"Justice Francois Rivera scheduled a hearing for May 19 on sanctions against Seddio for the unusual case, which the defendants argue was lodged as a sham lawsuit in order to prevent them from recovering a $2 million escrow deposit."
"When the defendants tried to demand their money back, the investors claim Graubard allegedly stalled and refused until they released Sprei from liability. After the investors reported the incident to law enforcement, Graubard and Sprei allegedly hired Seddio to bring the lawsuit in Brooklyn Supreme Court."
"Defendants allege in the year of litigation since Seddio and his partner Jonathan Rubin have commenced actions aimed at prolonging and delaying the lawsuit at every turn. The suit joins a pattern of a string of lawsuits that allege Seddio assisted in bringing frivolous lawsuits as part of a racketeering enterprise to steal escrow deposits."
A Brooklyn Supreme Court judge scheduled a May 19 hearing on sanctions against Frank Seddio, former Brooklyn Democratic Party Chair, for his alleged role in frivolous litigation. Swiss investor Angelos Metaxas and New Zealand firm Pertshire Investments LP claim they deposited $2 million in escrow with lawyer Mark David Graubard to demonstrate sufficient funds for a business deal with real estate developer Sam Sprei. When attempting to recover their funds, the investors allege Graubard stalled and refused until they released Sprei from liability. After reporting to law enforcement, Graubard and Sprei allegedly hired Seddio to file a lawsuit on behalf of fictitious entity Olden LLC. Seddio obtained a temporary restraining order preventing fund recovery. Defendants claim subsequent litigation tactics aimed at prolonging the case, alleging participation in a racketeering scheme involving frivolous lawsuits to steal escrow deposits.
Read at www.amny.com
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