Supreme Court Of The State Of New York County Of

SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -X

FRANKLYN CASTRO, VERIFIED COMPLAINT TO SET ASIDE DEED and FOR DAMAGES ASSOCIATED WITH FRAUD AND COLLUSION

Plaintiff, -against-

WILLIAM C. THOMPSON, JR.; ELSIE McCABE; MARC ANDREW LANDIS, ESQ.; PHILLIPS NIZER, LLP; NORMAN HOROWITZ; HALSTEAD PROPERTY, LLC; AMALGAMTED BANK; DERRICK CEPHAS; and CLAIRE PICKENS,

Index No. _________/09

Defendants. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -X

Plaintiff, above-named, by his attorney, LAWRENCE H. BLOOM, ESQ., complaining of the Defendants, respectfully shows to this Court and alleges as follows:

AS AND FOR A FIRST CAUSE OF ACTION TO SET ASIDE DEED

1.

Plaintiff, FRANKLYN CASTRO, is over the age of eighteen (18)

years and resides in Bronx County, in the City and State of New York.

2.

Defendant, WILLIAM C. THOMPSON, JR., is over the age of

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eighteen (18) years and resides at 106 West 121st Street, in the County, City and State of New York.

3.

Defendant, ELSIE McCABE, is over the age of eighteen (18)

years and resides at 106 West 121st Street, in the County, City and State of New York.

4.

Upon information and belief, Defendant, MARC ANDREW

LANDIS, ESQ., is over the age of eighteen (18) years, and is an attorney with his principal place of business in the County, City and State of New York.

5.

Upon information and belief, Defendant, PHILLIPS NIZER, LLP,

is a law firm in which Defendant MARC ANDREW LANDIS, ESQ., is a partner, with its principal place of business in the County, City and State of New York.

6.

Upon information and belief, Defendant, HALSTEAD

PROPERTY, LLC, is real estate brokerage firm, with its principal place of business in the County, City and State of New York.

7.

Upon information and belief, Defendant, NORMAN HOROWITZ,

is over the age of eighteen (18) years, and is an Executive Vice President and real estate agent with Defendant HALSTEAD PROPERTY, LLC, with his principal place of business in the County, City and State of New York.

8.

Upon information and belief, Defendant, AMALGAMATED

BANK, is a bank organized under the Banking Law of the State of New York, with its principal place of business in the County, City and State of New York.

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9.

Upon information and belief, Defendant, DERRICK CEPHAS, is

over the age of eighteen (18) years, and is President and Chief Executive Officer with Defendant AMALGAMATED BANK, with his principal place of business in the County, City and State of New York

10.

Upon Upon information and belief, Defendant, CLAIRE

PICKENS, is over the age of eighteen (18) years, is the former wife of the Plaintiff, and resides in the County, City and State of New York.

11.

Defendants WILLIAM C. THOMPSON, JR. and ELSIE McCABE

are the current owners of the premises 106 West 121st Street, in the County, City and State of New York.

12.

Plaintiff and Defendant CLAIRE PICKENS are the former owners

of the premises 106 West 121st Street, in the County, City and State of New York.

13.

Defendants MARC ANDREW LANDIS, ESQ., and PHILLIPS

NIZER, LLP, are/were the Court-appointed Receivers for the sale of the premises 106 West 121st Street, in the County, City and State of New York, having been appointed by Order Appointing Receiver of the Supreme Court of the State of New York, County of New York (J. Visitacion-Lewis) dated October 24, 2006 in an action entitled “CLAIRE PICKENS, Plaintiff, against FRANKLYN CASTRO, Defendant” bearing New York County Index Number 350604/02, a copy of which is annexed hereto and labeled Exhibit “A”.

12.

Upon information and belief, Defendants MARC ANDREW

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LANDIS, ESQ., and/or PHILLIPS NIZER, LLP, retained the services of Defendants NORMAN HOROWITZ and/or HALSTEAD PROPERTY LLP, as real estate brokers for the sale of the premsies106 West 121st Street, in the County, City and State of New York.

