Moinian Group sues to block Dwell95 auction
December 31, 2009 05:30PM By David Jones
Joseph Moinian and Dwell95
Monian's Moinian Group, one of the city's biggest real estate development companies, filed suit in New York State Supreme Court against Rubicon Finance America, which held a $42 million mezzanine loan on the 507-unit property in the Financial District.
Moinian had a $227 million construction loan on the building from Credit Suisse-unit Column Financial, but the value of the property fell below the loan balance due to the 2008 economic downturn, which put the mezzanine loan into default, according to the complaint.
Moinian alleges he reached an agreement with Rubicon and Credit Suisse to buy the $42 million mezzanine loan for $1 million, but he says on Dec. 10 that Rubicon agreed to sell $1.4 billion in loans, including the Dwell95 loan , to a joint venture firm that included FBE Limited and Lane Capital Management.
Right after the sale, Moinian alleges that FBE and Lane Capital scheduled a Dec. 30 auction to foreclose on 95 Wall Street and basically deprive him of the chance to buy back the defaulted mezzanine loan.
"FBE did not notice or advertise the purported sale, which is set for Dec. 30, 2009, one day prior to New Year's Eve, until at the earliest a scant 12 days prior thereto," attorney Stephen Meister, who is representing Moinian, wrote in the complaint.
Moinian was not immediately available for comment.
Meister alleged that the lenders hired no broker to market the sale, and reserved the right to reject all bids, making the Dec. 30 auction a "sham."
One day before the Dec. 30 auction, however, Rubicon filed for Chapter 7 bankruptcy protection in the U. S. Bankruptcy Court in Chicago, according to documents obtained by The Real Deal. Chapter 7 bankruptcy allows a company to liquidate its assets rather than negotiate with creditors and reemerge.
Court documents show that Rubicon has assets of $15 million, mainly loans, and liabilities of $65 million.
Attorney James Irving, representing Rubicon in the bankruptcy filing, declined to comment. A spokesperson for Rubicon was not immediately available for comment.
Meister, who was overseas, told The Real Deal in a telephone interview that the bankruptcy filing would put the auction on hold, but he was proceeding with the complaint.
"The auction has been postponed, Meister said. "My lawsuit has not stopped."
Herrick Feinstein attorney Gary Eisenberg, representing FBE, was not immediately available for comment.
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Comments
Anonymous
oh joe what are you involved in
Comment #1 Posted By: Anonymous 12/31/09
Anonymous
Who is Moinian's attorney?
Comment #2 Posted By: Anonymous 12/31/09
Anonymous
what happens to the mechanics liens on the buildings?
Comment #3 Posted By: Anonymous 12/31/09
Anonymous
Tch tch. I guess it must be difficult to get screwed when you are use to screwing everyone else around you. Bad karma is a b----.
Comment #4 Posted By: Anonymous 01/01/10
Anonymous
joe you had such a good name... why dont you write a check out of your personal account and take care of some of these problems. sell you house sell your cars, downgrade your life. you got so used to opm you forgot you can use your own money to salvage your name.
Comment #5 Posted By: Anonymous 01/01/10
Anonymous
Joe, it is time to get on your magic carpet with the Chetrits, Dayan and Levy and go back to your respective countries. You are all headed for bankruptcy and possibly jail. You all get what you deserve. The way you treat people always comes back to you. Remember the old saying "What comes around, goes around."
Comment #6 Posted By: Anonymous 01/01/10
Anonymous
Why don't his brother Moin sell his cars and home and payoff monies owed????
Comment #7 Posted By: Anonymous 01/01/10
Anonymous
#6 thats wrong joe is a great guy .. dont make those comments. this country was founded on hard work and labor of immigrants. stop being ignorant
Comment #8 Posted By: Anonymous 01/01/10
Anonymous
#7 i agree,,,, they must make good here.. to go around and still travel to st barts and drive benzes when the taxpayers are inevtibaley going to hv to bail them out isnt fair.
Comment #9 Posted By: Anonymous 01/01/10
Anonymous
Joe is scared for his life, he doesn't have the friends or money to make it through and will throw himself on the mercy of the lenders to not allow him to declare BK or go to jail.
Comment #10 Posted By: Anonymous 01/01/10
Anonymous
You guys are ALL a bunch of LOSERS.
Comment #11 Posted By: Anonymous 01/01/10
Anonymous
#6 don't ever put Joe in the same sentence as Levy.
