Charles Cohen’s world is spiraling out of control.
The theater mogul and one-time billionaire is already on the hook for $187 million in guarantees on a massive loan from Fortress Investment Group. A foreclosure auction is scheduled for next month, including Cohen’s design center and hotel in South Florida, 50 movie theaters, and a sprawling development site in Westchester County.
Cohen has already lost control of an office tower on 57th Street and is facing distress on other buildings. Fortress estimates Cohen has defaulted on over $1.1 billion of loans.
But Cohen now appears to be digging himself into a deeper hole.
Fortress alleges it has recently discovered that Cohen is attempting to shield his treasured personal assets from the lender.
Cohen allegedly transferred $70 million of assets to new owners, Fortress claimed in a recent filing in New York Supreme Court. Notably, Cohen allegedly switched ownership of his $20 million Greenwich mansion to a trust in his wife’s name. He also allegedly transferred ownership of at least four luxury boats worth $50 million, according to Fortress.
Cohen allegedly made these transfers just days after giving his deposition, court filings allege.
In the new filings, Fortress alleges Cohen transferred ownership of the Greenwich property to his wife Clodagh Cohen in May 2024. The deed states that a consideration of $10 was paid for the transfer of ownership. Cohen had purchased the property in 1991. The estate had a garage where Cohen stored his Lamborghini, Rolls Royce, and Ferrari, alongside a backyard golf course and a personal movie theater.
Fortress further alleges Cohen appears to have transferred four boats to new owners, including a yacht Cohen had valued at $49 million. The yacht features a 10-meter pool, a basketball court, a gym, four decks, and an elevator. Cohen appears to have transferred each vessel to a separate newly formed Cayman Islands entity between May and June, according to Fortress.
“These steps appear calculated to hinder Fortress’ ability to enforce the anticipated judgment against Cohen’s assets and raise concerns that Cohen may have taken or may be taking additional steps to frustrate Fortress’s ability to collect on the forthcoming judgment,” Fortress’ lawyers wrote in their filings.
The lender is asking the court for an order to allow for immediate discovery of Cohen’s assets and to stop Cohen from selling or transferring interest in his properties.
Cohen’s lawyers did not return a request to comment. Fortress declined to comment.
The allegations suggest that Cohen is realizing the magnitude of his problems. Cohen has thus far appeared unfazed by the mounting distress facing his company’s real estate portfolio.
Cohen Brothers Realty Corporation’s Chief Operating Officer Steve Cherniak told The Real Deal earlier this year that the firm does not plan to lose any assets.
“We are not concerned,” said Cherniak earlier this year. “Perhaps the newspapers are more concerned.”
The legal saga dates back to March. Fortress sued Cohen Brothers alleging that the real estate firm had defaulted on a $534 million loan and Cohen owed over $187 million in personal guarantees. Fortress then initiated a U.C.C. foreclosure in April.
Cohen sought to nix the auction altogether. His attorneys argued it had never defaulted on the $534 million loan because it reached a deal months prior to restructure.
The judge ruled the auction could proceed and the auction was pushed back to November. Last month, Judge Cohen ruled that Cohen was liable for the $187 million in guarantees.
Charles Cohen’s attorney Donald Harwood of Harwood Reiff appealed the decision.
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