations involving an investment property real estate deal.

That suit said the Reeds were doing business as the Reed Team and were licensed real estate agents of RE/MAX International Inc. RE/MAX EXTREME is a franchise of RE/MAX International, the suit said.

The Reeds denied the allegations in the lawsuit. But last August, U.S. District Judge Philip Pro rejected a motion by the Reeds' attorneys that breach of fiduciary duties claims in the lawsuit against them be dismissed.

Records show Barbara and Edward Reed filed for personal Chapter 13 bankruptcy last July and personally listed assets of about $1.4 million against liabilities of about $1.2 million.

While bankruptcies automatically put lawsuits on hold, the Reeds' attorneys this month agreed to allow the Kim/Hong lawsuit to move forward in federal court in Las Vegas.

That was after attorneys for Kim and Hong filed papers in bankruptcy court saying they were trying to recover at least $462,000 in damages arising out of their former relationship with the Reeds, whom the plaintiffs say acted as their real estate agents in the real estate investment deal at issue.