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TABLE OF CONTENTS

INTRODUCTION .......................................................................................................................... 1THE PARTIES................................................................................................................................ 8NON-PARTY RICO CONSPIRATORS ...................................................................................... 11NON-PARTY RELATED ENTITIES .......................................................................................... 12JURISDICTION AND VENUE ................................................................................................... 13FACTS .......................................................................................................................................... 14

The Singer Criminal Enterprise .............................................................................................................. 14Ownership and Control of the Singer Criminal Enterprises ................................................................... 15The Criminal Background of the Singer Criminal Enterprise ................................................................. 16Approximate Time Line Relevant to the Complaint ............................................................................... 17The Singer Family Takes Over HRH ...................................................................................................... 20The Creation of Leviathan ...................................................................................................................... 22The Lalezarians Knew That The Monies Paid To Leviathan Were Being Transferred To The SingerCriminal Enterprise And That These Payments Were In Exchange For The Lower Construction CostsThat HRH Agreed To Provide For The Gold Street and 37th Street Projects ........................................ 26Kent Avenue Project ............................................................................................................................... 44Bankruptcy Fraud in connection with the Chapter 11 Filing .................................................................. 55Schedules of Assets and Liabilities, Statements of Financial Affairs ..................................................... 55Transfers from HRH to the Defendants .................................................................................................. 57The Auditors Reports ............................................................................................................................. 58The Reclassifications of Equity to Debt.................................................................................................. 59Other Elements of Bankruptcy Fraud ..................................................................................................... 59

FIRST CLAIM FOR RELIEF: Violation of 18 U.S.C. 1962(c) ................................................ 59Mail Fraud ...............................................................................................................................................77Wire Fraud ..............................................................................................................................................80Unlawful Payments .................................................................................................................................82Bankruptcy Fraud ....................................................................................................................................83

SECOND CLAIM FOR RELIEF: Violation of 18 U.S.C. 1962(d) .......................................... 69THIRD CLAIM FOR RELIEF GAINST ALL DEFENDANTS EXCEPT FOR LEVIATHAN:Violation of 18 U.S.C. 1962(c) .................................................................................................. 70FOURTH CLAIM FOR RELIEF AGAINST ALL DEFENDANTS EXCEPT FORLEVIATHAN: Violation of 18 U.S.C. 1962(d) ........................................................................ 74FIFTH CLAIM FOR RELIEF AGAINST DEFENDANTS GARY SINGER; BRAD SINGER;SUSAN SINGER; GREG CUNEO; JANINE GETLER; KEVIN LALEZARIAN; FRANKLALEZARIAN; LOUIS FINKELSTEIN; LALEZARIAN DEVELOPERS, INC.; TOWER 37LLC; BROOKLYN GOLD LLC; BROOKLYN TILLARY LLC: Violation of 18 U.S.C. 1962(a) .......................................................................................................................................... 75SIXTH CLAIM FOR RELIEF AGAINST DEFENDANTS GARY SINGER; BRAD SINGER;SUSAN SINGER; GREG CUNEO; JANINE GETLER; KEVIN LALEZARIAN; FRANKLALEZARIAN; LOUIS FINKELSTEIN; LALEZARIAN DEVELOPERS, INC.; TOWER 37

09-23665-rdd Doc 736 Filed 09/20/11 Entered 09/20/11 09:33:45 Main DocumentPg 2 of 87

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LLC; BROOKLYN GOLD LLC; BROOKLYN TILLARY LLC: Conspiracy under 1962(d) toViolate 18 U.S.C. 1962(a).......................................................................................................... 78

RICO Injury ............................................................................................................................................ 80


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1. This is a civil action under the Racketeer Influenced and CorruptOrganizations Act (RICO), 18 U.S.C. 1961 et seq., to recover damages caused

by a fraudulent scheme to divert money from an entity known as HRH

Construction LLC (HRH) to a disguised continuance of HRH known as

Leviathan Construction Management Services LLC (Leviathan). The intended

victims of the fraudulent scheme included Plaintiffs Mason Tenders District

Council of Greater New York and Long Island, its members, and its affiliated

employee benefit funds.

INTRODUCTION

2. On March 6, 2007, the Metropolitan Transportation Authority(MTA) was awarded $6,457,481 in damages in an arbitration against HRH.

