New Charges in the One Madison Park Case

The drama at One Madison Park continued this week. Jonathan Newman, a veteran real estate attorney, has been named interim receiver of One Madison Park while lawsuits between iStar Financial and lead developer Ira Shapiro play out in court. For those of you who don’t know, one Madison Park is the tall skinny glass building on East 23rd that has the amazing views down Madison Avenue for miles. It’s the kind of property that seems as if it should have been a developers dream but it has turned into a development nightmare. Shapiro faces charges of forgery by development partner Marc Jacobs, claims from lenders that $30 million in loan proceeds are unaccounted for, and a foreclosure lawsuit from iStar Financial.

In what is seen as a minor victory, presiding Judge James Yates is allowing Shapiro to continue selling units until legal issues are sorted out. According to Shapiro’s lawyer, “It’s an extremely limited receivership order and the borrower is going to be able to stay in control of sales. This job is going to sell and Ira’s going to remain involved.”

One issue is how extensive Newman’s authority will be. He will have the right to collect sales proceeds and common charges, inspect all financial records, retain a managing agent and hire a consultant for the remaining construction on the project.

The reason sales are being allowed to continue is that Shapiro’s lawyers allege that iStar submitted forged mortgage documents to the New York City Department of Finance- a charge iStar’s lawyers deny.

The Rockland County district attorney is also investigating claims by Jacobs that Shapiro forged Jacobs and his wife’s signatures on loan documents.

Photo Credit: The Real Deal

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