Lennar Finds
Land Loophole
By Michael Corkery, Kemba J. Dunham, and Jonathan Karp
>From The Wall Street Journal Online
Lennar Corp. used an unusual argument to get out of a land deal, convincing an
arbitrator
that it didn't have to pay a $70 million deposit on 1,200 acres of land in Palm
Beach
County, Fla.
The Miami home builder contended the land was tainted by a corruption scandal
"therefore giving us the right to the return of our deposit," said Lennar's
general counsel
Mark Sustana.
s
More Plots & Ploys columns
A former county commissioner, Anthony R. Masilotti, pled guilty to being
involved in
public corruption, after federal prosecutors said he used his office to enrich
himself in
land deals. Prosecutors said Mr. Masilotti, who is serving a five-year sentence
in a federal
prison camp, voted for land use changes on the 1,200-acre property, while
having a
secret stake in the land. Lennar had planned to buy the land for $200 million
from the
mining company, Palm Beach Aggregates. Neither company is charged with any
wrongdoing in the corruption case. Palm Beach Aggregates' lawyer said he may
challenge
the arbitrator's ruling. Mr. Masilotti's lawyer had no comment except to
confirm that his
client is in prison.
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