Local 46

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KENNEDY, JENNIK & MURRAY, P.C. Attorneys for Plaintiffs 113 University Place, 7th Floor New York, New York 10003 Tel. (212) 358-1500 Thomas M. Kennedy Susan M. Jennik Serge Ambroise
UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK -----------------------------------------------------------------x In re: HRH CONSTRUCTION LLC, et al., Debtors,
-----------------------------------------------------------------x MASON TENDERS DISTRICT COUNCIL OF GREATER NEW YORK AND LONG ISLAND and LOCAL 46, METALLIC LATHERS AND REINFORCING IRONWORKERS,
Plaintiffs,
Chapter 7 Case No.: 09-23665 (RDD) (Jointly Administered)
Adv. Pro. No.
-againstGARY SINGER; BRAD SINGER; SUSAN SINGER; GREG CUNEO; JANINE GETLER; KEVIN LALEZARIAN; FRANK LALEZARIAN; LOUIS FINKELSTEIN; LEVIATHAN CONSTRUCTION MANAGEMENT SERVICES LLC; AVERY MAYA CMS, LLC; LALEZARIAN DEVELOPERS, INC.; TOWER 37 LLC; BROOKLYN GOLD LLC; BROOKLYN TILLARY LLC; JMH DEVELOPMENT LLC, 184 KENT FEE LLC; JOHN DOE LEGAL ADVISOR NUMBER ONE, JOHN DOE and JANE DOE, being persons whose identity is currently unknown to Plaintiffs and who have been involved in the Singer Criminal Enterprise and/or the HRH/Leviathan Criminal Enterprise. Defendants. --------------------------------------------------------------x
____ - __________ (RDD)
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TABLE OF CONTENTS
INTRODUCTION .......................................................................................................................... 1 THE PARTIES................................................................................................................................ 8 NON-PARTY RICO CONSPIRATORS ...................................................................................... 11 NON-PARTY RELATED ENTITIES .......................................................................................... 12 JURISDICTION AND VENUE ................................................................................................... 13 FACTS .......................................................................................................................................... 14
The Singer Criminal Enterprise .............................................................................................................. 14 Ownership and Control of the Singer Criminal Enterprises ................................................................... 15 The Criminal Background of the Singer Criminal Enterprise................................................................. 16 Approximate Time Line Relevant to the Complaint ............................................................................... 17 The Singer Family Takes Over HRH ...................................................................................................... 20 The Creation of Leviathan ...................................................................................................................... 22 The Lalezarians Knew That The Monies Paid To Leviathan Were Being Transferred To The Singer Criminal Enterprise And That These Payments Were In Exchange For The Lower Construction Costs That HRH Agreed To Provide For The Gold Street and 37th Street Projects ........................................ 26 Kent Avenue Project ............................................................................................................................... 44 Bankruptcy Fraud in connection with the Chapter 11 Filing .................................................................. 55 Schedules of Assets and Liabilities, Statements of Financial Affairs ..................................................... 55 Transfers from HRH to the Defendants .................................................................................................. 57 The Auditors Reports............................................................................................................................. 58 The Reclassifications of Equity to Debt.................................................................................................. 59 Other Elements of Bankruptcy Fraud ..................................................................................................... 59
FIRST CLAIM FOR RELIEF: Violation of 18 U.S.C. 1962(c)................................................ 59

