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Malibu couple suing realtor after he allegedly swindled them out of their dream home

A Malibu couple are suing one of the city's top realtors for $3.3million after he allegedly swindled them out of their Malibu dream home.

Zare and Seda Baghdasarian were forced to put the property, based in iconic Watkins Cove, on the market in 2011, after Zare, 56, lost heavily in stocks.

But they say broker Chris Cortazzo, 50, deliberately blocked the sale so he could snap it up for just $5.8million - half its original valuation - in 2012 and sell it for $15million last year, The Hollywood Reporter has revealed.

'Heaven': This is the house that Zare and Seda Baghdasarian say their realtor, Chris Cortazzo, swindled them out of in 2012. They claim it was valued at $12m, but he bought it for $5.8m

'Heaven': This is the house that Zare and Seda Baghdasarian say their realtor, Chris Cortazzo, swindled them out of in 2012. They claim it was valued at $12m, but he bought it for $5.8m

Miserable: Zare (left) and Seda (right) are miserable that Cortazzo renovated and resold the home in 2015 for $15m. They were forced into selling it after Zare's stock portfolio tumbled

Realtor: Cortazzo (right, with actress pal Shannen Doherty) bought the house after it laid unsold for 14 months - but they say he deliberately didn't sell it to lower the price

Realtor: Cortazzo (right, with actress pal Shannen Doherty) bought the house after it laid unsold for 14 months - but they say he deliberately didn't sell it to lower the price

The stunning property, designed by star architect Harry Gesner, overlooks Watkins Cove, a tiny beach that has been featured in 'Baywatch' and Tag Heuer ads, among other media.

With just five neighboring homes, it's not hard to see why the cove has attracted the likes of George Harrison and Neil Diamond.

Nor is it hard to understand why Zare and his wife, now 54, snapped up their 2,450sqft home - and its 100ft of beach frontage - for $4.7million in 2003.

But the 2008 recession hit Zare - who made his fortune selling a pioneering wavelength router to Cisco Systems - hard, and his stock began to stumble.

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With money draining away, the couple put the property on sale in 2011 through Chris Cortazzo, who was recommended by the realtor who sold them the house.

They say it was valued at $12million in 2008, and they had wanted to sell for $10million, but that Cortazzo persuaded them to put it on the market at $8.995.

Over the next 14 months, they say, the house was visited by plenty of potential clients - some of whom were celebrities - but nobody bit.

The price dropped and dropped and dropped again, eventually hitting rock bottom at $6.45million. 

At this point, they say, Cortazzo offered to buy it, eventually paying the couple $5.795million in the spring of 2012.

And last winter - after the house had undergone an extensive renovation - he sold it for $15million. 

Idyllic: The house (circled) is one of just six on Watkins Cove beach. Cortazzo's lawyer says his client renovated it, adding to its value, and that the property market boomed in 2014

Idyllic: The house (circled) is one of just six on Watkins Cove beach. Cortazzo's lawyer says his client renovated it, adding to its value, and that the property market boomed in 2014

'When my son found out that the house was sold for $15 million,' Zare told The Hollywood Reporter through tears, 'he goes, "Dad, one day I'm gonna make my own money and buy that house back. I promise you that!"

'It was his childhood. It was our heaven. It was stolen.'

The Baghdasarians are now taking Cortazzo to court, saying he didn't sell the property because - being aware of their dwindling funds - he knew he could snap it up from them once they got desperate.

They also say that he let other, less talented agents handle most of the visits, and that he didn't play up the Cove's natural beauty - but then used that feature as a selling point once he owned the property.

In the words of their lawyer, they feel that Cortazzo is culpable of 'self-dealing and (a) breach of his fiduciary duty by having his interest in mind rather than (his) clients'.'

Breach: The couple's lawyer said Cortazzo breached his fiduciary duty in buying the home and is demanding $3.3million in compensation

Breach: The couple's lawyer said Cortazzo breached his fiduciary duty in buying the home and is demanding $3.3million in compensation

Cortazzo declined to comment, but his lawyer assured that his client 'adamantly denies any allegation of wrongdoing.'

He also said that Cortazzo had put money into a major renovation and that in April 2012 a document from Wells Fargo Bank listed the appraised value as $5.8million.

However, the Baghdasarians also say that Cortazzo told them improvements to the home weren't necessary.

Other realtors interviewed by The Hollywood Reporter were divided, with some saying Cortazzo just recognized 'an opportunity and took a risk'.

But many more said he had crossed a line, with one describing the deal as 'fishy'.' 

Zare told the Hollywood Reporter that Cortazzo had asked him if he wanted to see the house after it was refurbished.

'That really hurt me,' he said. 'I said, "You enjoy it." He goes, "I do."

'And then he told me, "I still remember that you told me you walk on the cove and you dream big, and that's what I do every day."'

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