Brad Singer, the President of HRH, and Greg Cuneo (Cuneo), the Chairman of

HRH, concluded that HRH was over as an ongoing company as a result of the

award. In March, 2007, in a meeting held in the New York City area, Brad Singer,

his wife, Susan Singer, Gary Singer and Cuneo reached an agreement with Frank

Lalezarian, Kevin Lalezarian and Lalezarian Developers, Inc. (Lalezarian

Developers) to create Leviathan as an alter ego entity of HRH to engage in

construction management operations in knowing violation of the labor agreements

to which HRH was party through its membership in a multiemployer bargaining

group known as Contractors Association of Greater New York (CAGNY).


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3. At the March, 2007 meeting, Brad Singer, Gary Singer, Susan Singerand Cuneo reached an agreement with Kevin Lalezarian and Frank Lalezarian that

HRH would perform the construction management work for projects to be built by

Lalezarian Developers at 350 West 37th Street, New York, NY (37th Street

Project) and 235 Gold Street (Gold Street Project), Brooklyn, NY. The

agreement included a scheme to use Leviathan as the titular but not actual

Construction Manager for the 37th Street and Gold Street Projects through which

disguised payments to the Singers could be made. Kevin Lalezarian and Frank

Lalezarian and their wholly owned construction entities for these projects, Tower

37 LLC (Tower 37), Brooklyn Gold LLC (Brooklyn Gold) and Brooklyn

Tillary LLC (Brooklyn Tillary), received a thing of value from HRH in the form

of a lower price for the construction of their projects in return for their knowing

agreement to participate in the fiction that Leviathan was an independent company

that was actually performing the work of Construction Manager for the projects.

4. In June, 2008, Brad Singer and Cuneo reached an agreement with 184Kent Fee LLC (Kent Fee) and JMH Development LLC (JMH) that HRH

would act as the Construction Manager for a project at 184 Kent Avenue,

Brooklyn, New York (Kent Avenue Project). The agreement required Leviathan

to serve as HRHs alter ego through which disguised payments to the Singers could

be made and which would allow Kent Fee to ignore the provisions of the CAGNY


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labor contracts. Kent Fee received a thing of value from HRH in the form of a

lower price for the construction of its project in return for its agreement to

participate in the fiction that Leviathan was an independent company that was

actually performing the work of Construction Manager for its project.

5. Defendants Lalezarian Developers, Tower 37, Brooklyn Gold,Brooklyn Tillary, Kent Fee, Kevin Lalezarian and Frank Lalezarian conspired with

Greg Singer, Brad Singer, Susan Singer, Cuneo, Louis Finkelstein (Finkelstein)

and Janine Getler (Getler) to utilize HRH and its accumulated construction

industry standing and expertise to build their projects without having to pay the

labor costs associated with a project built in compliance with the CAGNY labor

agreements.

6. Upon information and belief, Defendants Lalezarian Developers,Tower 37, Brooklyn Gold, Brooklyn Tillary, JMH and Kent Fee (collectively the

Developer Defendants) would have agreed to build their projects pursuant to the

CAGNY contracts if HRH had refused to create a phony entity to assume the

position (but not the responsibility) of being the Construction Manager on the 37th

Street, Gold Street, Kent Avenue and Henry Street projects. Lalezarian

Developers, Kevin Lalezarian and Frank Lalezarian had worked with HRH and

had positive experiences using HRH personnel and expertise in projects using

union labor prior to the 37th Street and Gold Street projects. JMH and Kent Fee


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had gone through two Construction Managers and were getting pressure from the

financer of the Kent Avenue Project to find a reputable Construction Manager

when they appointed HRH as Construction Manager for the Kent Avenue project.

7. As detailed below at paragraphs 58-71, Defendants formed anassociation in fact under 18 U.S.C. 1961(4) (the Singer Criminal Enterprise)

which was headed by Gary Singer and Brad Singer and had a clear structure and

organization and existed for the purpose of engaging in racketeering activities as

described in 18 U.S.C. 1961(1). The Singer Criminal Enterprise knowingly

engaged in multiple and repeated unlawful acts in violation of 18 U.S.C. 1341

(mail fraud), 18 U.S.C. 1343 (wire fraud), 18 U.S.C. 1954 (unlawful payments

relating to employee benefit funds), and 18 U.S.C. 152 (bankruptcy fraud), from

March 2, 2007 through April 7, 2011, which acts form a pattern of conducting and

participating, directly and indirectly, in the affairs of the Singer Criminal

Enterprise through a pattern of racketeering activity in violation of 18 U.S.C.

