Is real estate mogul Kent Swig headed down the same path as Hassan Nemazee, the banker who stands accused of providing banks with false information to obtain nearly $300 million in loans? The Real Deal reported on Monday that Swig, who is facing a series of lawsuits over several real estate deals that have gone bust, may be forced to file for personal bankruptcy if a $28 million judgment against him is enforced.
Swig may also be on the hook for fraud if it comes out that he lied about his personal assets in order to get hefty bank loans he couldn't realistically afford to pay back.
"He has a money problem and another problem — if he borrowed money based on false statements then he can be prosecuted," said a source close to the case.
No charges have been filed against him yet. And there's no indication as to how close he is to filing for bankruptcy. But if he's forced to do so, he would be the biggest major developer to file for personal bankruptcy since the financial crisis real estate market started to tumble more than a year ago.