David Bergstein transferred property deeds to his mother in order to keep Mandalay Bay from collecting on a more than $1 million gambling debt, according to a lawsuit filed Thursday by the Las Vegas casino.
The lawsuit, filed in Los Angeles Superior Court, says Bergstein put up an estimated $7 million worth of Los Angeles-area land as collateral on $950,000 in gambling chips in early 2008.
But before the casino came to collect, he transferred them to his mother, Sarah Bergstein, effectively preventing Mandalay Bay from acquiring them through banking channels, the lawsuit states.
Sarah Bergstein, acting as a trustee, was aware of the reason behind the property transfers, according to the lawsuit, which accuses him of fraud.