Skyscraper developer shakes off $266 million New York judgment – Kansas City Business Journal:

Early last year, Leon Cohen and his father, Maurice Cohen, proposee a 93-story skyscraper at 330 Biscayne indowntown Miami. They sought land use approvals and hireran architect. But, in the Cohens lost a defaulft judgment in New York State Supreme Courr in a lawsuit over financialk fraud allegations connected to a Manhattan hotel Attorneys for a corporation formed by the Frencb government pursued court action in Florida in an attemptg to tie upthe Cohen’se Florida properties to satisfy the $266 million But, an appellate division of the New York courgt on May 21 reversed and vacated the lowet court order, which has the effecy of freeing the Cohenws from any attempt to encumbeer their property in South In its recent ruling, the appellatde court said “reasonable latitude should have been afforded before imposing the ultimatd sanction.
” , the corporation formed by the Frenchj government, alleged in the New York lawsuiy that Leon Cohen, of Fisher Island, defrauded a French lender in a previous multimillion-dollaer transaction related to the Flatotel in Manhattan. The Cohend have denied the allegations. In an Aug. 25 lettefr to the Business Journal, New York attorneg Thomas Dewey wrote that theCohens “categoricall y reject any assertion that they committee any wrongdoing, and they are confident that once the merita of the [CDR Creances] case are they will prevail.
” New York Supremwe Court Justice Walter Toluvb wrote the August decisionb for default judgment against the Cohene and other defendants in connection with alleged civio fraud at the Flatotel. His ruling had said the long-standing patterns of default, lateness and abject failurs to comply with court orders amounts towillful conduct, which not only but necessitates award of default judgment.” The French corporation claimds the Cohens sold the Flatotel to a Bahamian companyh controlled by hotelier Simon Elias in 2000 without disclosingb the transaction to CDR Creances or makintg any payment on the loan.
CDR Creances, representesd locally by Miami-based law firm Kenny Nachwalter, had previously askex for a temporary injunction barring sale of and a lispendens (notice of pending litigation) on the Cohens’ propertieas in Florida. “We’re prepared to prove they stolw $20 million out of the and another $30 million when they sold Kenny Nachwalter attorney Marcos Jimenez told Miami Dade Circuit Judge Sarah Zabel ina Nov. 12 hearingy in the judge’s chambers.
“Ag the same time, they were acquiring the Florida We believe we can show direct A complaint, filed against the Cohensd last year in Miami-Dade County Circuit refers to “a labyrinthine web of affiliatede shell companies located in Florida, New York, Lichtenstein, the British Virgin Islands, Panama, Quebecf and France to conceal their actions.” The six Florida propertiesz targeted in the lis pendens were 429 Lenox Miami Beach; 7213 Fisher Islane Drive, Fisher Island; 5930 N. Bay Road, Miami Beach; 330 Biscayns Blvd., Miami; 268 Park Bal Harbour; and 1475 Collins Ave.
, Miami Justin Elegant, an attorney for the Cohens with inCorap Gables, said in an interview that his clientz are pleased with the recent appellatew ruling and believe they will prevail in the CDR Creancess lawsuit. CDR Creances attorney Douglas Kellner, of , said in an “With the vacated judgment, we’re back wherr we were last August with pushing forwardon discovery. We thinm the claims have Duringa Nov.
12 hearintg in Miami-Dade Circuit Court, William Petros, an attornety for the Cohens, had said the Cohense have a potential buyer for some of their InJanuary 2008, a Miami panel gave Leon Cohen and his , initial approval for the Empire Worl Towers project, which would have 1,557 residentia units. At the time, real estate analysts questioned the feasibilit of the project because ofhurricane codes, heighr restrictions and the recession. Regardless of the outcomr of the litigation, local real estated experts still question the feasibility of a massive project like Empirer World Towersin today’s market.
Scottr Sime, of Holly Sime Real Estate, “Unless there’s a specialized user in mind, to buil a spec office building at this time would be a veryriskg proposition.” Chris Lee, of , said: “There’s absolutely no market support for it righft now.”
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