Celebrity broker down to last millions

A South Florida real estate broker Carlos Justo, flamboyant founder of Sol Sotheby's International Realty, is in deep money trouble. Justo, who catered to millionaires and became one himself, says: ``I am considering filing personal bankruptcy. I'm fighting for my financial life.''

He, along with some investors, lost $2.35 million in a deal at 3 Indian Creek Island, he says. He is in foreclosure on another property -- at 40 Indian Creek Island, where he now lives. He bought it in '05 for $6.85 million. The debt is around $11 million with interest. (He's trying to sell the house -- for $14.9 million.)

Justo, 51, is fending off a battery of lawsuits, including one from agent Techrin Hijazi, who used to work for him. His net worth, which he says reached $20 million, has plummeted. He estimates it is now $2 million to $3 million.

''I should have really been in bankruptcy court a year ago,'' Justo says. His attorneys are trying to talk him out of it, but he gave them 60 days to ''settle everything'' or he's filing. ``It's a big mess.''

Complicating matters was the ugly split between Justo and Irving A. Padron, his former business partner and CEO. ''I settled with him,'' Justo says. ``I paid him $500,000. I owe him another $800,000. I have no intention of paying him what I owe him. I will see him in court.''

Justo invested in luxury waterfront properties, in addition to 40 Indian Creek -- 36 Indian Creek Island, and the former George Batchelor estate in the 2900 block of North Bay Road in Miami Beach. ''Between those assets alone, I have a debt of over $30 million,'' he says.

His timing was off, he admits. 'The market is slowing down. Everybody knows what's happening in the Miami market because of the condo oversupply. It's going to be a bloodbath out there. You know what the buyers are saying? `Let me wait, why should I pay $10 million for a house when it might be down to $8 million in a year.' ''

Hijazi, 29, worked at Sol Sotheby's for 1 ½ years and appeared alongside Justo in Million Dollar Agents, a TLC reality show. She is now suing Sol Sotheby's, claiming it stiffed her on more than $300,000 in commissions.

She also alleges financial hanky-panky. ''Justo acquired a significant real estate portfolio for himself,'' says her complaint, filed by attorney Richard J. Diaz. 'By late 2005, Justo became overextended . . . In order to `cover' his personal financial shortfalls, Justo began diverting Sol monies to himself. These monies should have been used to pay commissions due to his sales force.''

Not so, says Justo's attorney, Warren Trazenfeld. ''Techrin is looking for commissions she's not entitled to and did not earn. She is simply trying to ruin Mr. Justo's reputation based upon allegations which she is incapable of proving because they are inaccurate.'' Trazenfeld says he and bankruptcy lawyer Joel Tabas are ``trying to work out Justo's financial difficulties.''

Trazenfeld filed a motion to dismiss Hijazi's suit. A hearing is scheduled for Thursday before Miami-Dade Circuit Judge Sarah I. Zabel.

Hijazi is now with Avatar Real Estate Services and formed her own branding as TechrinEstates. She has the $8.9 million listing for Dwyane Wade's Pinecrest home, and the $19.9 million listing for businesswoman Caroline Weiss' Coconut Grove estate.

Justo says he has worked with celebs including Gianni Versace and Jennifer Lopez. He, too, lived big. He travels by limo, shows properties by helicopter, and, he says, is still tops at selling top-tier real estate. ``I don't care if I go to zero. I'll build it back up again. The king isn't going down.''
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