The financially-strapped Harlem Abyssinian Development has unloaded 31 properties in a fire sale that has triggered a legal tug-of-war between the new owners.
Andrew Stone, one of the investors who put up millions to buy a large portion of Abyssinian’s portfolio of apartment buildings and brownstones, filed a lawsuit accusing business partner Karim Hutson of Genesis Companies of creating a separate firm to “steal” profits from him.
As the legal dispute rages, another top executive Genesis Companies, managing partner, Brian Benjamin, is expected to be nominated by the Manhattan Democratic Party Committee on Saturday to run in a special election for Harlem’s state senate vacated by Bill Perkins, who was elected to the City Council.
In the suit filed in Manhattan Supreme Court, Stone said he and his firm, Jazz Realty, committed “millions of dollars” and guaranteed loans to close the sale on the Abyssinian properties.
Stone said unbeknownst to him, Hutson set up separate corporate entities to “steal” revenues from him.
Manhattan Supreme Court Judge Marcy Friedman issued a preliminary injunction on Feb. 24 freezing assets pending arbitration to settle the financial dispute.
Would-be-senator Benjamin declined comment, referring questions to a company spokeswoman.
Genesis Companies spokesman Lupe Todd-Medina dismissed Stone’s allegations as without merit.
“Since its founding in 2004, Genesis has been in the business of building and preserving affordable housing in communities throughout NYC and NJ. Genesis’ performance has earned the reputation as a trusted partner to organizations committed to affordable housing, especially those representing communities of color,” Lupe-Todd said.
“This is an isolated incident that involves one individual investor.
All of the allegations have been denied and the case is going to arbitration where Genesis anticipates total vindication.,” she said.
Photo via Shutterstock and content source.
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