1962(c).

8. The Singer Criminal Enterprise Defendants at all material timescontrolled all aspects of the operation of the Enterprise. As an example, Getler, the

General Counsel of HRH determined when and how much Leviathan and HRH

would be paid for the construction management work on the 37th Street and Gold

Street Projects. On May 2, 2008 at 10:57 a.m., Lalezarian Developer employee


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Diana Ahn (Ahn) sent an email to Getler, Brad Singer and Kevin Lalezarian

stating:

Per our conversation, Ive moved all payments made toLeviathan against the Tower 37 preconstruction invoices1 and 2 and the requisitions. Total paid to date is$402,186.13.

To clarify, you want no payments to HRH Constructionfor either project right now.

You would like the payments made to Leviathan:$146,327.40 for Tower 37 and $102,833 for Gold Street.Total is $249,160.40.

I will confirm the above is OK with Kevin once he getsin the office.

9. Each of the members of, and the co-conspirators with, the SingerCriminal Enterprise knowingly engaged in multiple and repeated unlawful acts in

violation of 18 U.S.C. 1341 (mail fraud), 18 U.S.C. 1343 (wire fraud), 18

U.S.C. 1954 (unlawful payments relating to employee benefit funds) and 18

U.S.C. 152 (bankruptcy fraud) from March 2, 2007 through April 7, 2011, which

acts form a pattern of conducting and participating, directly and indirectly, in the

affairs of the Singer Criminal Enterprise through a pattern of racketeering activity

in violation of 18 U.S.C. 1962(c).

10. As further detailed below, Defendants Lalezarian Developers; Tower37; Brooklyn Gold; Brooklyn Tillary; JMH; Kent Fee; Getler; Kevin Lalezarian;

Frank Lalezarian; Finkelstein; John Doe Legal Advisor Number One; John Doe

and Jane Doe, being persons involved in the Singer Criminal Enterprise whose


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identity is currently unknown to Plaintiffs, conspired with the Singer Criminal

Enterprise to violate 18 U.S.C. 1962(c) in violation of 18 U.S.C. 1962(d).

11. As detailed below, each of the Defendants except Leviathancontrolled and directed the HRH/Leviathan Criminal Enterprise, a corporate

enterprise under 18 U.S.C. 1961(4) (the HRH/Leviathan Criminal Enterprise),

which was headed by Gary Singer and Brad Singer and had a clear structure and

organization and existed for the purpose of engaging in racketeering activities as

described in 18 U.S.C. 1961(1). The HRH/Leviathan Criminal Enterprise

knowingly engaged in multiple and repeated unlawful acts in violation of 18

U.S.C. 1341 (mail fraud), 18 U.S.C. 1343 (wire fraud), 18 U.S.C. 1954

(unlawful payments relating to employee benefit funds), and 18 U.S.C. 152

(bankruptcy fraud), from March 2, 2007 through April 7, 2011, which acts form a

pattern of conducting and participating, directly and indirectly, in the affairs of the

HRH/Leviathan Criminal Enterprise through a pattern of racketeering activity in

violation of 18 U.S.C. 1962(c).

12. To the extent each Defendant except for Leviathan is not a member ofthe HRH/Leviathan Criminal Enterprise, each Defendant except for Leviathan is

associated with the HRH/Leviathan Enterprise and conspired within the meaning

of 18 U.S.C. 1962(d) to violate 18 U.S.C. 1962(c).


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13. Defendants Gary Singer, Brad Singer, Susan Singer, Greg Cuneo,Janine Getler, Kevin Lalezarian, Frank Lalezarian, Louis Finkelstein, Lalezarian

Developers, Inc., Tower 37 LLC, Brooklyn Gold LLC, and Brooklyn Tillary LLC

(the 1962(a) Defendants): (1) received income derived, directly or indirectly,

from a pattern of racketeering activity; (2) and used or invested, directly or

indirectly, part of such income, or the proceeds of such income, in the

establishment or operation of Leviathan; (3) which allowed Leviathan to engage in

a pattern of racketeering activity; (4) the activities of which affect interstate or

foreign commerce in violation of 18 U.S.C. 1962(a).

