Host's

In another deal, Molinaro Koger brokered the sale of Host's Ritz-Carlton hotel in Dearborn, Mich., to a company led by one of the brokerage's executives without Host knowing of the connection, according to the lawsuit.

Host Hotels Sues Brokerage Charging Misrepresentation Kris Hudson 2011

In the lawsuit filed in Montgomery County Circuit Court in Maryland, Host alleges that Koger and his brokerage defrauded Host by setting up companies led by Koger employees to buy hotels from Host and resell them for a profit without Host's knowledge.

Host Hotels Sues Brokerage Charging Misrepresentation Kris Hudson 2011

The buyers would then immediately flip the hotels to higher bidders that had been concealed from Host, allowing the middlemen to pocket the profit, according to Host's lawsuit.

Host Hotels Sues Brokerage Firm Kris Hudson 2011

Host's lawsuit, filed by Skadden, Arps, Slate, Meagher & Flom LLP, accuses Mr. Koger, his brokerage and the middleman companies of fraud, negligent misrepresentation, tortuous interference and other charges.

Host Hotels Sues Brokerage Charging Misrepresentation Kris Hudson 2011

The suit outlines more than $15 million of gains allegedly reaped from flipping Host's hotels without its knowledge.

Host Hotels Sues Brokerage Firm Kris Hudson 2011

Molinaro Koger's president, Rob Koger , said in a written statement Sunday that he is "puzzled and disappointed" by Host's "baseless" charges.

Host Hotels Sues Brokerage Firm Kris Hudson 2011

However, the man's notarized signature still appeared four months later on the deal's closing document, according to Host's lawsuit.

Host Hotels Sues Brokerage Firm Kris Hudson 2011

Charles Kimmett , a Wiltshire & Grannis LLP attorney representing Molinaro Koger, denied Host's allegations and said the firm would "vigorously defend" itself against Host's lawsuit.

Host Hotels Sues Brokerage Firm Kris Hudson 2011

In one deal, Molinaro Koger brokered the sales of Host's Sheraton hotel in Stamford, Conn., and the Washington Dulles Marriott Suites in 2009 to a company led by a Molinaro Koger employee and one of Mr. Koger's business partners, the lawsuit alleges.

Host Hotels Sues Brokerage Firm Kris Hudson 2011

However, Mr. Koger and his brokerage "have repeatedly abused this trust, causing untold damage to Host and...one of Host's affiliates," Host's suit alleges.

Host Hotels Sues Brokerage Firm Kris Hudson 2011