SOURCE: Shi Investments One

February 16, 2011 10:52 ET

Long-Time Atlanta Real Estate Development Firm Shailendra Group Faces Multiple Lawsuits From Shi Investments One Investors

ATLANTA, GA--(Marketwire - February 16, 2011) - Shi Investments One LLC and other plaintiffs have filed six lawsuits against Shailendra Group, an Atlanta real estate development firm, alleging real estate fraud; money laundering; diverting investor funds to personal bank accounts; failing to account for partnership assets; self-dealing property and assets; and colluding with two community banks by applying for, receiving and defaulting on personal loans against partnership property.

Carlene Kikugawa, a nationally recognized forensic accountant at Singer, Lewak uncovered the alleged Shailendra Group scheme. "In my 30 years of forensic accounting, and having uncovered a dozen Ponzi schemes, it's my belief that the Shailendra Group facts point to a classic real estate Ponzi scheme. The Shailendra Group basically took the cash out of various entities and pocketed the money."

According to Kikugawa, "Shailendra Group created real estate investment 'partnerships' in which the company put in no capital of its own. Shailendra Group then obscured its strategy by assuring investors that it would manage the assets. When the market buckled, the Shailendra Group's house of cards began collapsing under its own weight."

Dr. Ish Khan, a 20 year associate of the Shailendra Group and a victim in the alleged fraud, captured many victims' feelings in saying, "Understand, it's like finding out that an old trusted friend has done something you just don't want to believe. Then, the facts hit you smack in the face and you feel violated, deceived and trampled on."

About Shi Investments One
Shi One is an investment partnership created to purchase, develop and operate land investments. The partnership was created in 2005. Shi Shailendra assumed the responsibility of Shi One's manager from 2005 to 2010. In 2010 he was removed as manager by the investors.

About Ponziwatch.net
Name after Charles Ponzi, who duped thousands of New England residents into investing in a postage stamp speculation scheme back in the 1920s, Ponziwatch.net is committed to sharing information about ponzi schemes, historically, as well as recent headliners such as Bernie Madoff and those under investigation or in pending litigation such as Shi Shailendra, a long-time Atlanta real estate developer. For more information about Ponzi schemes, please visit www.ponziwatch.net or follow us on Twitter @ponziwatch

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