Upper East Side Co-op Residents Engage in Mafia-Style Feud

Upper East Side Co-op Residents Engage in Mafia-Style Feud

Edited by: TJVNews.com

Tensions are simmering at a prestigious Upper East Side co-op, located at Fifth Avenue and East 93rd Street, where a lawsuit alleges a climate of corruption and mob-like tactics orchestrated by the co-op board, sending shockwaves through the affluent community, as was reported last week in The New York Post.

The lawsuit, filed by Elizabeth Sawyer and Clifford Press, long-standing residents of the opulent tower on Museum Mile, paints a damning picture of the board’s alleged mismanagement and malfeasance. According to the information provided in the Post report, the couple has accused the board of engaging in criminal behavior, invoking the Racketeer Influenced and Corrupt Organizations (RICO) Act to combat what they describe as a pervasive culture of corruption.

According to the lawsuit, the board, comprised of prominent figures including entertainment attorney John Breglio, sports dealmaker Steve Greenberg, and psychotherapist Mary Morgan, has operated as a “personal fiefdom” since 2012, as was indicated in the Post report. The plaintiffs claim that dissenting voices are systematically marginalized, with new members handpicked by the board without open elections, effectively consolidating their power and stifling opposition, the report in the Post added.

Sawyer and Press are determined to root out the alleged corruption, casting a spotlight on what they perceive as a hidden underworld operating beneath the veneer of luxury and opulence. The report in the Post pointed out that by invoking the RICO Act, typically reserved for prosecuting criminal enterprises, the plaintiffs hope to dismantle the entrenched power structure and restore transparency and accountability to the co-op.

The lawsuit underscores the high stakes involved in the power struggle at 1120 Fifth Ave., where apartments command multimillion-dollar price tags and residents include Hollywood luminaries, sports icons, and scions of political dynasties.

Among the most damning accusations is the claim that Breglio spearheaded a costly and unnecessary elevator repair project in 2018, funneling the contract to a company owned by his cousin. The Post reported that the project, which reportedly cost the co-op approximately $500,000, resulted in malfunctioning elevators that pose a danger to residents, especially families and children.

Furthermore, the lawsuit alleges that the board attempted to strong-arm a resident into relinquishing a $300,000 settlement he had received after suing the co-op for halting renovations on his apartment, as was reported by the Post. The board purportedly sought to use the settlement funds to offset rising insurance costs, a move deemed coercive and unethical by the plaintiffs.

In an interview with The Post, Press expressed shock and dismay at the extent of corruption within the building. The revelations have sent shockwaves through the tight-knit community, casting a pall over what was once considered one of Manhattan’s most desirable residences.

However, the co-op board’s attorney, Michael Pensabene of Rosenberg & Estis, vehemently denies the allegations, dismissing the lawsuit as frivolous and motivated by ulterior motives. The Post report noted that according to Pensabene, the lawsuit represents a blatant abuse of the judicial process and is nothing more than a harassment tactic employed by a disgruntled resident against her neighbors.

Among the high-profile residents of this luxurious complex are Hollywood stars Michael J. Fox and Tracey Pollan, along with the late Oscar-winning legend Paul Newman and his wife, Joanne Woodward, who once occupied the lavish penthouse, as was mentioned in the Post report.

Recent real estate transactions within the building have garnered attention, with a stunning four-bedroom unit boasting panoramic views of the Central Park Reservoir fetching a staggering $13.7 million in a recent sale, as reported by StreetEasy, the Post report said.

According to the lawsuit filed by Press and Sawyer, tensions between the couple and the board have been festering for years. The suit alleges that the board made unfounded attempts to evict them during the COVID-19 pandemic in March 2021, citing fabricated claims such as Sawyer blocking a fire exit with water jugs and Press assaulting another resident’s dog, according to the information provided in the Post report.  However, the lawsuit contends that these accusations are baseless, with the dog assault claim described as “knowingly false.” Press, described as a devoted dog lover who owns a Jack Russell terrier named Willa, vehemently denied the allegations.

Moreover, the lawsuit alleges that the board engaged in a concerted effort to tarnish Press’s reputation by hiring a private investigator to unearth evidence of alleged racism and unethical business practices, stemming from his upbringing in South Africa, as was indicated in the Post report. Christopher Milito of Morrison Cohen LLP, representing Press and Sawyer, stated that their client is taking a stand against what they perceive as “organized and systematic shareholder oppression.”

From allegations of corporate impropriety to contentious altercations in public spaces, Press’s legal battles offer a glimpse into the complexities of his professional and personal life, the Post report said.

In December 2022, Press made headlines when a press release from investment firm Acacia Research Corp., where he served as CEO, announced his resignation following an internal investigation. The probe purportedly uncovered instances of Press misusing corporate funds for personal expenses and orchestrating significant charitable donations in his own name using company resources, according to the information in the Post. However, Press vehemently contested these allegations and retaliated with a lawsuit against Acacia, escalating the dispute into a legal showdown. The saga concluded with Acacia agreeing to a $1.25 million settlement with Press in September 2023, as disclosed in a Securities and Exchange Commission filing, the report added.

Press’s legal entanglements extend beyond the realm of corporate governance. In 2012, he filed a lawsuit against United Airlines, alleging wrongful detention and mistreatment during an altercation with a flight attendant. As per the report in the Post, Press contended that he was unfairly targeted and subjected to discriminatory treatment after being identified as a “white South African” by the flight attendant. Although the case was settled in 2013, the terms of the agreement remain undisclosed, leaving lingering questions about the resolution of the contentious incident.

Moreover, Press’s legal history reveals a proclivity for conflicts that transcend corporate boardrooms and airport terminals. In the late 1990s, Press and his wife, Elizabeth Sawyer, found themselves embroiled in a peculiar dispute involving their pet chickens at a Pennsylvania housing complex. As was noted in the Post report, neighbors raised complaints about the incessant clucking and noxious odor emanating from the couple’s property, sparking a legal battle over the rights of urban chicken-keeping enthusiasts. Eventually, the case reached a resolution through a settlement, bringing an end to the avian-related discord.

In response to the allegations, David Clossey, the board’s current secretary, vehemently denied the accusations of impropriety, portraying the board as a group of dedicated volunteers committed to upholding the building’s standards. “This is all nonsense,” Clossey stated emphatically, the Post said. “We have a very nice, wonderful, wonderful, wonderful building here, and we’re very proud of it,” he added. He dismissed the claims of racketeering as “totally, totally absurd,” asserting the integrity of the board’s operations.

Former board president John Breglio remained silent on the matter, declining to comment on the allegations leveled against him, according to the report in the Post. Similarly, Steve Greenberg refrained from discussing the pending litigation, underscoring the sensitivity of the legal proceedings. Mary Morgan, another defendant named in the lawsuit, was unavailable for comment, leaving her stance on the matter undisclosed.

The invocation of the RICO Act in the lawsuit adds a layer of complexity to the dispute, drawing parallels to past legal battles involving co-op boards. In 1994, Manhattan District Attorney Robert Morgenthau wielded the RICO Act to prosecute over 80 real estate managers and companies, alleging racketeering offenses linked to kickbacks from contractors and suppliers, the Post reported. The historic case, which targeted luxury buildings along Fifth Avenue and Park Avenue, serves as a precedent for the potential ramifications of the current legal challenge.

As the legal proceedings unfold, the residents of the Upper East Side co-op brace for a protracted and contentious battle, with the outcome poised to reshape the dynamics of their esteemed community. The allegations of racketeering cast a shadow over the pristine façade of luxury living, underscoring the challenges inherent in maintaining harmony within exclusive residential enclaves.