A
lawsuit filed in Palm Beach Circuit Court alleges that Icon Equity Group, a Delray Beach-based company, deceived investors into funding four unfinished luxury projects in Broward and Palm Beach counties. The complaint, filed on October 28 by three entities, claims Marc Shulman and Anthony Shafer engaged in a fraudulent scheme to attract the investors.

    The plaintiffs, managed by Steven Zakharyayev and Edmont Krkuti from New Jersey, are seeking $2.5 million in repayment. They claim that Shulman and Shafer used investor funds for personal expenses and lavish lifestyles instead of developing the properties as promised. The lawsuit highlights a stalled Delray Beach restaurant project facing foreclosure, a vacant lot in Deerfield Beach meant for an eight-unit condominium, and two other unfinished projects.

    The investors also filed a lis pendens claim on the land tied to these four projects, which could hinder sales at one of the completed condominiums. A separate case involves a lender's pending foreclosure lawsuit against Icon Equity due to defaulting on a $7.9 million mortgage. The complaint alleges that Shulman and Shafer failed to pay profit distributions totaling around $500,000.

    The investors claim they were misled by marketing materials and pitches containing false statements. They also point out that Shulman and Shafer posted photos of their luxury lifestyle on social media, including exotic cars and private jets. The lawsuit seeks damages for the initial equity invested, plus unpaid profit distributions.

    "It's a classic example of people taking money and spending it on themselves instead of what they agreed to do with it," said plaintiffs' attorney Christian Waugh. "South Florida is no stranger to these types of transactions."