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12
Tenant Settlement
60.
FourLeaf and a group of former tenants who initiated the Tenant Litigation entered
into an agreement whereby the tenants agreed to support the sale of the Property to the current
buyer.
61.
The Debtor’s CRO mistakenly described the settlement as a resolution of actual
claims of those tenants against FourLeaf. The attached Second Amended Complaint makes clear
that the tenants asserted no claim of any sort against FourLeaf. FourLeaf had no role in the
suffering inflicted by the Debtor (and perhaps others) on the former tenants.
62.
The suffering of former tenants at the Property is well known in the community.
Local news coverage has been extensive. The judge presiding over the Receivership Proceeding
from the beginning voiced concerns about the former tenants generally, how they were treated,
and whether they could obtain access to retrieve their personal property.
63.
Everyone involved in the Receivership Proceeding understood that some
accommodation to the former tenants would be required in order for the Virginia Circuit Court to
approve a sale of the Property.
64.
The settlement negotiated between FourLeaf and former tenants’ counsel
contemplated a post-sale transfer by FourLeaf of the note (and, therefore, the deficiency balance
due on the loan) to a trust created for the benefit of the former tenants. The Receiver was not
involved in the note sale negotiations between the parties.
65.
Without the settlement, the tenants would have clear claims against the Debtor – an
insolvent entity which is almost certainly judgment proof – and they would continue to have to
assert very difficult and expensive to prove claims against Benjamin Weinstein, who is the sole
member of the Debtor and the personal guarantor of the FourLeaf loan.
Case 25-23251-MEH Doc 18-13 Filed 12/22/25 Entered 12/22/25 20:08:18 Desc
Affidavit Page 12 of 16
ANN public copy | complete ECF 18-13 | combined source PDF 235/478
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