14. To the extent any of the 1962(a) Defendants did not receive incomederived, directly or indirectly, from a pattern of racketeering activity and used or

invested, directly or indirectly, part of such income, or the proceeds of such

income, in the establishment or operation of Leviathan, each such 1962(a)

Defendant conspired with the other 1962(a) Defendants within the meaning of 18

U.S.C. 1962(d) to violate 18 U.S.C. 1962(a). Each of the 1962(a) Defendants

agreed to and intended to assist in the use or investment of income gained, directly

or indirectly, from a pattern of racketeering activity, or the proceeds of such

income, in the establishment or operation of Leviathan.


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15. The Mason Tenders District Council of Greater New York and LongIsland (MTDC) is a labor organization within the meaning of 3(i) of the Labor

Management Reporting and Disclosure Act (LMRDA), 29 U.S.C. 402(i) and

maintains its offices at 520 8th Avenue, Suite 650, New York, NY 10018.

THE PARTIES

16. Local 46, Metallic Lathers and Reinforcing Ironworkers (Local 46)is a labor organization within the meaning of 3(i) of LMRDA, 29 U.S.C. 402(i)

and maintains its offices at 1322 Third Avenue, New York, NY 10021.

17. On or about September 7, 2011, MTDC assigned a portion of itsRICO claim against the defendants to Local 46 for good and valuable

consideration.

18. Upon information and belief, Lalezarian Developers, Inc. (LalezarianDevelopers) is a corporation incorporated under the laws of the State of New

York with an office at 1999 Marcus Avenue, Suite 310, Lake Success, NY 11042.

19. Tower 37 LLC (Tower 37) is a New York State limited liabilitycorporation with an address at 1999 Marcus Avenue, Suite 310, Lake Success, NY

11042.

20. Brooklyn Gold LLC (Brooklyn Gold) is a New York State limitedliability corporation with an address at 1999 Marcus Avenue, Suite 310, Lake

Success, NY 11042.


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30. Frank Lalezarian is an individual residing at 98 Cuttermill Road 370,Great Neck, NY 11021.

31. Louis E. Finkelstein (Finkelstein) is an individual residing at 12Avondale Court, Briarcliff Manor, NY 10510.

32. Leviathan Construction Management Services LLC (Leviathan) is aNew York limited liability company with an address at 600 Mamaroneck Avenue,

Suite 400, Harrison, NY 10528.

33. Upon information and belief, Avery Maya CMS LLC (Avery Maya)is a New York limited liability company with an address at Avery Maya CMS,

LLC c/o Diane Harris, No. 5T, 555 Kappock Street, Riverdale, New York 10463.

34. John Doe Legal Advisor Number One is an unknown individual whoparticipated with the other Defendants in the Singer Criminal Enterprise and/or the

HRH/Leviathan Criminal Enterprise.

35. John Doe is an unknown individual who participated with the otherDefendants in the Singer Criminal Enterprise and/or the HRH/Leviathan Criminal

Enterprise.

36. Jane Doe is an unknown individual who participated with the otherDefendants in the Singer Criminal Enterprise and/or the HRH/Leviathan Criminal

Enterprise.


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37. Steven Singer is an individual residing at 10 Loman Court, Cresskill,NJ 07626.

NON-PARTY RICO CONSPIRATORS

38. Karen Singer is an individual residing at 212 Vaccaro Drive,Cresskill, NJ 07626.

39. HRH Construction LLC (HRH) is a Delaware limited liabilitycompany with an office at 11 Martine Avenue, White Plains, New York 10601.

40. HRH Construction of New Jersey LLC (HRH NJ) is a limitedliability company with an office at 11 Martine Avenue, White Plains, New York

10601.

41. Upon information and belief, Remus HRH LLC (Remus) is aDelaware limited liability corporation, formed on or about November 21, 2000,

with an address at 118 Eisenhower Drive, Cresskill, New Jersey 07626.

