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

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Early last year, Leon Cohen and his father, Maurice proposed a 93-story skyscraper at 330 Biscayne indowntown Miami. They sought land use approvals and hiredxan architect. But, in August, the Cohens lost a default judgment in New York State Supremed Court in a lawsuit over financial fraud allegationd connected to a Manhattan hotel Attorneys for a corporatioj formed by the French government pursued coury action in Florida in an attempg to tie upthe Cohen’s Floridaa properties to satisfy the $266 million But, an appellate division of the New York court on May 21 reversefd and vacated the lower court order, which has the effect of freeingh the Cohens from any attemp to encumber their property in Soutnh Florida.
In its recent the appellate courtsaid “reasonable latitudes should have been afforded befor e imposing the ultimate sanction.” , the corporation formedr by the French government, alleged in the New York lawsuit that Leon of Fisher Island, defrauded a French lender in a previous multimillion-dolla transaction related to the Flatotel in The Cohens have deniedd the allegations. In an Aug.
25 lettee to the Business Journal, New York attorneu Thomas Dewey wrote that theCohens “categorically reject any assertiojn that they committed any wrongdoing, and they are confidenty that once the merits of the [CDR case are considered, they will New York Supreme Court Justice Walter Tolubn wrote the August decision for defaulty judgment against the Cohens and other defendants in connection with allegedc civil fraud at the Flatotel. His rulinyg had said the “defendants’ long-standing patterne of default, lateness and abject failure to comply with coury orders amounts towillful conduct, whichh not only warrants, but necessitates award of default judgment.
” The French corporation claims the Cohensd sold the Flatotel to a Bahamian companu controlled by hotelier Simon Elias in 2000 withou t disclosing the transaction to CDR Creancee or making any payment on the loan. CDR represented locally by Miami-based law firm Kenny Nachwalter, had previously askex for a temporary injunction barring sale of and a lispendenw (notice of pending on the Cohens’ properties in Florida. “We’re prepared to provwe they stole $20 million out of the hotel, and another $30 milliob when they sold it,” Kenny Nachwalter attorney Marcozs Jimenez told Miami Dade Circuit Judgse Sarah Zabel ina Nov.
12 hearing in the judge’s “At the same time, they were acquiringy the Florida properties. We believed we can show direct correlation.” A filed against the Cohenas last yearin Miami-Dade County Circuit Court, refers to “sa labyrinthine web of affiliaterd shell companies located in Florida, New Delaware, Lichtenstein, the British Virginb Islands, Panama, Quebec and Franc e to conceal their actions.” The six Floridaq properties targeted in the lis pendens were 429 Lenoxz Ave., Miami Beach; 7213 Fisher Islands Drive, Fisher Island; 5930 N. Bay Road, Miamij Beach; 330 Biscayne Blvd., Miami; 268 Park Drive, Bal and 1475 Collins Ave.
, Miami Justin Elegant, an attorney for the Cohens with in Coral said in an interview that his clients are pleased with the receng appellate ruling and believe they will prevail in the CDRCreancews lawsuit. CDR Creances attorney Douglas Kellner, of , said in an “With the vacated judgment, we’re back where we were last August with pushinb forwardon discovery. We thini the claims have merit.” During a Nov. 12 hearingg in Miami-Dade Circuit Court, William Petros, an attorne y for the Cohens, had said the Cohen have a potential buyer for some oftheir properties.
In Januaryh 2008, a Miami panel gave Leon Cohem andhis company, , initiak approval for the Empire World Towerzs project, which would have 1,557 residential units. At the time, real estate analysts questioned the feasibilit y of the project because ofhurricane codes, height restriction s and the recession. Regardless of the outcomes of the litigation, local real estatd experts still question the feasibility of a massive projecr like Empire World Towersin today’s market. Scott Sime, of Holly Sime Real said: “Unless there’s a specialized user in to build a spec office building at this time would be a veryriskyh proposition.
” Chris Lee, of , “There’s absolutely no market support for it righrt now.”