A Myrtle Beach woman claims in a lawsuit filed last month that her brother sold some family-owned properties for more than he listed in closing documents on the sale, and that he and other defendants pocketed the extra money.
Court documents filed in early September allege that Jack Isaiah Rabon, Jr., along with his wife, Nicole Rabon, conspired with their attorney and with the buyers of the land to conceal hundreds of thousands of dollars in the transaction from Karon Mitchell, Jack Rabon’s sister, and Kyle Mitchell, her husband. The suit claims that at least some of that money was funneled through a foreign bank account and then given in cash to the Rabons and their attorney.
Jack and Nicole Rabon could not be reached by phone on Friday. Jack Rabon was arrested on Wednesday in connection with an assault that allegedly took place last month. Motives for that incident remain unclear.
The Sun News was unable to reach other key defendants named in the suit, including Sarah Ginsburg and Jacob Biderman, who allegedly control the limited liability company that now owns the land in question.
Lane Jeffries, an attorney involved in the property transaction, declined in an email to comment on pending litigation. He is accused of sharing in the concealed profits with the Rabons.
A motel and a Chilean bank account
The Rabon family had long owned property along 7th Avenue North in downtown Myrtle Beach. The company that held some of that land, Rabon & Rabon, Inc., was majority-owned by matriarch Peggy Jo Hardee Rabon until her death in 2014.
Jack Rabon was the representative of the estate, according to the lawsuit, and used the voting power of his mother’s company shares to make himself the president and vice president of the company that same year. Kyle and Karon Mitchell are the only other shareholders, according to the suit.
By August 2015, Jack Rabon began the process of selling the properties—a small brick house on 7th Avenue North and a motel around the corner at 600 Chester St.
According to court filings, Jeffries, Jack and Nicole Rabon, Ginsburg and Biderman all told the plaintiffs that the purchase price for the combined parcels was $542,000. That’s the total amount that was listed on closing documents and the total that is available in Horry County land records.
However, the suit claims that the buyers really paid $777,000, and that the Rabons and Jeffries kept the additional $235,000 out of official records in an attempt to conceal it from Kyle and Karon Mitchell.
As a part of that arrangement, the suit says Biderman transferred $100,000 to a bank account in Chile under the name of Gabriel Yosef. That money was allegedly given to Jack and Nicole Rabon and Jeffries by Yosef after the transfer.
Yosef, listed in court documents as a resident of Chile, could not be reached on Friday. The Sun News was also unable to reach his sister, Michelle Cohen, who was the agent on the sale.
The remaining $135,000 in unreported money was allegedly paid in a wire transfer to Daisy Ridge, LLC, a transaction that the suit asserts was for the benefit of Jack and Nicole Rabon and Jeffries.
The suit asks for damages and also asks that the sale of the motel and the brick house be voided.