'Real Housewives of Beverly Hills' star Kyle Richards‘ husband, Mauricio Umansky is reportedly being sued for fraud.
The suit stems from the sale of a $32 million Malibu mansion, with one of his former clients.
According to court documents obtained by The Blast, Umansky and his real estate company, The Agency, are being sued by Sweetwater Malibu LLC.
The Blast reports that the mansion at the center of the lawsuit had been seized by the United States government from Teodoro Nguema Obiang Mangue, who allegedly used funds stolen from his home country Equatorial Guinea (Mangue is the son of the president).
Umansky sold the home to a man named Mauricio Oberfeld for $32.5 million. The sale was approved by the United States Government. However, the seller accuses Umansky of failing to inform him that prior to the sale, Umansky received much higher side-offers. Umansky also allegedly never disclosed he had partnered with the buyer to purchase the property.
Umansky sold the home for $69.9 million a year later, at a profit of $37 million.
“This case involves brazen breaches of fiduciary duties by a high-end real estate broker and his firm the Agency, who were hired to sell a multi-million-dollar Malibu estate owned by Sweetwater," Sweetwater Malibu state in their lawsuit.
The suit claims that Umansky “violated virtually every one of these duties, by engaging in blatant acts of self-dealing, earning secret profits, and both failing to disclose and outright misrepresenting material facts.”
The suit is seeking unspecified damages along with punitive damages.
Umansky denies all of the allegations against him.