Lawyers with political connections earn large fees as receivers for distressed NYC properties

New York /
Jun.June 21, 2011 11:52 AM
alternate
text
From left: Mark Lebow, Seymour Boyers, Howard Vargas, Paul Vallone and Marc Landis

Lawyers appointed by judges to be receivers of distressed properties typically earn 5 percent of the building’s revenue until the property changes hands. And according to the New York Times, New York City judges are increasingly selecting politically connected lawyers to earn that income. Mark Lebow, the husband of Mayor Michael Bloomberg’s aide Patricia Harris, was awarded receivership of 576 Fifth Avenue, and has earned $352,00 in fees, or $5,000 a week. Other notable receivers include Paul Vallone, of a powerful Queens political family, Howard Vargas, former commissioner of the Taxi and Limousine Commission and Marc Landis, a member of Attorney General Eric Scheiderman’s transition team. The father of former mayoral candidate William Thompson, Jr. was also chosen to steward six distressed properties, as was Dominick Calderoni, a law partner of State Senator Jeffrey Klein. The most profitable receivership, according to the Times, went to Seymour Boyers, who earned $760,000 overseeing the Riverton apartments in Harlem. Members of his law firm had contributed $1,000 to the campaign of Justice Richard Braun, who appointed Boyers to manage the properties. Of the more than 600 eligible receivers in New York City, the appointees continue to be familiar names with political connections. Despite the obvious ties, Ann Pfau, the state’s chief administrative judge, attributed the trend to “human nature.” She added: “When you have a property that’s vulnerable, you want to appoint somebody that you have faith in, or someone maybe you were familiar with.” [NYT]


Related Articles

arrow_forward_ios
Philip Falcone and his homes at 142 Crestview Lane in Sagaponack and 22 East 67th Street (Getty, Corcoran, Google Maps)
Phil Falcone files appeal halting foreclosure of UES, Hamptons homes
Phil Falcone files appeal halting foreclosure of UES, Hamptons homes
Philip Falcone and his homes at 142 Crestview Lane in Sagaponack and  22 East 67th Street (Getty, Corcoran, Google Maps)
Foreclosure on Phil Falcone’s homes can move forward
Foreclosure on Phil Falcone’s homes can move forward
Watson Hotel at 440 West 57th Street (Google Maps)
Manhattan hotel trades in biggest distressed lodging deal of pandemic
Manhattan hotel trades in biggest distressed lodging deal of pandemic
(iStock/Illustration by Kevin Rebong for The Real Deal)
Foreclosures and evictions could be halted for rest of 2021
Foreclosures and evictions could be halted for rest of 2021
John Philip Sousa and the Sousa House at 80 Washington Place (Getty, Leslie J. Garfield)
Second foreclosure suit filed against owner of Sousa townhouse in West Village
Second foreclosure suit filed against owner of Sousa townhouse in West Village
84 William St, NY and 1400 N. Orleans St, Chicago (Google Maps, iStock)
Prodigy Network files for bankruptcy as lawsuits mount
Prodigy Network files for bankruptcy as lawsuits mount
Simon and David Reuben with One Thousand Museum (Getty, iStock)
Reuben Brothers seeks to foreclose on Zaha Hadid-designed One Thousand Museum
Reuben Brothers seeks to foreclose on Zaha Hadid-designed One Thousand Museum
Brian Harris of Ladder Capital, Aron Rosenberg or R&B, 28 West 36th Street and 32 West 39th Street. (Ladder, Aron Rosenberg via LinkedIn, Google Maps)
Midtown office buildings stave off foreclosure with refi from Ladder Capital
Midtown office buildings stave off foreclosure with refi from Ladder Capital
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...