A Scottsdale home builder recognized two years ago as an up-and-coming business has collapsed in the weak market, leaving in its wake lawsuits by investors, lenders and contractors.
Charlevoix Homes, which has restructured as Copperleaf Communities, is trying to salvage its stalled communities, find new lenders and pay off investors, said Keith Hendricks, an attorney representing company founder Michael Roberts.
Meanwhile, Roberts has filed for a Chapter 7 personal bankruptcy, listing up to $50 million in liabilities and more than 100 creditors. Creditors in the case met Tuesday morning.
Charlevoix Homes LLC filed for Chapter 7 bankruptcy on Monday.
Charlevoix Homes is typical of many small builders who were caught off guard by the downturn in the Valley’s real-estate market and national mortgage crisis, Hendricks said.
"There was no malice or fraudulent intent," he said of Roberts and his company, adding that there is inherent risk with any investment.
The list of Arizona builders in trouble in Arizona keeps growing:
Recent bankruptcies in Arizona include Gilbert home builder Trend Homes, which filed for Chapter 11 reorganization in late January and was purchased by Najafi Cos. in June. Last week, two Valley "land banks" that bought and sold lots for Trend and Scottsdale-based Elite Homes also filed for bankruptcy protection.
Additionally, Tucson’s Ameribuilt , Sierra Pacific and Turner-Dunn of Phoenix- all have filed for bankruptcy since 2006.
Am I missing anyone?
Wish I would have been at that meeting. This builder’s home is on the market for 5.5 million. What about the boats and planes? I sold new homes for many years. Seen this one several times before. While this guy ripped off his company and lived like royalty, his investors lost their life savings. This jerk should get jail time. Oh, I forgot to mention the 5′10″ blondes in the office. “Miss Jones, could you step into my office for some dictation?”