NEW YORK – Bloomberg

   Real Estate developer Edward Okun was sued for $86 million after he allegedly defaulted on a loan guarantee for financing the West Oaks Mall in Houston.

  The complaint was filed today in Manhattan federal court on behalf of a trust that obtained the right to sue from original lender Greenwich Capital Financial Products. Okun agreed to repay the funds should the entity he controlled file for bankruptcy, which it did last month, according to the lawsuit. “The borrower bankruptcy filings triggered defendant Okun's personal responsibility,” according to the complaint. Okun is the founder of Richmond, Virginia-based 1031 Tax Group LLC, which filed for bankruptcy in May after it lost proceeds from clients' real estate sales. 1031 Tax Group is a so-called qualified intermediary that holds real estate sale proceeds for a fee under section 1031 of the U.S. tax code. When its customers sell a property and buy a similar one within 180 days, the money is returned and taxes are deferred. Okun's lawyer, Howard Berlin, didn't immediately respond to an e-mail seeking comment after business hours. Okun's home telephone number in Miami Beach is unlisted.

Westheimer Mall v. Edward H. Okun - Court Motion (PDF)