Mail Fraud ............................................................................................................................................... 77 Wire Fraud .............................................................................................................................................. 80 Unlawful Payments ................................................................................................................................. 82 Bankruptcy Fraud.................................................................................................................................... 83
SECOND CLAIM FOR RELIEF: Violation of 18 U.S.C. 1962(d) .......................................... 69 THIRD CLAIM FOR RELIEF GAINST ALL DEFENDANTS EXCEPT FOR LEVIATHAN: Violation of 18 U.S.C. 1962(c) .................................................................................................. 70 FOURTH CLAIM FOR RELIEF AGAINST ALL DEFENDANTS EXCEPT FOR LEVIATHAN: Violation of 18 U.S.C. 1962(d) ........................................................................ 74 FIFTH CLAIM FOR RELIEF AGAINST DEFENDANTS GARY SINGER; BRAD SINGER; SUSAN SINGER; GREG CUNEO; JANINE GETLER; KEVIN LALEZARIAN; FRANK LALEZARIAN; LOUIS FINKELSTEIN; LALEZARIAN DEVELOPERS, INC.; TOWER 37 LLC; BROOKLYN GOLD LLC; BROOKLYN TILLARY LLC: Violation of 18 U.S.C. 1962(a) .......................................................................................................................................... 75 SIXTH CLAIM FOR RELIEF AGAINST DEFENDANTS GARY SINGER; BRAD SINGER; SUSAN SINGER; GREG CUNEO; JANINE GETLER; KEVIN LALEZARIAN; FRANK LALEZARIAN; LOUIS FINKELSTEIN; LALEZARIAN DEVELOPERS, INC.; TOWER 37 ii
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LLC; BROOKLYN GOLD LLC; BROOKLYN TILLARY LLC: Conspiracy under 1962(d) to Violate 18 U.S.C. 1962(a).......................................................................................................... 78
RICO Injury ............................................................................................................................................ 80
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INTRODUCTION 1. This is a civil action under the Racketeer Influenced and Corrupt
Organizations Act (RICO), 18 U.S.C. 1961 et seq., to recover damages caused by a fraudulent scheme to divert money from an entity known as HRH Construction LLC (HRH) to a disguised continuance of HRH known as Leviathan Construction Management Services LLC (Leviathan). The intended victims of the fraudulent scheme included Plaintiffs Mason Tenders District Council of Greater New York and Long Island, its members, and its affiliated employee benefit funds. 2. On March 6, 2007, the Metropolitan Transportation Authority
(MTA) was awarded $6,457,481 in damages in an arbitration against HRH. Brad Singer, the President of HRH, and Greg Cuneo (Cuneo), the Chairman of HRH, concluded that HRH was over as an ongoing company as a result of the award. In March, 2007, in a meeting held in the New York City area, Brad Singer, his wife, Susan Singer, Gary Singer and Cuneo reached an agreement with Frank Lalezarian, Kevin Lalezarian and Lalezarian Developers, Inc. (Lalezarian Developers) to create Leviathan as an alter ego entity of HRH to engage in construction management operations in knowing violation of the labor agreements to which HRH was party through its membership in a multiemployer bargaining group known as Contractors Association of Greater New York (CAGNY).
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3.
At the March, 2007 meeting, Brad Singer, Gary Singer, Susan Singer
and Cuneo reached an agreement with Kevin Lalezarian and Frank Lalezarian that HRH would perform the construction management work for projects to be built by Lalezarian Developers at 350 West 37th Street, New York, NY (37th Street Project) and 235 Gold Street (Gold Street Project), Brooklyn, NY. The agreement included a scheme to use Leviathan as the titular but not actual Construction Manager for the 37th Street and Gold Street Projects through which disguised payments to the Singers could be made. Kevin Lalezarian and Frank Lalezarian and their wholly owned construction entities for these projects, Tower 37 LLC (Tower 37), Brooklyn Gold LLC (Brooklyn Gold) and Brooklyn Tillary LLC (Brooklyn Tillary), received a thing of value from HRH in the form of a lower price for the construction of their projects in return for their knowing agreement to participate in the fiction that Leviathan was an independent company that was actually performing the work of Construction Manager for the projects. 4. In June, 2008, Brad Singer and Cuneo reached an agreement with 184
Kent Fee LLC (Kent Fee) and JMH Development LLC (JMH) that HRH would act as the Construction Manager for a project at 184 Kent Avenue, Brooklyn, New York (Kent Avenue Project). The agreement required Leviathan to serve as HRHs alter ego through which disguised payments to the Singers could be made and which would allow Kent Fee to ignore the provisions of the CAGNY
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labor contracts. Kent Fee received a thing of value from HRH in the form of a lower price for the construction of its project in return for its agreement to participate in the fiction that Leviathan was an independent company that was actually performing the work of Construction Manager for its project. 5. Defendants Lalezarian Developers, Tower 37, Brooklyn Gold,
Brooklyn Tillary, Kent Fee, Kevin Lalezarian and Frank Lalezarian conspired with Greg Singer, Brad Singer, Susan Singer, Cuneo, Louis Finkelstein (Finkelstein) and Janine Getler (Getler) to utilize HRH and its accumulated construction industry standing and expertise to build their projects without having to pay the labor costs associated with a project built in compliance with the CAGNY labor agreements. 6. Upon information and belief, Defendants Lalezarian Developers,
Tower 37, Brooklyn Gold, Brooklyn Tillary, JMH and Kent Fee (collectively the Developer Defendants) would have agreed to build their projects pursuant to the CAGNY contracts if HRH had refused to create a phony entity to assume the position (but not the responsibility) of being the Construction Manager on the 37th Street, Gold Street, Kent Avenue and Henry Street projects. Lalezarian Developers, Kevin Lalezarian and Frank Lalezarian had worked with HRH and had positive experiences using HRH personnel and expertise in projects using union labor prior to the 37th Street and Gold Street projects. JMH and Kent Fee
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had gone through two Construction Managers and were getting pressure from the financer of the Kent Avenue Project to find a reputable Construction Manager when they appointed HRH as Construction Manager for the Kent Avenue project. 7. As detailed below at paragraphs 58-71, Defendants formed an
association in fact under 18 U.S.C. 1961(4) (the Singer Criminal Enterprise) which was headed by Gary Singer and Brad Singer and had a clear structure and organization and existed for the purpose of engaging in racketeering activities as described in 18 U.S.C. 1961(1). The Singer Criminal Enterprise knowingly engaged in multiple and repeated unlawful acts in violation of 18 U.S.C. 1341 (mail fraud), 18 U.S.C. 1343 (wire fraud), 18 U.S.C. 1954 (unlawful payments relating to employee benefit funds), and 18 U.S.C. 152 (bankruptcy fraud), from March 2, 2007 through April 7, 2011, which acts form a pattern of conducting and participating, directly and indirectly, in the affairs of the Singer Criminal Enterprise through a pattern of racketeering activity in violation of 18 U.S.C. 1962(c). 8. The Singer Criminal Enterprise Defendants at all material times
controlled all aspects of the operation of the Enterprise. As an example, Getler, the General Counsel of HRH determined when and how much Leviathan and HRH would be paid for the construction management work on the 37th Street and Gold Street Projects. On May 2, 2008 at 10:57 a.m., Lalezarian Developer employee
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Diana Ahn (Ahn) sent an email to Getler, Brad Singer and Kevin Lalezarian stating: Per our conversation, Ive moved all payments made to Leviathan against the Tower 37 preconstruction invoices 1 and 2 and the requisitions. Total paid to date is $402,186.13. To clarify, you want no payments to HRH Construction for either project right now. You would like the payments made to Leviathan: $146,327.40 for Tower 37 and $102,833 for Gold Street. Total is $249,160.40. I will confirm the above is OK with Kevin once he gets in the office. 9. Each of the members of, and the co-conspirators with, the Singer
Criminal Enterprise knowingly engaged in multiple and repeated unlawful acts in violation of 18 U.S.C. 1341 (mail fraud), 18 U.S.C. 1343 (wire fraud), 18 U.S.C. 1954 (unlawful payments relating to employee benefit funds) and 18 U.S.C. 152 (bankruptcy fraud) from March 2, 2007 through April 7, 2011, which acts form a pattern of conducting and participating, directly and indirectly, in the affairs of the Singer Criminal Enterprise through a pattern of racketeering activity in violation of 18 U.S.C. 1962(c). 10. As further detailed below, Defendants Lalezarian Developers; Tower
37; Brooklyn Gold; Brooklyn Tillary; JMH; Kent Fee; Getler; Kevin Lalezarian; Frank Lalezarian; Finkelstein; John Doe Legal Advisor Number One; John Doe and Jane Doe, being persons involved in the Singer Criminal Enterprise whose
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identity is currently unknown to Plaintiffs, conspired with the Singer Criminal Enterprise to violate 18 U.S.C. 1962(c) in violation of 18 U.S.C. 1962(d). 11. As detailed below, each of the Defendants except Leviathan
controlled and directed the HRH/Leviathan Criminal Enterprise, a corporate enterprise under 18 U.S.C. 1961(4) (the HRH/Leviathan Criminal Enterprise), which was headed by Gary Singer and Brad Singer and had a clear structure and organization and existed for the purpose of engaging in racketeering activities as described in 18 U.S.C. 1961(1). The HRH/Leviathan Criminal Enterprise knowingly engaged in multiple and repeated unlawful acts in violation of 18 U.S.C. 1341 (mail fraud), 18 U.S.C. 1343 (wire fraud), 18 U.S.C. 1954 (unlawful payments relating to employee benefit funds), and 18 U.S.C. 152 (bankruptcy fraud), from March 2, 2007 through April 7, 2011, which acts form a pattern of conducting and participating, directly and indirectly, in the affairs of the HRH/Leviathan Criminal Enterprise through a pattern of racketeering activity in violation of 18 U.S.C. 1962(c). 12. To the extent each Defendant except for Leviathan is not a member of
the HRH/Leviathan Criminal Enterprise, each Defendant except for Leviathan is associated with the HRH/Leviathan Enterprise and conspired within the meaning of 18 U.S.C. 1962(d) to violate 18 U.S.C. 1962(c).
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13.
Defendants Gary Singer, Brad Singer, Susan Singer, Greg Cuneo,
Janine Getler, Kevin Lalezarian, Frank Lalezarian, Louis Finkelstein, Lalezarian Developers, Inc., Tower 37 LLC, Brooklyn Gold LLC, and Brooklyn Tillary LLC (the 1962(a) Defendants): (1) received income derived, directly or indirectly, from a pattern of racketeering activity; (2) and used or invested, directly or indirectly, part of such income, or the proceeds of such income, in the establishment or operation of Leviathan; (3) which allowed Leviathan to engage in a pattern of racketeering activity; (4) the activities of which affect interstate or foreign commerce in violation of 18 U.S.C. 1962(a). 14. To the extent any of the 1962(a) Defendants did not receive income
derived, directly or indirectly, from a pattern of racketeering activity and used or invested, directly or indirectly, part of such income, or the proceeds of such income, in the establishment or operation of Leviathan, each such 1962(a) Defendant conspired with the other 1962(a) Defendants within the meaning of 18 U.S.C. 1962(d) to violate 18 U.S.C. 1962(a). Each of the 1962(a) Defendants agreed to and intended to assist in the use or investment of income gained, directly or indirectly, from a pattern of racketeering activity, or the proceeds of such income, in the establishment or operation of Leviathan.
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THE PARTIES 15. The Mason Tenders District Council of Greater New York and Long
Island (MTDC) is a labor organization within the meaning of 3(i) of the Labor Management Reporting and Disclosure Act (LMRDA), 29 U.S.C. 402(i) and maintains its offices at 520 8th Avenue, Suite 650, New York, NY 10018. 16. Local 46, Metallic Lathers and Reinforcing Ironworkers (Local 46)
is a labor organization within the meaning of 3(i) of LMRDA, 29 U.S.C. 402(i) and maintains its offices at 1322 Third Avenue, New York, NY 10021. 17. On or about September 7, 2011, MTDC assigned a portion of its
RICO claim against the defendants to Local 46 for good and valuable consideration. 18. Upon information and belief, Lalezarian Developers, Inc. (Lalezarian
Developers) is a corporation incorporated under the laws of the State of New York with an office at 1999 Marcus Avenue, Suite 310, Lake Success, NY 11042. 19. Tower 37 LLC (Tower 37) is a New York State limited liability
corporation with an address at 1999 Marcus Avenue, Suite 310, Lake Success, NY 11042. 20. Brooklyn Gold LLC (Brooklyn Gold) is a New York State limited
liability corporation with an address at 1999 Marcus Avenue, Suite 310, Lake Success, NY 11042.
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21.
Brooklyn Tillary LLC (Brooklyn Tillary) is a New York State
limited liability corporation with an address at 1999 Marcus Avenue, Suite 310, Lake Success, NY 11042. 22. JMH Development LLC is a New York State limited liability
corporation with an address at 401 West Street, 3rd Floor, New York, NY 10014. 23. 184 Kent Fee LLC (Kent Fee) is a New York State limited liability
corporation with an address at 401 West Street, 3rd Floor, New York, NY 10014. 24. NJ 07626. 25. Brad Singer is an individual residing at 118 Eisenhower Drive, Gary Singer is an individual residing at 212 Vaccaro Drive, Cresskill,
Cresskill, NJ 07626. 26. Susan Singer is an individual residing at 118 Eisenhower Drive,
Cresskill, NJ 07626. 27. Greg Cuneo (Cuneo) is an individual residing at 54 Forest Lake
Drive, Harrison, NY 10604. 28. Janine Getler (Getler) is an individual residing at 6 Haskell Avenue,
Suffern, NY 10901. 29. Kevin Lalezarian is an individual residing at 88 Cuttermill Road 306,
Great Neck, NY 11021.
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30.
Frank Lalezarian is an individual residing at 98 Cuttermill Road 370,
Great Neck, NY 11021. 31. Louis E. Finkelstein (Finkelstein) is an individual residing at 12
Avondale Court, Briarcliff Manor, NY 10510. 32. Leviathan Construction Management Services LLC (Leviathan) is a
New York limited liability company with an address at 600 Mamaroneck Avenue, Suite 400, Harrison, NY 10528. 33. Upon information and belief, Avery Maya CMS LLC (Avery Maya)
is a New York limited liability company with an address at Avery Maya CMS, LLC c/o Diane Harris, No. 5T, 555 Kappock Street, Riverdale, New York 10463. 34. John Doe Legal Advisor Number One is an unknown individual who
participated with the other Defendants in the Singer Criminal Enterprise and/or the HRH/Leviathan Criminal Enterprise. 35. John Doe is an unknown individual who participated with the other
Defendants in the Singer Criminal Enterprise and/or the HRH/Leviathan Criminal Enterprise. 36. Jane Doe is an unknown individual who participated with the other
Defendants in the Singer Criminal Enterprise and/or the HRH/Leviathan Criminal Enterprise.
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NON-PARTY RICO CONSPIRATORS 37. NJ 07626. 38. Karen Singer is an individual residing at 212 Vaccaro Drive, Steven Singer is an individual residing at 10 Loman Court, Cresskill,
Cresskill, NJ 07626. 39. HRH Construction LLC (HRH) is a Delaware limited liability
company with an office at 11 Martine Avenue, White Plains, New York 10601. 40. HRH Construction of New Jersey LLC (HRH NJ) is a limited
