A real estate transaction gone awry has landed in the Court of Common Pleas of Delaware County, Pennsylvania. Arturo Burigatto has filed a lawsuit against UG2 SBS Portfolio LP and several associated parties on December 9, 2024, alleging fraud and misrepresentation in the sale of a commercial property.
The complaint centers around a commercial real estate transaction that closed on December 9, 2022. Burigatto purchased a property located at 1376 Naaman’s Creek Rd., Garnet Valley, PA, which was represented as being leased to a dental office operating under the trade name Simply Beautiful Smiles. The defendants allegedly misrepresented the financial stability of the tenant and failed to disclose that the tenant was unprofitable and planning to vacate. According to Burigatto's claims, "Defendants joined together to cause Plaintiff to believe that revenue from the entire SBS conglomerate would be available to pay the lease payments in the event the tenant defaulted."
Burigatto accuses UG2 SBS Portfolio LP, its general partners identified as John Doe 1 and John Doe 2, SBS Ultimate Holding LP, Zeb Ripple, and Donna M. Martinek of fraudulent behavior by concealing critical financial information about the tenant's viability. The plaintiff alleges that prior to closing, he was led to believe that the dental office had been profitable for thirty-six years and could cover lease payments using income from other properties if necessary. However, shortly after purchasing the property for $1,575,000, Burigatto discovered that Bethel Dental Associates LLC intended to terminate their lease due to unprofitability.
The lawsuit seeks judgment against all defendants for fraud and negligent misrepresentation. Burigatto is asking for an award exceeding $50,000 plus costs, interest, punitive damages, and any further relief deemed appropriate by the court. He claims substantial damages resulted from relying on false representations made by UG2 SBS Portfolio LP and its agents during negotiations.
Representing Arturo Burigatto are attorneys Scott E. Yaw and Deborah R. Stambaugh from Wisler Pearlstine LLP. The case is presided over by judges in Delaware County with Case ID: CV2024010745.