Harlem developers to pay $1.9M in arbitration

New York /
Sep.September 06, 2013 09:45 AM

A minority partner’s lawsuit against two Harlem developers has resulted in an arbitration award of more than $1.9 million, according to a release from Lowey Dannenberg Cohen & Hart, which represented the plaintiff.

In a lawsuit, Walter Edwards and Carlton Brown – managing members of both 1400 5th Commercial LLC and Full Spectrum 116th Street Development LLC – were accused of transferring or diverting minority partner Rick Lassiter’s distribution of money to a third party over the past five years. The arbitrator found that Edwards and Brown benefited from the distributions and “stripped” Lassiter of his right to vote. They then diverted $1.8 million in mortgage loan proceeds last year without giving Lassiter his share, the arbitrator said.

The limited liability companies were behind the condo building at 1400 Fifth Avenue and a nearby commercial building at 116th Street. It was not disclosed in the release who represented Edwards and Brown. Edwards is chairman of the Harlem Business Alliance.

The Arbitration Award Is Pending Before State Supreme Court Justice Barbara Kapnick. — Mark Maurer


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
RealSure CEO Katie Finnegan (LinkedIn)
Realogy, Home Partners of America iBuying venture hires first CEO
Realogy, Home Partners of America iBuying venture hires first CEO
Padel (it’s a sport!) club to open in Brooklyn warehouse
Padel (it’s a sport!) club to open in Brooklyn warehouse
Padel (it’s a sport!) club to open in Brooklyn warehouse
Vornado’s Roth reportedly bat down de Blasio’s plans for Fifth Ave. busway
Vornado’s Roth reportedly bat down de Blasio’s plans for Fifth Ave. busway
Vornado’s Roth reportedly bat down de Blasio’s plans for Fifth Ave. busway
Food52 CEO Amanda Hesser, Rudin Management president Eric Rudin and 1 Dock 72 Way in Brooklyn (Getty, Rudin)
Rudin’s Dock 72 notches Food52 as second tenant
Rudin’s Dock 72 notches Food52 as second tenant
CoStar Group Andrew C. Florance (Getty)
CoStar profits up, but demand for apartment ads sinks
CoStar profits up, but demand for apartment ads sinks
arrow_forward_ios

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

Loading...