13.

The premises 106 West 121st Street, in the County, City and State

of New York were listed for sale at a listing price of $2,490,000.00, by Defendants NORMAN HOROWITZ and/or HALSTEAD PROPERTY LLP, and/or Defendants MARC ANDREW LANDIS, ESQ., and/or PHILLIPS NIZER, LLP.

14.

Upon information and belief, Defendants NORMAN HOROWITZ

and/or HALSTEAD PROPERTY LLP, and/or Defendants MARC ANDREW LANDIS, ESQ., and/or PHILLIPS NIZER, LLP, located Defendants WILLIAM C. THOMPSON, JR. and ELSIE McCABE as prospecitive buyers to purchase the premises 106 West 121st Street, in the County, City and State of New York.

15.

Defendants MARC ANDREW LANDIS, ESQ., WILLIAM C.

THOMPSON, JR. and ELSIE McCABE entered into a contract of sale of the premises 106 West 121st Street, in the County, City and State of New York dated July 7, 2008, a copy of which is annexed hereto and labeled Exhibit “B”, for a purchase price of $2,150,000.00.

16.

At all times subsequent to July 7, 2008, Defendant MARC

ANDREW LANDIS, ESQ., of Defendant PHILLIPS NIZER, LLP, represented that the purchase of the premises 106 West 121st Street, in the County, City and State of New York, to Defendants WILLIAM C. THOMPSON, JR. and ELSIE McCABE was “an all cash deal”.

17.

Upon information and belief, and notwithstanding said

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representations, Defendants WILLIAM C. THOMPSON, JR. and ELSIE McCABE obtained financing from Defendant AMALGAMATED BANK through its President and Chief Executive Officer, Defendant DERRICK CEPHAS, with the assistance of Defendants MARC ANDREW LANDIS, ESQ., and/or PHILLIPS NIZER, LLP, and/or Defendants NORMAN HOROWITZ and/or HALSTEAD PROPERTY LLP, for the acquisition of the premises in the amounts of $729,000.00 and $400,000.00.

18.

In the course of the matrimonial action between Plaintiff and

Defendant CLAIRE PICKENS, bearing New York County Index Number 350604/02, an Order (J. Visitacion-Lewis) was granted on October 31, 2003 which, inter alia, provided for the Defendant CLAIRE PICKENS to have exclusive occupancy of the premises 106 West 121st Street, in the County, City and State of New York, effective November 11, 2003, effective November 11, 2003.

19.

Six months after the Plaintiff herein vacated the said premises,,

still in the course of the matrimonial action between Plaintiff and Defendant CLAIRE PICKENS, bearing New York County Index Number 350604/02, said individuals entered into a written Stipulation of Settlement dated May 11, 2004, a copy of which is annexed hereto and labeled Exhibit “C”, which, inter alia, provided for the sale of the premises 106 West 121st Street, in the County, City and State of New York and which further provided

“The Husband [Plaintiff herein] shall have right of first refusal to purchase

the Wife’s [Defendant CLAIRE PICKENS] interest in the Marital Residence [the premises 106 West 121st Street, in the County, City and State of New York].

The Husband’s right of first refusal must be

exercised, if at all, within forty-eight (48) hours of the receipt of a bona

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fide, arm’s length, offer that is acceptable to the Wife to purchase the Marital Residence from an unrelated third party (the “Offer”), and the Husband’s offer must match that offer term for term. The Husband must provide to the Wife written proof satisfactory to the Wife that the Husband qualifieds for a mortgage on the Marital Residence for the same amount as the Offer.”

20.

Said Stipulation of Settlement also required the sale of the

premises 106 West 121st Street, in the County, City and State of New York within sixty days.

21.

Said Stipulation of Settlement was incorporated by reference in the

Judgment of Divorce (J. Visitacion-Lewis) dated December 7, 2004, dissolving the marriage between the Plaintiff herein and Defendant CLAIRE PICKENS, which Stipulation survived and not merged in said Judgment.

