Alex Rodriguez is facing a $50 Million racketeering and embezzlement lawsuit. The allegations were bought against him by the brother of his ex-wife, Cynthia Scurtis. A judge denied the MLB player’s request to have the claims dismissed.
The initial $50 million lawsuits were over seven years ago. On Thursday, a Miami judge ruled that Rodriguez will have to face allegations. Constantine Scurtis and Rodriguez were formally real estate business partners. Scurtis is accusing Rodriguez of “criminal activity” during a fraudulent takeover of the shared company.
The hearings will take place on August 2. According to court documents, Rodriguez invested 95% of capital into the real estate company. Scurtis invested 5% capital and 3% for acquisition fees. In 2008, the company became a billion-dollar brand.
How Did The Lawsuit Start?
According to Scurtis, in 2005, Rodriguez created a plot to embezzle money by deferring acquisition fees. The decision ended up costing Scurtis $8 million. Following A-Rod’s divorce from Scurtis’s sister, Scurtis also claims Rodriguez fraudulently removed his name from the LLC and denied profits.
“To be clear, we view Scurtis’s claims as baseless, and dispute liability for all claims asserted,” Rodriguez’s legal team said.
The lawsuit addresses claims of embezzlement, insurance fraud, forgery, mail fraud, and wire fraud. Scurtis is also accusing Rodrguiez of obtaining property by deception. Also, the suit details breaches of fiduciary duty and breaches of contract.
According to Scurtis, he was held responsible for millions of dollars in damages due to Rodriguez’s illegal and fraudulent criminal activity. According to the Racketeering and Corrupt Organizations Act, Rodriguez can potentially face 30 years in jail and a large seizer of his assets.
