A New York State Supreme Court judge shut the door on developer Yair Levy in the highly publicized foreclosure at Battery Park City’s Rector Square condominium.
Judge Joan Madden awarded summary judgment this afternoon to Anglo Irish Bank, which filed to foreclose after Levy’s firm defaulted on a $165 million mortgage loan. Madden rejected Levy’s arguments that the bank subverted the project by cutting off funding, and noted numerous defaults by Levy’s YL Real Estate, including improper withdrawals from the emergency reserve fund and “questionable” requests for construction money.
“Anglo further alleges that at least one contractor has accused YL of pocketing some of the loan proceeds and that YL embezzled most of the tenant reserve funds,” Madden wrote in her decision.
Levy himself filed suit in state Supreme Court, alleging the bank forced the project into bankruptcy by shutting off his construction funds.
Levy was not immediately available for comment, nor was YL Real Estate attorney David Segal. Christopher Sullivan, an attorney representing Anglo Irish Bank, was also not immediately available. … [more]