A state Supreme Court judge rejected a request to appoint a receiver to
complete the Sheffield57 condominium conversion, a decision that could
help clear the way for Fortress Investment Group to foreclose on
millions of dollars in defaulted loans and take control of the property. Judge Bernard Fried ruled that Sheffield57 investors Yair Levy and
Serge Hoyda failed to prove that the condo was in imminent
danger of being lost or destroyed, despite their lawsuit accusing
developer Kent Swig of misappropriating millions of dollars in
construction funds. “Indeed plaintiffs here have not proven that the property at issue, unsold condominium units, will be removed, lost, injured or destroyed,” Fried wrote in his decision. “At best, plaintiffs have shown that the units are likely to be sold at a discount from their actual value. This
can be remedied by the payment of money damages.” [more]