You May Not Know Amit Raizada’s Name, But Some of KC’s Wealthiest Won’t Forget It
On December 26, 2012, Amit Raizada drove his wife, Amanda Raizada, to the office of his estate-planning attorneys. Amanda was handed several binders full of legal documents and directed to sign them.
“Amit told me I needed to sign the documents and trust him because everything he did was for the good of the family,” Amanda later stated in a sworn affidavit.
Amit Raizada, the CEO of Spectrum Business Ventures (SBV), a private investment firm based in Kansas City’s Country Club Plaza at the time, had a personal financial statement valuing the couple’s estate at $90 million.
Just a week earlier, Amanda had signed an amended postnuptial agreement. Amit and his attorney, Pete Smith of McDowell Rice Smith & Buchanan, argue that Amanda signed the postnup voluntarily. Smith presented evidence of a monthlong correspondence with Sheldon Bernstein, Amanda’s legal counsel for the agreement.
However, Amanda claims in court—and emails introduced in their divorce proceedings corroborate—that Smith selected Bernstein as her counsel. An email from Smith to Amit on November 5, 2012, stated: “Attached is Sheldon Bernstein’s business card. Amanda needs to contact him. He has the agreement and all the documents. I met with him to provide the background.” Four minutes later, Amit forwarded the email to Amanda with the message, “Please call the guy and set up the next available appointment.”
Whether Bernstein could serve as an impartial attorney, given Smith’s involvement in selecting and briefing him, remains a key issue in the divorce case. Amanda discovered, a year after their separation, that signing the postnup facilitated the transfer of 70% of her listed assets into irrevocable trusts and Amit-controlled entities.
Amanda’s attorneys, Bradley Manson and Katie McClaflin of Manson Karbank Burke, allege: “Ms. Raizada’s 22% ownership interest in the Raizada Group, LP, instead of providing $16 million in assets, resulted in a projected $237,000 tax liability for her in 2013.”
“Amit made all decisions regarding estate planning during our marriage,” Amanda stated in an affidavit. She claims he neither consulted her nor explained his plans.
While Amit celebrated Amanda signing the postnup, as recalled by SBV principal Michael Gortenburg, Amanda’s trust in her husband marked the beginning of financial difficulties for her.
A History of Controversy
Amit Raizada’s financial dealings have long drawn scrutiny. Born in India in 1976, he moved to the U.S. as a toddler, attended Michigan State University and Cornell, and launched his first business ventures in Michigan before relocating to Kansas City.
After selling his Nextel stores in 2000, Amit established Cellular 4 Less, a chain of wireless outlets. In 2002, he faced legal trouble after a heated exchange at a US Bank branch, culminating in battery charges. He later completed a diversion program and anger management.
In 2005, Amit rebranded his real estate company as Spectrum Business Ventures, collaborating with local investors Scott Asner and Michael Gortenburg. SBV thrived, largely due to investments in online payday lending through eData Solutions, which grossed tens of millions annually.
Lavish Spending
At the height of SBV’s payday-lending profits (2007–2013), Amit’s spending habits were extravagant. In August 2012, he spent $94,000 at XS Nightclub in Las Vegas and $40,000 at Encore Beach Club the next day. He testified in court that spending $100,000 or more in a night was “normal business.”
The payday-lending boom ended abruptly in 2013 with Operation Choke Point, a federal crackdown on banks facilitating such loans. SBV’s cash flow plummeted, and Amit’s business associates began questioning his financial practices.
Accusations of Fraud
By 2013, Amit faced lawsuits alleging financial manipulation and self-dealing. Asner and Gortenburg accused him of misrepresenting financial data and invoicing personal expenses to SBV entities. Amit settled with them, paying $4 million and relinquishing control of 12 companies.
A Mexican land deal exemplified these disputes. Investors, including prominent Kansas Citians, alleged that Amit conspired with Richard Houghton, a known fraudster, to misappropriate funds. Amit later claimed Houghton had embezzled the investments, but lawsuits suggest the deal was fraudulent from the start.
A 2009 sale of Verizon Wireless stores in St. Louis offers another example. Amit allegedly bought the stores for $400,000, then sold them to investors for $1.4 million, pocketing the difference.
Ongoing Fallout
Amit has faced numerous lawsuits, including one involving Adore, a Miami nightclub. Plaintiffs accused him of fund misappropriation, though the dispute was eventually settled.
Spectrum Business Ventures now lists a post-office box in Lee’s Summit as its headquarters. Asner and Gortenburg operate Eighteen Capital from SBV’s former office on the Country Club Plaza.
Despite his talent for dealmaking, Amit Raizada’s legacy in Kansas City remains tainted by allegations of betrayal, fraud, and financial ruin for those who trusted him.