liability company with an office at 11 Martine Avenue, White Plains, New York 10601. 41. Upon information and belief, Remus HRH LLC (Remus) is a
Delaware limited liability corporation, formed on or about November 21, 2000, with an address at 118 Eisenhower Drive, Cresskill, New Jersey 07626. 42. Upon information and belief, Remus Holdings LLC (Remus
Holdings) is a Delaware limited liability corporation with an address at 118 Eisenhower Drive, Cresskill, New Jersey 07626. 43. Upon information and belief, Romulus Holdings, LLC (Romulus) is
a Delaware limited liability corporation, formed in or about 1999, with an address at c/o Remus Holdings LLC, 118 Eisenhower Drive, Cresskill, New Jersey 07626.
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NON-PARTY RELATED ENTITIES 44. Upon information and belief, the members of HRH Construction LLC
are: HRH Management LLC (HRH Management), HRH Series A LLC (HRH Series A), and HRH Class A Common LLC (HRH Class A). 45. Upon information and belief, HRH Management is a Delaware limited
liability company with an address at 113 Jackson Drive, Cresskill, NJ 07626. 46. Upon information and belief, HRH Series A is a limited liability
company with an address at c/o Blackacre Capital Management, LLC, 450 Park Avenue, New York, NY 10022. 47. Upon information and belief, HRH Class A is a Delaware limited
liability corporation with an address at 10 East 40th Street, 10th Floor, New York, NY 10016. 48. Upon information and belief, the Gary & Karen Singer Childrens
Trust is a trust created under the laws of New Jersey with an address at 113 Jackson Drive, Cresskill, NJ 07626. 49. Upon information and belief, the Brad & Beth Singer Childrens Trust
is a trust created under the laws of New Jersey with an address at 10 Loman Court, Cresskill, NJ 07626.
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50.
Upon information and belief, the Steven Singer Childrens Trust is a
trust created under the laws of New Jersey with an address at 113 Jackson Drive, Cresskill, NJ 07626. 51. Upon information and belief, Starrett Consulting LLC (Starrett) is a
limited liability company with an address at 2200 Fletcher Avenue, 5th Floor, Fort Lee, NJ 07024. 52. Upon information and belief, Hades, Inc. (Hades) is a corporation
incorporated under the laws of the state of New York with an address at 801 Second Avenue, Room 705, New York, NY 10017. 53. Upon information and belief, Gemini Inc. is an inactive New York
State corporation with an address at 1904 Glenwood Road, Brooklyn, NY 11230. JURISDICTION AND VENUE 54. The Plaintiffs allege violations of 18 U.S.C. 1961, et seq., and this
Court has jurisdiction over this matter as a non-core but related action under 28 U.S.C. 157(c)(1) and Rule 9033, Fed. R. Bankr. Pr. 55. Venue is proper in this District under 18 U.S.C. 1965(a) and (b) and
28 U.S.C. 1391(b) because a substantial part of the events giving rise to the claims occurred in this District. 56. Personal jurisdiction is proper under 18 U.S.C. 1965 and NY CPLR
301 and 302 because each Defendant either resides in New York, is incorporated in
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New York or, in person or through an agent, transacts and has transacted business within New York, or contracts or has contracted to supply goods and services within New York, or has committed unlawful acts within New York. Each Defendant has received, directly or indirectly, substantial revenue from interstate commerce. 57. The actions which are the subject of this Complaint have and are
continuing to have a substantial impact on interstate commerce. FACTS The Singer Criminal Enterprise 58. The Singer Criminal Enterprise consists of an association in fact
within the meaning of 18 U.S.C. 1961(4) among Brad Singer, his wife Susan Singer, Gary Singer, his wife Karen Singer, Steven Singer, Cuneo, Finkelstein, Getler, HRH, Leviathan, Avery Maya, Gary & Karen Singer Childrens Trust, Remus Holdings, Remus, Romulus, Starrett, Hades, the Brad & Beth Singer Childrens Trust, the Steven Singer Childrens Trust, Frank Lalezarian, Kevin Lalezarian, Lalezarian Developers, Inc., Brooklyn Gold, Brooklyn Tillary, Tower 37, Kent Fee and JMH.
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Ownership and Control of the Singer Criminal Enterprise 59. Upon information and belief, at all times relevant to the allegations set
forth in this Complaint, Brad Singer held or currently holds the following positions with certain of the Defendants and Non-Party Conspirators which allow him to direct the affairs of the Singer Criminal Enterprise. (a) (b) (c) (d) (e) 60. managing member of Remus Holdings; president of HRH; member of Romulus; member of Remus; officer of Starrett.
Upon information and belief, at all times relevant to the allegations set
forth in this Complaint, Gary Singer held or currently holds the following positions with certain of the Defendants and Non-Party Related Entities which allow him to direct the affairs of the Singer Criminal Enterprise: (a) (b) (c) (d) 61. officer of HRH Management; officer of HRH Class A; officer of HRH Series A; and member or owner of Gemini.
Upon information and belief, Leviathan is currently owned by Avery
Maya (99.5%) and Susan Singer (.05%), and was wholly owned by Susan Singer
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and the Singer Family from August 2, 2007 to the point when the Singers transferred control of Leviathan to Avery Maya. Susan Singer is the sole member of Avery Maya. 62. 63. Finkelstein is a Vice President of Leviathan. Susan Singer and Finkelstein also direct and manage the affairs of the
Singer Criminal Enterprise. 64. Holdings. 65. 66. 67. Upon information and belief, Gemini is a member of HRH Class A. Upon information and belief, Gemini is a member of HRH Series A. Upon information and belief, Brad Singer owns Starrett. Upon information and belief, Remus is wholly owned by Remus
The Criminal Background of the Singer Criminal Enterprise 68. The Singer Family has a documented history of corruption and
unlawful business dealings. Martin Singer the father of Gary, Brad and Steven Singer pled guilty in 1992 to tax evasion to settle multiple charges of racketeering in the school construction industry through a construction company known as Mars/Normel. Brad Singer and other members of the Singer Criminal Enterprise served as officers of Mars/Normel during the years it served as a conduit to funnel racketeering proceeds to the Singers.
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69.
On January 13, 1994, Gary Singer was convicted of 21 counts of
racketeering, money laundering and fraud. Gary Singer was sentenced to 28 months in prison and barred for life by the Securities and Exchange Commission from serving as the officer or director of a public company. United States v. Gary Singer et al, No. 92 Cr. 964 (S.D.N.Y.) (RJW). 70. On April 16, 2009, the First Department of the New York State
Supreme Court issued a decision in 155 West 21st Street, LLC v. McMullan, 61 A.D.3d 497 (1st Dept. 2009), a case involving HRH and Lalezarian Developers at a project built by HRH for Lalezarian Developers and located at 155 West 21st St., New York, NY (21st Street Project), noting that HRH and Lalezarian Developers had engaged in conduct entirely in keeping with [their] cavalier attitude demonstrated by their literal trampling of Respondents property and their figurative trampling of Respondents property rights. 61 A.D.3d at 501. Approximate Time Line Relevant to the Complaint 71. On September 15, 2004: The MTA asserted claims against HRH
Construction Interiors (HRH Interiors)1 in an arbitration arising from no show jobs and other unlawful conduct in connection with the renovation of 2 Broadway, New York, NY (2 Broadway Project).
HRH Interiors rendered services to the MTA under a construction management agreement. In or about 2001, HRH purchased the assets of HRH Construction Corp. and its wholly owned subsidiaries, one of which was HRH Interiors.
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72.
From October, 2004 November, 2005: Various Singer Family-
owned entities transferred $9.6 million to HRH as capital contributions. 73. On February 13, 2006: The MTA moved to compel arbitration
against HRH for damages from the 2 Broadway Project on the grounds that HRH Interiors was a mere corporate shell that was an alter ego of HRH. 74. The HRH 2006 Annual Auditors Report classified $9.6 million in
contributions from Singer Family entities and an additional $2.2 million loan repayment made for HRH by the Singer Family as capital contributions to HRH by its members including Remus. 75. From March, 2006 June, 2009: HRH made monthly payments to
Remus Holdings, the Gary & Karen Singer Childrens Trust and Starrett totaling $5 million. 76. On March 27, 2006, the New York Supreme Court ordered HRH to
participate in the MTA arbitration along with its alter ego, HRH Interiors. 77. On October 31, 2006, the Appellate Division First Department
affirmed the order directing HRH to participate in the MTA Arbitration. 78. The Annual HRH Auditors Report issued in 2007 reclassified the
Singer Family capital contributions to HRH from equity to loans payable, effective December 31, 2006.
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79.
On March 6, 2007, an arbitration panel in the MTA dispute issued an
award in favor of the MTA and against HRH for more than $6 million arising from the 2 Broadway Project. 80. From March 16, 2007April 18, 2007, HRH transferred $3.1 million
to Remus Holdings. 81. On or about March 28, 2007, Gary Singer and Brad Singer reached an
agreement with Frank Lalezarian, Kevin Lalezarian and Lalezarian Developers to create a phony alter ego entity to HRH to be the titular Construction Manager for the 37th Street and Gold Street Projects. 82. On August 2, 2007, Susan Singer caused Leviathan to be created to
serve as the phony alter ego to HRH to allow HRH to function as a construction manager while pretending to be an owners representative. 83. [ REDACTED] Frank Lalezarian, Kevin Lalezarian and Lalezarian
Developers entered into an agreement [ REDACTED]with Leviathan for it to perform construction management services for the 37th Street and Gold Street Projects despite the fact that the owner of Leviathan, Susan Singer, had no experience in the construction industry [ REDACTED] 84. On February 19, 2008, the New York State Supreme Court issued a
judgment in favor of the MTA and against HRH in the amount of $6,552,557.43;
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the Singer Family began a series of actions intended to render HRH insolvent to preclude enforcement of the MTA award. 85. In June, 2008, JMH and Kent Fee entered into an agreement with
Brad Singer and Cuneo in which HRH would be the actual construction manager for the Kent Avenue Project but a phony contract would be entered into with Leviathan. 86. On September 9, 2010, HRH filed a Chapter 11 Petition in the
Southern District of New York. The Chapter 11 filing fraudulently concealed the HRH assets hidden in Leviathan. 87. From August, 2007 through March, 2010, the Singer Criminal
Enterprise diverted millions of dollars to the Singers through Leviathan [ REDACTED] The Singer Family Takes Over HRH 88. HRH Construction Company was founded in 1925. In 2006 it was
among the 10 largest construction companies in the New York City area with contracts valued at $406 million. HRH advertised itself on its internet website as one of the nations top construction managers and general contractors and as an industry leader for its construction expertise and outstanding achievements in the planning, development, and construction of a wide variety of projects.
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89.
In 2001, Brad Singer became an officer of HRH LLC, a successor to
the HRH Construction Company that had been operated for decades by the Horowitz and Ravitch families. By 2005, the Singer family was in sole control of HRH through an intricate web of limited liability companies and corporations. 90. Cuneo has testified that the executives of HRH assumed HRH was
over as a result of the March 6, 2007 arbitration award that ordered HRH to pay $6,457,481 in damages to the MTA. 91. Immediately after the MTA award, Gary Singer and Brad Singer
caused millions of dollars in HRH assets to be transferred to other persons and entities that are within the Singer Criminal Enterpriseincluding Starrett, Karen Singer and Hadesto shelter those moneys from the lawful creditors of HRH, such as the MTA and various union-sponsored employee benefit funds including the MTDC Pension, Annuity and Welfare Funds. 92. In furtherance of this fraudulent scheme, the Singer Family utilized
the U.S. Post Office to send and receive mail that was a central component of the scheme to defraud the creditors of HRH, which creditors included the MTDC, its members and its employee benefit funds. 93. In furtherance of this fraudulent scheme, the Singers utilized wire
services to send and receive messages that were a central component of the scheme
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to defraud the creditors of HRH, which creditors included MTDC, its members and its employee benefit funds. The Creation of Leviathan 94. In the construction industry a Construction Manager is responsible
for duties that include designing and estimating the project and negotiating, entering into, and administering contracts with the many subcontractors typically involved in any large construction project. An Owners Representative serves as the representative of the owner during the construction process and is not responsible for negotiating or administering subcontracts. A Construction Manager also directs purchasing for a project while an Owners Representative does not engage in purchasing for a project. The fee that an Owners Representative will receive on a project is typically much smaller than the fee that a Construction Manager will receive, reflecting the differences in responsibility applicable to the two different roles. 95. HRH served as the Construction Manager on the 21st Street Project
for Lalezarian Developers. At all material times, Frank Lalezarian was the President and Kevin Lalezarian was Vice President of Lalezarian Developers. Both Frank Lalezarian and Kevin Lalezarian and, through them, Lalezarian Developers were highly satisfied with HRHs construction management services for the 21st Street Project and expressed their interest in using HRH as the
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Construction Manager for the new projects they were planning: the 37th Street Project and the Gold Street Project. 96. On October 23, 2006, Brad Singer and Cuneo caused HRH to send a
letter through the U.S. mail to Kevin Lalezarian of Lalezarian Developers which contained bids for the general conditions work to be performed by HRH as the Construction Manager for the 37th Street Project. Upon information and belief, prior to March 1, 2007, Brad Singer and Cuneo reached an agreement with Kevin Lalezarian, Frank Lalezarian and Lalezarian Developers for HRH to serve as the Construction Manager for the 37th Street Project. 97. Upon information and belief, prior to March 1, 2007, Brad Singer and
Cuneo, made proposals to Kevin Lalezarian of Lalezarian Developers for HRH to serve as the Construction Manager for the Gold Street Project. Upon information and belief, prior to March 1, 2007, Brad Singer and Cuneo reached an agreement with Kevin Lalezarian, Frank Lalezarian and Lalezarian Developers for HRH to serve as the Construction Manager for the Gold Street Project. 98. Based upon their experience on the 21st Street Project with HRH as
Construction Manager and using union labor, Kevin Lalezarian, Frank Lalezarian and Lalezarian Developers knew that HRH sent by U.S. mail monthly reports to the employee benefit funds sponsored by the unions, including the MTDC employee benefit funds, showing the members of and participants which HRH
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directly employed. Kevin Lalezarian, Frank Lalezarian and Lalezarian Developers knew that these reports to the employee benefit funds listed each employee of HRH in the categories covered by those union contracts, and set forth the contribution payment HRH owed each fund for the period covered by the monthly report. 99. Frank Lalezarian, Kevin Lalezarian and Lalezarian Developers further
