Justin Rundle is rescinding his accusations that his ex-business partners, the father-and-son team that leads Canero Group, allegedly committed fraud and misappropriated project funds in connection with six developments in Miami-Dade County.
On Sept. 19, Rundle, son of Miami-Dade State Attorney Katherine Rundle, voluntarily dismissed his lawsuit against Jose Canero Sr., Jose Canero Jr., Miami-based Canero Group, and Ricardo Casanova, a business associate of the Caneros, after reaching a settlement, court records show.
Rundle sought in excess of $3 million in damages after investing $625,000 in the projects, and also claiming to have raised $6.3 million from other investors. In an emailed statement provided by his attorney, Rundle said an “independent third-party accountant has made a finding that there was no fraud or misappropriation of funds.”
“I have accepted that opinion and hereby withdraw all fraud allegations previously made against the Caneros and Casanova,” Rundle’s statement said, adding that he is no longer a partner in the six projects, which include a 54-unit townhouse project in Homestead and a 10-townhome development in Miami’s Upper Eastside neighborhood.
Rundle’s lawyer, Melanie Damian, said her client reached a confidential settlement with the Caneros and Casanova.
In an emailed statement, Canero Jr. said Coral Gables-based accounting firm Shechter & Everett conducted a full review of the entities that own the projects. Canero Group, founded in 2012, has built “a reputation for honesty and transparency,” Canero Jr. added.
“Everyone connected with The Canero Group is extremely grateful to get this matter behind us,” Canero Jr. said. “It’s always difficult when one’s reputation and character are unjustly assailed, but have been vindicated.”
Canero Group primarily focuses on development of luxury homes and townhouses, but recently expanded into multifamily projects. In May, the firm paid a combined $17.3 million to buy out all the owners of Chateau Grove, a 25-unit condominium in Miami’s Coconut Grove. Canero Group plans to convert the property into apartments.
In his May complaint, filed in Miami-Dade Circuit Court, Rundle alleged that the Caneros grossly mismanaged the projects. Rundle also accused the Caneros of paying themselves and Canero Group expenses by using project funds without investors’ authorizations.
In a June response to Rundle’s lawsuit, Canero Jr. and his father accused their ex-business partner of skirting Florida Bar rules governing conflicts of interests. Rundle, a real estate attorney who previously represented Canero Group on some transactions, allegedly got into business with Canero Sr. and Canero Jr. without first obtaining a conflict of interest waiver from both of them, the response states.
Instead, Rundle allegedly sought to get the Caneros to sign the waiver in 2024, two years after they became partners, according to the response. The Caneros also alleged Rundle attempted to sideskirt an arbitration clause in the operating agreements for the entities that own the projects.
