City files lawsuit against real estate companies for widespread public nuisance violations
In a sweeping legal action aimed at combating neighborhood deterioration and holding corporate entities and their officers accountable, the City of Detroit has filed a lawsuit against Real Token, Remy and Jean-Marc Jacobson, and their 165 affiliated corporate defendants, for public nuisance violations involving over four hundred residential properties across Detroit.
The lawsuit alleges that Real Token — a blockchain-based real estate investment platform — and its network of shell corporations and affiliates neglected its responsibility to ensure that hundreds of properties in Detroit complied with basic health and safety requirements. That failure leading to widespread code violations and blighted properties, including criminal activity and endangerment of the health and safety of Real Token tenants.
“This is the largest nuisance abatement case in our history,” said Conrad Mallett, corporation counsel for the City of Detroit. “These defendants have profited from our communities while ignoring their most basic legal obligations as landlords and property owners. Our neighborhoods are not investment portfolios — they are homes for Detroit residents.”
Key allegations include:
• Persistent Code Violations: The properties cited in the lawsuit were repeatedly found to be in violation of local building, health, and safety codes.
• Negligent Ownership Structure: Real Token allegedly used a complex web of LLCs and shell companies to evade responsibility for property upkeep.
• Endangerment to Public Health & Safety: The neglect has led to increased criminal activity, rodent infestations, fire hazards, and structural decay.
• Blockchain and Accountability: This is believed to be the first lawsuit of its kind targeting a blockchain-based property investment platform for nuisance-related violations at scale.
“We are sending a message: No matter how innovative your business model may be, you cannot hide behind technology or corporate formalities to evade your responsibilities as a property owner,” said Mallett.
Real Token markets itself as a decentralized real estate investment platform, allowing international investors to buy fractional ownership in rental properties via tokenized blockchain assets. Critics argue this model has enabled disinvestment in communities and obstructed traditional enforcement mechanisms.
Residents have long complained about the condition of these properties. According to officials, today’s lawsuit is the result of over five months of investigation, community complaints, and interagency coordination between the Law Department and the Buildings, Safety Engineering, and Environmental Department of the City of Detroit.
The lawsuit alleges that Real Token — a blockchain-based real estate investment platform — and its network of shell corporations and affiliates neglected its responsibility to ensure that hundreds of properties in Detroit complied with basic health and safety requirements. That failure leading to widespread code violations and blighted properties, including criminal activity and endangerment of the health and safety of Real Token tenants.
“This is the largest nuisance abatement case in our history,” said Conrad Mallett, corporation counsel for the City of Detroit. “These defendants have profited from our communities while ignoring their most basic legal obligations as landlords and property owners. Our neighborhoods are not investment portfolios — they are homes for Detroit residents.”
Key allegations include:
• Persistent Code Violations: The properties cited in the lawsuit were repeatedly found to be in violation of local building, health, and safety codes.
• Negligent Ownership Structure: Real Token allegedly used a complex web of LLCs and shell companies to evade responsibility for property upkeep.
• Endangerment to Public Health & Safety: The neglect has led to increased criminal activity, rodent infestations, fire hazards, and structural decay.
• Blockchain and Accountability: This is believed to be the first lawsuit of its kind targeting a blockchain-based property investment platform for nuisance-related violations at scale.
“We are sending a message: No matter how innovative your business model may be, you cannot hide behind technology or corporate formalities to evade your responsibilities as a property owner,” said Mallett.
Real Token markets itself as a decentralized real estate investment platform, allowing international investors to buy fractional ownership in rental properties via tokenized blockchain assets. Critics argue this model has enabled disinvestment in communities and obstructed traditional enforcement mechanisms.
Residents have long complained about the condition of these properties. According to officials, today’s lawsuit is the result of over five months of investigation, community complaints, and interagency coordination between the Law Department and the Buildings, Safety Engineering, and Environmental Department of the City of Detroit.
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