T
he FBI conducted a raid on the Newport Beach offices of Continuum Analytics on September 11, a California real‑estate investment firm tied to the troubled loans disclosed by Zions Bank and Western Alliance. The agency’s action, confirmed in a September 12 letter from law firm Paul Hastings, was part of a broader criminal inquiry that has yet to identify the specific charges or the prosecuting authority. Continuum, an affiliate of the Cantor Group funds, has been linked to roughly $160 million in defaults that have rattled markets wary of a corporate‑credit slowdown.
Neither Continuum nor the Cantor Group responded to requests for comment. A Cantor attorney maintained that the firm honored all loan terms and that the loans had undergone multiple independent audits. Meanwhile, Allen Matkins, representing other parties connected to Continuum, disclosed on October 2 that certain clients were subject to search warrants and that a grand jury had been convened. The letters did not reveal the nature of the alleged misconduct, and prosecutors routinely summon grand juries to gather evidence without implying guilt. As of now, no charges have been filed, and the investigation remains in its early stages.
Reuters is the first outlet to report the FBI raid and the ensuing probe. The scrutiny could reverberate through the complex web of investors, lenders, and legal filings that surround Continuum’s real‑estate portfolio, some of which are already embroiled in civil litigation. Paul Hastings and Allen Matkins are representing parties in a tangled real‑estate dispute, and the letters they sent were later admitted into a California court proceeding. When pressed, a Paul Hastings lawyer said the firm was “working to unravel multiple levels of alleged fraud,” but offered no further details. Allen Matkins did not reply to follow‑up inquiries.
On October 15, Zions Bank sued Cantor Group fund guarantors Andrew Stupin and Gerald Marcil, seeking more than $60 million in bad commercial and industrial loans. The next day, Western Alliance announced a lawsuit against the same pair and a different Cantor fund, alleging nearly $100 million in losses. Both suits claim that key information was misrepresented or omitted, breaching loan agreements, and Western Alliance also accuses the Cantor fund of fraud.
Continuum’s business model involves acquiring and managing distressed properties for a consortium of investors, with Stupin and Marcil among its largest backers. A February arbitration ruling clarified that Cantor Group is essentially the legal owner of Continuum, headed by Deba Shyam, who shares the same office space. Shyam has not responded to media inquiries. Cantor’s attorney, Brandon Tran, who also represents Stupin and Marcil, reiterated that the firm fulfilled its contractual duties and that the loans were repeatedly audited. Tran emphasized that Stupin and Marcil are passive investors with no operational role. Cantor has also contested Western Alliance’s claim that the loan is in default.
Marcil publicly stated that he had invested in several of Continuum’s properties, denied any wrongdoing, and described himself as a victim of the situation. Neither Zions Bank nor Western Alliance issued statements in response to the coverage.
The unfolding investigation and the related lawsuits underscore the complexity of the financial and legal relationships tied to Continuum Analytics and the Cantor Group funds. As the FBI’s inquiry progresses, further details may emerge that could clarify the extent of any alleged misconduct and its impact on the involved parties.
