Harlem RE Deal Promoters Hid $4M Commissions, Judge Rules

Law360, New York (June 28, 2013, 7:36 PM EDT) -- Promoters of real estate projects in Manhattan's Harlem neighborhood breached their fiduciary duty to Israeli investors by hiding $4 million in secret commissions from them, a New York state judge ruled Friday.

Judge Charles E. Ramos ruled that promoters Rachel Arfa and Alexander Shpigel and broker American Elite Properties Inc. owe a fiduciary duty to the investors and that they're liable for not disclosing the commissions to the investors.

"Based on the record it is clear that the commissions were not disclosed in any manner that...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.