Umansky and his luxury real estate company, The Agency, are being sued for fraud by Sweetwater Malibu LLC, per federal court documents obtained by Page Six on Thursday.
The LLC owned a mansion that Umansky sold.
According to the documents, the government seized the Malibu-based estate from Teodoro Nguema Obiang Mangue, who struck a deal with the Department of Justice in 2014 to have the sale benefit the people of Equatorial Guinea.
Umansky and The Agency were hired in 2015 to sell the property.
But Sweetwater Malibu alleges that Umansky deceived them into selling the mansion to manipulate his full 6 percent commission when a man named Mauricio Oberfeld bought it for $32.5 million.
“Defendants violated virtually every one of these duties, by engaging in blatant acts of self-dealing, earning secret profits, and both failing to disclose and outright misrepresenting material facts,” the documents alleged. “Among other things, they advised Sweetwater to accept an offer from another client and partner Mauricio Oberfeld, without disclosing that they knew that a far higher price could have been obtained, Oberfeld would need to obtain financing or investors in order to close the purchase, despite purporting to offer an ‘all cash’ deal without the need for financing. Defendants were secretly working for Oberfeld to find him buyers and investors to complete the purchase, and Defendants had been offered secret compensation from buyers they recommended, and favored offers from their other existing clients.”