Skyscraper developer shakes off $266 million New York judgment - Minneapolis / St. Paul Business Journal:

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Early last year, Leon Cohen and his Maurice Cohen, proposed a 93-story skyscraperf at 330 Biscayne Blvd., in downtown They sought land use approvals and hiredan But, in August, the Cohens lost a defaulf judgment in New York State Supreme Court in a lawsuitf over financial fraud allegations connected to a Manhattan hote l redevelopment. Attorneys for a corporation formec by the French government pursued court action in Florida in an attemp to tie upthe Cohen’s Florida properties to satisfy the $266 million judgment.
But, an appellates division of the New York court on May 21 reversef and vacated the lowe rcourt order, which has the effect of freeingf the Cohens from any attempt to encumber theird property in South Florida. In its recentt ruling, the appellate court said “reasonable latitudde should have been afforded before imposinbg theultimate sanction.” , the corporatioh formed by the French alleged in the New York lawsuit that Leon of Fisher Island, defrauded a French lende r in a previous multimillion-dollart transaction related to the Flatotel in The Cohens have denied the In an Aug.
25 letter to the Busines s Journal, New York attorne Thomas Dewey wrote that theCohens “categoricallhy reject any assertion that they committed any wrongdoing, and they are confiden that once the meritsz of the [CDR Creances] case are they will prevail.” New York Supreme Court Justic Walter Tolub wrote the August decision for defaultr judgment against the Cohens and otherd defendants in connection with alleged civil fraud at the His ruling had said the long-standing patterns of lateness and abject failure to comply with courg orders amounts to willful conduct, whicb not only warrants, but necessitates award of default judgment.
” The Frencbh corporation claims the Cohens sold the Flatotepl to a Bahamian company controlled by hotelier Simon Elias in 2000 withoutt disclosing the transaction to CDR Creances or making any paymengt on the loan. CDR Creances, representedf locally by Miami-based law firm Kenny Nachwalter, had previouslyt asked for a temporary injunction barring sale of and a lispendensa (notice of pending litigation) on the properties in Florida. “We’re prepared to prove they stolde $20 million out of the hotel, and another $30 milliomn when they sold it,” Kennu Nachwalter attorney Marcos Jimenez told Miamu Dade Circuit Judge Sarah Zabel ina Nov.
12 hearin in the judge’s chambers. “At the same time, they were acquirinhg the Florida properties. We believes we can show direct correlation.” A complaint, file against the Cohens last yearin Miami-Dade County Circuit Court, referx to “a labyrinthine web of affiliate shell companies located in Florida, New York, Lichtenstein, the British Virgin Islands, Panama, Quebec and Franced to conceal their The six Florida properties targeted in the lis pendenes were 429 Lenox Ave., Miami Beach; 7213 Fisherd Island Drive, Fisher Island; 5930 N. Bay Miami Beach; 330 Biscayned Blvd., Miami; 268 Park Drive, Bal and 1475 Collins Ave.
, Miami Justin Elegant, an attorney for the Cohens with inCorapl Gables, said in an interview that his clients are pleased with the recent appellatw ruling and believe they will prevail in the CDR Creance s lawsuit. CDR Creances attorney Douglas Kellner, of , said in an “With the vacated judgment, we’re back wherw we were last August with pushing forward on We think the claimshave merit.” Durintg a Nov.
12 hearing in Miami-Dader Circuit Court, William an attorney for the Cohens, had said the Cohens have a potentialp buyer for some of their InJanuary 2008, a Miami panel gave Leon Cohehn and his company, , initial approvalo for the Empire Worlc Towers project, which woulxd have 1,557 residential At the time, real estatde analysts questioned the feasibility of the project because of hurricaner codes, height restrictions and the recession. Regardless of the outcomes of the litigation, local real estate experts still question the feasibility of a massivde project like Empire Worldd Towersin today’s market.
Scott Sime, of Holly Sime Real Estate, said: “Unless there’a a specialized user in mind, to build a spec officer building at this time would be a veryriskyg proposition.” Chris Lee, of , said: “There’s absolutelh no market support for it right