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AUTHOR: Simon Galkevich,
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ART: Roy Moussaieff, East Harlem, 2252 Third Avenue from 2019 article, and.
STORY TYPE: information
SECTOR (select one among these): Growth
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CSN Realty Corp. scored a win in its pursuit to gather a $3 million judgment over a failed East Harlem development project.
The agency filed a lawsuit towards Roy Moussaieff and Yousef Althkefat in 2024, in search of compensation from the 2 actual property builders. The motion was dismissed final 12 months by the Supreme Courtroom in New York County, however was reinstated by a New York intermediate appellate court docket in Could.
CSN entered right into a contract to promote the business property for $12 million to 2252 Third Avenue, LLC, a single-purpose company entity, in 2018.
Moussaieff and Althkefarti deliberate to construct a 20-story mixed-use constructing in East Harlem. An utility pre-filed with town’s Division of Buildings confirmed the mission was slated for 2252 Third Avenue, between 122nd and 123rd streets, spanning 53,900 sq. ft with 61 residential items and retail house.
However the purchaser failed to shut on the property by the deadline set for March 1, 2020, which resulted within the termination of the contract in 2021.
In August 2023, CSN received the $3 million judgment in accrued penalties and extension charges towards 2252 Third Avenue, LLC, however was by no means in a position to acquire the cash. CSN filed a lawsuit to pierce the company veil and maintain Moussaieff and Althkefati personally accountable for the debt in Could 2024.
Within the lawsuit, CSN claimed that Moussaieff and Althkefati used a shell entity — which, the submitting notes, “had precisely $0.00 in its account” on the time after they claimed to have sufficient funds to shut on the $12 million deal — to safe a risk-free contract that successfully froze property for years and consequently evade legal responsibility.
A unanimous appellate resolution to reverse a decrease court docket’s dismissal signifies that litigation will proceed to the invention part. CSN will make one other try to interrupt by the company safety and maintain Moussaieff and Althkefati accountable.
Whereas the Appellate Division’s First Division sometimes takes a special method in comparable circumstances, this resolution makes clear that courts will “look previous the company kind when there are ample allegations that the construction itself was the instrument of the fraud,” famous Oved & Oved, CSN Realty Corp.’s counsel.
“The First Division has spoken – unanimously, and its message is obvious – you’ll be able to’t abuse the company kind, stroll away from the harm you’ve created and anticipate the courts to look the opposite method. They didn’t. Neither will we,” mentioned Terrence Oved and Darren Oved. Attorneys for defendants didn’t return the request for remark.
On June 29, Moussaieff and Yousef Althkefati filed verified reply and affirmative defenses the place they denied allegations and argued that there’s no foundation for lifting the company veil. Builders additionally contend that they don’t seem to be events to the contract. Moreover, the defendants are calling for the deposition of Freddy Srour, CSN’s principal, on December 15.
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