Jackson homeowner is charged with rent money theft in Indiana and faces trial in Hinds County

JACKSON, Miss. (WLBT) – A representative for the owner of a Jackson apartment complex allegedly linked to an embezzlement scheme in Indiana is now facing litigation in Hinds County Chancery Court.

This summer, Wells Fargo and others filed a complaint against PF Woodville Plaza LLC for defaulting on a $2.5 million loan.

The bank is requesting that the Woodville Plaza Apartments be placed under a receiver “in the event of an emergency” “to protect the property from waste, to preserve the value of the property, and to account for and collect the income generated from the property.”

According to documents filed with the Mississippi Secretary of State, PF Woodville is associated with Chaim Puretz.

A WLBT investigation earlier this year revealed that a man with the same name, age and business address as Puretz faces multiple charges in Indiana for allegedly stealing tenants’ water payments from four apartment complexes, resulting in the tenants the water was turned off.

The Indiana Court website shows Puretz faces multiple felony charges, including corrupt business influence, theft of property valued at less than $50,000 and theft of property valued between $50,000 and $750,000.

According to filings in U.S. District Court, PF Woodville currently has a delinquent balance of $125,000 from JXN Water.

A second complex with ties to Puretz, Addison Place Apartments, had $267,000 in delinquent water fees in April, JXN Water reported.

Carla Dazet, an employee of the utility company, was subpoenaed to testify in the Wells Fargo case. The bank said its testimony would “provide crucial evidence of the property owner’s mismanagement.”

U.S. District Judge Henry Wingate recently approved a motion allowing Dazet to testify.

In this case, Wells Fargo is accusing PF Woodville of failing to repay its $2.5 million loan for two months, violating the terms of its loan agreement.

The bank also alleges that PF Woodville hired a new third-party company to monitor the apartments without the bank’s knowledge and allowed the complex to fall into disrepair.

According to court documents, owners will have to pay about $13,700 a month to pay off the debt – funds that would be generated by tenant payments.

Federal court documents show that “significant portions” of the rental payments are funded by the U.S. Department of Housing and Urban Development, and some of those funds are intended to cover water rates.

JXN Water says it has established a repayment plan with Puretz that allows the overdue amount to be paid in monthly installments. However, they say no payments have been made under this agreement since June this year.

In its 22-page response, PF Woodville refutes Wells Fargo’s claims, saying the company has made all of the loan payments in question and has continued to do so for the past seven years.

“This leaves the parties approximately seven (7) years – and more than $1 million in debt service payments – on this 10-year loan,” PF Woodville wrote. “Woodville has made every single monthly debt service payment.”

The property owner also claims that bank employees were fully aware that they were hiring a new property manager and that the action was “taken expressly for the benefit of the property…as the previous manager was no longer satisfactorily carrying out his operational duties.” and administration of the [site].”

The owners also respond to Wells Fargo’s claims regarding construction conditions, saying the claims cited by Wells Fargo were taken into account.

The images attached to the file appear to support PF Woodville’s statements.

“The allegations of violation made by [the] Lenders are wrong; However, even if true (which they are not!), none of the “violations” alleged by have occurred [the] “The lender is putting either the loan or the security (i.e. the property) at risk, and none of the ‘violations’…even if true (which they are not!) justify the imposition of this extraordinary relief,” according to a lawyer at the Owner wrote.

Wells Fargo is asking the court to appoint Trigild LLC as receiver. The bank will also want an accounting of all rents and income earned from the property, damages for breach of contract, and any other remedies the court deems appropriate.

PF Woodville says the application should be refused and a receiver should only be appointed if there is “no better way”.

“The lender’s allegations are false, trivial or were (or can be) easily remedied in the normal course,” PF Woodville wrote. “None of this goes to the extent of depriving Woodville of the right to own, hold, use, enjoy and benefit from its property.”

PF Woodville did not respond to JXN Water’s comments or claims that Puretz is connected to the Indiana case.

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