Why is Dodgers star Shohei Ohtani accused of interfering in a real estate project?

The 'first resident' and celebrity endorser of a luxury housing development in Hawaii can probably go back to hitting and pitching baseballs — which is probably what he was doing all along.
Los Angeles Dodgers player Shohei Ohtani (left) and agent Nez Balelo attend the game between the Los Angeles Rams and the New Orleans Saints at SoFi Stadium on Dec. 21, 2023.
Los Angeles Dodgers player Shohei Ohtani (left) and agent Nez Balelo attend the game between the Los Angeles Rams and the New Orleans Saints at SoFi Stadium on Dec. 21, 2023. / Kirby Lee-Imagn Images
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When media reports first surfaced in March 2024 connecting Los Angeles Dodgers star Shohei Ohtani to an illegal sports bookmaker, the worst-case scenarios immediately sprang to mind.

Did one of the world's most famous athletes risk his career by gambling on sports? On baseball? If not, did he unintentionally commit a crime by loaning money to support the gambling habits of his friend and interpreter?

The answer, revealed in a 37-page criminal complaint against Ippei Mizuhara, was no to all of the above. Ohtani was exonarated. His former interpreter was sentenced to 57 months in prison.

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The implications of the case were less sinister, but still alarming. For all his awareness on a baseball field, Ohtani's grasp over something so fundamental as his own bank account was perilously loose. Extensive reporting by The Athletic revealed a tight circle around Ohtani, a small, insular group of relationships carefully controlled by Mizuhara — until he was swiftly fired — and agent Nez Balelo.

Against this backdrop, a lawsuit filed against Balelo and Ohtani last Friday in Hawaii shed further light on their relationship.

The two were named in a lawsuit claiming Balelo forced the termination of two partners from the development of a $240 million luxury housing project in Hawaii.

The Associated Press, which reviewed the lawsuit filed in Hawaii Circuit Court, reported that Balelo is accused of requesting concessions from developer Kevin J. Hayes Sr. and real estate broker Tomoko Matsumoto, "before demanding that their business partner, Kingsbarn Realty Capital, drop them from the deal."

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Hayes and Matsumoto were allegedly fired from the project in July, more than a year after Ohtani signed on to endorse the 14-home development in the Mauna Kea Resort facing the Pacific Ocean. Ohtani is still listed as the "first resident" of the development on the project's website.

Investment materials for The Vista at Mauna Kea Resort listed Hayes and Matsumoto as part of the management team along with Kingsbarn.

Attorney Arash Sadat of Mills Sadat Dowlat LLP, a legal expert in business and real estate transactions, told The Big Lead that it effectively doesn't matter whether Ohtani played a direct role in the firing of Hayes and Matsumoto.

"They’re not alleging that Ohtani did anything, they’re saying his agent did," said Sadat, who reviewed the legal filing prior to speaking with The Big Lead. "Generally under the law, when somebody’s your agent, you can be held liable for something he did on your behalf. That’s why Ohtani can be held liable. We don’t know Ohtani’s knowledge or the extent of his involvement."

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Sadat theorized that, even if firing the developer and real estate broker did not cause a violation of the contract between Ohtani and Kingsbarn Realty Capital, the lawsuit might have been prompted by "interference with prospective economic advantage," or an expectation that the two would receive payment in the future.

Either way, Sadat said it's reasonable to expect Balelo and Ohtani to counter with a motion to dismiss the suit, on the basis that “even if what (they're) claiming is true, (they're) not claiming that anything illegal happened.”

The evidence suggests, once again, that Ohtani did nothing to drag his name into an off-the-field headline. Someone in his small inner circle might have, but Balelo's accusers face a significant burden of proof.

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