knew that when HRH served as a Construction Manager on a job, the subcontractors it selected to perform work on the project were required to be signatories to a collective bargaining agreement with the MTDC and would maintain the same or substantially similar obligations as HRH with respect to the reporting and payment of fringe benefit contributions. 100. Prior to March 28, 2010, Brad Singer and other representatives of HRH met with attorneys and representatives of CAGNY to discuss whether it was possible for HRH to engage in Construction Manager activities without violating its obligations under the CAGNY Contract. They were informed that HRH could not function as a Construction Manager without violating the CAGNY Contract but that HRH would not be violating its union contracts if it served only as an Owners Representative on a project. 101. At all material times, Kevin Lalezarian, Frank Lalezarian and Lalezarian Developers wanted to have the expertise and skills of HRH as the
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Construction Manager for the Gold Street and 37th Street Projects. Kevin Lalezarian, Frank Lalezarian and Lalezarian Developers insisted in its negotiations that HRH serve as the Construction Manager for both the Gold Street and 37th Street Projects and that HRH assign the same team of personnel to these projects that had worked on the 21st Street Project. 102. On August 2, 2007, Brad Singer and Susan Singer caused Leviathan to be formed as a New York State limited liability corporation. Susan Singer was the sole member of Leviathan and served as its president. Susan Singer had no experience in the construction industry at the time Leviathan was created and still has no experience in the construction industry. She was made the only member of Leviathan solely to cloak the real ownership of Leviathan by the Singer Criminal Enterprise. 103. On August 12, 2008, Susan Singer and Brad Singer caused to be created in New York State a limited liability corporation, Avery Maya, named after their grandchild. Avery Maya was formed by Diane Harris who is Susan Singers mother, using her home address of No. 5T, 555 Kappock Street, Riverdale, NY 10463. After its creation, Susan Singer transferred 99.5% of the ownership of Leviathan to Avery Maya and retained only .05% for herself. Susan Singer is the sole member of Avery Maya. The Singers used Susan Singers mother to create
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Avery Maya to make it more difficult to trace the ownership of Leviathan back to the Singer Criminal Enterprise. 104. The Singer Criminal Enterprise has a penchant for naming its entities based on classical sources, such as Remus, Romulus and Hades. The selection of the name Leviathan (the name of 17th Century English Philosopher Thomas Hobbes seminal treatise) further demonstrates the coordinated and interrelated nature of these entities. 105. Leviathan was utilized by the Singer Criminal Enterprise as a front for HRH services as a Construction Manager on three Projects: 37th Street; Gold Street; and Kent Avenue. The Lalezarians Knew That The Monies Paid To Leviathan Were Being Transferred To The Singer Criminal Enterprise And That These Payments Were In Exchange For The Lower Construction Costs That HRH Agreed To Provide For The Two Projects 106. Upon information and belief, from May 1, 2007 through March 31, 2011, Lalezarian Developers paid to Leviathan more than [ REDACTED]for work performed by HRH employees. The Singer Criminal Enterprise paid itself [ REDACTED]from the Lalezarian payments to Leviathan. Frank Lalezarian, Kevin Lalezarian and Lalezarian Developers knew that the money it paid to Leviathan was being diverted to the Singer Criminal Enterprise. Frank Lalezarian, Kevin Lalezarian and Lalezarian Developers understood that their payments to Leviathan
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were in exchange for the lower construction costs for the 37th Street and Gold Street Projects. 107. On March 28, 2007, after the March 6, 2007 MTA award, HRH prepared a Memorandum of Understanding with Brooklyn Gold and Brooklyn Tillary (owned by the Lalezarians) that reduced HRHs role to that of Owners Representative and proposed diverting a fee of 1.5% of the construction costs to an unnamed Construction Manager which Brad Singer and Cuneo explained to Kevin Lalezarian, Frank Lalezarian and Lalezarian Developers would be a disguised continuance of HRH. 108. On or about March 28, 2007, Brad Singer and Cuneo reached an agreement with the Lalezarians to enter into a phony Construction Manager agreement for the Gold Street and 37th Street Projects with an entity to be created later and agreed that the Lalezarians would divert to that entity money and fees that were actually being earned by HRH. A phony agreement designating HRH as the Owners Representative would also be made, but the specific understanding and agreement between Brad Singer, Cuneo, HRH, Kevin Lalezarian, Frank Lalezarian and Lalezarian Developers was that HRH would, in fact, function as the Construction Manager for both the Gold Street and 37th Street Projects. 109. Kevin Lalezarian, Frank Lalezarian and Lalezarian Developers also knew that the individuals hired to be laborers on the Gold Street and 37th Street
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Projects would be paid only $12 an hour without any health insurance or retirement benefits. Kevin Lalezarian, Frank Lalezarian and Lalezarian Developers knew that laborers employed under the MTDC CAGNY Contract received a package of substantially higher wages plus benefits. For every hour worked by laborers on the Gold Street and 37th Street Projects, Kevin Lalezarian, Frank Lalezarian and Lalezarian Developers knew they would save a substantial amount of money as a result of the agreement to create a phony entity pretending to be the Construction Manager on the Lalezarian projects. 110. There were thousands of hours of laborer work on the 37th Street Project. 111. On June 4, 2007, in furtherance of the conspiracy to defraud the MTDC and their employee benefit funds, and in furtherance of the conspiracy to divert money from HRH to an as yet unnamed titular Construction Manager, Brad Singer caused HRH to send by U.S. mail a letter to Kevin Lalezarian at Lalezarian Developers regarding the Gold Street Project that thanked the Lalezarians for the opportunity to serve as the Owners representative on the above referenced project and provided a listing of the hourly rates for the personnel that would serve on the project. The listing included all of the functions and personnel that a Construction Manager would utilize on such a project and included a reference to HRH employees Alex Papadopoulos (Papadopolous) as Project Manager and
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Anthony Rafaniello, Jr. (Rafaniello) as Superintendent, both of whom played similar roles as the HRH representatives on the 21st Street Project. 112. The construction management work for the 37th Street and Gold Street Projects began in and around May, 2007 and it was performed by employees of HRH and continued to be performed by employees of HRH throughout the length of those Projects. 113. A Construction Management Agreement was executed on or about [ REDACTED]between Brooklyn Gold and Brooklyn Tillary and Leviathan (the Gold Street CM Agreement) [ REDACTED]. This agreement was in fact negotiated by HRH prior to the creation of Leviathan, as the document bears a date months before Leviathan was created. 114. The Gold Street CM agreement provides that Leviathan is to perform a series of tasks that were in fact performed by HRH and its employees. [ REDACTED] During the entire period from May 1, 2007 and October 17, 2007, HRH did all of the construction management work on the Gold Street Project and for the period of time after October 17, 2007 did virtually all of the construction management work. 115. The Gold Street CM agreement required the designation of Leviathan employees to perform the work of Construction Manager for the Gold Street Project. The two persons designated at paragraph 3.3 of the Gold Street CM
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Agreement as employees of Leviathan include [ REDACTED]as Project Manager and [ REDACTED] as Project Superintendent. These are the same individuals designated as HRH employees in those positions in the letter of June 4, 2007. 116. HRH was not compensated by Leviathan for the work it performed as Construction Manager for the Gold Street Project for the period from May 1, 2007 through October 17, 2007 or the work it performed after October 17, 2007. 117. The Singer Defendants and others received fees from Kevin Lalezarian, Frank Lalezarian or Lalezarian Developers directly or through their development companies including Brooklyn Gold and Brooklyn Tillary for the construction management work that HRH did in connection with the Gold Street Project for the period from May 1, 2007 through August 2, 2007 and thereafter that they used to create and maintain Leviathan. 118. Kevin Lalezarian and Lalezarian Developers were intimately involved in the scheme to establish Leviathan as a phony alter ego of HRH. On January 14, 2008 at 12:35 a.m., Kevin Lalezarian received an email from a website developer named Ronald J. Asche advising The www.leviathanconstruction.com home page is live. Please take a look and feel free to comment Thanks in advance for you [sic] critique. Lalezarian Developers would have no legitimate business justification for overseeing the establishment of the website of its Construction Manager unless it was interested in ensuring that HRH/Leviathan was following
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through on the promise to create the illusion that Leviathan was in fact an independent entity and not a division of HRH. Finkelstein and Susan Singer also received this email. 119. Frank Lalezarian, Kevin Lalezarian and Lalezarian Developers agreed with Brad Singer, Susan Singer and Finkelstein [ REDACTED] that Leviathan would pretend to perform Construction Manager services for the 37th Street Project, that HRH would not report to MTDC the hours Leviathan employees worked on the 37th Street Project or contribute to the MTDC Funds in accordance with those hours and that subcontractors HRH selected to perform work on the job would similarly not report or make contributions to the MTDC Funds for hours worked by their employees within the scope of MTDC collective bargaining agreements. 120. Frank Lalezarian, Kevin Lalezarian, Lalezarian Developers, Brad Singer, Susan Singer, Finkelstein and Cuneo caused HRH to send false and fraudulent reports by U.S. mail to the MTDC Funds at 520 Eighth Avenue, New York, NY each month for the period May, 2007 through March, 2011. The false statements reflected HRHs failure to truthfully report and pay for the hours worked by employees in laborer classifications on the 37th Street Project, and similarly caused subcontractors working on the job not to submit such reports and
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payments despite HRHs obligations under the CAGNY labor agreements to require subcontractors to do so. 121. Frank Lalezarian, Kevin Lalezarian and Lalezarian Developers agreed with Brad Singer, Susan Singer, and Finkelstein on and before December 10, 2007 (when the contract was entered into between Leviathan and Brooklyn Gold and Brooklyn Tillary), that Leviathan would pretend to perform Construction Manager services for the Gold Street Project, that HRH would not report to MTDC the hours Leviathan employees worked on the projects or contribute to the MTDC Funds in accordance with those hours and that subcontractors selected by HRH would similarly not be submitting any such reports or contributions. 122. Frank Lalezarian, Kevin Lalezarian, Lalezarian Developers, Brad Singer, Susan Singer, Finkelstein and Cuneo caused HRH to send false and fraudulent reports by U.S. mail to the MTDC Funds at 520 Eighth Avenue, New York, NY each month for the period May, 2007 through March, 2011. The false statements reflected HRHs failure to truthfully report and pay for the hours worked by employees in laborer classifications on the Gold Street Project and the failure of subcontractors to do the same. 123. In furtherance of this scheme to defraud Plaintiffs, Kevin Lalezarian and Lalezarian Developers utilized wire transfers of money and wire messages, showing their participation in the creation of Leviathan as a false front for the work
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of HRH including the following emails that show Lalezarian Developers assisting in the creation of Leviathan and using HRH to act as the actual construction manager: (a) On September 27, 2007 at 4:20 p.m., David Sani (Sani), an
employee and agent of Lalezarian Developers sent an email to Getler and others, including Kevin Lalezarian, advising them that Lalezarian Developers had obtained Revised Certificates for Leviathan Construction Management Services LLC for the Gold Street and 37th Street Projects. (b) On October 3, 2007 at 3:38 p.m. and later at 6:47 p.m., Kevin
Lalezarian received by email and sent by email copies of the Certificate of Liability Insurance (DOB & DOT) and Certification by Broker forms for Leviathan. (c) On October 11, 2007 at 12:19 p.m., Kevin Lalezarian sent an
email to Lou Esposito (Esposito), an officer of HRH charged with negotiating the subcontracts for both the 37th Street and Gold Street Projects, stating: Lou, we are ready to send out plans to go out to bid, can you pls send contact info for the window installer you had in mind to me and alex thanks. On October 11, 2007 at 5:05 p.m., Esposito sent Kevin Lalezarian a copy of an email Esposito sent to Papadopoulos instructing him to send drawings and specs to a particular window installing company.
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(d)
On October 15, 2007, a problem developed regarding access to
street space during the construction of the Gold Street Project which would typically be dealt with by a Construction Manager on a project. Kevin Lalezarian sent and received emails on that day in which it was agreed that HRH (not Leviathan, the titular Construction Manager) had to resolve this problem. 124. After October 1, 2007, Brad Singer, in an effort to cloak his wifes ownership of Leviathan, requested that Finkelstein become an officer of Leviathan. Finkelstein was a social friend of the Singer family. At that time, Finkelstein was an out of work insurance company executive who had no experience or expertise in the construction industry apart from insurance related matters. Finkelstein has played no substantive role in Leviathan apart from consultations regarding insurance policies and allowing his name to be utilized as an officer of Leviathan in connection with the construction management agreements for the 37th Street and Kent Avenue Projects to conceal from the MTDC and the Bankruptcy Court the Singer ownership and control of Leviathan. 125. A Construction Management Agreement was executed between Tower 37 and Leviathan (the 37th Street CM Agreement). The 37th Street CM Agreement was in fact negotiated by HRH prior to the creation of Leviathan.
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126. The 37th Street CM Agreement required Leviathan to perform a series of tasks that were in fact performed by HRH and its employees. Leviathan had [ REDACTED]employees from October 17, 2007 until April 17, 2008 and only [ REDACTED] employees through June 2008. During the entire period from October 17, 2007 through the completion of this project, HRH did virtually all of the construction management work on the project. 127. The 37th Street CM Agreement required the designation of Leviathan employees to perform the work of Construction Manager for the 37th Street Project. The two persons designated at paragraph 3.3 of the 37th Street CM Agreement as employees of Leviathan are [ REDACTED]as Project Manager and [ REDACTED] as Project Superintendent. Both individuals were known by Kevin Lalezarian and Frank Lalezarian to be employees of HRH since they had worked with them as HRH employees on their 21st Street Project. 128. Leviathan received fees from Kevin Lalezarian, Frank Lalezarian or Lalezarian Developers directly or through their development companies, including Tower 37, for the construction management work that HRH did in connection with the 37th Street Project. These fees were sent to Leviathan by Kevin Lalezarian, Frank Lalezarian, Tower 37, or Lalezarian Developers by mail and/or wire with the express purpose of defrauding MTDC and its members of the wages and benefits
