The legal fight between Steven Ostad and his brothers Michael and Edward is getting heated.
An lawyer for Steven accused his brothers of harassing and intimidating a key witness within the case by means of intermediaries. Counsel for the defendants rejected the allegations, calling them a determined resort and “defamatory.”
The brothers are battling for management of 10 rental properties and a lending arm known as Flatiron Capital. The 2 older brothers, each former urologists, initially sued Steven in April 2025. They hoped to dissolve corporations the three have been companions in, however stated Steven was standing in the best way. In addition they accused him of “a lifelong historical past of great private points and self-destructive behaviors.”
Steven fired back in April, saying his brothers have been artificially defaulting the worth of their actual property by taking rents in money and depositing them to private accounts. The brothers have denied the allegations by means of attorneys.
The witness in query for the newest authorized squabble is Amram Tehrani, who in accordance with court docket paperwork, is a former worker of Michael and Edward Ostad. In a letter to the court docket, Leo Jacobs, a lawyer for Steven, stated Tehrani “possesses vital firsthand data concerning the Brothers’ scheme to gather money rents off the books of firm entities, their commingling of funds, and their fabrication of rental information.”
The allegations of witness tampering come on the heels of different incendiary claims from Steven. He claims he was unfairly excluded from an actual property portfolio and lending enterprise he invested in whereas his brothers skimmed cash off the highest of “luggage of money.”
Jacobs, who’s newly representing Steven after a change in counsel, requested the court docket for a protecting order for Tehrani. He stated three folks had reached out to Tehrani and “pressured him” to fulfill along with his brothers or their representatives.
“Mr. Tehrani has expressed worry for his private security as a direct consequence of this
marketing campaign of stress, intimidation and harassment,” Jacobs wrote.
In response, Glen Lenihan, an lawyer for Micheal and Edward with Oved & Oved, accused Jacobs of “weaponizing the judicial course of by means of the petty, ineffective, ambush model litigation ways.”
Lenihan stated there isn’t any proof to assist that these three folks reached out to Steven Ostad on behalf of his brothers.
“The Brothers reject this unsubstantiated allegation. But, even when this have been true, which it’s not, such conduct is solely correct,” he wrote.
After Tehrani retained a lawyer, his lawyer took a extra reserved tone and didn’t provide any allegations of improper conduct.
“We respectfully request that you simply direct all communications to Mr. Tehrani concerning this matter to my consideration,” Adam Felsenstein with Tannenbaum Helpern, wrote to the brothers’ counsel. “We additional request that you simply make no try to contact Mr. Tehrani by means of a third-party or middleman.”
In response to a request for remark Jacobs stated, “our obligation as new counsel was to place the court docket on discover; right here that’s obligation sufficient.”
Learn extra
“Bags of cash”: Steven Ostad accused brothers of exclusion and mismanagement
Ostads v. Ostad: Rent-stabilized distress frays family ties
Ostad brothers face foreclosure suits over $70M in loans
