S
haya Prager's firm, Opal Holdings, is facing another hurdle as it navigates a $106 million foreclosure suit in Illinois. Lake County Judge Daniel L. Jasica is overseeing the case, which involves a suburban Chicago office debt owed by Opal to lender Unify Financial Credit Union. The judge has expressed frustration with Opal's failure to comply with orders to turn over funds to the property's receiver, Keelee Leyden of Cushman & Wakefield.

    Opal is accused of transferring $1 million out of an account for the property after Leyden was appointed as receiver in July. Additionally, about $500,000 in tenant security deposits at the 697,000-square-foot office campus remains unaccounted for by Opal. The firm has been given a final deadline to come up with the cash by October 2, or risk being found in contempt of court.

    Judge Jasica was hesitant to grant an extended deadline, citing Opal's history of missed deadlines and its failure to comply with previous orders. "I don't want to give a third date," he said. "I do think we're at the rule to show cause stage." If sanctions are imposed, Opal could be required to pay tens of thousands of dollars in attorneys' fees to the receiver.

    Unify's attorney, Nathan Grzgorek, has expressed concern about the missing tenant security deposits and the $1 million transfer. "I'm troubled by the fact that the receiver has no money to pay security deposits if the demand is made for the return of a security deposit," Jasica said. Opal's affiliate is working with the company to gather materials and funds required by the receiver, but its lawyer declined to comment on the matter.

    The foreclosure lawsuit is just one of several challenges facing Prager's firm, which has been accused of misrepresenting its business relationships in order to obtain larger amounts of debt on other real estate deals.