Thor files suit against Lightstone, Alleging they had Assisted Ex-Thor Employees in Violating Their Responsibilities
David Liechtenstein Lightstone, CEO of Lightstone has been sued by Thor Holdings based on filings submitted in the New York Supreme Court, Presidents Mitchell Hochberg & Executive Vice President along with General Counsel Joseph Teichman are being sued for approximately 80 million dollars for reportedly assisting ex-Thor employees in “Breaking Fiduciary Obligations.”
Although Thor’s notice in New York revealed little facts, Teichman explained that the complaint resembled one Thor brought in Maryland Court a year prior. Under the complaint, Lichtenstein & Hochberg assisted ex-Thor Vice Chairmans Jonathan Scheinberg & William Hunter in arranging the 133 million-dollar acquisition of an industrial complex in North Bethesda. In the same period, both continued to work for the company, Thor.
Bank Issues with David Lichtenstein Lightstone
In 2007, property investor David Lichtenstein Lightstone orchestrated an unsuccessful $8 billion forced takeover of Prolonged Stay Resorts. He is currently confronted with charges of business wastage & unfair advantage in connection with a financial institution he controls as partial.
A smaller investor in Park Avenue business filed a lawsuit against David Lichtenstein Lightstone, claiming that he fraudulently diverted earnings through the business through a second lending organization. In a separate complaint, a vehicle dealership accused the financial institution of exploitative financing tactics that drove it to give the equivalent of $300,000 of automobiles, largely Cadillacs, to bank employees as well as their households for a lower price.
According to sources, the legal proceedings are among the most recent issues to plague the New York banking institution, which holds $548 million in holdings. Charles Antonucci, the CEO, quit in November. Park Avenue Bank had previously been directed by the Federal Deposit Insurance Corporation to keep higher capital percentages.
Additionally, it advised the institution to discontinue managerial procedures that it believed were risking the protection of its assets. The Federal Deposit Insurance Corporation declared that there is cause to suspect the financial institution participated in hazardous or improper banking operations & violated the regulations.
According to an announcement from Park Avenue Bank, the institution is committed to reinvestment & is in talks with stakeholders.
How is real estate fraud committed?
Both property owners and sellers may register fake properties. A con artist will fabricate property title documents in this kind of fraud to claim ownership of the target property. Scammers have reproduced title deeds for abandoned or contested properties in a number of instances and sold them to buyers.
A spokeswoman for David Lichtenstein Lightstone dismissed the lawsuits and issued an announcement claiming that David Lichtenstein is now a minor owner of land who does not influence the lender’s choices.
Based on the spokesperson, the complaint filed by the minority buyers, thereby Turkish rental company namely Iktisat Finansal Kiralama, is an anxious, blatant effort to create pressure to evade paying a 10 million dollars verdict.
David Lichtenstein’s ownership group received a $9.4 million verdict over Iktisat’s proprietor in connection with David Lichtenstein Lightstone. Then, as per his allegation that his reputation suffered harm because he executed an exchange choice on a few of the lender’s stocks a decade earlier and it declined.
According to the file, David Lichtenstein, founder, and CEO of the financing corporation Lightstone Group, entered the banking sector by obtaining a majority share of Park Avenue Bank. An agreement was reached through Erol Aksoy, a Turkish businessman whose controlled Iktisat Finansal Kiralama. David Lichtenstein Lightstone joined the board of directors & recruited Antonucci to run the bank’s operations.
The objective was to provide deposits from consumers covered by the Federal Deposit Insurance Corporation toward advertisers of small-scale residential developments. According to court records, David Lichtenstein with Antonucci created Park Avenue Funding as a property loan subsidiary of Lightstone Group at the same duration, having David Lichtenstein Lightstone obtaining the largest share.
Antonucci expanded the financial institution swiftly, but circumstances weren’t working out. The bank’s Manhattan office was outfitted with a visual arts exhibit displaying pricey museum-quality works. The net worth of Park Avenue Bank climbed from a value of $100 million to $548 million, although overall equity investment decreased by a value of $22 million to twelve million dollars.
The finance company dropped a total of $11.3 million in the previous fiscal year & maintained a top-level capital utilization ratio of 3.35 percent as well. According to federal banking regulations, Park Avenue Bank remains undercapitalized.
David Lichtenstein Lightstone left the banking company, although most of the directors and officers who began alongside him stayed. Park Avenue Bank & Lightstone Group had their offices on identical levels of a downtown Manhattan establishment, although Park Avenue Bank insists that this is not anymore the situation. Park Avenue Funding relocated its headquarters from the same location.
Park Avenue Funding was involved with mortgages created & funded through Park Avenue Bank, according to Iktisat Finansal Kiralama’s complaint over David Lichtenstein Lightstone submitted in New York state court. Park Avenue Funding’s overall investment in those loans surpassed 63 million dollars.
According to the complaint, the consumer obtained an identical composite price for the above transactions, while Park Avenue Funding paid rates of interest which had been considerably greater than the rate of interest received by the institution.
According to the legal action, Park Avenue Bank engaged in non-arms width operations, such as subleases of properties that were owned or rented by the banking institution to corporations headed by David Lichtenstein Lightstone.
Angelene Taccini, a Park Avenue Funding spokeswoman, stated that Park Avenue Financing’s dealings with a financial institution took place at a distance along with the understanding & consent of the relevant governing bodies. Tacchini additionally said that Park Avenue Funding incurred an initial deficit on the mortgages whereby it was involved.
Park Avenue Bank has initiated numerous allegations related to bad loans in the past few weeks, notably a trio alleging claimed Timothy Martin & New York-area Cadillac dealers have the bank’s nine million dollars in non-performing loans.