Comment #12 Posted By: Anonymous 01/01/10
Anonymous
#8...either you are a complete moron or an associate of Joe. YES, he and the Chetrits have terrible reputations in the business community...in addition to using cheap CHINESE Cabinets for their kitchens, etc., they constantly cheat their vendors and contractors...I know this firsthand. Their entire organizations are onvolved in finding ways to CHEAT and rob others. Buy back this Mezz for $1Million??? Is Joe smoking crack...oops, forgot...HASHISH again? These guys are ill-mannered, nasty, and do not care who they screw. I say put them all on a plane back to Morocco and Israel...good riddance chosen ones!!! Let 2010 be a year without these parasites.
Comment #13 Posted By: Anonymous 01/01/10
Anonymous
Yair Levy and Joe are made from the same cloth. I mean, who has done worse in this economy that these two bozos.
Comment #14 Posted By: Anonymous 01/01/10
Anonymous
Hay Moron 8, Joe is from Iran. Get your facts straight.
Comment #15 Posted By: Anonymous 01/01/10
Anonymous
Both joes are liars and thiefs and the time has come to take a magic carpet ride back where they came from
Comment #16 Posted By: Anonymous 01/01/10
Anonymous
He sounds so foolish. He is shocked to see bankers try to get more money. More back seat dealings. Everyone is trying to screw the Swiss, it is hilarious. let me see I owe you 42 million, and I will escape with a one million dollar purchase of this outstanding debt. that is less then 2%. Moinian you should try to get out of real estate for everyone knows it was one big bluff. By the way there are Poker tournaments in Vegas.
Comment #17 Posted By: Anonymous 01/02/10
Anonymous
Whats happening with Andrew Heilberger?
Comment #18 Posted By: Anonymous 01/02/10
Anonymous
Happy New Year to all , pay those OPs you cheap basterd
Comment #19 Posted By: Anonymous 01/02/10
Anonymous
Why would any bank agree to sell at $42 MM not for $1 M? might as well wait and see what happens........
Comment #20 Posted By: Anonymous 01/03/10
Anonymous
I wonder if anyone ever pays meister for filing these ridiculous lawsuits that always lead to dismissal of his clients claim
Comment #21 Posted By: Anonymous 01/03/10
Anonymous
#23, I'm with you
Comment #22 Posted By: Anonymous 01/04/10
Anonymous
#22 Cause the 42 Million Mezz has no Value. The first position loan can wipe it out
Comment #23 Posted By: Anonymous 01/04/10
Anonymous
why the hate parade?
Comment #24 Posted By: Anonymous 01/04/10
Anonymous
mez can buy the first note, and save itself.
Comment #25 Posted By: Anonymous 01/04/10
Anonymous
24, i am guessing you never did business with.....
Comment #26 Posted By: Anonymous 01/04/10
Anonymous
Put up or shut up Joe: Produce the "1 million $ agreement". You know it doesn't exist.
Comment #27 Posted By: Anonymous 01/04/10
Anonymous
Nobody has screwed more people than Kent Swig. Joes a businessman Swig has personal judgements for fraud against him and there are more coming.
Comment #28 Posted By: Anonymous 01/05/10
Anonymous
oh wait 28, this is the tip of the iceberg for your friend Joe. I was never screwed by Kent. Can't say the same for Joe.
Comment #29 Posted By: Anonymous 01/06/10
Anonymous
All the negative comments are from people who would love to a real estate developer or building owner but don't have the kahunas to take the risk.all the people being discussed on this post (exdcluding Kent Swig) sta3ted with nothing and built a buisiness. Do you think the Rockafeller's, Vanderbuilts and Astors were choir boys? They were tough business people who were fighters.
Comment #30 Posted By: Anonymous 01/06/10
Anonymous
So much hate. Go back to work people.
Comment #31 Posted By: Anonymous 01/06/10
Anonymous
joes the bernie maddoff of real estate developers
Comment #32 Posted By: Anonymous 01/29/10
Anonymous
this country was build by immigrants but unfortunitly those who build it and help maintain it get treated like crap. joe and his hole management team treat the empolyee like crap and force them to take fake unions that don't represent them. i hope he loses it all, so then maybe he can remember what it felt like to have nothing and some where down the line he can reflect on how he treated the people who worked from him and give it there all while he push them to the side and ended any hopes they had of achieving the american dream. karma is a b@#%H
Comment #33 Posted By: Anonymous 02/06/10
Anonymous
Stephen Meister is a slimy, greasy, gold chain wearing lawyer.
Comment #34 Posted By: Anonymous 03/27/10