Todd Cohen and Terrence Lowenberg, the founders of Icon Realty Management, have been asked to produce documents that show they weren’t moving assets around to avoid paying a judgment in a case involving a contract for the purchase of a Park Avenue mansion formerly owned by abstract painter Judith Rothschild. This is the latest step in a legal battle between the founders of Icon and the Judith Rothschild Foundation that began when the founders backed out of an agreement to purchase the building.
In 2007, Icon went into contract to purchase the building for $17 million, and put a down payment of $1.7 million in the form of a check. When the Mr. Cohen and Mr. Lowenberg, whose fathers were supposed to supply the rest of the money, backed out of the agreement a few days later, they also stopped payment on that check.
The Judith Rothschild Foundation filed a suit against the principals and their fathers to get them to pay the down payment with interest and won. Mr. Cohen and Mr. Lowenberg failed to pay that judgment, which with interest is now around $2.5 million, according to the lawyer for the Judith Rothschild Foundation, Neal Schwartsfeld. Mr. Schwartsfeld now says Mr. Cohen and Mr. Lowenberg essentially switched ownership of the company from themselves and their fathers to other entities that don’t have enough funds to pay the judgment, rendering Icon Management essentially “judgment proof.”
As a result, the Judith Rothschild Foundation has requested that they produce documents to show they aren’t shuffling their assets in an attempt to avoid having to pay the $2.5 million judgment. They have 30 days to produce the relevant documents.
Thanks to The Real Deal for bringing this story to our attention.