Levy sues Swig over construction funds
June 10, 2009 08:40AM
Yair Levy (left) is suing Kent Swig
Yair Levy, who pleaded guilty last month to harassing Kent Swig with an ice bucket during a business meeting, is now suing Swig. Levy filed a lawsuit in Manhattan State Supreme Court this week claiming that Swig allegedly siphoned off $50 million in Sheffield57 construction funds for personal uses. The suit also alleges Swig paid his company Swig Equities millions in commissions. According to the suit, Levy, Swig and Serge Hoyda are in default on at least $100 million in loans. "Yair Levy and Serge Hoyda, investors in the Sheffield Sponsor, have been victimized by Kent Swig, who took millions in loan advances from the senior lenders, Wells Fargo and Guggenheim, when those lenders knew Swig was vastly over budget and knew or should have known that Swig was using the loan proceeds for personal purposes," said Stephen Meister, Levy's lawyer. [NYT]
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Comments
Anonymous
Please post their mug shots when they're all arrested.
Comment #1 Posted By: Anonymous 06/10/09
Anonymous
can I be the first one to comment. Thanks so much to say so liitle space. " I knew it"
Comment #2 Posted By: Anonymous 06/10/09
Anonymous
don't knock Kent - Yaer is the true evil one in this scenerio
Comment #3 Posted By: Anonymous 06/10/09
Ice Ice Baby
I guess the old bucket-to-the-head trick didn't work.
Comment #4 Posted By: Ice Ice Baby 06/10/09
Anonymous
How long before swig starts crying to realdeal to shut down comments? Who would ever work for this guy?!?
Comment #5 Posted By: Anonymous 06/10/09
Anonymous
Swig = Made Off!
Comment #6 Posted By: Anonymous 06/10/09
Anonymous
number 4. How much evidence do you need to realize the emperor has no cloths?
Comment #7 Posted By: Anonymous 06/10/09
Anonymous
Yair Levy is a desparate desparate man who would sue his mother to make a buck (or a quarter). It is little wonder that he is a pariah in his own community and the real estate industry at large. You can bet that anything Yair says is a lie.
Comment #8 Posted By: Anonymous 06/10/09
Anonymous
HOLD THE PHONE! Yair pleaded guilty? What happened to "It wasn't me, I wasn't there, it never happened?" Now he is a convicted felon - I don't think he is allowed to develop condos any more - does he have to give up his crown?
Comment #9 Posted By: Anonymous 06/10/09
Anonymous
#10-12. please. go fetch kents coffee
Comment #10 Posted By: Anonymous 06/10/09
Anonymous
#13, Harassment is not a felony.
Comment #11 Posted By: Anonymous 06/10/09
Anonymous
Before the Comments are shut down at Swig's request, let me add the obligatory - 1. "Swig is a stand-up guy, one of the good guys in the business" 2. "Swig is making a ton of money at the Sheffield. He has sold more apartments than any other development in the city." (n.b., now we know how he made that ton of money?) 3. All these people complaining about Kent are just jealous of his tremendous success
Comment #12 Posted By: Anonymous 06/10/09
Anonymous
#16, Assault is a felony.
Comment #13 Posted By: Anonymous 06/10/09
Anonymous
Guys, let's remember the source of these "allegations" - Yair Levy. The man hasn't told the truth since he has been in this country. The guy has an unbelievable reputation as a bad guy - you can't put it past him to make up nonsense to make up for his own bad investment.
Comment #14 Posted By: Anonymous 06/10/09
Anonymous
are you saying that the Sheffield was a bad investment?
Comment #15 Posted By: Anonymous 06/10/09
Anonymous
even is yair is not a good guy, we know that swig doesn't honor agreements. let's see, stiffs investors at 25 & 45 broad, only pays his common charges when ordered by a judge, and likely comingled funds. CAVEAT EMPTOR if you intend on doing business with swig.
Comment #16 Posted By: Anonymous 06/10/09
Anonymous
#16, depends on the degree.
Comment #17 Posted By: Anonymous 06/10/09
Anonymous
Yair Levy shut down his office? Has he declared bankruptcy yet?
Comment #18 Posted By: Anonymous 06/10/09
Anonymous
Kent Swig does not honor his commitments, not an ideal quality in a partner, on any level.
Comment #19 Posted By: Anonymous 06/10/09
Anonymous
The issue is not whether Levy is a good guy or bad guy. The issue is whether or not Swig "siphoned" a large amount of construction funds.
Comment #20 Posted By: Anonymous 06/10/09
Anonymous
#26- re this article, agreed. we don't yet know if swig siphoned funds for his personal use. in any case, one of the underlying issues is simply, paying your bills. you don't hear about all the people who pay their bills, in swigs case, he chronically doesn't pay (like trump in some cases). this is not an isolated incident.
