Axonic, in a statement, said it believed it should only owe $ 4.25 million to investors.
“We strongly believe we were collateral damage to Nelson’s fraud in this case,” the company said.
Investor attorneys Robert Brownlie and Doug Brothers said they were happy with the ruling.
Mr. Nelson has repeatedly blamed the Covid-19 pandemic for creating cash flow problems that forced him to stop paying dividends to investors in Skyloft and other properties. Since last July, he has filed for bankruptcy three other properties.
in a recent press release, Mr. Nelson said the federal government’s “heavy” lockdowns during the pandemic created problems for his company.
“Even though the government has prohibited landlords from evicting non-paying renters, it has done nothing to protect companies like Nelson Partners from their backers,” said Nelson, whose company has received just over $ 1 million in aid from the federal salary protection program.
Skyloft investors, in court documents and interviews, claimed that Mr. Nelson had hijacked some of the $ 75 million he raised from them to finance the operation of other properties. Mr. Nelson denied these allegations.
Mr. Nelson began taking steps to sell some of the properties his company managed prior to the settlement agreement. In January, Nelson Partners sold a high-rise student apartment building in Tempe, Arizona, for 36 million dollarsand has received several offers for a luxury student housing complex in Tucson.