In 2021, Mohammad Honarkar and his Laguna Beach Company were about to lose their investments to foreclosure or bankruptcy. MOM Laguna (the MOM Investco entities) arranged an over $150M bailout in exchange for full control of the investments. MOM also injected almost $100M to save the investments. Two and half years later, Honarkar is not honoring this contract.
MOM offered Honarkar administrative responsibility of the properties to help save face. However, MOM removed him as they had amassed evidence of mismanagement, misconduct, and theft. They feared he’d continue to burn their investor’s money.
The Superior Court of California, County of Orange (SCCO) recognized MOM’s authority to take action. Thereafter, Honarkar fabricated a false narrative against MOM based on false allegations. He led armed entrance onto multiple MOM properties on May 2, 2023, then entered another on July 24, 2023. Behaviors included stealing and breaking and entering. Multiple legal issues were settled, and the courts have repeatedly rejected Honarkar’s motions. The court is analogous to the child from the fairytale compelled to point out “the emperor has no clothes.”
A restraining order was granted in the favor of MOM to keep the Honarkar group 200 ft. away from Hotel Laguna and 14 West. MOM prevailed with a temporary injunction and defined in a Minute order on June 5, 2023 (below). Honarkar has attempted to obtain court relief multiple times. These failed attempts included his own temporary restraining orders at Terra Laguna Beach and 4G Wireless, both denied by the court. They are now being legally evicted at the residential properties. The court has yet to rule on Honarkar’s continued theft and collection of rent for properties he doesn’t own.
After MOM assumed full management, the restaurants and beach club at Hotel Laguna have opened. The hotel’s historic restoration will be completed by MOM, and they will follow city regulations, and rule of law. Despite problems with the City of Laguna Beach and potential issues of collusion and corruption between the City Manager and Honarkar, MOM has successfully transitioned control of assets Hotel Laguna, 14 West Hotels, Terra Restaurant, Seven Degrees, Art-a-Fair property, and 4G Wireless.
MOM welcomes a town hall meeting for residents on Wednesday, September 6, from 5:30 to 7:30 to answer questions. To be invited, email your full name and address to: [email protected]
Superior Court of California, County of Orange Minute order referenced above.
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