McClanahan files suit against ex-biz adviser
The suit, filed in Los Angeles Superior Court, charges that McClanahan--during a 10- to 11-year period--invested more than $ 700,000 in various junior trust deeds secured by local real estate per Morton's counsel.
"Most of these investments were in local apartment buildings, small office buildings and the like," said Peter Robinson, McClanahan's attorney, with Behr & Robinson.
"In today's market, the value of the underlying property has collapsed, the first loans are in default and the rest of the security is in danger of being wiped out," Robinson said.
Morton's culpability
He said Morton's culpability involves "the manner in which these investments were sold."
"There was an absence of appropriate information given to the investors," he said. "Instead of counseling his clients to invest in investments in which he had no relationship at all, he was busy building his own deals."
In response, Morton's attorney, Mike Glickman, said McClanahan has yet to lose any money. "Her losses, if any, are solely the result of the decline in the California real estate market, not the result of any wrongdoing," he said.
