Kriss, Bayrock agree to settle racketeering lawsuit after 8 years

Trump Soho developer was sued by ex-employee in 2010

New York /
Feb.February 22, 2018 06:47 PM

Jody Kriss and Felix Sater (Credit: Wikimedia Commons, Max Pixel, Pixabay)

Jody Kriss agreed to settle his racketeering lawsuit against Trump Soho developer Bayrock Group, ending a nasty legal battle that stretched nearly a decade.

Kriss filed the lawsuit against his former employer in 2010, alleging that Felix Sater and Tevfik Arif’s real estate firm laundered money, evaded taxes and bilked him out of millions. The lawsuit led to years of legal proxy warfare between Kriss and Sater, who denied the accusations and labeled the former Bayrock finance director as a disgruntled ex-employee.

The two sides hammered out the settlement over several months, Bloomberg reported.

Bayrock developed the condo and hotel tower at 246 Spring Street, which got the name Trump Soho through a licensing deal with the Trump Organization. In his lawsuit, Kriss also alleged that Arif and Sater also defrauded the Trump Organization by not disclosing Sater’s 1998 racketeering conviction. In 2010 Trump, Bayrock and the Sapir Organization were sued for lying to prospective buyers about their sales success. The Manhattan District Attorney’s Office later dropped the criminal investigation into the Trump scions.

The tower, now owned by Los Angeles-based private equity firm CIM Group, changed its name to the Dominick Hotel in December. [Bloomberg] — Konrad Putzier


Related Articles

arrow_forward_ios
Keith Powers, Democratic District 4 representative on the New York City Council, in front of 45 East 45th Street (Getty Images, The Roosevelt Hotel, iStock/Illustration by Steven Dilakian for The Real Deal)
Local lawmakers aim to landmark shuttered Roosevelt Hotel
Local lawmakers aim to landmark shuttered Roosevelt Hotel
From left: Steven Roth, chief executive officer, Vornado Realty Trust; Kathy Hochul, governor of New York; Stephen Ross, chairman and founder, The Related Companies (Getty Images, iStock/Illustration by Steven Dilakian for The Real Deal)
Real estate showers Hochul with cash
Real estate showers Hochul with cash
Gov. Kathy Hochul Lays Out Replacement 421a (Getty Images, iStock, , Illustration by Kevin Cifuentes for The Real Deal)
New name, same basic idea: Hochul pitches 421a reform
New name, same basic idea: Hochul pitches 421a reform
(iStock/Illustration by Steven Dilakian for The Real Deal)
Hochul plan for resi towers is tall order
Hochul plan for resi towers is tall order
From left: Letitia James, attorney general of New York; Donald Trump, 45th U.S. president (Getty Images, Wikipedia/ChrisRuvolo, iStock/Illustration by Steven Dilakian for The Real Deal)
New York AG alleges Trump altered values at 6 properties
New York AG alleges Trump altered values at 6 properties
From left: Joseph Riever and Christopher Marte (Elizabeth Street Garden, New York City Campaign Finance Board)
After 10-year saga, judge’s delay keeps senior housing unbuilt
After 10-year saga, judge’s delay keeps senior housing unbuilt
From left: Kathy Hochul, governor of New York; Robert Mujica, director of the budget for New York State (Getty Images, iStock/Illustration by Steven Dilakian for The Real Deal)
$2B in Hochul budget could fund rent relief
$2B in Hochul budget could fund rent relief
Donald Trump and Trump National Doral (Trump Hotels, Getty)
Trump planning retail, luxury homes in Doral resort expansion
Trump planning retail, luxury homes in Doral resort expansion
arrow_forward_ios

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

Loading...