The Real Deal New York

Judge orders Chaim Miller’s partner Sam Sprei to pay creditor

Sidekick hid membership interests to avoid lender: court

December 04, 2015 04:59PM
By Kyna Doles

97 Grand Avenue

97 Grand Avenue in Clinton Hill

UPDATED, 1:50 p.m., Dec. 5: Sam Sprei, a partner to investor Chaim Miller, was ordered to fork over $1.5 million to a creditor from the pending sale of a 62-unit Clinton Hill rental building.

Crest Realties’ Aaron Drazin sued Sprei last year, alleging Miller’s cohort failed to pay most of a $1.5 million judgment from 2012, and transferred his interests in a seven-story property at 97 Grand Avenue to avoid paying the debt.

A Kings County Supreme Court judge agreed Sprei was using Miller and several limited liability companies as an “alter ego” and accused Sprei of fraudulent conveyance.

Drazin claims Sprei, who is in his mid-20s, acted as an unlicensed broker for Miller and received large commission sums in the form of cash payments and membership interests, according to the original complaint.

Miller and Sprei, who bought 97 Grand Avenue for $26 million in 2013, are in contract to sell it to an undisclosed buyer. But the judgment requires an independent receiver to take over the title to the property and Sprei’s membership interests.

Attorney Richard Klass of Court Street Law will handle the sale of the property and disperse $1.5 million to Drazin. Klass said after Drain’s judgment is settled, the remaining funds from the sale will either be disbursed to other creditors or could be returned to Sprei.

Lawyers for Sprei and Drazin did not immediately return requests for comment. Sprei has filed to appeal the court’s decision.

Last month, Miller confessed he owed $10.4 million to his boss Abraham Leser of the Leser Group in connection to 97 Grand Avenue.