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due them under the HRH CAGNY Contract if HRH had been acknowledged as the Construction Manager for the 37th Street Project. 129. Kevin Lalezarian and Lalezarian Developers received and sent hundreds of emails in 2007, 2008 and 2009 to various parties, demonstrating that HRH was in fact performing the work of Construction Manager at both the Gold Street and 37th Street Projects, including: (a) On November 20, 2007 at 7:02 a.m., HRH employee Esposito
sent an email to Papadopoulos with a copy to Kevin Lalezarian instructing Papadopoulos to send drawings and specs to a particular plumbing, heating and sprinkler contractor for work on the 37th Street and Gold Street Projects. (b) On November 20, 2007 at 10:10 a.m., HRH employee Esposito
sent an email to various parties including Kevin Lalezarian instructing Papadopoulos to e-mail me the printers listing of the most current drawings and specifications. Once I receive the same I will prepare bid lists (with Kevins input) and a buyout schedule. Leviathan was not involved in the preparation of these bid lists. (c) On October 23, 2007 at 4:14 p.m., Joe Armocida (Armocida),
then a long-time HRH employee, advised Kevin Lalezarian that he had just spoke[n] to a vendor and he agreed to the reduced unit prices we discussed
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this morning, including no travel charge. Leviathan was not involved in reaching terms with this vendor. (d) On November 30, 2007 at 5:29 p.m., a Lalezarian Developers
employee named Andre Camacho sent an email to HRH employee Armocida stating, attached please find Hercules Concrete Corps foundation proposal as agreed to by us and Hercules for Brooklyn Tillary. Please proceed with creating a formal contract including the following stipulations: 6 week time schedule, minimum of 12 men working on site at all times. Feel free to contact me should you have any questions or concerns. Leviathan played no role in this subcontract. (e) After October 17, 2007, Leviathan had a single employee,
Papadopoulos, and when he was not present on the construction sites, Lalezarian Developers arranged for HRH representatives to perform his work. On December 27, 2007 at 15:06 (or 3:06 p.m.), Lalezarian Developers, by Kevin Lalezarian, sent an email to HRH employee Armocida asking him With Alex out this week, is anyone checking up on site at 350 W37? Kevin Lalezarian received a return email from HRH employee Armocida on December 27, 2007 at 3:44 p.m. advising that I have been by the site each day and met with Genaro today. Armocida and Kevin Lalezarian exchanged further emails that day arranging for a meeting to be
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held at noon at the Gold Street Project on the following Wednesday with the new Superintendent and Project Manager. Leviathan was not involved in these meetings. (f) March 3, 2008, Getler of HRH sent an email to Kevin
Lalezarian which said: Kevin: here is the contract for US Reinforced. They have the contract and have already sent us comments to it. I will review their comments to the boiler plate and Lou [Esposito of HRH] is reviewing the rider comments. There is no suggestion that Leviathan was playing any role whatsoever in the selection or administration of contracts with subcontractors on the 37th Street Project. (g) On March 6, 2008 at 11:28 a.m., a subcontractor emailed Kevin
Lalezarian advising him that he wanted a meeting with HRH and Lalezarian to discuss in detail the scope of work for the projects. A day earlier, the same subcontractor had emailed Lalezarian to report, we have submitted pricing to HRH for the projects. Leviathan was not involved in this subcontract. (h) Kevin Lalezarian and other Lalezarian Developer
representatives and HRH representatives including Esposito received or sent emails regarding the selection of subcontractors for the 37th Street and Gold Street Projects without reference to any role by Leviathan in this process on:
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February 1, 2008 at 10:25 a.m.; March 10, 2008 at 10:51 a.m.; March 17, 2008 at 10:29 a.m.; March 18, 2008 at 3:39 p.m.; March 18, 2008 at 4:03 p.m.; March 19, 2008 at 10:53 a.m.; March 19, 2008 at 11:13 a.m.; March 20, 2008 at 10:27 a.m.; and March 21, 2008 at 11:49 a.m. 130. Lalezarian Developers utilized hundreds of emails in furtherance of their fraudulent scheme with the Singer Criminal Enterprise to coordinate and review the payments to both Leviathan and HRH, including: (a) On February 27, 2008 Lalezarian Developers caused a wire
transfer of $50,000 to be sent to a bank account maintained by Leviathan based on the work performed for the 37th Street and Gold Street Projects by HRH. (b) On February 27, 2008 at 4:39 pm, Getler, the General Counsel
for HRH, sent an email to HRH executives Brad Singer, Armocida, Frank Ross, Jr. (Ross) and to Lalezarian Developers employees and representatives Kevin Lalezarian, Ahn and Sani stating: Kevin, thank you. Leviathan received the wire. I appreciate your attention to this matter. (c) On March 18, 2008 at 10:35 am, Getler, General Counsel for
HRH, sent an email to various Lalezarian Developers employees including Kevin Lalezarian and Sani stating that I understand that Kevin has
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authorized a wire to Leviathan today . Kevin, if you could have someone let us know the confirmation number, I would appreciate it. (d) On March 19, 2008 at 11:03 a.m., Getler of HRH sent an email
marked re Leviathan wire to Kevin Lalezarian asking what about the rest? after being advised by an earlier email from Lalezarian Developers that a wire transfer of $50,000 had been made to Leviathan for Tower 37. (e) On March 20, 2008 at 3:51 p.m., Kevin Lalezarian and
Lalezarian Developers sent to Getler and other parties an email advising that we are reviewing the Leviathan reqs/back up. However we dont have any hrh reqs/backup for either project. Would you please send us. Getler replied by email to Kevin Lalezarian on March 20, 2008 at 15:57 p.m., or six minutes later, saying Because HRH is Owners Rep, we do not requisition our time/costs. We have sent you invoices. (f) On March 20, 2008 at 21:47 p.m., HRH employee Armocida
sent an email to various parties including Getler and Kevin Lalezarian advising that when your [sic] received the first Leviathan requisitions the HRH requisitions were in the same envelope. Kevin Lalezarian replied to Armocida on March 21, 2008 at 8:12 a.m.: Youre right. We have hrh1. thanks.
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(g)
Getler, the General Counsel of HRH, served as the
representative of Leviathan in fee negotiations with Lalezarian Developers and Kevin Lalezarian. On April 22, 2008 at 10:23 a.m., she sent an email to Kevin Lalezarian advising him: If Leviathan does not receive a wire today, it cannot make payroll tomorrow. If you want Leviathan to continue on this project after tomorrow, the wire must hit today. Please advise so I can tell the desperate accounting firm that makes out the payroll checks what to do. I must hear from you today. On April 22, 2008 at 3:32 p.m., Getler advised Lalezarian Developers employee Ahn, and Brad Singer: Leviathan received its wire. Thank you (h) On April 17, 2008 at 1:52 p.m., Getler advised Lalezarian
Developers employee Ahn that Leviathan had two employees and was adding one more on the following Monday. On April 29, 2008 at 5:50 p.m. Ahn sent an email to Getler with a copy to Kevin Lalezarian, stating, Hi Janine, please send me a schedule of other base salaries for all Leviathan and HRH employees on both sites (basically everybody that was on the bills) and listing 11 employees that were all on the HRH payroll. (i) On May 1, 2008 at 15:30, Ahn sent to various parties including
Getler, Brad Singer, Kevin Lalezarian and Ross (an HRH executive), marked up requisitions for both Leviathan and HRH for both the 37th Street and Gold Street Projects. On May 1, 2008 at 3:41 p.m., 11 minutes later,
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Getler responded with an email to Ahn, copied to Brad Singer and Kevin Lalezarian, stating that: The 50% [salary reimbursement calculation] should only be 37th street not gold street. We do not have a fee on gold street and all employees are billable 100%. Please restore Joes time. Further franks time is billable on gold street. The we to which Getler refers is HRH/Leviathan and the 100% reimbursement of time refers to the fraudulent agreement to reimburse Leviathan 100% of the costs for time spent by HRH on the Gold Street Project. (j) On May 1, 2008 at 3:42 p.m., Ahn emailed Kevin Lalezarian
asking him if the scheme proposed by Getler was correct. On May 1, 2008 at 18:43, three hours and one minute later, Ahn sent an email to Getler, Brad Singer and Kevin Lalezarian stating: Hi Janine, you are correct In this email she proposed to pay $256,816 to fully pay HRH Precon 1 and 2 and requisitions 1 and 2 after the receipt of certain confirmations regarding the agreement of HRH employee Ross to attend all weekly meetings for both the Gold Street and the 37th Street Projects. (k) On May 2, 2008 at 10:57 a.m., Ahn sent an email to Getler,
Brad Singer and Kevin Lalezarian stating per our conversation Ive moved all payments made to Leviathan against the Tower 37 preconstruction invoices 1 and 2 and the requisitions. Total paid to date is
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$402,186.13. To clarify, you want no payments to HRH Construction for either project right now. You would like the payments made to Leviathan: $146,327.40 for Tower 37 and $102,833 for Gold Street. Total is $249,160.40. I will confirm the above is OK with Kevin once he gets in the office. (l) Lalezarian Developers and Kevin Lalezarian sent emails as part
of a scheme to initially put the name of the construction permit for the 37th Street Project in the name of Genrus Corp. instead of HRH to allow construction to go forward. Lalezarian Developers and Kevin Lalezarian needed to use the name of Genrus Corp. because they knew that Leviathan did not yet have the necessary New York City municipal tracking numbers to obtain a permit in its own name. Kevin Lalezarian asked Papadopoulos what the charges and fees would be for obtaining a second permit by Leviathan to replace the permit taken out in the name of Genrus Corp. because he knew that while Genrus Corp. was being identified as the permit holder for the 37th Street Project, HRH would be the Construction Manager in fact, and the permits would be taken out in the name of Leviathan. On September 7, 2007 at 10:30 a.m., Papadopoulos, then an employee of HRH, advised Kevin Lalezarian that the costs for new permits would be $1400 or we keep the permits in place until the foundation is filled, at which time we
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will need new permits anyway. On September 7, 2007 at 1:40 pm, Kevin Lalezarian sent Papadopoulos the following instruction by email: lets get permit asap. Kent Avenue Project 131. [ REDACTED], but he had no role in negotiating or in subsequently performing this agreement. Cuneo, as Chairman of the Board of HRH, and Brad Singer as President of HRH, negotiated every aspect of this agreement including the compensation to be paid to Leviathan for the work of HRH. 132. Kent Fee considered contracting with a non-union firm known as PavLak as its Construction Manager in July, 2008. On July 17, 2008, Kent Fee and JMH the owner and developer of the property involved in the Kent Avenue Project created a Comparison between Leviathan vs. Pav-Lak to analyze the relative advantages and disadvantages of entering into a construction manager contract with either firm (the Comparison). The Comparison demonstrates that HRH was intended to be the actual Construction Manager if Leviathan was selected. Comments in the July 17, 2008 document under a column titled Leviathan (HRH) state: (a) Parent company HRH performed a detailed review of all
bought trades[.] This statement is an acknowledgment of the HRH control over Leviathan.
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(b)
All personnel proposed for the project are existing HRH
Executives[.] (Emphasis added.) (c) Our understanding is that a $3.5 million fee has been
negotiated [for construction management services]. This proposed figure was subsequently divided between HRH and Leviathan with the latter receiving a much greater share, in part to divert payments to the Singer Family. (d) date[.] (e) Strong parent company with extensive experience in new Leviathan is a 1-year old entity with no finished projects to
residential construction[.] (f) A handwritten note about Leviathans Financial Strength
indicates that the decision makers at Kent Fee were still waiting for HRH financials. 133. The observations above demonstrate that Kent Fee was keenly aware of the relationship between HRH and Leviathan and that HRHs experience and expertise were the true advantages to choosing Leviathan to perform construction management services. 134. Moreover, Kent Fee was seeking a Construction Manager Agreement that utilized a Guaranteed Maximum Price (GMP). GMPs are determined by the
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Construction Managers. For the Kent Avenue Project, it was HRH and not Leviathan that established the GMP. A legal opinion mailed or faxed to Jason Halpern (Halpern) the founder and Managing Partner of JMH on July 18, 2008 from the firm of Rivelis, Pawa & Blum LLP anticipated that the proposed GMPs from Pav-Lak and HRH should be in hand early next week and asked, Have change orders been requested, or agreed to with the trades and have PavLak and HRH been so advised to include in their GMP proposal? 135. The Leviathan Draft Construction sheets, dated July 16, 2008, were in fact prepared on that date by HRH. The September and October Monthly Progress Reports for the Kent Avenue Project each featured an Executive Summary that was authored by HRH/Leviathan. Also, among the topics for discussion listed in a February 4, 2009 agenda about HRH/JMH Internal matters is HRH/LCMS org chart/staffing. The same agenda includes a list of HRH-Critical Construction Issues to be addressed at the meeting such as Two/shower body installation and light fixture approvals. 136. The Kent Avenue Project personnel consistently refer to Leviathan, when they refer to it at all, as HRH/Lev or HRH/L, including in: (a) February 6, 2009 and January 25, 2009 memoranda to Halpern
from Jay M. Jameson which include a request for a dedicated P[roject] M[anager] from HRH/Lev to be responsible (and solely responsible) for
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steel, and lightweight overbuild steel with all the bodies on that site managing this job that should not be a problem. (b) A JMH Key Task and Open Issues List, which indicates,
Work with HRH/L to insure we have all required inspections and sign off required under J-51 program. (c) The same document above makes numerous references to
HRH/LEV in connection with a series of Construction Items that include tasks to be performed by subcontractorsoversight of which is typically the Construction Managers responsibility. (d) Other key tasks listed in the above document in which HRH
