Swig must refile court papers over 44 Wall St. dispute

Judge said motion papers misled court about real estate mogul's embezzlement of funds
May 14, 2013 08:30AM

Entities tied to real estate developer Kent Swig misled a New York state court in their challenge to the majority owners of 44 Wall Street when they filed papers that made it seem there was no proof of Swig’s embezzlement of funds, a state judge has ruled.

Swig’s entities hold a minority stake in the 24-story tower in the Financial District and have challenged the majority owners, Swedish investors, over what Swig’s stake is a worth.

On Monday, Law 360 reported, Judge Melvin Schweitzer ordered the Swig entities to refile motion documents that referenced evidence from an earlier settled proceeding, which had pushed out some of these entities as operating managers of the skyscraper, as The Real Deal reported.

The statements made in the motion papers, the judge said, misled the court, as they made it seem that there was no evidence that Swig had embezzled a million dollars from the building.

“I think it’s a tempest in a teapot when it comes to the main case … but I don’t want anybody, whether it’s in an affirmation or affidavit or a memorandum of law, seeking to mislead the court,” Schweitzer said. [Law360]  –Hiten Samtani