Investor Sues Over 131 South Dearborn Ownership
Moise Lavian claims Mike Kohansieh misappropriated equity in a major Chicago office tower.
Updated on Oct. 26, 2026 in Corporate Finance
Live Poll
Do you generally trust that your financial interests are protected in complex investment deals?
Moise Lavian has filed a lawsuit in Cook County alleging that Mike Kohansieh improperly transferred ownership of 131 South Dearborn Street to his own firm. Lavian claims he invested $19.5 million into the 1.5 million-square-foot tower.
Why it matters
The legal battle centers on claims of breach of fiduciary duty regarding equity stakes in the 37-story Chicago skyscraper. It highlights concerns over how property control was shifted following a $100 million acquisition and subsequent mortgage financing.
The property at 131 South Dearborn Street was purchased for $100 million in June, supported by a $65 million mortgage from Bayerische Landesbank. Kohan Properties Ltd. later sold for $6.4 million to Luzon Group and Alpha Gidurim following a lender-enforced default.
The players
Moise Lavian
The plaintiff who claims to have invested $19.5 million into the property at 131 South Dearborn Street.
Mike Kohansieh
The defendant who purchased the tower for $100 million and is accused of misappropriating equity.
Carrie E. Hamilton
The judge overseeing the lawsuit filed in Cook County court.
Bayerische Landesbank
A financial institution that provided a $65 million mortgage for the tower acquisition.
Kohan Properties Ltd.
The ownership entity that was transferred to a British Virgin Islands firm and later sold.
The details
Lavian alleges that Kohansieh transferred the entire ownership entity to a British Virgin Islands firm in October as a scheme to misappropriate his equity stake. While Lavian signed an operating agreement in July, lenders eventually stripped Kohansieh of his shares in Kohan Properties Ltd.
Timeline
Kohansieh purchased the tower in June 2026.
Lavian signed an operating agreement for the property on July 29, 2026.
Kohan Properties Ltd. was sold to Luzon Group and Alpha Gidurim on October 8, 2026.
Lavian filed the lawsuit in Cook County court in October 2026.
Judge Carrie E. Hamilton scheduled a hearing for the lawsuit on December 22, 2026.
Market Dynamics
The lawsuit reflects a broader trend of legal challenges arising from complex real estate debt structures and ownership disputes in the office sector. These conflicts often mirror the difficulties investors face when property control is consolidated or shifted during financial distress.
Retail and institutional investors often face risks related to how equity stakes are managed within private property investment entities. Legal proceedings like this case underscore the importance of auditing operating agreements and understanding ownership transfer clauses.
The takeaway
Commercial real estate investors should exercise caution regarding the terms of operating agreements and the potential for equity dilution. Reviewing how ownership entities are structured before capital deployment can mitigate risks associated with future disputes.
Further reading
For more on the financial climate of regional commercial properties, visit the Corporate Finance section.
Live Poll
Do you generally trust that your financial interests are protected in complex investment deals?
