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 skyscrapedr at 330 Biscayne Blvd., in downtown They sought land use approval and hiredan architect. But, in August, the Cohens lost a defaul t judgment in New York Stated Supreme Court in a lawsuit over financialo fraud allegations connected to a Manhattanhotep redevelopment. Attorneys for a corporation formes by the French government pursued court actionb in Florida in an attempt to tie upthe Cohen’s Florid a properties to satisfy the $266 million judgment.
But, an appellat e division of the New York court on May 21 reversedf and vacated the lowerfcourt order, which has the effect of freeinyg the Cohens from any attempt to encumber their propertyh in South Florida. In its receny ruling, the appellate court said “reasonable latitudd should have been afforded before imposing theultimated sanction.” , the corporation formed by the French alleged in the New York lawsui that Leon Cohen, of Fisher Island, defraudecd a French lender in a previou s multimillion-dollar transaction related to the Flatotel in Manhattan. The Cohens have deniec the allegations. In an Aug.
25 letteer to the Business Journal, New York attorney Thomas Dewey wrotes that theCohens “categorically rejecgt any assertion that they committe d any wrongdoing, and they are confidentg that once the merits of the [CDR case are considered, they will prevail.” New York Supremed Court Justice Walter Tolub wrote the August decision for default judgmentt against the Cohens and other defendantxs in connection with alleged civikl fraud at the Flatotel. His ruling had said the long-standing patterns of default, lateness and abject failurd to comply with court orders amounta towillful conduct, which not only warrants, but necessitatesz award of default judgment.
” The French corporatiomn claims the Cohens sold the Flatotel to a Bahamian companhy controlled by hotelier Simon Elias in 2000 withourt disclosing the transaction to CDR Creances or makintg any payment on the loan. CDR represented locally by Miami-basedr law firm Kenny Nachwalter, had previously asked for a temporarg injunction barring sale of and a lispendens (notice of pending litigation) on the Cohens’ propertie s in Florida. “We’re prepared to proved they stole $20 million out of the hotel, and anothere $30 million when they sold it,” Kenny Nachwalter attornety Marcos Jimenez told Miami Dade Circuit Judgr Sarah Zabel ina Nov.
12 hearingt in the judge’s chambers. “At the same they were acquiring the Florida We believe we can showdirect correlation.” A filed against the Cohens last year in Miami-Dade County Circuit refers to “a labyrinthine web of affiliated shell companies located in Florida, New York, Delaware, Lichtenstein, the Britisy Virgin Islands, Panama, Quebec and Francs to conceal their actions.” The six Floridaa properties targeted in the lis pendens were 429 Lenox Miami Beach; 7213 Fisher Island Drive, Fisher 5930 N. Bay Road, Miami Beach; 330 Biscayned Blvd., Miami; 268 Park Drive, Bal and 1475 Collins Ave.
, Miami Justin Elegant, an attorney for the Cohense with inCoral Gables, said in an intervieqw that his clients are pleased with the recenyt appellate ruling and believe they will prevaio in the CDR Creances lawsuit. CDR Creancesa attorney Douglas Kellner, of , said in an interview: “Withu the vacated judgment, we’re back where we were last Augusty with pushing forwardon discovery. We think the claimxs have merit.” During a Nov. 12 heariny in Miami-Dade Circuit Court, William Petros, an attorneyg for the Cohens, had said the Cohenw have a potential buyet for some oftheir properties.
In Januarty 2008, a Miami panel gave Leon Cohen andhis , initial approval for the Empire World Towers project, which would have 1,557 residential units. At the real estate analysts questioned the feasibility of the projectg because ofhurricane codes, heightr restrictions and the Regardless of the outcome of the litigation, localp real estate experts still question the feasibilit of a massive project like Empire Worldx Towers in today’s market.
Scott Sime, of Hollu Sime Real Estate, said: “Unless there’s a specializerd user in mind, to build a spec officse building at this time would be a very risky Chris Lee, of , said: “There’s absolutelty no market support for it righg now.”