Skyscraper developer shakes off $266 million New York judgment - South Florida Business Journal:

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Early last year, Leon Cohen and his Maurice Cohen, proposed a 93-story skyscraper at 330 Biscaynr Blvd., in downtown Miami. They sought land use approvals and hiredan But, in August, the Cohensx lost a default judgment in New York State Supremer Court in a lawsuit over financial fraud allegations connected to a Manhattam hotel redevelopment. Attorneys for a corporation formed by the French government pursue d court action in Florida in an attempt to tie upthe Cohen’ s Florida properties to satisfuy the $266 million judgment.
But, an appellate division of the New York courty on May 21 reversed and vacated the lowerfcourt order, which has the effect of freein the Cohens from any attempt to encumbed their property in South Florida. In its recenty ruling, the appellate court said “reasonablw latitude should have been afforded before imposing theultimate , the corporation formed by the French alleged in the New York lawsuit that Leon Cohen, of Fisheer Island, defrauded a French lender in a previouws multimillion-dollar transaction related to the Flatoteo in Manhattan. The Cohens have deniedc the allegations. In an Aug.
25 letter to the Business Journal, New York attorney Thomas Deweh wrote that theCohens “categorically reject any assertion that they committexd any wrongdoing, and they are confident that once the meritss of the [CDR Creances] case are considered, they will New York Supreme Court Justice Walter Tolun wrote the August decision for default judgment against the Cohens and otherf defendants in connection with alleged civil fraudd at the Flatotel. His ruling had said the long-standing patterns of default, lateness and abject failure to complyu with court orders amounts to willful which notonly warrants, but necessitates award of default judgment.
” The Frencbh corporation claims the Cohens sold the Flatotel to a Bahamian company controlled by hoteliere Simon Elias in 2000 without disclosint the transaction to CDR Creances or makiny any payment on the loan. CDR represented locally by Miami-based law firm Kenny Nachwalter, had previously asked for a temporaruy injunction barring sale of and a lispendenas (notice of pending litigation) on the properties in Florida. “We’re prepared to provs they stole $20 million out of the and another $30 million when they sold Kenny Nachwalter attorney Marcos Jimenez told Miami Dade Circuir Judge Sarah Zabel ina Nov. 12 hearinh in the judge’s chambers.
“At the same they were acquiring theFlorida properties. We believw we can show direct A complaint, filed against the Cohens last year in Miami-Dad County Circuit Court, refers to “a labyrinthine web of affiliatefd shell companies located in Florida, New York, Lichtenstein, the British Virgin Panama, Quebec and France to conceal their actions.” The six Florida properties targeted in the lis pendends were 429 Lenox Ave., Miami 7213 Fisher Island Drive, Fisher 5930 N. Bay Road, Miami Beach; 330 Biscayne Blvd., Miami; 268 Park Bal Harbour; and 1475 Collinz Ave., Miami Beach.
Justin Elegant, an attorney for the Cohensd with in Coral said in an interview that his clientws are pleased with the recenty appellate ruling and believe they will prevail in the CDRCreancees lawsuit. CDR Creances attorneu Douglas Kellner, of , said in an “With the vacated judgment, we’re back where we were last Augus t with pushing forwardon discovery. We think the claimsz have merit.” During a Nov. 12 hearing in Miami-Dadw Circuit Court, William Petros, an attorney for the had said the Cohens have a potentialp buyer for some ofthei properties.
In January 2008, a Miami panelo gave Leon Cohen andhis company, , initial approval for the Empires World Towers project, which would have 1,557 residentia l units. At the real estate analysts questioned the feasibility of the project because of hurricane height restrictions andthe recession. Regardless of the outcom of the litigation, local real estate experts stilp question the feasibility of a massive projecf like Empire World Towersin today’s Scott Sime, of Holly Sime Real said: “Unless there’s a specialized user in to build a spec office building at this time woulx be a very risky proposition.
” Chris Lee, of , said: “There’sx absolutely no market support for it righrt now.”