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Walter Bowen, developer of the star-crossed Block 216 tower, says he was the victim of elder abuse at the hands of a top deputy who used a signature stamp to sign documents in his name.
Bowen, 83, sued Barclay Grayson, former senior vice president at Bowen’s BPM Real Estate Group, in Multnomah County Circuit Court on Aug. 15 for breach of contract, breach of fiduciary duty, and financial abuse of a vulnerable person. The complaint was first reported by The Oregonian.
The suit adds to a stack that has accumulated since the 35-story Block 216 fell on hard times. Much of the tower’s office space remains empty, and most of the Ritz-Carlton-branded condominiums have gone unsold. Occupancy rates at the Ritz-Carlton hotel are also lower than expected. Its lender, Ready Capital Corp., foreclosed on the building last month.
“Grayson took or appropriated money or property belonging to Bowen by using Bowen’s signature stamp to sign personal guarantees on Bowen’s behalf without Bowen’s permission,” the suit says.
Grayson didn’t immediately return a text message seeking comment.
Bowen hired Grayson in 2003, taking a chance on him after Grayson served 14 months in prison for mail fraud he admitted to committing while working for his father, Jeff Grayson, at Capital Consultants. The Graysons ran a “Ponzi-like” scheme at the money management firm, according to the U.S. Securities and Exchange Commission.
Bowen hired Barclay because Jeff Grayson, who died in 2009, had helped Bowen early in his career, according to a person familiar with the situation.
In the complaint, Bowen says he fired Barclay Grayson in July, five months after WW reported on Grayson’s outsized role at BPM Real Estate, where he pushed Bowen to build Portland’s first five-star hotel, a risky gambit even before COVID-19.
Grayson started the legal brawl with Bowen in May, when he sued the entity that controls Block 216, saying that it had denied his right to buy a penthouse condo in the building, as he and Bowen had agreed.
That agreement figures in Bowen’s suit, too. The complaint says Grayson had the right to purchase the condo and two parking spaces for $3.2 million, as long as he met “numerous financial requirements and other duties.” Among them: Grayson had to pay any balance on the purchase and get preapproval for a loan before closing, unless he planned to pay cash.
Grayson also got an “improvement allowance” of $1.1 million to finish the condo, which was just a shell at the time. Grayson would have to pay any expenses beyond that sum, Grayson says in the suit.
The cash had strict requirements, according to Bowen. It could only be used to pay architects and engineers, cover permit fees, and fund construction. In September 2023, one of Bowen’s LLCs wrote Grayson a check for the $1.1 million. But Grayson used just $850,000 for improvements, spending the rest on personal expenses, including a wedding ring, the suit says.
Grayson had plans to marry his third wife, Shylah Graham, on Aug. 24 of last year, according to a website describing the wedding plans.
Though he didn’t name them as a defendant, Bowen implicated the law firm Schwabe, Williamson & Wyatt in Grayson’s alleged deception.
“On information and belief, Grayson used the signature stamp to sign personal guarantees on Bowen’s behalf without Bowen’s permission, including, at times, with Schwabe’s knowledge,” Bowen says in his complaint. “Had Bowen been informed of and understood the impact of such personal guarantees, he would not have signed them. Neither Grayson nor Schwabe were acting with Bowen’s best interests in mind.”
A spokeswoman for Schwabe didn’t immediately return an email seeking comment.