22.

With there being no sale of the premises 106 West 121st Street, in

the County, City and State of New York, by March of 2005, Plaintiff herein moved in the matrimonial action against his former wife, Defendant CLAIRE PICKENS, by Notice of Motion dated March 29, 2009, seeking various relief including but not limited to the appointment of a receiver for the sale of said premises.

23.

Said Notice of Motion dated March 29, 2005, as well as a cross-

motion of Defendant CLAIRE PICKENS, was resolved by the Order Appointing Receiver (Exhibit “A”) pursuant to which the Court (J. Visitacion-Lewis) removed the contractual right of first refusal to purchase the premises 106 West 121st Street, in the County, City and State of New York and directed that same be sold to “an independent third party”.

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24.

The Plaintiff herein thereupon filed a Notice of Appeal from said

Order Appointing Receiver.

25.

The Plaintiff herein also thereupon made application by Notice of

Motion dated January 3, 2007, seeking to stay the sale of the premises and modifying said Order Appointing Receiver to restore his right of first refusal.

26.

Said application was denied by Decision & Order (J. Visitacion-

Lewis) dated March 6, 2007 which Order also assessed sanctions against the Plaintiff herein.

27.

The Plaintiff herein thereupon filed a Notice of Appeal from said

28.

Various applications were made by the Plaintiff herein before the

Decision & Order.

Supreme Court of the State of New York, Appellate Division, First Judicial Department for stays of the Orders appealed from.

29.

The Plaintiff herein prefected his appeals before the Supreme

Court of the State of New York, Appellate Division, First Judicial Department; and said appeals were orally argued before a Full Bench on January 15, 2008.

30.

As said appeals remained sub judice, Defendant MARC

ANDREW LANDIS made application in the matrimonial action (New York County Index Number 350604/02) before the Hon. Deborah Kaplan, J.S.C. (to whom this matter had then been reassigned), seeking to confirm and approve the contract of sale of the subject premises to

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Defendants WILLIAM C. THOMPSON, JR. and ELSIE McCABE (Exhibit “B”), by Order to Show Cause dated July 22, 2008. 31.

Emergency application was thereupon made by the Plaintiff herein

before the Supreme Court of the State of New York, Appellate Division, First Judicial Department seeking to stay Defendant MARC ANDREW LANDIS and Defendant PHILLIPS NIZER, LLP, from proceeding with their application, with a copy of that application, dated July 28, 2008, and supporting Affirmation (but without exhibits) being annexed hereto and labeled Exhibit “D”.

32.

Said emergency application was conditionally granted by the

Appellate Division (J. Sweeney) dated July 28, 2008, including various obligations on the Plaintiff herein in Order to grant the stay, with a copy of said Order annexed hereto and labeled Exhibit “E”.

33.

Throughout the proceedings before the Appellate Division on July

28, 2008, and at all times since July 7, 2008 as well as after the July 28th date, Defendant MARC ANDREW LANDIS of Defendant PHILLIPS NIZER, LLP, contined to represent that the sale of the premises 106 West 121st Street, in the County, City and State of New York, to Defendants WILLIAM C. THOMPSON, JR. and ELSIE McCABE was “an all cash deal”.

34.

Based upon said representations and but for said representations,

the Plaintiff herein agreed to accept the contract of sale and to withdraw so much of his appeals from the Order Appointing Receiver dated October 24, 2006 and to the Decision & Order dated March 6, 2007 as wrongfully extinguished his contractually guaranteed right of first refusal to purchase the subject premies.

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35.

Said representations were false.

36.

On October 29, 2009, the Plaintiff herein learned for the first time

that the purchase of the premises 106 West 121st Street, in the County, City and State of New York, to Defendants WILLIAM C. THOMPSON, JR. and ELSIE McCABE by Defendants MARC ANDREW LANDIS and PHILLIPS NIZER, LLP, was NOT “an all cash deal” by virtue of a posting at VillageVoice.com, a copy of which is annexed hereto and labeled Exhibit “F”. 37.

