The plaintiffs brought a motion to find the Developer Defendants in contempt of multiple court orders, including a Mareva injunction.
The plaintiffs had invested $9,000,000 with the defendants, who allegedly misappropriated the funds and failed to provide a court-ordered accounting, disclosure, and contact information.
The court applied the three-part test for civil contempt and found the Developer Defendants intentionally breached the orders by failing to provide an accounting, failing to disclose documents, actively thwarting a real estate closing, and failing to provide vehicle information.
The Developer Defendants were found in contempt, with a sanctions hearing to follow.