The lawsuits make clear the developer is financially overextended. But in addition to a cash-flow crunch, Azzouz faces accusations from investors that he swindled them.
Anthony J. Nicholson said Azzouz's associates approached him in 2006 with an exclusive "friends and family" deal. He and about six other investors pooled $17 million that would give them a 20 percent stake in an Azzouz-controlled company that owned the Veranda Park condos. Azzouz would own 80 percent and collect a 3 percent management fee. The suit says he was also told in September 2006 that most of the building's units were sold and the retail space leased.
But in May, Nicholson was told that his investment was worthless.
Financial documents on the building project, the suit says, show Azzouz and his associates paid themselves $16 million of the $17 million using such vague labels as "development fee" and "developer's overhead." In addition, the suit says, almost none of the condos is sold, and almost none of the retail space is leased.
When he does that, the debts owed to the construction company and the subcontractors go away, meaning they don't get paid.
"We're in a pretty tough business," he said. "I'm not worried about looking good."