A Bronx property owner is accusing his childhood friend, a lender who went on to co-found a finance firm, of scamming him out of millions and quietly taking over buildings he once owned, according to a federal complaint. The suit claims the friend used a web of loan deals and affiliated companies to siphon off money and bury the plaintiff in debt, ultimately triggering foreclosures in the Bronx and in New Milford, Connecticut. McManus is asking a Manhattan federal court to unwind transfers, return the properties, and award damages.
What the complaint alleges
Plaintiff James McManus says longtime friend John Lettera deceived and pressured him into a series of fraudulent loan transactions that routed funds into companies controlled by Lettera and his associates. According to the filing, the activity amounted to a yearslong racketeering scheme that left McManus unable to pay off loans and mortgages and exposed him to judgments and foreclosures. Those allegations were laid out in detail in reporting by amNewYork.
Federal docket and who’s named
The complaint was filed in the U.S. District Court for the Southern District of New York under case number 1:2025cv10573. The suit lists McManus and two limited liability companies as plaintiffs and names Lettera, several executives, and entities operating under the Fairbridge and RealFi brands as defendants. Court filings available on public docket services identify Andrew C. Laufer as counsel for the plaintiffs and show a filing date of December 19, 2025. The public case listing appears on Justia Dockets.
Who is Lettera and Fairbridge
Fairbridge Asset Management’s investor pages list John C. Lettera as a co-founder and partner who oversees legal, compliance, and asset management functions. Fairbridge describes itself as a private debt lender that originates real estate bridge loans and structured financings for investors and family offices. The firm’s online materials identify Lettera by name and role as part of its leadership team, and that profile appears on Fairbridge’s website.
Money, institutional credit lines and claimed damages
The complaint states that Fairbridge and affiliated companies drew on institutional credit facilities and names Oaktree, Churchill Asset Management, and Nuveen in the background to the transactions. Reporting on the lawsuit notes that these institutional managers oversee very large pools of retirement and other institutional capital, estimated in the article at about $2.5 trillion collectively. McManus’ attorney told reporters the case will likely seek about $50 million in damages as it attempts to claw back loans and transfers from the defendants, according to amNewYork.
Legal angle: civil RICO and remedies
The Southern District docket classifies the matter as involving racketeering and related federal claims, and the complaint requests remedies that are typical in civil RICO and fraud cases, including unwinding of transfers and an award of damages. If the court ultimately finds that the alleged conduct meets the statutory RICO pattern, the plaintiffs could pursue treble damages and injunctive relief along with other equitable remedies. The publicly posted docket and complaint provide the formal basis for those claims on the record, as shown on Justia Dockets.
Wider pattern in city enforcement
The lawsuit lands amid a broader push against real estate fraud in New York, where state and local authorities have gone after alleged deed theft and sham investment schemes in recent years. Attorney General Letitia James and the Bronx district attorney have previously announced arrests and indictments in cases targeting deed theft and investment scams involving Bronx homeowners, underscoring how civil lawsuits and criminal prosecutions can move in tandem. The Attorney General’s office outlined those efforts in a 2024 press release.
The case remains pending in federal court. The parties named in the complaint have not yet litigated the central allegations, and upcoming entries on the Southern District docket are expected to show the next steps in the proceedings, including any scheduled hearings.
