This week, the Paramount Group fell under SEC investigation for previously undisclosed payments made to its CEO Albert Behler’s companies, including more than $3 million for a private jet company and over $900,000 for personal accounting services.
The investigation is looking at disclosures related to executive compensation, corporate asset use, related party transactions, conflicts of interest and control procedures.
The property owner is cooperating with the SEC and has already incurred substantial legal fees, including $274,000 to reimburse its former executive, Wilbur Paes, for his legal costs related to the probe.
Behler isn’t the only real estate executive under fire this week. Jared Solomon, the former Vornado Realty Trust vice president accused of embezzling more than $9 million from the REIT, is fighting his charges.
After pleading not guilty to charges in December, Solomon was poised to change his plea to guilty in May. But then Solomon hired a new legal team, who ultimately resigned due to a “complete breakdown in the attorney-client relationship.”
His original attorney, Peter Toumbekis — who remained involved in the case — plans to move to dismiss the charges on constitutional grounds, arguing the indictment lacks specific details.
Elsewhere in New York City, the battle for a gaming license is opened up as the application window closes.
As of the end of last month, six applicants made an initial presentation to their respective advisory committees. These groups will vote on the proposals by the end of September and those approved will go on to the final round of the competition before the state Gaming Facility Location Board.
The state is expected to choose three applications for downstate casino licenses by the end of the year.
This week also brought a check-in on the the real estate portfolio of the late Brandon Miller, who committed suicide at his Hamptons estate last July, leaving behind a tangled web of debts and real estate deals gone bad.
Much remains hidden from view, but there’s been movement at several Real Estate Equities Corporation sites — construction, leasing efforts and loan transactions — hinting at how the company is shifting from residential and commercial development to an almost exclusive focus on office projects.
And on celebrity row, an entity tied to Academy Award-nominated actor Jake Gyllenhaal sold his apartment at Metro Loft Management’s 443 Greenwich Street in Tribeca in an off-market deal for $14 million. He purchased the unit for $8.6 million in 2017.
Read more
Troubled Paramount Group reveals it is under SEC investigation
NYC’s major developers are betting they’ll win casino licenses. But what if they don’t?
What happened to Brandon Miller’s portfolio after his death?