In a triple net lease plan, the tenant pays a fixed rent and a significant share of the operating expenses, taxes and insurance associated with the commercial real estate unit.
Raanan Katz Triple Net Scheme involves extensive collection of monies claimed to be towards operating expenses from thousands of tenants. On tenants request, Ranan Katz and his companies refuse to disclose the actual operating expenses.
Raanan Katz's son and partner Dan Katz says: "We do not provide these documents to the tenants".
Raanan Katz and his companies have been served with the request for production of proof of operating expenses in several lawsuits with fraud allegations. Yet, these documents have not been seen by the tenants, attorneys, and the court.
In Massachusetts Raanan's refusal to provide proof of repair expenses and lying to the court cost him sentence for criminal contempt in late 70s.
However, nothing can stop this man, and his “operating expense” scheme works for his enrichment up to date.
Taking into consideration the fact that Raanan Katz and his companies have over 6,000,000 square feet of commercial spaces and thousands of tenants, this scheme practicing for decades allows him to pocket millions of dollars in overcharged operating expenses from unsuspicious tenants.
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