Bank accuses Kondylis of civil fraud

TRD NEW YORK /
May.May 08, 2010 12:59 PM

Legal challenges for prolific architect Costas Kondylis who designed large residential towers such as the Trump Organization apartment buildings in Lincoln Square, are mounting.

A division of New York Community Bank is claiming in court papers filed this week that Kondylis as well as his former partners and related companies lied to the lender when the firm sought an extension of a revolving loan.

New York Commercial Bank, a division of Westbury, L.I.-based New York Community Bank, says in the suit filed May 3 in New York State Supreme Court that it lent the firm more than $1.29 million through the revolving loan, which was guaranteed by the company and its principals, under a false representation about the firm’s financial condition.

This suit comes a little more than a month after a state judge ruled that Kondylis former company Costas Kondylis & Partners owes rival firm Philip Johnson/Alan Ritchie Architects more than $119,000 in unpaid fees they sued for last year.

Kondylis professional partnership has been in flux as well. Kondylis dissolved Costas Kondylis & Partners last fall and created Costas Kondylis Design, while three of his former partners split off to form Goldstein Hill & West Architects, The Real Deal reported.

The suit filed by New York Community Bank says Kondylis, his former companies including Costas Kondylis & Partners and former partners “obtained this financing based on certain fraudulent misrepresentations and omissions.”

The relationship with the bank extends as far back as 1997, and the revolving loan account was renewed annually until the loan went into default in the summer of 2009.

The bank claims in the suit that Kondylis told the financial institution in June 2009 that it had $7 million that clients would pay soon in so-called accounts receivable, but a month later the firm defaulted on its revolving loan and recently admitted that it had less than $2 million in receivables at that time.

An employee at Costas Kondylis Design said the architect declined to comment. Partners at Goldstein Hill & West did not immediately respond to requests for comment. A spokesperson for the bank said its policy was not to comment on legal matters.


Related Articles

arrow_forward_ios
New York Community Bank CEO and president Joseph Ficalora (Credit: Facebook, iStock)

Community banks put on brave face after rent-reg market woes

New York Community Bank CEO and president Joseph Ficalora (Credit: Facebook, iStock)

New York Community Bank doubles down on multifamily lending

Mayor Bill de Blasio, 40 Wall Street, and President Donald Trump (Credit: Getty Images, 40 Wall St. via the Trump Organization)

Trump Org blasts mayor for criminal referral of tax findings

Clockwise from left: 1290 Sixth Avenue, 40 Wall Street, President Donald Trump, Trump National Doral in Miami and Trump International Hotel in Washington, DC (Credit: Getty Images, Vornado, Wikipedia)

Trump Org’s office holdings help offset hotel losses: analysis

The buildings at 107-10 Shore Front Parkway, 106-20 Shore Front Parkway and 106-10 Shore Front Parkway in Far Rockaway (Credit: Google Maps)

Massive Far Rockaway apartment complex nabs $107M loan

Trump Tower at 725 5th Avenue and Donald Trump (Credit: Getty Images)

Trump Tower occupancy rates depended on who asked

Donald Trump and Dean & Deluca's Soho location (Credit: Getty Images, iStock)

Trump Organization sues Dean & DeLuca over rent defaults

Trump International Hotel in Washington D.C. and President Donald Trump (Credit: Getty Images, iStock)

Trump Organization might sell its controversial Washington D.C. hotel

arrow_forward_ios
Loading...