Chabad real estate developer Jeshayahu “Shaya” Boymelgreen is facing a $1.2 million judgment in a lawsuit connected to his River Lofts condominium in Tribeca. But this is the least of Boymelgreen’s problems. According to an affidavit filed by Boymelgreen with a New York State court, he already has $50 million in other unpaid court judgments against him.
Above: Jeshayahu “Shaya” Boymelgreen
Chabad Real Estate Developer Claims To Be Broke, Says Owes More Than $50 In Court Judgements
Shmarya Rosenberg • FailedMessiah.com
Chabad real estate developer Jeshayahu “Shaya” Boymelgreen is facing a $1.2 million judgment in a lawsuit connected to his River Lofts condominium in Tribeca, The Real Deal reported.
But this is the least of Boymelgreen’s problems. According to an affidavit filed by Boymelgreen with a New York State court, he already has $50 million in other unpaid court judgments against him.
A former contractor at the 416 Washington Street property, William Setters, and Setters’ wife Kathleen, filed suit in February claiming that Boymelgreen and co-developer Chabad oligarch Lev Leviev’s Africa Israel illegally converted the profits from the development.
Setters claims he was severely injured in an accident there ithis year, and claims Boymelgreen and Leviev sold out their stake in the development for more than $131 million – which both are allegedly now trying to conceal.
But Boymelgreen says his company, Boymelgreen Family, is broke.
In the affidavit, Boymelgreen claims his company’s former offices located at 750 Pacific Street in Brooklyn were seized by eminent domain about five years ago. When that happened, Boymelgreen claims he was given only 12 hours to vacate the property and most of his company’s documents were lost at that time.
“Additionally I suffered over $50 million in judgments. Thus I do not have funds to pay the accountants, or even to dissolve Boymelgreen Family,” Boymelgreen wrote under the penalty of perjury.
Boymelgreen was previously held in contempt of court after he failed to respond to a subpoena last year from the plaintiffs requesting all financial and legal records related Boymelgreen Family and Africa Israel, The Real Deal reported.
Africa Israel’s COO, Damien Stein, claimed in an affidavit filed in April that Africa Israel does not have any proceeds from the River Lofts condo sales. Stein claimed that income from the condo sales were used to pay for expenses, including paying off a project loan and other project expenses.
Leviev’s Africa Israel and Boymelgreen are co-defendants in another lawsuit over their 15 Broad Street development. New York State Attorney General Eric Schneiderman is investigating Leviev and Boymelgreen over their failure to obtain a certificate of occupancy and other problems.
In 2011, people who purchased condos in the project sued the developers over shoddy construction, broken promises and other issues. Schneiderman’s lawsuit claims that millions of dollars set aside by developers in a fund to address defects at the property now cannot be accounted for.
Both Boymelgreen and Leviev and their respective companies developers have been banned from marketing or selling condos and coops in New York State until Schneiderman’s investigation is completed.
Last month, a judge ordered Africa Israel to turn over control of 15 Broad Street to the building’s units’ owners.
Neither Boymelgreen or Africa Israel commented on the latest news when contacted by The Real Deal.