EAST LAKE — The owner of the Villages of East Lake housing complex is suing the property's former management team for alleged fraud and embezzlement.
East Lake Redevelopment LP and East Lake Redevelopment II LP filed the suit in federal court in Atlanta on Aug. 12, naming Mercy Housing Management Group Inc. as the defendant, according to SaportaReport.com, which first reported about the filing.
In the lawsuit, plaintiffs allege that the problems go back to 2010 and that Mercy Housing employees spent more than $54,000 at Publix Super Markets Inc. and gave rent concessions of more than $434,000 to residents at the 542-unit complex.
East Lake Redevelopment LP and East Lake Redevelopment II LP filed the suit in federal court in Atlanta on Aug. 12, naming Mercy Housing Management Group Inc. as the defendant, according to SaportaReport.com, which first reported about the filing.
In the lawsuit, plaintiffs allege that the problems go back to 2010 and that Mercy Housing employees spent more than $54,000 at Publix Super Markets Inc. and gave rent concessions of more than $434,000 to residents at the 542-unit complex.
Greg Giornelli, president of the East Lake Foundation and an integral part of the community's redevelopment, declined to comment, citing the pending lawsuit, SaportaReport.com said.
A Mercy Housing spokeswoman also told the publication it could comment at length because of the litigation.
But Barbara Faulhaber, the spokeswoman, said the company denies willful wrongdoing.
Interested in local real estate?Subscribe to Patch's new newsletter to be the first to know about open houses, new listings and more.
"Because the case is in active litigation, we cannot comment on any specific details, but we do deny any intentional fraud and wrong-doing," she told SaportaReport.com.
"The actions of two former employees do not represent the values of Mercy Housing, and we did everything possible to resolve the issue once it was discovered."
Interested in local real estate?Subscribe to Patch's new newsletter to be the first to know about open houses, new listings and more.
Read the full story on SaportaReport.com here.
Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.
We’ve removed the ability to reply as we work to make improvements. Learn more here