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Legal issues halt potential sale of Spelling Manor

J. D. Suayan / 28 days ago

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Mickey Neuberger Chief Marketing Officer | realtors.com

Eric Schmidt, the former CEO of Google, is interested in purchasing Spelling Manor, a 120-room estate in Los Angeles listed for $137.5 million. However, the sale is currently stalled due to legal issues.

The property owner, 594 Mapleton LLC, alleges that scammers Mirga Phipps White and Nicholas Phipps White fraudulently filed a deed on the house with Los Angeles County in June 2024. This has placed the property in legal limbo as the case moves through the courts.

Attorney Benjamin Wagner of Gibson Dunn represents 594 Mapleton LLC and describes some of the Whites' claims as “bizarre conspiracy stuff.” He also mentioned that his client is frustrated by the situation. The Whites deny any wrongdoing and claim that Spelling Manor was purchased using funds stolen from them by Erika Girardi and her ex-husband Thomas Girardi. Thomas Girardi was found guilty in August 2024 of embezzling over $15 million from his law firm’s clients.

Mirga Phipps White told The Wall Street Journal that their claims are factual and stated, “We’re not the problem. They are the problem.”

Spelling Manor is not alone in facing such issues. In August, federal authorities arrested Lisa Jeanine Findley for allegedly attempting to steal ownership interest in Graceland, Elvis Presley’s mansion. She was indicted for mail fraud and aggravated identity theft.

Sarah Frano of First American Title Insurance Company noted an increase in title fraud due to technological changes. A report by the American Land Title Association found that 28% of title-insurance companies experienced seller-impersonation fraud attempts in 2023.

Located in Holmby Hills, Spelling Manor spans approximately 56,500 square feet and includes amenities like a bowling alley and a motor court with space for 100 cars. It was built around 1990 by Aaron and Candy Spelling. Petra Ecclestone bought it for $85 million in 2011 and renovated it before selling it to 594 Mapleton LLC for nearly $120 million in 2019.

In recent years, Nicholas Phipps White has filed lawsuits claiming ownership based on convoluted allegations involving high-profile figures like Donald Trump and Steven Mnuchin. These claims have been dismissed but continue to be appealed.

The increasing ease of filing fraudulent deeds online has contributed to these scams, according to attorney David Fleck. He explained that once fake deeds are filed successfully, scammers can take out mortgages or sell properties until owners intervene legally.

Frano highlighted that expensive homes without mortgages are particularly vulnerable because there are fewer parties involved who might detect fraud.

The process of resolving these title disputes can be lengthy and complex, often taking months or even years to resolve fully.

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