was to take part include: Compare GC#s with internal subs and produce spreadsheet (a JMH/HRH task), and a construction schedule review (to be performed by HRH/LEV). 137. On October 31, 2008, HRH mailed an Application and Certification for Payment to Kent Fee noting that it was for Construction Management Services. The document identifies the HRH CM FEE as $1,000,000. There is no reference to an Owners Representative fee. 138. Prior to the contract with HRH/Leviathan, the Construction Manager for the Kent Avenue Project was an entity known as MaxCon that was owned or controlled by JMH or Halpern. On September 10, 2008, a document entitled Our
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Organization Contact List was created for the Kent Avenue Project. The document identifies 17 HRH employees as involved in the Project and only six individuals ostensibly from Leviathan working on the Project. The HRH employees included: Brian Tierney Jim Egan Kevan McKinney Vincent DOnofrio Jim Muscianesi Lou Esposito Gregory Cuneo Frank Ross Jr. Joe Armocida Joe Chan Jerlyn Serrano Janine Getler Daisy Olivero Donna Mollica Nino A. Noto Cari Deutsch Carlton Grey Technical Services HVAC Interior/Finishes Electrical/Telecom Chief Estimator Purchasing Manager Principal in Charge Project Operations Project Executive Accounting Supervisor Accountant General Counsel Contract Administrator Risk Manager Project Manager Asst. Project Manager Plan Clerk
139. The September 10, 2008 document lists six people as from Leviathan, including Lou Finkelstein, President; Sandy Perrota, General Superintendent; Marcin Jablonski, MEP Superintendent; Ellen Rodriguez; and Sean Carroll. But four of those people are listed with MaxCon email addresses because they were actually employees of MaxCon who were put on the Leviathan payroll in August, 2008 as part of the conspiracy with the Singer Criminal
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Enterprise to cover up the fact that Leviathan was a mere shell that was being paid millions of dollars for work that HRH was actually doing. 140. The inclusion on this list of Finkelstein, who knows nothing about the construction industry and played no meaningful role in the Kent Avenue Project, demonstrates the concerted efforts by these defendants to cloak the use of HRH as the Construction Manager. 141. The HRH Requisition Number 2 to Kent Fee for the period 9/1/08 to 9/30/08, dated October 14, 2008, shows that HRH employees were reimbursed for 792.50 hours of work on the Kent Avenue Project. 142. The Leviathan Requisition Number 3 to Kent Fee for the period 9/1/08 to 9/30/08 shows that Leviathan was reimbursed for 749.55 hours of work on the Kent Avenue Project. The vast majority of those hours were worked by Peter Axtens, Sandy Perrota, and Ellen Rodriguez, who were all employees of MaxCon. That requisition reports that Finkelstein spent 29.5 hours on the 184 Kent Avenue Project for activities such as: Go to HRH to sign documents Go to HRH sign assumption documents Go to HRH sign documents for funding 184 Kent. Review general conditions .50 .50 3.50
Finkelstein, the alleged Officer in Charge of the Project, also reported that he performed clerical tasks such as the following in this period: Developed resume and faxed Scott JMH Dev.
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Fedex employment apps to Montalto CPA Various emails re: Peter Axtons [sic] email. Create email acct. Set up emails [for] new employees Called Amex add new cardholder, increase credit limit Go to Verizon to purchase new Blackberrys in corporate name Fax addtl timesheet, voided check and W4s
.25 .25 .50 1.0 2.50 .25
Finkelsteins invoice for time spent in October, 2008 for Leviathan included 15.25 hours spent in connection with the Kent Avenue Project on matters such as: Purchased blackberry at Verizon[;] Fedexed to Eric Fedexed bills to Montalto CPA Notarized/fedexed Sept. Requisition Resign/fedex Sept req Deleted George C from email Prepared new employee packets Traveled to HRH, signed trade contracts/reqs for subs Verified Staples order Travel/sign trade contracts Notarized Req. #4
1.75 .50 .75 .50 .25 .75 1.25 .25 1.0 .50
Finkelsteins invoice to Leviathan for September 2008 has the same pattern of trivial or clerical duties for 22.5 hours combined for the Gold Street, 37th Street, and Kent Avenue Projects, including: Attempted to purchase Blackberrys [at]Verizon Store Purchased Blackberrys at Verizon and fedexed Complete application, Pearlgreen, fax Complete rebates on 3 Blackberrys, mail Fill out credit appBedford Inustrial
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Verizon store new employee phone Speak with Donna/Verizon re: shutting off phones [at] Gold St. Donna having phone problems[;] made calls to rectify
.75 .50 .25
143. Finkelstein used Federal Express on scores of occasions from 2008 through 2010 to maintain the fiction that he was the Officer in Charge of the Kent Avenue Project, including: (1) to send a certification for payment on August 6, 2008; (2) to send employment applications to Montalto, CPA on August 16, 2008; (3) to send a Blackberry to Eric Faison on October 2, 2008; (4) to send bills to Montalto, CPA on October 10, 2008, and; (5) to send the September Requisition to Kent Fee on October 10 and 15, 2008. 144. On or about August 11, 2008, HRH entered into an Owners Representative Agreement with Kent Fee to serve as the Owners Representative for the construction of the Kent Avenue Project (Kent Fee OR Agreement). Paragraph 1.4 of the Kent Fee OR Agreement specifies that the Construction Manager for the Kent Avenue Project shall be Leviathan. 145. Paragraph 33 of Schedule A to the Kent Fee OR Agreement states that: Owner expressly acknowledges that it has advised Owners Representative that Owner will be performing the work with a non-union Construction Manager and non-union trade contractors, and further acknowledges and agrees that Owners Representative has advised Owner that Owners Representative cannot directly assist
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in any labor event that arises out of or relates to the use of non-union trades or labor. 146. HRH drafted and suggested that language to Kent Fee as part of its fraudulent scheme to cover up the fact that HRH was the actual Construction Manager for the Kent Avenue Project. 147. HRH was selected for the Kent Avenue Project because MaxCon had to be replaced due to difficulties with its performance on the Project. The developers need for an experienced large project Construction Manager benefited HRH, which offered almost 100 years of successful construction performance as an inducement to select it as the actual Construction Manager for the Kent Avenue Project. If HRH had not agreed to surreptitiously serve as Construction Manager and divert income and profits due to it to Leviathan, HRH would have been selected as the Construction Manager on the Kent Avenue Project, utilizing union labor to perform the work on this project. 148. Paragraph 2.7.1 of the Kent Fee CM Agreement states that the Officer in Charge of the project will be Finkelstein. At the time he became an officer of Leviathan and since that date until the present, Finkelstein has had no experience in the construction industry apart from insurance issues. He would be unable by training and inclination to serve as the Officer in Charge of any construction industry project especially a large one with 338 apartments and a history of
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problems with its Construction Manager. Kent Fee agreed to pretend that Finkelstein as the Officer in Charge of this project only upon the assurance of Cuneo and Brad Singer that Leviathan was a fiction created to enable HRH to divert money from its creditors and to defraud the Plaintiffs and their members of the wages and benefit payments due them under the CAGNY Contracts. 149. Paragraph 5.1 of the Kent Fee CM Agreement states that the Construction Managers fee for performing the work shall be a fixed lump sum of $2,200,000. Article 5.1 of the Kent Fee OR Agreement states that the Owners Representatives fee to HRH shall be a lump sum of $1,000,000. HRH thus diverted to Leviathan at least $2.2 million of the $3.5 million dollar fee that it had negotiated for Construction Manager services as of July 18, 2008. 150. [ REDACTED] Since HRH actually did the Construction Management work for which Leviathan was paid on the Kent Avenue Project, Kent Fee knowingly diverted to Leviathan millions of dollars that should have been paid to HRH for its work on the Kent Avenue Project. 151. Upon information and belief, JMH and Brad Singer exchanged hundreds of emails in connection with the agreement that HRH would do the work of a Construction Manager on the Kent Avenue Project while payment for the work would actually go to Leviathan.
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152. JMH and Kent Fee knew that Leviathan was a fiction and that the Construction Manager work on the Kent Avenue Project would be performed by HRH. On July 11, 2008 at 5:28 p.m., Halpern and Kent Fee caused to be created and then signed a Guaranty of Completion between HRH as Guarantor in favor of Kent Fee as beneficiary/owner. The Guaranty states that Leviathan has entered into a Construction Management Agreement pursuant to which Leviathan is obligated to construct approximately 338 residential units and related amenities pursuant to a Guaranteed Maximum Price and that HRH unconditionally, absolutely and irrevocably guarantees to Owner that the Work [by Leviathan] shall be fully completed under the Contract including price, quality and timeliness of performance. 153. Upon information and belief, Halpern demanded and received this Guaranty because Brad Singer and Cuneo informed him that HRH, and not Leviathan, would be the real Construction Manager on the job. Halpern and Kent Fee knew that the money diverted to Leviathan was then transferred to the Singer Criminal Enterprise. 154. Kent Fee knew that Brad Singer and Susan Singer were diverting Leviathan assets to themselves. Leviathan Requisition #5 for November, 2008 contained an American Express Bill showing that Susan Singer charged Leviathan
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$1521.04 in personal parking and restaurant expenses and $658 for an airline ticket for Brad Singer to fly to Florida on November 6, 2008. 155. HRH did not receive any compensation from Leviathan for entering into this Guaranty of Leviathans performance for the Kent Avenue Project. Bankruptcy Fraud in connection with the Chapter 11 Filing 156. On September 9, 2009, HRH filed a Chapter 11 petition in the Bankruptcy Court for the Southern District of New York. In re HRH Construction LLC, 09-23665 (RDD). The filing fraudulently listed Leviathan as a creditor of the HRH estate and did not include the assets of Leviathan as assets of the HRH estate. The filing fraudulently failed to list an address for Leviathan because the real office of Leviathan was the office of HRH at 50 Main Street, White Plains, NY. 157. On August 31, 2010, almost a year after HRHs Chapter 11 filing, Cuneo and Brad Singer negotiated another Construction Management Agreement for 20 Henry Street, Brooklyn New York in which HRH would be the actual construction manager but Leviathan would be given the title of Construction Manager. Cuneo and Brad Singer diverted over $1million in fees that HRH would have been entitled to from HRH to Leviathan to prevent these fees from becoming part of the HRH Chapter 11 estate.
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Schedules of Assets and Liabilities, Statements of Financial Affairs 158. On October 29, 2009, HRH filed schedules of assets and liabilities (Docket No. 107, the Schedules) and a statement of financial affairs (Docket No. 108, the SOFA). 159. Remus is listed on the Schedules as holding a secured claim against HRH for $10,640,170. 160. The SOFA lists a total of $3,509,689.95 (the SOFA Question 3 Payments) as having been paid by the Debtors to or for the benefit of creditors within 90 days of the Filing Date. 161. Of the SOFA Question 3 Payments, $1,043,700 was paid to Remus Holdings by check no. 360, dated June 8, 2009. 162. On March 30, 2010, Remus filed a secured claim in the amount of $10,189,061.21, plus interest after the Filing Date at the rate of 12% per annum (the Remus Claim). 163. The September 9, 2009 filing failed to identify the millions of dollars in preferential transfers from HRH to Remus and other members of the Singer Criminal Enterprise from March 1, 2007 through September 8, 2009, as described below.
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Transfers from HRH to the Defendants 164. Upon information and belief, between June 17, 2007 and February 17, 2008, HRH paid all or part of Gary Singers credit card bills totaling $183,684.87. 165. Upon information and belief, during calendar year 2007, HRH transferred approximately $1,699,656.95 to Starrett. 166. Upon information and belief, between March 2006 and June 2009, HRH transferred approximately $2,999,590 to the Gary & Karen Singer Childrens Trust. 167. Upon information and belief, between March 1, 2007 and June 30, 2007, HRH transferred approximately $3,119,260 to Remus Holdings. 168. On or about June 8, 2009, which date is within the 90 days preceding the Filing Date, the Debtors transferred the aggregate amount of $1,193,700 to Remus Holdings. 169. Upon information and belief, between March 6 and June 9, 2006, HRH made monthly payments to Remus Holdings, the Gary & Karen Singer Childrens Trust and Starrett totaling approximately $5,000,000. 170. Upon information and belief, from and after February 4, 2009, HRH transferred substantially all funds that came into its possession to Remus.
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171. Upon information and belief, between March and June, 2009, HRH continued to make monthly payments to Remus Holdings, the Gary & Karen Singer Childrens Trust, and Starrett. The Auditors Reports 172. On or about March 3, 2006, Friedman LLP issued an independent auditors report (the 2005 Auditors Report) as of December 31, 2005 and 2004 to the members of HRH and its subsidiaries. 173. The 2005 Auditors Report states that members made $6,100,000 in contributions to HRH and its subsidiaries during 2005. 174. On or about June 24, 2008, Friedman LLP issued an independent auditors report (the 2007 Auditors Report) as of December 31, 2007 to the members of HRH and its subsidiaries. 175. The 2007 Auditors Report lists a $11,900,170 liability as Loans payable related party, net of current maturities. 176. Upon information and belief, the alleged notes were not recorded on HRHs Financial Statements until the 2007 Auditors Report. 177. As set forth in the 2007 Auditors Report, the debt represented by the related party notes rendered HRH insolvent.
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The Reclassifications of Equity to Debt 178. As of December 31, 2006, HRH reclassified $14,801,000 out of equity to represent the note balance owed to the Singer Criminal Enterprise. 179. As of December 31, 2006, the note balance to the Singer Criminal Enterprise was increased to $15,819,430 to reflect accrued interest built into the notes. Other Elements of Bankruptcy Fraud 180. The Chapter 11 monthly financial statements filed by HRH from October, 2009 through February, 2011 fraudulently failed to include the income and assets of Leviathan in the HRH estate. 181. Cuneo testified at his Rule 2004 deposition on January 20, 2011 that the owner of Leviathan was Finkelstein when he knew that the owner of Leviathan was Susan Singer through Avery Maya. FIRST CLAIM FOR RELIEF Violation of 18 U.S.C. 1962(c) 182. Plaintiffs repeat and reallege paragraphs 1 through 181 above as if fully set forth herein. 183. Plaintiffs are each a person as defined in 18 U.S.C. 1961(3) and 1962(c).
