LAS VEGAS (KLAS) — A Las Vegas judge reversed the fraudulent sale of a downtown Las Vegas apartment building owned by the late Tony Hsieh.
As the 8 News Now Investigators first reported, someone sold the property at South Ninth Street and Bridger Avenue without the consent of Hsieh’s estate. In March, someone misrepresenting the LLC that owns the building, which is now in the hands of Hsieh’s estate, sold it for $1.2 million.
The fraudulent transaction filed with the county and provided in court documents shows the sale between “319 9th Steet, LLC” and “Galaxy Home Buyers LLC.” The warranty deed shows the sale from a person named Santiago Espinosa, but lawyers for the estate claim no such person has the authority to act on behalf of the company — and they do not know who Espinosa is.
A judge ordered the warranty deed and deed of trust to be returned to the estate. The judge also noted the documents for the sale are fraudulent.
Hsieh bought the building at South Ninth Street and Bridger Avenue in 2012, county records said.
The estate became aware of the sale in May, court documents said. Lawyers are not sure Espinosa is a real person. Attempts to contact a person with that name through social media have returned no contact information.
In addition, the lawyers for the estate cannot find the person who notarized the fraudulent sale, documents said. The Hsieh transaction may be part of a large scheme to defraud real estate buyers across the Las Vegas valley, sources told the 8 News Now Investigators in September.
The reversal does not affect the actual money exchanged in the sale, leaving the buyers with a loss.
Hsieh died in a house fire in November 2020 in Connecticut. He was 46. His father, Richard Hsieh, is the administrator of his estate since his son did not leave a will. The future of Hsieh’s assets is playing out publicly in probate.