Crain’s Business: Broker Company Break-up
- Posted on: Aug 25 2011
Crain’s Business: Marc Held, Partner at Held & Hines, LLP quoted re: Broker Company Break-up
Brokerage exec exits over misappropriation
By Amanda Fung Aug 25, 2011 12:50 pm
Brokerage splits over mis-appropriation Co-founder of Siderow Organization agrees to withdraw from firm and pay back $120,000 in cash he used for his personal benefit; lavish lifestyle claimed. By Amanda Fung Published: August 25, 2011 – 12:50 pm A founding partner of Siderow Organization has parted ways with the Manhattan-based real estate brokerage after he was found to have wrongfully misappropriated and co-mingled funds for his personal benefit, according to documents. Eric Levy agreed to pay $120,000 in cash to Siderow Organization “for past actions taken outside the scope of his authority as managing member, for breaches of duties owed to the company,” according to a June 20 withdrawal agreement obtained by Crain’s. The agreement was signed by Mr. Levy and Brad Siderow, son of Murray Hill Properties chairman and co-founder Neil Siderow. Messrs. Levy and Siderow created the commercial and residential brokerage firm in 2008. Mr. Levy has not yet paid any of the monies he owes under the agreement, according to Marc Held of the law firm Lazarowitz & Manganillo, which is representing Mr. Siderow, adding that his client is considering legal actions. “Brad Siderow is deeply disappointed that a person he trusted as a partner and friend would misappropriate company funds for the purposes of paying for his lavish lifestyle, including kids’ day camp, vacations, landscaping of his house and country club dues,” said Mr. Held.
Mr. Levy could not be reached for comment. According to the agreement, Mr. Levy is supposed to incrementally pay to the company money totaling $30,000 by Sept. 5, with the balance of the $120,000 paid off by June 5, 2012. Documents reveal that Mr. Levy used company checks to pay for such things as a $2,500 country club membership and a $3,167 fees for an interior designer. Messrs. Siderow and Levy met at Murray Hill Properties, where they were licensed brokers, before going on to found Siderow Organization three years ago. Mr. Levy was a senior managing director at Murray Hill, which he joined in 2004.