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184. Each Defendant is a person as defined in 18 U.S.C. 1961(3) and 1962(c). 185. Plaintiffs assert (1) that the defendants (2) through the commission of two or more acts (3) constituting a pattern (4) of racketeering activity (5) participate in (6) an enterprise (7) the activities of which affect interstate or foreign commerce. 186. As described above in paragraphs 58-71, the Singer Criminal Enterprise consists of an association in fact within the meaning of 18 U.S.C. 1961(4). This association began before 2007, was intended to be permanent and ongoing and continued through April 7, 2011. 187. The purposes of the Singer Criminal Enterprise are to accomplish the fraudulent transfer of assets from HRH to the Singer family, to shield those assets from the claims of the creditors of HRH, including but not limited to the Plaintiffs and to defraud the MTDC ( and other unions including Local 46) of the wages, dues and benefit fund payments due them, their members and their Benefit Funds under the applicable labor agreements. 188. The Singer Criminal Enterprise is headed by Gary Singer who, along with his wife Karen Singer, controls the financial decision making for the Singer Criminal Enterprise. The structure of the Singer Criminal Enterprise includes primary leaders Brad Singer and Cuneo who managed the day to day business of
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HRH, and Susan Singer and Finkelstein. Getler is the attorney and manager for the Singer Criminal Enterprise who decided what monies would be diverted to Leviathan. The Singer Criminal Enterprise also includes various other entities, such as Remus, Remus Holdings, Hades, Gary & Karen Singer Childrens Trust, Brad & Susan Singer Childrens Trust. These entities were created to prevent successful litigants from reaching the Singer Family assets. Gary Singer and Brad Singer caused millions of dollars in HRH assets to be transferred to these entities after the MTA arbitration award in March, 2007. 189. The Singer Criminal Enterprise constitutes a group of persons associated for a common purpose of engaging in a course of conduct over a long period of time encompassing both legitimate and illegitimate enterprises. 190. The Singer Criminal Enterprise has one or more legal advisors who starting in March, 2007, conspired with it to: (1) hide the assets of HRH, (2) create Leviathan to hide the Singers continuing role as Construction Manager, and (3) engage in repeated acts of bankruptcy fraud that are not yet known but are key components of the criminal enterprise. 191. The Singer Criminal Enterprise association in fact also includes Lalezarian Developers, Kevin Lalazarian and Frank Lalazarian, Brooklyn Gold, Brooklyn Tillary, Tower 37, JMH and Kent Fee. The purposes of the Singer Criminal Enterprise include defrauding the MTDC of the wages, dues and benefit
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fund payments due them, their members and the employee benefit funds they sponsor under the CAGNY Contracts and to allow the Developer Defendants to build the 37th Street, Gold Street and Kent Street Projects using the HRH team without having to pay the labor costs required by the CAGNY Contracts. 192. Each of the Developer Defendants played managerial and leadership roles in the activities of the Singer Criminal Enterprise with respect to their project: (1) Lalezarian Developers, Frank Lalezarian and Kevin Lalezarian with regard to the W. 37th Street and Gold Street Projects, and (2) JMH and Kent Fee with regard to the Kent Avenue Project. 193. The actions of each Defendant are connected to one another as part of a common and overlapping scheme to accomplish uniform purposes as set forth above. 194. Since March 6, 2007, and continuing through April 7, 2011, the Singer Criminal Enterprise conducted the affairs of HRH/Leviathan and the Developer Defendants through a continuing pattern of racketeering as that term is defined in 18 U.S.C. 1961(1)(B) and 1961(1)(D) in that the Defendants have engaged in: (1) repeated acts of mail fraud as that term is defined in 18 U.S.C. 1341, (2) wire fraud, as that term is defined in 18 U.S.C. 1343, (3) unlawful payments relating to employee benefit funds under 18 U.S.C. 1954, and (4) offenses involving fraud connected with a case under title 11 under 18 U.S.C.
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152. Mail Fraud 195. On multiple occasions from March 6, 2007 through April 7, 2011, the Singer Criminal Enterprise, having devised or intending to devise a scheme to defraud Plaintiffs and, for the purpose of executing such scheme or artifice or attempting so to do, placed in a post office or authorized depository for mail matter, a letter or envelope to be sent or delivered by the U.S. Postal Service or a commercial interstate courier such as Federal Express, and knowingly caused to be delivered by mail or such carrier according to the direction thereon, communications and monies that were a part of their fraudulent scheme, including: (a) The June 4, 2007, letter to Kevin Lalezarian and Lalezarian
Developers regarding the Gold Street Project that thanked the Lalezarians for the opportunity to serve as the owners representative on the above referenced project, when in fact the Singer Criminal Enterprise had reached an agreement to allow HRH to serve as the Construction Manager of the Gold Street Project while pretending that Leviathan was the Construction Manager. (b) The false monthly statements HRH sent throughout 2008, 2009
and 2010 to the MTDC Funds which failed to report or to pay benefit
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contributions for the laborers that HRHs alter ego (Leviathan) hired to perform work covered by the MTDC CAGNY Contract. (c) The periodic contractor requisition statements that HRH and
Leviathan sent by U.S. mail in connection with the 37th Street and Gold Street Projects to the Lalezarian Developers-owned and controlled entities Tower 37, Brooklyn Gold and Brooklyn Tillary from March 2008 through December 2010 that falsely identified HRH as the Owners Representative and Leviathan as the Construction Manager. (d) The periodic contractor requisition statements that HRH and
Leviathan sent by U.S. mail in connection with the Kent Avenue Project to Kent Fee from October, 2008 through December, 2010 that falsely identified HRH as the Owners Representative and Leviathan as the Construction Manager. (e) On or about August 1, 2007, Susan Singer placed into the U.S.
mail an application to the Internal Revenue Service for an Employer Identification Number (EIN) to allow Leviathan to receive funds that represented assets of HRH. (f) In October, 2007, Susan Singer received a letter in the U.S.
mail from the Internal Revenue Service addressed to her as the sole member of Leviathan which confirmed the Leviathan EIN.
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(g)
On or about August 12, 2008, Susan Singer caused her mother
to place into the U.S. mail a corporate registration for Avery Maya for the purpose of further concealing the common ownership and control between Leviathan and HRH. (h) Finkelstein also placed in the U.S. mail and with Federal
Express, a commercial interstate mail carrier, multiple documents in furtherance of the Singer Criminal Enterprise including requisitions for payment for Leviathan for work done by HRH. Wire Fraud 196. On multiple occasions from March 6, 2007 through April 7, 2011, the Singer Criminal Enterprise placed or caused to be placed in wire transmissions of electronic mail and funds fraudulent statements of various types including: (a) The hundreds of emails, some of which are described in
paragraphs 134, 135, 171 and 178 through 185, by HRH employees and agents sent to Lalezarian Developers, Tower 37, Brooklyn Gold, Brooklyn Tillary, JMH and Kent Fee from March 6, 2007 through April 7, 2011 in which HRH solicited and accepted employment as a Construction Manager for the Projects and in which HRH employees and its agents performed the work of a Construction Manager on the Projects despite the fact that in each
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case HRH had purported to limit its role to that of an Owners Representative. (b) The receipt by Kevin Lalezarian, Sani and Ahn of Lalezarian
Developers, and Getler, Armocida and Brad Singer of HRH of emails from Lucille Murray of Montalto CPA firm advising them that Brad Singer had obtained Workers Compensation insurance coverage for the employees of Leviathan. (c) The fraudulent acceptance of funds by wire to Leviathan from
Lalezarian Developers on or about May 2, 2008 for work performed by HRH on the 37th Street and Gold Street Projects. (d) On or about On January 14, 2008 at 12:35 a.m., Susan Singer
received an email from Ronald J. Asche advising that The www.leviathanconstruction.com home page is live. Please take a look and feel free to comment Thanks in advance for you [sic] critique! The email was also addressed to Lalezarian Developers. Susan Singer knew that Lalezarian Developers would have no legitimate business justification for overseeing the establishment of the website of its construction manager unless it was interested in ensuring that HRH/Leviathan was following through on their promise to create the illusion that Leviathan was in fact an independent entity, not a division of HRH.
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(e)
On or about May 1, 2008 and May 2, 2008, Getler sent multiple
wire messages by email to various members of the Singer Criminal Enterprise directing that monies earned by HRH be wired to Leviathan. Unlawful Payments Relating to Employee Benefit Funds 197. HRH is an employer any of whose employees are covered by an employee benefit plan within the meaning of 18 U.S.C. 1954 and Brad Singer and Cuneo solicited and received fees and other things of value from other persons, including the Developer Defendants, because of and with the intent of being influenced with respect to their actions, decisions and other duties relating to the MTDC Funds, including: (1) the decisions on whether to truthfully report to said Funds the employees employed by HRH in positions covered by their respective collective bargaining agreements through its alter ego and disguised continuance Leviathan and, (2) whether to make contributions to said Funds based on the work performed by said employees. Bankruptcy Fraud 198. On September 9, 2009, HRH, Gary Singer, Karen Singer, Brad Singer, Susan Singer, Cuneo and Finkelstein knowingly and fraudulently concealed from creditors and the United States Trustee, property belonging to the estate of HRH by filing a materially false Chapter 11 petition that falsely identified Remus Holdings as a secured creditor of HRH, failed to identify the assets of
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Leviathan as assets of the HRH estate, and failed to list an address for Leviathan because in fact Leviathan was using the offices of HRH as its office. 199. On various dates each month from November, 2008 through February, 2011, HRH, Gary Singer, Karen Singer, Brad Singer, Susan Singer, Cuneo and Finkelstein knowingly and fraudulently filed false statements of account in relation to the HRH Chapter 11 filing, as these statements failed to include the income and assets of Leviathan. 200. On January 20, 2011, Cuneo falsely testified under penalties of perjury when he testified that he believed that Finkelstein owned Leviathan when he knew that the Singer Family owned Leviathan. 201. On March 30, 2010, Gary Singer and Remus knowingly and fraudulently presented a false claim for proof against the estate of HRH by alleging that Remus was a secured creditor of HRH. 202. On various dates from September 9, 2009 through February, 2011, HRH, Gary Singer, Karen Singer, Brad Singer, Susan Singer, Cuneo and Finkelstein knowingly and fraudulently received a material amount of property from HRH after the filing of the HRH petition under title 11, with intent to defeat the provisions of title 11.
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SECOND CLAIM FOR RELIEF Violation of 18 U.S.C. 1962(d) 203. Plaintiffs repeat and reallege paragraphs 1 through 202 above as if fully set forth herein. 204. Plaintiffs are each a person as defined in 18 U.S.C. 1961(3) and 1962(c). 205. Each Defendant is a person as defined in 18 U.S.C. 1961(3) and 1962(c). 206. Each Defendant is associated with the Singer Criminal Enterprise and conspired within the meaning of 18 U.S.C. 1962(d) to violate 18 U.S.C. 1962(c). Defendants agreed to and intended to participate in the affairs of the Singer Criminal Enterprise through a pattern of racketeering activity by furthering or facilitating an endeavor of the Singer Criminal Enterprise that, when completed, would satisfy all of the elements of various criminal offenses, to wit, multiple and repeated acts of mail and wire fraud in violation of 18 U.S.C. 1341 and 1343, and multiple and repeated acts of unlawful payments relating to employee benefit funds under 18 U.S.C. 1954. 207. With knowledge that the Singer Criminal Enterprise was engaging in multiple and repeated acts of mail and wire fraud in violation of 18 U.S.C. 1341 and 1343, and multiple and repeated acts of unlawful payments relating to
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employee benefit funds under 18 U.S.C. 1954, each of the Defendants agreed to participate in and facilitate acts of other associates in the Singer Criminal Enterprise, such as Leviathan, that were necessary to further the fraudulent schemes set forth above. 208. Plaintiffs have suffered injury to their business and property within the meaning of 18 U.S.C. 1964(c) by reason of Defendants violation of 18 U.S.C. 1962(d) in an amount to be determined at trial but believed to be in excess of $7 million. THIRD CLAIM FOR RELIEF GAINST ALL DEFENDANTS EXCEPT FOR LEVIATHAN Violation of 18 U.S.C. 1962(c) 209. Plaintiffs repeat and reallege paragraphs 1 through 208 above as if fully set forth herein. 210. Plaintiffs are each a person as defined in 18 U.S.C. 1961(3) and 1962(c). 211. Each Defendant is a person as defined in 18 U.S.C. 1961(3) and 1962(c). 212. Plaintiffs assert (1) that the defendants (2) through the commission of two or more acts (3) constituting a pattern (4) of racketeering activity (5) participate in (6) an enterprise, the HRH/Leviathan Criminal Enterprise, (7) the
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activities of which affect interstate or foreign commerce in violation of 18 U.S.C. 1962 (c). 213. The HRH/Leviathan Criminal Enterprise consists of HRH and Leviathan, two limited liability corporations with substantially common ownership and control that each separately and together constitute an enterprise within the meaning of 18 U.S.C. 1961(4). Each of the Defendants agreed to participate in the affairs of the HRH/Leviathan Criminal Enterprise through a pattern of racketeering activity within the meaning of 18 U.S.C. 1961(1) and (5) as alleged above. The HRH/Leviathan Criminal Enterprise is separate from the pattern of racketeering activity which the Defendants agreed to commit and did commit. 214. The purposes of the HRH/Leviathan Criminal Enterprise are: (1) to accomplish the fraudulent transfer of assets from HRH to the Singer family, (2) to shield those assets from the claims of the creditors of HRH, including but not limited to the Plaintiffs, and (3) to defraud the MTDC of the wages, dues, and benefit fund payments due it, its members and the MTDC Benefit Funds under the CAGNY Contracts. 215. The HRH/Leviathan Criminal Enterprise is headed by: (1) Gary Singer, through his ownership interests in and control over the entities that own and control HRH, including HRH Series A, HRH Class A, HRH Management and Gemini, and (2) Brad Singer and Greg Cuneo through their position as officers of
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HRH in effective control over Leviathan. The leadership structure of the HRH/Leviathan Enterprise includes Susan Singer, the owner of Leviathan, Finkelstein, the Vice President of Leviathan and Getler as the attorney for the HRH/Leviathan Enterprise. The HRH/Leviathan Enterprise constitutes a group of persons associated together for a common purpose of engaging in a course of conduct over a long period of time encompassing both legitimate and illegitimate enterprises. 216. The HRH/Leviathan Criminal Enterprise has one or more legal advisors who, starting in March, 2007, conspired with it to hide the assets of HRH, create Leviathan to hide the Singers continuing role as Construction Manager and engage in repeated acts of bankruptcy fraud that are not yet known but are key components of the criminal enterprise. 217. The HRH/Leviathan Criminal Enterprise also includes Lalezarian Developers, Kevin Lalezarian and Frank Lalezarian, Brooklyn Gold, Brooklyn Tillary, Tower 37, JMH and Kent Fee, who directed the affairs of the Enterprise. 218. The purposes of the HRH/Leviathan Criminal Enterprise include defrauding the MTDC of the wages, dues and benefit fund payments due it, its members and the employee benefit funds it sponsors under the CAGNY Contracts and to allow the Developer Defendants to build the 37th Street, Gold Street, and
