Friedberg accused of requesting kickbacks

The Daily News reports today that a lawsuit alleges Alan Friedberg, a member of the city Economic Development Corporation who has also been on the Metropolitan Transportation Authority board, demanded kickbacks, throttled a business partner and misappropriated funds from a Greenwich Village condo project built by his company. The suit was filed in August 2007 by Ciao-Di Restaurant Corporation, the owner of the property at 88 Washington Place, formerly a retail building, that Friedberg’s company planned to develop into condominiums. Friedberg denied the lawsuit’s claims in a court affidavit. Friedberg and two partners joined together in 2003 to form Paxton 350 Corporation and build the condos. The cost of the $14 million project increased more than 40 percent over four years, according to the lawsuit. Ciao-Di Restaurant claims that Friedberg and Paxton moved cash from the project’s account without the permission of Ciao-Di Restaurant Corporation.