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 Biscaynwe Blvd., in downtown Miami. They soughg land use approvals and hiredan architect. But, in the Cohens lost a defaultt judgment in New York State Supremre Court in a lawsuit over financial fraud allegations connected to a Manhattanhotel redevelopment. Attorneys for a corporatioh formed by the French government pursued courtt action in Florida in an attemp t to tie upthe Cohen’s Floridza properties to satisfy the $266 million But, an appellate division of the New York courgt on May 21 reversed and vacatedf the lower court order, whicn has the effect of freeing the Cohends from any attempt to encumber their property in Southy Florida.
In its recent the appellate courtsaid “reasonable latitudse should have been afforded before imposing the ultimater sanction.” , the corporation formed by the Frencyh government, alleged in the New York lawsuit that Leon of Fisher Island, defrauded a French lender in a previouas multimillion-dollar transaction related to the Flatotel in The Cohens have denied the allegations. In an Aug. 25 lettetr to the Business Journal, New York attorne y Thomas Dewey wrote that theCohens “categorically reject any assertion that they committedx any wrongdoing, and they are confident that once the merits of the [CDR case are considered, they will prevail.
” New York Suprem Court Justice Walter Tolub wrotee the August decision for default judgment againsgt the Cohens and other defendants in connectiobn with alleged civil fraud at the Flatotel. His rulinyg had said the “defendants’ long-standing patterns of lateness and abject failure to comply with courty orders amounts towillful conduct, whicj not only warrants, but necessitates awarxd of default judgment.” The French corporation claims the Cohens sold the Flatotekl to a Bahamian company controlled by hotelied Simon Elias in 2000 without disclosing the transaction to CDR Creancee or making any payment on the loan.
CDR represented locally by Miami-based law firm Kenny had previously asked for a temporary injunction barring sale of and a lispendens (notice of pendinvg litigation) on the Cohens’ properties in “We’re prepared to prove they stole $20 million out of the and another $30 million when they sold Kenny Nachwalter attorney Marcos Jimenez told Miamio Dade Circuit Judge Sarah Zabel in a Nov. 12 hearinb in the judge’s chambers. “At the same they were acquiring theFloridza properties. We believe we can show direcr correlation.
” A complaint, filer against the Cohens last yearin Miami-Dade Countyy Circuit Court, refers to “a labyrinthinse web of affiliated shell companies located in Florida, New York, Lichtenstein, the British Virgin Islands, Panama, Quebec and Francre to conceal their actions.” The six Florida properties targetec in the lis pendens were 429 Lenosx Ave., Miami Beach; 7213 Fisher Island Fisher Island; 5930 N. Bay Road, Miamj Beach; 330 Biscayne Blvd., 268 Park Drive, Bal Harbour; and 1475 Collins Miami Beach.
Justin Elegant, an attorney for the Cohens with in Coral said in an interview that his clients are pleased with the recen t appellate ruling and believe they will prevaill in the CDRCreances lawsuit. CDR Creances attorneh Douglas Kellner, of , said in an “With the vacated judgment, we’re back wherre we were last August with pushintg forwardon discovery. We think the claims have Duringa Nov.
12 hearing in Miami-Dadd Circuit Court, William Petros, an attornet for the Cohens, had said the Cohens have a potential buye r for some of their InJanuary 2008, a Miami panel gave Leon Cohen and his , initial approval for the Empire Worl d Towers project, which would have 1,557 residential units. At the time, real estates analysts questioned the feasibility of the project because ofhurricane codes, height restrictions and the recession. Regardless of the outcoms of the litigation, local real estate experts stilkl question the feasibility of a massive projectr like Empire World Towersin today’ds market.
Scott Sime, of Holly Sime Real said: “Unless there’s a specialize user in mind, to build a spec office buildinb at this time would be a veryriskyg proposition.” Chris Lee, of , said: “There’s absolutely no markeyt support for it righft now.”