Mo Honarkar Victory in Case vs Mahender Makhijani,Continuum Analytics, Nano Banc, and Others

Laguna Beach, CA – A recent arbitration ruling has delivered a significant legal victory to Laguna Beach's Mohammad Honarkar in his protracted battle against Continuum Analytics and its principal, Mahender Makhijani. The arbitrator sided with Honarkar, finding compelling evidence of fraudulent inducement and awarding substantial damages. However, this triumph is now clouded by the subsequent bankruptcy filing of MOM Investcos, the joint venture at the heart of the dispute, prompting speculation about whether this is an attempt to circumvent the arbitration award and stall the return of Honarkar's assets.

The legal saga began in June 2021 with the formation of MOM Investcos, a real estate joint venture between Honarkar and Continuum Analytics. Honarkar alleged that Makhijani and Continuum fraudulently induced him into the agreement with promises of a $30 million capital infusion that never fully materialized as represented. Instead, Honarkar contended, a $20 million loan from Nano Banc was improperly secured against his assets contributed to the venture, without his proper consent.  

After a lengthy arbitration process overseen by JAMS in Los Angeles , a partial interim award issued on February 21, 2025, firmly backed Honarkar's claims. The arbitrator found that the $20 million loan was indeed improperly secured and that Continuum and Makhijani failed to meet their capital contribution obligations and engaged in unauthorized financial transactions. The ruling also validated Honarkar's allegations of a forceful takeover of his properties, including Hotel Laguna, on May 2nd, an incident Honarkar proved was orchestrated by Makhijani and led to the arrest of his associate, Banayotis Haddad. Notably, the arbitrator rejected counterclaims filed by Continuum against Honarkar due to a lack of supporting evidence. The arbitrator concluded that Honarkar was a victim of fraudulent inducement by Makhijani, Continuum, and their associate Andrew Stupin , awarding him significant compensatory and punitive damages, as well as restitution and coverage of his legal fees. Honarkar has also suggested potential legal action against the City of Laguna Beach for their alleged inaction during the May 2nd incident.  

In a swift turn of events, just a week after the arbitration ruling, MOM Investcos filed for Chapter 11 bankruptcy in Delaware on February 28, 2025, citing significant financial distress. The timing of the bankruptcy filing has led to suspicions that it is a strategic maneuver by Makhijani and Continuum to avoid paying the substantial damages awarded to Honarkar and to delay the return of his real estate assets, which include the iconic Hotel Laguna and other valuable properties.  

The bankruptcy proceedings have ushered in new management for MOM Investcos, with the appointment of an Independent Manager, Robbin Itkin, and a Chief Restructuring Officer, Mark Shinderman. These appointments effectively sideline the previous management associated with Makhijani. The new leadership has initiated investigations into the financial affairs of MOM Investcos, including past transactions involving the arbitration parties, which could potentially lead to further legal actions within the bankruptcy framework. The primary objective of the Chapter 11 filing is to develop a restructuring plan to address the company's financial woes and resolve outstanding creditor claims, including the significant debt now owed to Honarkar based on the arbitration award. However, the shadow of the fraud findings in the arbitration court hangs over the bankruptcy proceedings, with many questioning whether this process will ultimately deliver justice for Honarkar or serve as a shield for those found liable for serious misconduct. The fate of Hotel Laguna and the other properties involved remains uncertain as the bankruptcy case progresses.