Fort Lauderdale Lodge Wins Property Fraud Lawsuit
Table of Contents
Case Background
This case centred on a historic piece of land in Fort Lauderdale at 712 NW 2nd Street. The property belonged to the Pride of Fort Lauderdale Lodge #652, a local chapter under the Grand Lodge of the IBPOE of the World. The Plaintiffs claimed the property was a central gathering space for the lodge and the community.
On March 5, 2018, the deed for the property was transferred to Sator Investments, LLC, managed by Kevin Eutsey. The deed was recorded a few days later. Soon after, Sator obtained a $1.365 million mortgage from HIF IV Lenders, LLC. The Plaintiffs said the entire transaction violated the organization’s constitution and bylaws. They claimed no proper authorization was given by the national lodge for the sale. Their lawsuit sought to cancel the deed and mortgage and return legal title to the lodge.
Cause that led to the dispute
The Plaintiffs alleged that the deal was fraudulent from the start. They said Eutsey, along with certain displaced local lodge leaders, bypassed the authority of the national governing body. According to them, the deed transfer was done without required approvals and was followed by a mortgage obtained under false pretences.
They also accused the parties of filing a forged satisfaction of an earlier mortgage, which made the property title appear clear when it was not. They argued that these actions set the stage for Sator to borrow money against the property without the rightful owners’ consent. Their goal in Court was to cancel the deed and mortgage, block any foreclosure efforts, and restore ownership to the lodge.
Injury
This was not a case involving physical injuries. Instead, the harm claimed was the loss of control over a valued property. The lodge leaders described the building as a long-standing community hub. They said the unauthorized transfer and mortgage stripped them of their meeting hall and placed the property at risk of permanent loss. If the mortgage remained, they feared foreclosure could erase the lodge’s ownership completely, despite the organization never approving the transaction.
Damages caused
The Plaintiffs did not ask for a direct cash pay-out for personal loss. They instead sought legal remedies. These included cancellation of the deed, rescission of the mortgage, restoration of legal title to the lodge, and coverage of their Court costs and attorney’s fees.
HIF IV Lenders countered that they had spent over $1 million paying off debts tied to the property, including prior mortgages, city liens, back taxes, and substantial improvements. They argued that if the Court voided the deed and mortgage, they should be reimbursed or granted a lien to recover their investment.
Key Arguments and Proceedings
Legal Representation
Plaintiff(s): Pride of Fort Lauderdale Lodge #652 Joint Management Team, Grand Lodge of the IBPOE of the World
Counsel for Plaintiff(s): Forman H. Collins | Nicholas P Merriweather | Terra L Sickler | Craig Eller | David M Levine | Peter Michael Commette | Ryan Matthew Clancy
Defendant(s): Kevin Eutsey, Sator Investments, LLC, HIF IV Lenders, LLC
Counsel for Defendant(s): Mary Ellen R. Himes | Patrick Hopple | Johnny L McCray, Jr. | Earnest Deloach, Jr.
Experts for Defendant(s): Andre T. Young
Key Arguments by Counsel
The Plaintiffs’ attorneys argued that the deed transfer and mortgage violated the bylaws of the Elks organization. They said only the national lodge could approve the sale of lodge property, and no such approval existed. They pointed to the alleged forged satisfaction of a prior mortgage as evidence of intentional deception. They told the jury the transfer was designed to sidestep the organization’s authority and wrongfully profit from its property.
The defense attorneys for HIF and Eutsey denied all wrongdoing. They argued that the transaction followed standard procedures and appeared legal on its face. The defense highlighted that the mortgage funds paid off significant debts and expenses, including over $200,000 in back obligations, city code fines, and more than $600,000 in improvements to the building. They said it would be unfair to cancel the mortgage without repaying the lender, given that the lodge had benefited from the money.
Claims
Fraud and Conspiracy
The Plaintiffs accused Eutsey and certain former local leaders of conspiring to transfer the property unlawfully. They claimed these actions were intentional and meant to defraud the national lodge.
Declaratory Relief
They asked the Court to confirm that the deed and mortgage were void because they were never authorized under the lodge’s governing rules.
Cancellation of Deed and Mortgage
The Plaintiffs sought a legal order to undo the transfer entirely and erase the mortgage from the property records.
Quiet Title
They wanted the Court to restore undisputed ownership of the property to the lodge.
Accounting
The Plaintiffs requested a full review of how the mortgage funds were used, especially given the claims of property improvements and debt payments.
HIF IV Lenders’ Counterclaims:
HIF filed their own claims seeking equitable subrogation, unjust enrichment, and an equitable lien. They also brought claims for fraud and breach of guaranty against Eutsey and a trust tied to the property.
Defense Argument
The defense maintained that all actions were proper and that the transaction was recorded through legitimate channels. They said the deed appeared valid, and the mortgage process followed standard real estate procedures.
They argued the mortgage funds were used to:
Pay off a $175,000 mortgage
Clear city liens and code fines
Pay over $30,000 in back taxes
Fund more than $600,000 in improvements to the property
The defense also insisted the lodge could not accept the benefits of these payments and improvements while trying to cancel the deal without reimbursing HIF.
Jury Verdict
On March 20, 2025, a Broward County jury returned a verdict largely in favor of the Plaintiffs. The jury found that certain Defendants, including Eutsey, were liable for fraud and conspiracy. They agreed that the deed transfer and mortgage were unauthorized and violated the governing rules of the lodge.
The verdict awarded no monetary damages against individual Defendants Ezell, Bethea, and Tomlin. However, it confirmed the Plaintiffs’ right to reclaim the property. The Court later issued orders voiding the unauthorized transaction and restoring control of the property to the national and local lodge organizations.
Court documents are available upon request at jurimatic@exlitem.com