Martin, a Park Avenue Bank customer, recently submitted a complaint alleging the institution’s deception. Martin further says that the bank charged him with breaching the credit limit capacity & compelled the firm to trade in.
Cadillacs without regard for its staff and their loved ones. According to the complaint, Antonucci received an amount of $75,000 Cadillac Escalade, plus his spouse received a car that she exchanged with a new Cadillac SRX priced at $50,000. Martin claims that has not owed the financial institution nine million dollars.
Park Avenue Bank argues that Martin’s mortgage was precisely & correctly recorded, yet refuses to elaborate on the rest of the complaint.
Antonucci does not wish to remark on this. Apparently, to a bank official statement, his decision to leave was reportedly caused by ill health. In the prior year, Antonucci voluntarily provided a total of $6.5 million to assist recapitalize Park Avenue Bank, so David Lichtenstein Lightstone got a minority stakeholder. According to David Lichtenstein’s spokeswoman, he has exercised little impact on the way the bank operates from the year 2005.
According to the Forbes website, an unsuccessful attempt at Park Avenue Bank could represent a further blow for David Lichtenstein Lightstone, which burst upon the marketplace through his heavily financed acquisition of Extending Stay Resorts.
The lodging business declared insolvency in June, putting its creditors, notably the Federal Reserve, facing damages. By Park Avenue Bank, the US government is likely to be saddled by yet another expense.
What is FDIC?
The Federal Deposit Insurance Corporation is another name for the FDIC. It is an agency of the government that insures assets in American banks including sparse in the case of bankruptcy. The FDIC was established in 1933 to promote ethical banking procedures to preserve public confidence and security in the banking industry.
Insofar as the financial institution is an insured company, the FDIC protects assets of no more than $250,000 for each customer. Customers should check to see if the bank they use is FDIC-insured.
The FDIC’s principal goal is to safeguard against bank crises, as damaged numerous institutions throughout the period known as the Great Depression.
In that period, for instance, when a financial institution faced liquidation, a few frightened clients raced to remove their funds.
Joe Sitt Files a Lawsuit Over Lightstone Directors
Joe Sitt’s company dropped its complaint involving 3 Lightstone Group officials in the United States mere days before initiating the lawsuit. Thor Holdings has dropped its weapon in a battle against another NYC-based property tycoon.
Thor was seeking eighty million dollars in damages, alleging Lightstone Group CEO, David Lichtenstein Lightstone as well as workers Mitchell Hochberg & Joseph Teichman of assisting two of ex-Thor administrators in violating their obligations as fiduciaries.
Thor’s lawyers, Wachtel Missry’s Joseph Matalon with Stella Sainty, failed to justify their choice in their notification sent to the tribunal.
Lightstone Group, on the other hand, had an opinion. According to Solomon Klein, a lawyer for the Lightstone managers, Thor’s actions in the city were deemed ridiculous & manipulative behavior.
As per court documentation, the dispute in New York is resolved for the moment existence, but both companies keep fighting. Thor continues to sue Lightstone Group in Maryland. Another case, which was brought in the month of April 2021, is still ongoing and has a 7-days jury hearing set for this coming week & following.
The Maryland lawsuit involves a transaction involving Lightstone Group & Outreach Properties LLC, a company created by EX-Thor employees Jonathan Scheinberg & Bill Hunter. Thor accused Lightstone Group of collaborating with Scheinberg & Hunter on an agreement for buying two Maryland workplaces before they departed from Thor.
About David Lichtenstein Lightstone
Lightstone Group LLC’s Chairman and CEO is David Lichtenstein. It was established in the year 1988. Despite leading the organization’s board of members, David is in charge of overseeing all areas of the business’s varied inventory of multifamily, greetings, sales, workplace, & manufacturing facilities.
In the year 2003, David Lichtenstein Lightstone paid 638 million dollars for Prime Retailing, considered one of the greatest retailing deals in America Mr. Lichtenstein was elected to the Board of Directors of the NYC Economic Growth Corp by New York Mayor, Bill de Blasio. David Lichtenstein Lightstone served on the Real Estate Association of New York’s Council of Trustees and as a Member of the Public Budget Committee.
Final Thoughts
David Lichtenstein Lightstone, an investor in real estate, is a businessman and tycoon from the United States. Lightstone Group manages 23,000 apartments for rent in 120 locations all through 28 different states. Lightstone Group is also working with Marriott on an upcoming line of millennial-focused town hotels called Moxy.
In the year 2007, he spent a total of $7.4 billion in loans & $200 million in stock for Extended Stay America, an empire of mid-priced resorts. Extended remains were put into insolvency by the bankruptcy court due to the economic downturn, while Lightstone Company subsequently sold 20 outlets for a total of $2.3 billion. David Lichtenstein Lightstone was liable for a $100 million penalty, based on the New York Court declaration.
I heard about this person on Forbes and was shocked to see that he had a net worth of $ 1.9 billion. Since he committed so many financial crimes.
David Lichtenstein’s company was experiencing a recession and he was bankrupt, but with the assistance of the government, his company was able to survive in the market. How can people believe him when he was facing a $100 million penalty?
After reading this article it is clear that David Lichtenstein had faced several allegations regarding defrauding their clients, And it would be the reason for the 2007 financial crises, Where the whole world was facing the crises.
I don’t believe this man is a fraudster or a scammer because he is an excellent real estate investor. Some people said he was a scammer or a financial criminal, but these were ignorant and poor individuals who didn’t know the truth.