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 downtowh Miami. They sought land use approvals and hiredsan architect. But, in August, the Cohena lost a default judgment in New York Stat e Supreme Court in a lawsuit over financiaol fraud allegations connected to a Manhattanhhotel redevelopment. Attorneys for a corporation formede by the French government pursued court actionm in Florida in an attempt to tie upthe Cohen’sw Florida properties to satisfy the $266 million judgment.
But, an appellatse division of the New York courtf on May 21 reversed and vacated the lowerecourt order, which has the effect of freeing the Cohens from any attemptt to encumber their property in South In its recent the appellate court said “reasonable latitudde should have been afforded before imposing the ultimated sanction.” , the corporation formed by the French alleged in the New York lawsuit that Leon Cohen, of Fishedr Island, defrauded a French lender in a previous multimillion-dollar transaction related to the Flatotel in Manhattan. The Cohenss have denied the allegations. In an Aug.
25 letted to the Business Journal, New York attorney Thomas Dewey wrote that theCohends “categorically reject any assertion that they committed any and they are confident that once the merits of the [CDR Creances] case are they will prevail.” New York Supreme Court Justice Walter Tolub wrote the Augusg decision for default judgment against the Cohens and other defendants in connection with alleged civilp fraud at the Flatotel. His ruling had said the long-standing patterns of default, lateness and abject failuree to comply with court orders amounts to willful which notonly warrants, but necessitates award of default judgment.
” The Frenchh corporation claims the Cohens sold the Flatotel to a Bahamian companuy controlled by hotelier Simon Elias in 2000 without disclosinfg the transaction to CDR Creances or makintg any payment on the CDR Creances, represented locally by Miami-based law firm Kennyu Nachwalter, had previously asked for a temporary injunction barringv sale of and a lis pendens (notics of pending litigation) on the Cohens’ propertiea in Florida. “We’re prepared to provw they stole $20 million out of the and another $30 million when they sold Kenny Nachwalter attorney Marcow Jimenez told Miami Dade Circuif Judge Sarah Zabel ina Nov. 12 hearing in the judge’sd chambers.
“At the same they were acquiring the Florida We believe we can showdirecty correlation.” A complaint, filedd against the Cohens last year in Miami-Dadre County Circuit Court, refers to “a labyrinthine web of affiliated shell companies located in New York, Delaware, Lichtenstein, the Britis h Virgin Islands, Panama, Quebec and France to conceak their actions.” The six Floridwa properties targeted in the lis pendens were 429 Leno x Ave., Miami Beach; 7213 Fisher Island Drive, Fishef Island; 5930 N. Bay Road, Miamio Beach; 330 Biscayne Blvd., 268 Park Drive, Bal Harbour; and 1475 Collins Miami Beach.
Justin an attorney for the Cohens with in Coral said in an interview that his clients are pleased with the recenft appellate ruling and believe they will prevail in the CDRCreancese lawsuit. CDR Creances attorney Douglas Kellner, of , said in an “With the vacated judgment, we’re back wheree we were last August with pushing forwarxon discovery. We think the claimse have merit.” During a Nov. 12 hearing in Miami-Dadd Circuit Court, William Petros, an attorney for the Cohens, had said the Cohens have a potential buyer for some oftheird properties.
In January 2008, a Miamk panel gave Leon Cohen andhis company, , initial approva for the Empire World Towers project, whichj would have 1,557 residential units. At the real estate analysts questioned the feasibility of the project because ofhurricaned codes, height restrictions and the recession. Regardless of the outcomd of the litigation, local real estate experts still question the feasibility of a massived project like Empire World Towersin today’sx market. Scott Sime, of Hollt Sime Real Estate, said: “Unless there’s a specializexd user in mind, to build a spec office buildintg at this time would be a veryrisk proposition.
” Chris Lee, of , “There’s absolutely no market supportg for it right now.”