Pacific Palisades Property Owners Sue Kwala for Wrongful Foreclosure

Pacific Palisades Property Owners Sue Kwala for Wrongful Foreclosure

Bethany Garcia
2 min read

The owners of a residential site in Pacific Palisades, Shlomy and Revital Weingarten of Pacific Panorama LLC, have filed a lawsuit against Nevada-based lender Kwala, alleging wrongful foreclosure on their property situated at 17000 West Sunset Boulevard. The Weingartens claim that Kwala unlawfully acquired the loan from Wells Fargo without the necessary California real estate brokerage license, sparking a legal battle that has persisted since 2014. This complex dispute involves intricate ownership and debt issues, originating from the property's acquisition by Pacific Panorama in 2008 from investor Gregg Corlyn, who had obtained loans amounting to $6.6 million from Wells Fargo. Kwala, which possesses an adjacent property, acquired the loan from Wells Fargo in 2022, exacerbating the conflict over property ownership.

Key Takeaways

  • Pacific Panorama LLC initiates a lawsuit against Kwala, alleging wrongful foreclosure on an $18 million Pacific Palisades property.
  • Lawsuit contends that Kwala acquired the loan from Wells Fargo without the essential licensing, spurring a protracted legal battle dating back to 2014.
  • Dispute encompasses a convoluted history of loans and transfers, with Kwala, connected to figures in the jewelry industry, holding the adjacent property subject to the litigation.
  • Legal contention revolves around the necessity of specific real estate licenses for loan transfers to private investors.


The conflict between Pacific Panorama LLC and Kwala underscores regulatory loopholes in loan transfers, impacting both parties economically and legally. Kwala's lack of requisite licensing complicates its foreclosure assertion, potentially establishing a precedent for similar transactions in California. This case could dissuade lenders from engaging in unlicensed loan transfers, influencing real estate investment strategies. Conversely, it might prompt stricter regulatory measures, affecting forthcoming property transactions and lender adherence. The resolution will shape investor trust and could recalibrate local real estate regulations, influencing market dynamics and property valuations in Pacific Palisades.

Did You Know?

  • Wrongful Foreclosure: This occurs when a lender or entity initiates and completes a foreclosure process improperly or illegally, often by failing to follow legal procedures or violating mortgage terms or state foreclosure laws.
  • Real Estate Brokerage License: Necessary for individuals or entities to legitimately facilitate real estate transactions in California, ensuring compliance with state regulations governing these transactions.
  • Loan Transfers to Private Investors: Entails the selling of a mortgage loan from one entity to another, frequently involving private investors, with the legality and process of such transfers being intricate and subject to specific financial and real estate regulations.

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