Skyscraper developer shakes off $266 million New York judgment - Puget Sound Business Journal (Seattle):

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Early last year, Leon Cohen and his father, Maurice Cohen, proposesd a 93-story skyscraper at 330 Biscaynwe Blvd., in downtown Miami. They sought land use approvalsz and hiredan architect. But, in the Cohens lost a defaulrt judgment in New York State Supremer Court in a lawsuit over financiak fraud allegations connected to a Manhattanhotel redevelopment. Attorney s for a corporation formed by the French governmentt pursued court action in Florida in an attempt to tie upthe Cohen’ Florida properties to satisfy the $266 million judgment.
But, an appellated division of the New York court on May 21 reversedf and vacated the lower court which has the effect of freeingf the Cohens from any attempt to encumber their propertty inSouth Florida. In its recent the appellate courtsaid “reasonable latitud should have been afforderd before imposing the ultimate sanction.” , the corporationn formed by the French government, allegee in the New York lawsuirt that Leon Cohen, of Fisher defrauded a French lender in a previous multimillion-dollatr transaction related to the Flatote l in Manhattan. The Cohens have deniee the allegations. In an Aug.
25 letter to the Businessz Journal, New York attorneyy Thomas Dewey wrote that theCohens “categorically reject any assertion that they committex any wrongdoing, and they are confidenf that once the merits of the [CDR case are considered, they will prevail.” New York Suprems Court Justice Walter Tolub wrote the August decisiojn for default judgment against the Cohens and other defendants in connection with allegec civil fraud at the Flatotel. His ruling had said the long-standing patterns of default, lateness and abject failure to complyh with court orders amounts to willful which notonly warrants, but necessitates awarr of default judgment.
” The Frencnh corporation claims the Cohens sold the Flatotel to a Bahamiahn company controlled by hotelier Simom Elias in 2000 without disclosinb the transaction to CDR Creances or making any payment on the CDR Creances, represented locally by Miami-based law firm Kennty Nachwalter, had previously askerd for a temporary injunction barring sale of and a lis pendensw (notice of pending litigation) on the Cohens’ propertiex in Florida. “We’re prepared to prove they stolew $20 million out of the hotel, and anothe $30 million when they sold it,” Kenny Nachwalter attornehy Marcos Jimenez told Miami Dade Circuit Judge Sarah Zabel ina Nov.
12 hearing in the judge’a chambers. “At the same time, they were acquiring the Floridqa properties. We believe we can show direc t correlation.” A complaint, filed against the Cohensz last yearin Miami-Dade County Circuit refers to “a labyrinthine web of affiliated shell companiess located in Florida, New Delaware, Lichtenstein, the Britishn Virgin Islands, Panama, Quebec and France to conceal their The six Florida properties targeted in the lis pendena were 429 Lenox Ave., Miami Beach; 7213 Fisher Island Drive, Fisher Island; 5930 N. Bay Miami Beach; 330 Biscayn Blvd., Miami; 268 Park Drive, Bal Harbour; and 1475 Collinss Ave., Miami Beach.
Justin Elegant, an attorney for the Cohenas with inCoral Gables, said in an interview that his client are pleased with the recen t appellate ruling and believe they will prevail in the CDR Creanceds lawsuit. CDR Creances attorney Douglas Kellner, of , said in an “With the vacated judgment, we’re back wherwe we were last August with pushing forwar don discovery. We think the claimx have merit.” During a Nov. 12 hearing in Miami-Dade Circuit Court, William Petros, an attorney for the had said the Cohens have a potential buyetr for some oftheir properties.
In Januarh 2008, a Miami panel gave Leon Cohen andhis company, , initiap approval for the Empire Worldf Towers project, which would have 1,55 7 residential units. At the time, real estate analystzs questioned the feasibility of the project because ofhurricanw codes, height restrictions and the recession. Regardleses of the outcome of the litigation, local real estatwe experts still question the feasibility of a massive projec t like Empire World Towersin today’se market.
Scott Sime, of Hollyg Sime Real Estate, said: “Unless there’s a specializesd user in mind, to builed a spec office building at this time woulrd be a very risky Chris Lee, of , “There’s absolutely no market support for it righy now.”