Comment #21 Posted By: Anonymous 06/10/09
Anonymous
It is also worth remembering the following: (i) Swig Equities provided documentation to the owners' group showing that moneys were moved from the Reserve Fund to the Owner's Account and from there was used for, among other things, paying Kent's and the Sponsor's legal bills, (ii) Swig hired Steve Kirshenbaum, an attorney who was disbarred for stealing from his attorney escrow account, to run this project (there is no small irony in the fact that Swig is no accused of siphoning millions of dollars from the lenders and the Reserve Fund and SK is involved in the project) and (iii) Square Mile has filed its own lawsuit replete with allegations of fraud by Kent Swig. All the Swig shills out there who choose to focus on Yair's character are trying to divert attention from the fact that there is a growing mountain of evidence that Swig has engaged in a wide range of unsavory conduct on this project.
Comment #22 Posted By: Anonymous 06/10/09
Anonymous
Number 27. Do you think their is enough evidence to go to the district attorney. How would you do that
Comment #23 Posted By: Anonymous 06/10/09
Anonymous
#27 IS DEAD ON. SWIG ALREADY IS BEING SUED BY SQUARE MILE , SIGNITURE BANK AND NOW HIS PARNTERS IN THE SHEFFIELD, ALL FOR FRAUD AND MISUSE OF FUNDS. THESE ARE TRUE FACTS ABOUT KENT THAT CANT BE DISPUTED. THE LIES BEING TOLD ABOUT LEVY ARE JUST LIES BY SWIG FLUNKIES AND ONE ANGRY DIBARED LAWYER.
Comment #24 Posted By: Anonymous 06/10/09
Anonymous
Aren't Sponsors ALLOWED to borrow from a reserve fund so long as it is paid back (which, in this case, I believe that it was)?
Comment #25 Posted By: Anonymous 06/10/09
Anonymous
Let's not forget that Yair misappropriate funds paid by tenants that was earmarked for real estate taxes and used it to pay for his own personal expenses. He is under investigation by Cuomo and will probably go to jail.
Comment #26 Posted By: Anonymous 06/10/09
Anonymous
Yes. If he misappropriated tax revenues he will certainly spend some time in jail, in addition to huge fines.
Comment #27 Posted By: Anonymous 06/10/09
Anonymous
It seems to me that there will not be enough of Swig to go around. With all these cases against him it appears bankruptsy migh be his only alternative. Can he avoid this when he loses ? I heard he"s been calling all the hard money lenders in NYC. Who would lend to him ?
Comment #28 Posted By: Anonymous 06/10/09
Anonymous
The guy is going to end up in jail, where he belongs.
Comment #29 Posted By: Anonymous 06/10/09
Anonymous
#33, yep, Yair is definitely headed to the big house.
Comment #30 Posted By: Anonymous 06/10/09
Anonymous
BOTH of these people are going to jail- cellmates?
Comment #31 Posted By: Anonymous 06/10/09
Anonymous
Yes, #29. Sponsors are ALLoWED to steal $50mm and then leave their projects incomplete. Happens all the time.
Comment #32 Posted By: Anonymous 06/10/09
Anonymous
#17 What about the allegations of Signiture Bank ? What about the allegations of Square Mile ? I think pixie dust is being smoked by the guys at Swig Equities who think that maybe some one believes Swig is innocent of the charges if they keep posting lies.
Comment #33 Posted By: Anonymous 06/10/09
Anonymous
hey 39 and 27 - so what about Columbus Green and 225Rector Place? No Kent to blame there......
Comment #34 Posted By: Anonymous 06/10/09
Anonymous
Why is this comment thread still open? Doesn't Swig usually have these shut down, Given he has such fragile feelings?
Comment #35 Posted By: Anonymous 06/10/09
Anonymous
41 - nobody says Yair is a good guy. Doesn't make Swig any less culpable for "siphoning" off lots of $
Comment #36 Posted By: Anonymous 06/10/09
Anonymous
Ah - selective removal of offending comments Rather than a shutdown. Poor Kent So sensitive.
Comment #37 Posted By: Anonymous 06/10/09
Anonymous
The only way anyone made money on this deal was to steal it.. all part of the plan...lets see who takes this building with all of the legal problems, and Swig in tow. I think Swig likes lawsuits, he generates about one a week. Quite a business expense..why not operate more clean...I guess in this case crime does pay.
Comment #38 Posted By: Anonymous 06/10/09
Anonymous
BOYCOTT THE REAL DEAL, until this publication learns how to be respectful to the companies that pay their advertising. Leave Kent alone!
Comment #39 Posted By: Anonymous 06/11/09
Anonymous
"...Cuomo ordered Swig to suspend sales at Sheffield57...Swig failed to pay $5.5 million in common charges...Swig chose not to cover a $52 million construction shortfall...Swig owed $14.2 million in unpaid construction costs, and that he accumulated $6 million in mechanic's liens...reserve fund had a balance of only $154, but Swig posted a $9 million letter of credit...Swig did not respond to repeated requests for comment..." and he's an owner of Brown Harris and Halsead! how can anyone in their right mind work for this guy or invest with him!??
Comment #40 Posted By: Anonymous 06/11/09
Anonymous
Funny how a picture tells a story, Levy is frowning and Swig is smiling.
Comment #41 Posted By: Anonymous 06/11/09
Anonymous
Craig Solomon (Square Mile)is coming for Kent,be afraid Swig flunky's. after their judgement they will pierce the family trust and the party will be over for real.
Comment #42 Posted By: Anonymous 07/10/09