Billionaire hotel magnate and longtime Democrat donor Stephen Cloobeck found himself in legal hot water this week after surrendering to authorities on felony charges in Los Angeles County.
The former Diamond Resorts International CEO, who recently renounced his ties to the Democrat Party, was booked Tuesday morning before posting a $300,000 bond.
Deputies in West Hollywood confirmed that Cloobeck turned himself in after a warrant was issued for his arrest.
Though the details remain murky, the felony charge reportedly stems from accusations that he tried to prevent or dissuade a victim or witness from testifying in an unspecified case.
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Cloobeck’s representatives were quick to issue a statement denying any wrongdoing.
“These charges are false and we look forward to our day in court,” a spokesman told The Post.
While the legal process unfolds, the billionaire now faces the possibility of up to four years in prison if convicted.
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This shocking development comes only weeks after Cloobeck dramatically distanced himself from California Democrat Congressman Eric Swalwell, the same lawmaker buried in scandal over alleged sexual misconduct.
Cloobeck had initially offered Swalwell refuge during the uproar, even allowing him to film a denial video inside his lavish Beverly Hills estate. But when the details of the accusations surfaced, Cloobeck hit the eject button fast.
“I am no longer associated with a man that takes advantage of women,” Cloobeck declared. “I support women’s rights.”
The billionaire’s disgust was palpable. Once among the party’s high-rolling donors, Cloobeck publicly cut his political ties, even revealing he now considers himself a libertarian Republican.
For a man who once toyed with running for governor as a Democrat, the shift was seismic.
According to Cloobeck, his split with Swalwell was explosive.
“I was with my counsel and we had a chat with him, I just told him, ‘You busted the trust,’” the mogul recounted.
“I’m shocked, I’m disturbed and get the f out of here.” Those words marked the end of the politician’s welcome, and perhaps, in Cloobeck’s view, the end of his patience with Democrat hypocrisy.
Speaking later to KTTV, Cloobeck described himself as “blown away” by Swalwell’s alleged behavior.
His indignation did not sound rehearsed.
“Like blown away. Like, there’s no way I would have endorsed him. It’s such a shock,” he told the reporter.
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His outrage seemed genuine, and with good reason.
After years of bankrolling Democrats, it took one scandal too many to open his eyes to the corruption that seems baked into their culture.
Yet while Cloobeck battles his own criminal charges, his personal life has drawn equal intrigue.
The billionaire is reportedly engaged to Penthouse model Adva Lavie, age 28, who herself is facing legal issues.
Lavie has pleaded not guilty to six felony charges that accuse her of targeting elderly men through online dating apps to scam them out of money.
The court has restricted her travel, and she now wears an ankle monitor while she awaits trial.
Cloobeck insists the wedding is still on, though the date is being kept secret. “The marriage is still on, the date is now a secret,” he told The California Post.
Lavie, however, has argued in court that the ankle monitor is hurting her modeling career.
In an effort to have it removed, she submitted sensual photographs and letters from companies saying the device made it impossible for her to work.
One of those letters came from Morio Parker, the founder of a cannabis-themed fashion brand called the Ganja Collection, who called Lavie “an indispensable asset to our brand.”
Parker went on to claim that the monitor’s presence would “make the resulting footage unusable,” referring to a planned advertising campaign.
The plea to the court has yet to yield results.
According to another document filed with the court, Lavie’s ex-husband, porn actor Edan Ives, wrote in support of her, describing their previous relationship as “open-minded” and “non-monogamous.”
Ives added that the couple still planned to start a family, painting a bizarre portrait of the Hollywood-adjacent lifestyle surrounding Cloobeck’s world.
Lavie’s trial is expected to begin later this month, and if convicted on all counts, she faces a possible sentence of more than eleven years in state prison.
That is a heavy cloud to hang over any upcoming nuptials.
For Cloobeck, the convergence of his new political independence, his tabloid-worthy engagement, and a criminal charge carries the makings of a full-blown spectacle.
Once a trusted donor courted by every major Democrat in California, he now stands as a cautionary tale about how quickly loyalty to that party can crumble once the glamor fades and the scandals pile up.
And for Eric Swalwell, the timing could not be worse.
The House Democrat has never quite recovered his reputation following the fiery accusations, and now his one-time benefactor occupies the headlines under his own cloud of controversy.
Whether Cloobeck’s arrest will turn into conviction remains to be seen, but there is no question that his fall from political grace is as steep as it is ironic.
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