Upon information and belief, Defendants WILLIAM C.

THOMPSON, JR. and ELSIE McCABE obained financing of a $729,000.00 first mortgage plus another $400,000.00 in the form of a home equity line of credit.

38.

Upon information and belief, said first mortgage and equity

financing obtained by Defendants WILLIAM C. THOMPSON, JR. and ELSIE McCABE, at a total of $1,129,000.00 were obtained through Defendants DERRICK CEPHAS and AMALGAMATED BANK.

39.

Upon information and belief, the first mortgage obtained by

Defendants WILLIAM C. THOMPSON, JR. and ELSIE McCABE was at a rate of 6.05%.

40.

Upon information and belief, in or about October of 2009, the

Defendant WILLIAM C. THOMPSON, JR., the Democratic Party Candidate for Mayor of the City of New York, represented this mortgage and ELSIE McCABE was at a rate of 7.1% notwithstanding the reduced rate of 6.05%.

41.

Upon information and belief, the said combined loan of

$1,129,000.00 was obtained through the personal relationship between Defendant WILLIAM C.

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THOMPSON, JR. and Defendant DERRICK CEPHAS., as well as with Defendant MARC ANDREW LANDIS and Defendant NORMAN HOROWITZ.

42.

Upon information and belief, the said combined loan of

$1,129,000.00 was obtained in violation of the federal ceiling on such mortgages of $729,750.00.

43.

As a result of all of the foregoing improprieties, not then disclosed

to the Plaintiff herein, Plaintiff elected not to match the offer of Defendants WILLIAM C. THOMPSON, JR. and ELSIE McCABE (Exhibit “A”) which would have required an “all-cash” outlay of $2,150,000.00, together with “reimbursing receiver for all debt service, real estate tax and insurance payments paid by receiver and posting bond in the amount of $1,300,000” (see Exhibit “F”) within a matter of three days.

44.

It is now clear that a fraud was perpetuated by each of the

Defendants (with the possible exception of Defendant CLAIRE PICKENS), who also sustained damages as a result of the fraud of the other Defendants.

45.

This fraud has been perpetuated against the Plaintiff herein. It has

been perpetuated upon his attorney. It has been perpetuated against the Court. Indeed, it has been perpetuated against the entire public of the City of New York in view of its impact upon the candidacy of Defendant WILLIAM C. THOMPSON, JR.

46.

With fraud having been committed, it is clear that the entire sales

contract and deed of and to the premises 106 West 121st Street, in the County, City and State of New York, to Defendants WILLIAM C. THOMPSON, JR. and ELSIE McCABE by Defendants MARC ANDREW LANDIS and PHILLIP SNIZER, LLP, should be rendered null and void and that title to the premises 106 West 121st Street, in the County, City and State of New York,

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should and must be restore to the Plaintiff herein and to Defendant CLAIRE PICKENS.

AS AND FOR A SECOND CAUSE OF ACTION FOR DAMAGES

47.

Plaintiff repeats, reiterates and realleges each and every allegation

contained in paragraphs "1." through "46." hereinabove as if more fully set forth verbatim hereat.

48.

Because of the blatant deceit, fraud, conspiracy and collusion by

and between Defendants WILLIAM C. THOMPSON, JR., ELSIE McCABE, PHILLIP SNIZER, LLP, MARC ANDREW LANDIS, ESQ., HALSTEAD PROPERTY, and NORMAN HOROWITZ, it is clear that their respective actions have been designed to and did actually harass and maliciously injure the Plaintiff herein, as well as to cause Plaintiff to wrongfully give up his interest in and to the premises 106 West 121st Street, in the County, City and State of New York.

49.

This blatant fraud upon the Plaintiff, the Court and the mandates

the imposition of sanctions pursuant to Part 130 of the Rules of Court.

50.

