45 John Investors File For Bankruptcy, Go After Chaim Miller
Chun Peter Dong, along with a group of investors involved in a stalled plan to convert 45 John St in the Financial District to condos, has reportedly filed for Chapter 11 bankruptcy.
The investors are seeking to recover millions of dollars from Chaim Miller, a previous minority investor in the property, according to The Real Deal.
Miller, widely known for his legal entanglements and frequently accused of swindling investors, reportedly attempted to sell 45 John without Dong’s knowledge, and secured a $14.3M down payment from Orin Management.
Dong and company sued after learning of the sale, alleging that the down payment was funneled by Miller into his real estate portfolio. The building eventually did sell for $73M to an LLC headed by Alexander Levin, an investor with Miller in the nearby Beekman Tower.
But even after that sale, Dong and his cohort were left $10M in the hole. Through subsequent litigation, Dong and the group of investors he leads got a portion of that money back.
In the ongoing proceedings, Dong wants bankruptcy protection to recover more of it, claiming it was “fraudulently transferred.” He also reportedly plans to sue his former attorney for malpractice. [TRD]