42. Upon information and belief, Remus Holdings LLC (RemusHoldings) is a Delaware limited liability corporation with an address at 118

Eisenhower Drive, Cresskill, New Jersey 07626.

43. Upon information and belief, Romulus Holdings, LLC (Romulus) isa Delaware limited liability corporation, formed in or about 1999, with an address

at c/o Remus Holdings LLC, 118 Eisenhower Drive, Cresskill, New Jersey 07626.


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44. Upon information and belief, the members of HRH Construction LLCare: HRH Management LLC (HRH Management), HRH Series A LLC (HRH

Series A), and HRH Class A Common LLC (HRH Class A).

NON-PARTY RELATED ENTITIES

45. Upon information and belief, HRH Management is a Delaware limitedliability company with an address at 113 Jackson Drive, Cresskill, NJ 07626.

46. Upon information and belief, HRH Series A is a limited liabilitycompany with an address at c/o Blackacre Capital Management, LLC, 450 Park

Avenue, New York, NY 10022.

47. Upon information and belief, HRH Class A is a Delaware limitedliability corporation with an address at 10 East 40th Street, 10th Floor, New York,

NY 10016.

48. Upon information and belief, the Gary & Karen Singer ChildrensTrust is a trust created under the laws of New Jersey with an address at 113

Jackson Drive, Cresskill, NJ 07626.

49. Upon information and belief, the Brad & Beth Singer Childrens Trustis a trust created under the laws of New Jersey with an address at 10 Loman Court,

Cresskill, NJ 07626.


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50. Upon information and belief, the Steven Singer Childrens Trust is atrust created under the laws of New Jersey with an address at 113 Jackson Drive,

Cresskill, NJ 07626.

51. Upon information and belief, Starrett Consulting LLC (Starrett) is alimited liability company with an address at 2200 Fletcher Avenue, 5th Floor, Fort

Lee, NJ 07024.

52. Upon information and belief, Hades, Inc. (Hades) is a corporationincorporated under the laws of the state of New York with an address at 801

Second Avenue, Room 705, New York, NY 10017.

53. Upon information and belief, Gemini Inc. is an inactive New YorkState corporation with an address at 1904 Glenwood Road, Brooklyn, NY 11230.

54. The Plaintiffs allege violations of 18 U.S.C. 1961, et seq., and thisCourt has jurisdiction over this matter as a non-core but related action under 28

U.S.C. 157(c)(1) and Rule 9033, Fed. R. Bankr. Pr.

JURISDICTION AND VENUE

55. Venue is proper in this District under 18 U.S.C. 1965(a) and (b) and28 U.S.C. 1391(b) because a substantial part of the events giving rise to the

claims occurred in this District.

56. Personal jurisdiction is proper under 18 U.S.C. 1965 and NY CPLR301 and 302 because each Defendant either resides in New York, is incorporated in


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New York or, in person or through an agent, transacts and has transacted business

within New York, or contracts or has contracted to supply goods and services

within New York, or has committed unlawful acts within New York. Each

Defendant has received, directly or indirectly, substantial revenue from interstate

commerce.

57. The actions which are the subject of this Complaint have and arecontinuing to have a substantial impact on interstate commerce.

FACTS

58. The Singer Criminal Enterprise consists of an association in factwithin the meaning of 18 U.S.C. 1961(4) among Brad Singer, his wife Susan

Singer, Gary Singer, his wife Karen Singer, Steven Singer, Cuneo, Finkelstein,

Getler, HRH, Leviathan, Avery Maya, Gary & Karen Singer Childrens Trust,

Remus Holdings, Remus, Romulus, Starrett, Hades, the Brad & Beth Singer

Childrens Trust, the Steven Singer Childrens Trust, Frank Lalezarian, Kevin

Lalezarian, Lalezarian Developers, Inc., Brooklyn Gold, Brooklyn Tillary, Tower

37, Kent Fee and JMH.

The Singer Criminal Enterprise


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59. Upon information and belief, at all times relevant to the allegations setforth in this Complaint, Brad Singer held or currently holds the following positions

with certain of the Defendants and Non-Party Conspirators which allow him to

direct the affairs of the Singer Criminal Enterprise.

