Rachel Bloom Sues House Flipper for Fraud Over "Serious Defects" in Home

NFL analyst and USC alum Matt Leinart is alleged to be involved in the scheme.
Axelle/Bauer-Griffin/FilmMagic
Rachel Bloom

Crazy Ex-Girlfriend star Rachel Bloom and her husband, writer-producer Daniel Gregor, have discovered serious defects in their home and claim the company that flipped the home and sold it to them deliberately concealed the issues.

They allege Raul Menjivar is using "various fly-by-night" entities to run a fraudulent house-flipping scheme with the help of his associates (and former USC football stars) Matt Leinart and Brandon Hance, according to a complaint filed Monday in Los Angeles County Superior Court.

"Defendants’ scheme involves purchasing older residential properties, conducting sub-standard remodeling work (including concealing material defects in the properties through cosmetic fixes), providing incomplete and materially misleading disclosures to prospective buyers, and ultimately selling the properties to unwitting buyers who are left to discover Defendants’ fraud and shoddy remodeling years later, after the entity that sold the property is long since out of operation," writes attorney Devin McRae in the complaint. 

Bloom and Gregor were first-time home buyers who fell for the scam, according to the complaint, and didn't discover the "serious defects" in their property until years later. They paid $1.3 million for their house in December 2015, and allege that the paperwork stated the seller was unaware of any significant issues and that the home had undergone a complete remodel.

Last winter, the couple noticed windows were leaking, and when they hired someone to check out the issue they discovered "severe rot" that had been covered up with new drywall. That led them to take a closer look at the property, and they say they found "numerous substantial concealed defects" including that the earthquake retrofitting is "completely inadequate and essentially cosmetic."

Now, Bloom and Gregor say issues with the foundation have made it clear that the work Menjivar's company The RUN Group did was shoddy. According to the complaint, nearly all the interior walls have large cracks, most of the doors don't open and shut properly, the baseboards are separating from the walls and the floors are sloping. So far they have spent $500,000 in repairs.

The couple tried to mediate their claims, but the defendants refused, according to the complaint, so Bloom and Gregor are suing for fraud, negligent misrepresentation, violation of real estate disclosure codes and unjust enrichment. They are seeking compensatory damages of at least half a million dollars plus punitive damages. 

The Hollywood Reporter has reached out to Menjivar for comment.