As a result of the foregoing, the Plaintiff herein demands judgment

against Defendants (other than Defendant CLAIRE PICKENS) in the sum of $25,000,000.00 representing compensation for his injuries and punitive damages.

WHEREFORE, Plaintiff demands judgment A.

Vacating the transfer of the premises 106 West 121st Street, in the

County, City and State of New York; and B.

Restoring title to the Plaintiff herein and Defendant CLAIRE

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PICKENS; and C.

Assessing sanctions against each Defendant herein (other than

Defendant CLAIRE PICKENS); and D.

Awarding the Plaintiff judgment agaisnt the Defendants (other than

Defendant CLAIRE PICKENS), in the sum of $25,000,000.00 in further compensation and punitive damages against each Defendant (other than Defendant CLAIRE PICKENS), jointly and severally; and E.

For such other and further relief as may be just and equitable.

Dated: New York, New York November 2, 2009 Yours, etc.,

_________________________________________ LAWRENCE H. BLOOM, ESQ. Attorney for Plaintiff 11 Park Place - Suite 1200 New York, New York 10007 212.964.3502

TO:

WILLIAM C. THOMPSON, JR. Defendant 106 West 121st Street New York, New York ELSIE McCABE Defendant 106 West 121st Street New York, New York MARC ANDREW LANDIS, ESQ. Defendant

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666 Fifth Avenue New York, New York 10103 PHILLIPS NIZER, LLP Defendant 666 Fifth Avenue New York, New York 10103 NORMAN HOROWITZ Defendant 831 Broadway New York, New York 10003 HALSTEAD PROPERTY, LLP Defendant 831 Broadway New York, New York 10003 AMALGAMATED BANK Defendant 275 Seventh Avenue New York, New York 10001 DERRICK CEPHAS Defendant 275 Seventh Avenue New York, New York 10001 CLAIRE PICKENS Defendant 1 Morningside Drive New York, New York

VERIFICATION STATE OF NEW YORK

) : ss: COUNTY OF NEW YORK ) FRANKLYN CASTRO, the Defendant herein, deposes and says: That your deponent has read the foregoing Verified Complaint and knows

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the contents thereof; that same is true to deponent’s own knowledge, except as to those matters alleged upon information and belief, and as to those matter, deponent believes them to be true.

_________________________________________ FRANKLYN CASTRO Sworn to before me this 2nd day of November, 2009

__________________________________ Notary Public

CLIENT CERTIFICATION STATE OF NEW YORK

) : ss: COUNTY OF NEW YORK ) I, FRANKLYN CASTRO, HEREBY CERTIFY, under penalty of perjury, that I have carefully reviewed my Verified Complaint, and that all information contained in that document is true and accurate in all respects to the best of my knowledge and understanding. I FURTHER CERTIFY, under penalty of perjury, that neither my attorney, nor anyone acting on my attorney’s behalf, was the source of any of the information contained in said document; that I provided all of the information contained in that document to my attorney; and that I understand that my attorney, in executing the Attorney Certification required by 22 NYCRR 202.16(e), is relying entirely upon the information provided by me and upon my certification that all such information is true and accurate. I FURTHER CERTIFY that the said document includes all information which I provided to my attorney which is relevant to such document and that my attorney has not deleted, omitted or excluded any such information. Dated: November 2, 2009 _________________________________________ FRANKLYN CASTRO

ATTORNEY CERTIFICATION STATE OF NEW YORK

) : ss: COUNTY OF NEW YORK ) I, LAWRENCE H. BLOOM, HEREBY CERTIFY pursuant to 22

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NYCRR §130-1.1-a(b) that, to the best of my knowledge, information and belief, formed after an inquiry reasonable under the circumstances, the presentation of the papers listed below or the contentions therein are not frivolous as defined in 22 NYCRR §130-1.1(c): VERIFIED COMPLAINT

Dated: New York, New York November 2, 2009

_________________________________________ LAWRENCE H. BLOOM 11 Park Place - Suite 1200 New York, New York 10007

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