Ownership and Control of the Singer Criminal Enterprise

(a) managing member of Remus Holdings;(b) president of HRH;(c) member of Romulus;(d) member of Remus;(e) officer of Starrett.

60. Upon information and belief, at all times relevant to the allegations setforth in this Complaint, Gary Singer held or currently holds the following positions

with certain of the Defendants and Non-Party Related Entities which allow him to

direct the affairs of the Singer Criminal Enterprise:

(a) officer of HRH Management;(b) officer of HRH Class A;(c) officer of HRH Series A; and(d) member or owner of Gemini.

61. Upon information and belief, Leviathan is currently owned by AveryMaya (99.5%) and Susan Singer (.05%), and was wholly owned by Susan Singer


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and the Singer Family from August 2, 2007 to the point when the Singers

transferred control of Leviathan to Avery Maya. Susan Singer is the sole member

of Avery Maya.

62. Finkelstein is a Vice President of Leviathan.63. Susan Singer and Finkelstein also direct and manage the affairs of the

Singer Criminal Enterprise.

64. Upon information and belief, Remus is wholly owned by RemusHoldings.

65. Upon information and belief, Gemini is a member of HRH Class A.66. Upon information and belief, Gemini is a member of HRH Series A.67. Upon information and belief, Brad Singer owns Starrett.

68. The Singer Family has a documented history of corruption andunlawful business dealings. Martin Singer the father of Gary, Brad and Steven

Singer pled guilty in 1992 to tax evasion to settle multiple charges of

racketeering in the school construction industry through a construction company

known as Mars/Normel. Brad Singer and other members of the Singer Criminal

Enterprise served as officers of Mars/Normel during the years it served as a

conduit to funnel racketeering proceeds to the Singers.

The Criminal Background of the Singer Criminal Enterprise


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69. On January 13, 1994, Gary Singer was convicted of 21 counts ofracketeering, money laundering and fraud. Gary Singer was sentenced to 28

months in prison and barred for life by the Securities and Exchange Commission

from serving as the officer or director of a public company. United States v. Gary

Singer et al, No. 92 Cr. 964 (S.D.N.Y.) (RJW).

70. On April 16, 2009, the First Department of the New York StateSupreme Court issued a decision in 155 West 21st Street, LLC v. McMullan, 61

A.D.3d 497 (1st Dept. 2009), a case involving HRH and Lalezarian Developers at

a project built by HRH for Lalezarian Developers and located at 155 West 21st St.,

New York, NY (21st Street Project), noting that HRH and Lalezarian Developers

had engaged in conduct entirely in keeping with [their] cavalier attitude

demonstrated by their literal trampling of Respondents property and their

figurative trampling of Respondents property rights. 61 A.D.3d at 501.

71. On September 15, 2004: The MTA asserted claims against HRHConstruction Interiors (HRH Interiors)

Approximate Time Line Relevant to the Complaint

1

1 HRH Interiors rendered services to the MTA under a construction management agreement. In or about 2001,HRH purchased the assets of HRH Construction Corp. and its wholly owned subsidiaries, one of which was HRHInteriors.

in an arbitration arising from no show

jobs and other unlawful conduct in connection with the renovation of 2 Broadway,

New York, NY (2 Broadway Project).


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72. From October, 2004 November, 2005: Various Singer Family-owned entities transferred $9.6 million to HRH as capital contributions.

73. On February 13, 2006: The MTA moved to compel arbitrationagainst HRH for damages from the 2 Broadway Project on the grounds that HRH

Interiors was a mere corporate shell that was an alter ego of HRH.

74. The HRH 2006 Annual Auditors Report classified $9.6 million incontributions from Singer Family entities and an additional $2.2 million loan

repayment made for HRH by the Singer Family as capital contributions to HRH by

its members including Remus.

75. From March, 2006 June, 2009: HRH made monthly payments toRemus Holdings, the Gary & Karen Singer Childrens Trust and Starrett totaling

$5 million.

76. On March 27, 2006, the New York Supreme Court ordered HRH toparticipate in the MTA arbitration along with its alter ego, HRH Interiors.

77. On October 31, 2006, the Appellate Division First Departmentaffirmed the order directing HRH to participate in the MTA Arbitration.