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184 Kent Projects without having to pay the labor costs required by the CAGNY Contracts. 219. The actions of each Defendant (except Leviathan) are connected to one another as part of a common and overlapping scheme to accomplish uniform purposes as set forth above. 220. Since March 6, 2007, and continuing through April 7, 2011, the HRH/Leviathan Criminal Enterprise conducted the affairs of HRH and Leviathan through a continuing pattern of racketeering as that term is defined in 18 U.S.C. 1961(1)(B) and 1961(1)(D) in that the Defendants have engaged in repeated acts of mail fraud, as that term is defined in 18 U.S.C. 1341, wire fraud, as that term is defined in 18 U.S.C. 1343, unlawful payments relating to employee benefit funds under 18 U.S.C. 1954, and offenses involving fraud connected with a case under title 11 under 18 U.S.C. 152. 221. Plaintiffs have suffered injury to their businesses and property within the meaning of 18 U.S.C. 1964(c) by reason of Defendants violation of 18 U.S.C. 1962(d) in an amount to be determined at trial but believed to be in excess of $7 million.
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FOURTH CLAIM FOR RELIEF AGAINST ALL DEFENDANTS EXCEPT FOR LEVIATHAN Violation of 18 U.S.C. 1962(d) 222. Plaintiffs repeat and reallege paragraphs 1 through 221 above as if fully set forth herein. 223. Plaintiffs are each a person as defined in 18 U.S.C. 1961(3) and 1962(c). 224. Each Defendant is a person as defined in 18 U.S.C. 1961(3) and 1962(c). 225. To the extent each Defendant (except for Leviathan) is not a member of the HRH/Leviathan Criminal Enterprise, each Defendant (except for Leviathan) is associated with the Enterprise and conspired within the meaning of 18 U.S.C. 1962(d) to violate 18 U.S.C. 1962(c). The Defendants (except for Leviathan) agreed to and intended to participate in the affairs of the HRH/Leviathan Criminal Enterprise through a pattern of racketeering activity by furthering or facilitating an endeavor of the HRH/Leviathan Criminal Enterprise that, when completed, would satisfy all of the elements of various criminal offenses, to wit, multiple and repeated acts of mail and wire fraud in violation of 18 U.S.C. 1341 and 1343, multiple and repeated acts of bankruptcy fraud in violation of 18 U.S.C. 152 and multiple and repeated acts of unlawful payments relating to employee benefit funds under 18 U.S.C. 1954.
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226. With knowledge that the HRH/Leviathan Criminal Enterprise was engaging in multiple and repeated acts of mail and wire fraud in violation of 18 U.S.C. 1341 and 1343, multiple and repeated acts of bankruptcy fraud in violation of 18 U.S.C. 152 and multiple and repeated acts of unlawful payments relating to employee benefit funds under 18 U.S.C. 1954, each of the Defendants (except for Leviathan) agreed to participate in and facilitate acts of other associates in the HRH/Leviathan Criminal Enterprise that were necessary to further the fraudulent schemes set forth above. 227. Plaintiffs have suffered injury to their businesses and property within the meaning of 18 U.S.C. 1964(c) by reason of Defendants violation of 18 U.S.C. 1962(d) in an amount to be determined at trial but believed to be in excess of $7 million. FIFTH CLAIM FOR RELIEF AGAINST DEFENDANTS GARY SINGER; BRAD SINGER; SUSAN SINGER; GREG CUNEO; JANINE GETLER; KEVIN LALEZARIAN; FRANK LALEZARIAN; LOUIS FINKELSTEIN; LALEZARIAN DEVELOPERS, INC.; TOWER 37 LLC; BROOKLYN GOLD LLC; BROOKLYN TILLARY LLC; Violation of 18 U.S.C. 1962(a) 228. Plaintiffs repeat and reallege paragraphs 1 through 227 above as if fully set forth herein.
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229. Plaintiffs are each a person as defined in 18 U.S.C. 1961(3) and 1962(a). 230. Each Defendant named in paragraph 266 below is a person as defined in 18 U.S.C. 1961(3) and 1962(a). 231. Plaintiffs assert (1) that Defendants Gary Singer; Brad Singer; Susan Singer; Greg Cuneo; Janine Getler; Kevin Lalezarian; Frank Lalezarian; Louis Finkelstein; Lalezarian Developers, Inc.; Tower 37 LLC; Brooklyn Gold LLC; Brooklyn Tillary LLC (the 1962(a) Defendants) (2) received income derived, directly or indirectly, from a pattern of racketeering activity (3) and used or invested, directly or indirectly, part of such income, or the proceeds of such income, in the establishment or operation of Leviathan (4) which allowed Leviathan to engage in a pattern of racketeering activity (5) the activities of which affect interstate or foreign commerce in violation of 18 U.S.C. 1962(a). 232. The 1962 (a) Defendants engaged in multiple acts of mail fraud prior to August 2, 2007 when they created or caused to be created Leviathan as a limited liability corporation in New York State. The proceeds of the pattern of acts of mail fraud prior to August 2, 2007 and from multiple and continuing other predicate acts after August 2, 2007 were used by the 1962 (a) Defendants to establish Leviathan, pay for its attorneys fees and accounting fees and for its payroll from August 2, 2007 through April 7, 2011. The total amount of income
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derived, directly or indirectly, from a pattern of racketeering activity that the 1962 (a) Defendants utilized for the establishment and operation of Leviathan exceeds $1 million. 233. The 1962 (a) Defendants proximately caused injury to the Plaintiffs by allowing HRH to utilize the creation and maintenance of Leviathan to avoid its obligations under its collective bargaining obligations on the 37th Street and Gold Street Projects while at the same time HRH performed the work of a Construction Manager for those construction projects. But for the creation of Leviathan, HRH would have been obligated to comply with the MTDC labor contract at the 37th Street and Gold Street projects. 234. Leviathan was an enterprise which was at all material times engaged in, or the activities of which affected, interstate or foreign commerce. From August 2, 2007 through April 7, 2011, Leviathan received millions of dollars in income from 1962 (a) Defendants and others based upon the diversion of income earned by HRH to Leviathan.
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SIXTH CLAIM FOR RELIEF AGAINST DEFENDANTS GARY SINGER; BRAD SINGER; SUSAN SINGER; GREG CUNEO; JANINE GETLER; KEVIN LALEZARIAN; FRANK LALEZARIAN; LOUIS FINKELSTEIN; LALEZARIAN DEVELOPERS, INC.; TOWER 37 LLC; BROOKLYN GOLD LLC; BROOKLYN TILLARY LLC Conspiracy under 1962(d) to Violate 18 U.S.C. 1962(a) 235. Plaintiffs repeat and reallege paragraphs 1 through 234 above as if fully set forth herein. 236. Plaintiffs are each a person as defined in 18 U.S.C. 1961(3) and 1962(c). 237. Each 1962(a) Defendant is a person as defined in 18 U.S.C. 1961(3) and 1962(c). 238. To the extent any of the 1962(a) Defendants did not receive income derived, directly or indirectly, from a pattern of racketeering activity and used or invested, directly or indirectly, part of such income, or the proceeds of such income, in the establishment or operation of Leviathan, each such 1962(a) Defendant conspired with the other 1962(a) Defendants within the meaning of 18 U.S.C. 1962(d) to violate 18 U.S.C. 1962(a). Each of the 1962(a) Defendants agreed to, and intended to assist, in the use or investment of income gained,
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directly or indirectly, from a pattern of racketeering activity, or the proceeds of such income, in the establishment or operation of Leviathan. 239. With knowledge that Leviathan was established and maintained from income derived, directly or indirectly, from a pattern of racketeering activity and was engaging in multiple and repeated acts of mail and wire fraud in violation of 18 U.S.C. 1341 and 1343, multiple and repeated acts of bankruptcy fraud in violation of 18 U.S.C. 152 and multiple and repeated acts of unlawful payments relating to employee benefit funds under 18 U.S.C. 1954, each of the 1962(a) Defendants agreed to participate in and facilitate acts of other associates that were necessary to further the establishment and maintenance of Leviathan. 240. Plaintiffs have suffered injury to their businesses and property within the meaning of 18 U.S.C. 1964(c) by reason of Defendants violation of 18 U.S.C. 1962(d) in an amount to be determined at trial but believed to be in excess of $ 3 million. 241. Leviathan was an enterprise which was at all material times engaged in, or the activities of which affected, interstate or foreign commerce. From August 2, 2007 through April 7, 2011, Leviathan received millions of dollars in income from 1962 (a) Defendants and others based upon the diversion of income earned by HRH to Leviathan.
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RICO Injury 242. The actions of the Defendants are not only the but for cause of the injuries suffered by Plaintiffs; they are the proximate cause as well. If HRH had not created Leviathan as a phony alter ego, HRH would have been required by its CAGNY contracts to employ MTDC member on the 37th Street, Gold Street and Kent Avenue Projects and to pay union wages and benefit contributions. The Plaintiffs have suffered injury to their business and property within the meaning of 18 U.S.C. 1963(c) by reason of Defendants violation of 18 U.S.C. 1962(c) in an amount to be determined at trial but believed to be in excess of $7 million. 243. The MTDC was deprived of more than $7 million in income and interest thereon that its members would have received in the form of wages to its members and benefit payments to the MTDC Funds from the 37th Street, Gold Street and Kent Street Projects as a result of the activities of the Singer Criminal Enterprise, the HRH/Leviathan Criminal Enterprise and the 1962(a) Defendants. 244. The MTDC lost dues income of more than $250,000, its members lost wages of more than $3 million and MTDC Funds lost $2.8 million in contributions that HRH would have paid if the 37th Street, Gold Street and Kent Avenue Projects had been built in compliance with the CAGNY Contracts. The MTDC was the principal intended victim of the Singer Criminal Enterprise scheme, the HRH/Leviathan Criminal Enterprise scheme and the 1962(a) Defendants
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intention to create and utilize Leviathan and the schemes by the Singers and the Developer Defendants to enter into phony contracts with Leviathan for the purpose of cloaking the reality that HRH was the actual Construction Manager on each of the Projects. 245. In addition to its status as an assignee of a portion of the claims of MTDC, Local 46 was also injured by the actions of the Singer Criminal Enterprise, the HRH/Leviathan Criminal Enterprise and the 1962(a) Defendants. Local 46 has jurisdiction over metal lathing work on any union construction jobs in New York City including over the 37th Street, Gold Street and Kent Avenue jobs. Each of those jobs required the performance of metal lathing work and Local 46 members would have performed this work if HRH had adhered to its obligations under the CAGNY contract. Local 46 lost a substantial amount of dues money, its members lost a significant amount of wages and its affiliated employee benefit funds lost a significant amount of contributions as a direct and intended consequence of the actions by Defendants to create and maintain Leviathan and enter into phony contracts with Leviathan for the purpose of cloaking the reality that HRH was the actual Construction Manager on each of the Projects.
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WHEREFORE, the Plaintiffs respectfully demand judgment as follows: 1. On the first claim for relief pursuant to 18 U.S.C. 1964(c) as against
each of the Defendants named herein and each of them jointly and severally, an award of three times the Plaintiffs damages in an amount to be determined at trial but believed to be in excess of $21 million. 2. On the second claim for relief pursuant to 18 U.S.C. 1964(c) as
against each of the Defendants named herein and each of them jointly and severally, an award of three times the Plaintiffs damages in an amount to be determined at trial but believed to be in excess of $21 million. 3. On the third claim for relief pursuant to 18 U.S.C. 1964(c) as against
each of the Defendants named herein and each of them jointly and severally, an award of three times the Plaintiffs damages in an amount to be determined at trial but believed to be in excess of $21 million. 4. On the fourth claim for relief pursuant to 18 U.S.C. 1964(c) as
against each of the Defendants named herein and each of them jointly and severally, an award of three times the Plaintiffs damages in an amount to be determined at trial but believed to be in excess of $21 million. 5. On the fifth claim for relief pursuant to 18 U.S.C. 1964(c) as against
each of the Defendants named herein and each of them jointly and severally, an
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award of three times the Plaintiffs damages in an amount to be determined at trial but believed to be in excess of $9 million. 6. On the sixth claim for relief pursuant to 18 U.S.C. 1964(c) as
against each of the Defendants named herein and each of them jointly and severally, an award of three times the Plaintiffs damages in an amount to be determined at trial but believed to be in excess of $9 million. 7. An award to Plaintiffs of their costs, expenses, investigation costs and
attorneys fees pursuant to 18 U.S.C. 1964(c), and 8. Such other and further relief as the Court deems just and proper.
Please take notice that Plaintiffs demand a trial by jury of each of their claims in this action. Yours, etc., KENNEDY, JENNIK & MURRAY, PC Attorneys for Plaintiffs
____________________________________ By: Thomas M. Kennedy Susan M. Jennik Serge Ambroise 113 University Place New York, NY 10003 (212) 358-1500
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09-23665-rdd

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Chapter 7 Case No.: 09-23665 (RDD) (Jointly Administered)

Adv. Pro. No.

____ - __________ (RDD)

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FIRST CLAIM FOR RELIEF: Violation of 18 U.S.C. 1962(c)................................................ 59

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Defendants Gary Singer, Brad Singer, Susan Singer, Greg Cuneo,

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Brooklyn Tillary LLC (Brooklyn Tillary) is a New York State

Great Neck, NY 11021.

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Frank Lalezarian is an individual residing at 98 Cuttermill Road 370,

Great Neck, NY 11021. 31. Louis E. Finkelstein (Finkelstein) is an individual residing at 12

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Upon information and belief, the Steven Singer Childrens Trust is a

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Upon information and belief, Leviathan is currently owned by Avery

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On January 13, 1994, Gary Singer was convicted of 21 counts of

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From October, 2004 November, 2005: Various Singer Family-

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On March 6, 2007, an arbitration panel in the MTA dispute issued an

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In 2001, Brad Singer became an officer of HRH LLC, a successor to

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On October 15, 2007, a problem developed regarding access to

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Getler, the General Counsel of HRH, served as the

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- ______ (RDD)