Amazon Settles, Leaving Data Center Kickback Case
Owners and investors in Northern Virginia commercial property should watch how the federal trial over disputed referral payments unfolds.
Updated on Nov. 2, 2026 in Commercial
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Amazon settled its civil racketeering lawsuit against Carl Nelson, Casey Kirschner, and Arvada attorney Rod Atherton shortly before trial, leaving Brian Watson and Northstar Commercial Partners to face the case alone in federal court in Alexandria, Virginia. The suit centers on millions of dollars Watson's firm paid to a trust that Amazon says were kickbacks tied to data center real estate contracts.
Why it matters
The case shows how a single commercial real estate relationship can sprawl into years of litigation, and it puts a spotlight on how property deals tied to large tech developments are sourced and paid for. For households and small investors near large data center projects in Northern Virginia, the outcome could influence how transparent commercial land and development deals become.
Amazon's claims were partially struck down in March 2023 and reinstated by an appeals court in September 2025, after which the case moved toward trial. The SEC civil trial jury found securities fraud across 11 real estate deals.
The players
Amazon
Seattle-based retailer and cloud provider whose expanding Northern Virginia data center footprint is central to the dispute over real estate contracts.
Brian Watson
Former Northstar Commercial Partners principal facing the remaining Amazon claims at trial.
Northstar Commercial Partners
Commercial real estate firm whose land and development deals with Amazon are at the center of the lawsuit.
U.S. Securities and Exchange Commission
Federal regulator that brought a separate civil fraud case against Watson, which a jury decided in early 2026.
The details
Amazon was alerted to the arrangement when a former Northstar employee emailed Jeff Bezos. Amazon alleges the money was paid to a trust set up by Christian Kirschner and later shared with Nelson and Casey Kirschner, and it describes those payments as kickbacks for steering contracts to Amazon. Watson has said the payments were legitimate referral fees compensating Christian Kirschner for introducing him to Amazon.
Timeline
April 2020: Amazon first brought fraud and racketeering claims against Watson.
March 2023: Judge Alston struck down most of Amazon's claims against Northstar.
September 2025: An appeals court reinstated Amazon's claims against Northstar.
Late January to early February 2026: Watson faced a five-day SEC civil trial.
Monday: Watson and Northstar go on trial in federal court in Alexandria, Virginia.
The Home Front
Large tech tenants have driven commercial real estate activity in Northern Virginia's data center corridor for years, making land and lease deals there a high-stakes market. Disputes like this one highlight how much money moves through commercial property transactions tied to that buildout.
If you rent or own near commercial data center projects, check whether local planning records list the developers and property owners involved in nearby sites. Anyone considering a commercial or investment property deal should work with a licensed agent, attorney, or lender to verify who is receiving payments and how referral fees are documented.
The takeaway
Commercial real estate deals tied to large tech buildouts can carry significant hidden fee arrangements, so the paper trail matters. Keep copies of referral agreements and payment records for any property transaction you are part of.
What happens next
Watson and Northstar's federal trial begins Monday in Alexandria, Virginia, and a verdict on the remaining Amazon claims is expected after the proceedings conclude.
Further reading
For more on how these deals work, explore our Commercial real estate coverage.
Source note: This article includes information reported by The Denver Post.
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