78. The Annual HRH Auditors Report issued in 2007 reclassified theSinger Family capital contributions to HRH from equity to loans payable, effective

December 31, 2006.


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79. On March 6, 2007, an arbitration panel in the MTA dispute issued anaward in favor of the MTA and against HRH for more than $6 million arising from

the 2 Broadway Project.

80. From March 16, 2007April 18, 2007, HRH transferred $3.1 millionto Remus Holdings.

81. On or about March 28, 2007, Gary Singer and Brad Singer reached anagreement with Frank Lalezarian, Kevin Lalezarian and Lalezarian Developers to

create a phony alter ego entity to HRH to be the titular Construction Manager for

the 37th Street and Gold Street Projects.

82. On August 2, 2007, Susan Singer caused Leviathan to be created toserve as the phony alter ego to HRH to allow HRH to function as a construction

manager while pretending to be an owners representative.

83. [ REDACTED] Frank Lalezarian, Kevin Lalezarian and LalezarianDevelopers entered into an agreement [ REDACTED]with Leviathan for it to

perform construction management services for the 37th Street and Gold Street

Projects despite the fact that the owner of Leviathan, Susan Singer, had no

experience in the construction industry [ REDACTED]

84. On February 19, 2008, the New York State Supreme Court issued ajudgment in favor of the MTA and against HRH in the amount of $6,552,557.43;


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the Singer Family began a series of actions intended to render HRH insolvent to

preclude enforcement of the MTA award.

85. In June, 2008, JMH and Kent Fee entered into an agreement withBrad Singer and Cuneo in which HRH would be the actual construction manager

for the Kent Avenue Project but a phony contract would be entered into with

Leviathan.

86. On September 9, 2010, HRH filed a Chapter 11 Petition in theSouthern District of New York. The Chapter 11 filing fraudulently concealed the

HRH assets hidden in Leviathan.

87. From August, 2007 through March, 2010, the Singer CriminalEnterprise diverted millions of dollars to the Singers through Leviathan [

REDACTED]

88. HRH Construction Company was founded in 1925. In 2006 it wasamong the 10 largest construction companies in the New York City area with

contracts valued at $406 million. HRH advertised itself on its internet website as

one of the nations top construction managers and general contractors and as an

industry leader for its construction expertise and outstanding achievements in the

planning, development, and construction of a wide variety of projects.

The Singer Family Takes Over HRH


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89. In 2001, Brad Singer became an officer of HRH LLC, a successor tothe HRH Construction Company that had been operated for decades by the

Horowitz and Ravitch families. By 2005, the Singer family was in sole control of

HRH through an intricate web of limited liability companies and corporations.

90. Cuneo has testified that the executives of HRH assumed HRH wasover as a result of the March 6, 2007 arbitration award that ordered HRH to pay

$6,457,481 in damages to the MTA.

91. Immediately after the MTA award, Gary Singer and Brad Singercaused millions of dollars in HRH assets to be transferred to other persons and

entities that are within the Singer Criminal Enterpriseincluding Starrett, Karen

Singer and Hadesto shelter those moneys from the lawful creditors of HRH,

such as the MTA and various union-sponsored employee benefit funds including

the MTDC Pension, Annuity and Welfare Funds.

92. In furtherance of this fraudulent scheme, the Singer Family utilizedthe U.S. Post Office to send and receive mail that was a central component of the

scheme to defraud the creditors of HRH, which creditors included the MTDC, its

members and its employee benefit funds.

93. In furtherance of this fraudulent scheme, the Singers utilized wireservices to send and receive messages that were a central component of the scheme


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to defraud the creditors of HRH, which creditors included MTDC, its members and

its employee benefit funds.

94. In the construction industry a Construction Manager is responsiblefor duties that include designing and estimating the project and negotiating,

entering into, and administering contracts with the many subcontractors typically

involved in any large construction project. An Owners Representative serves as

the representative of the owner during the construction process and is not

responsible for negotiating or administering subcontracts. A Construction

Manager also directs purchasing for a project while an Owners Representative

does not engage in purchasing for a project. The fee that an Owners

Representative will receive on a project is typically much smaller than the fee that

a Construction Manager will receive, reflecting the differences in responsibility

applicable to the two different roles.

The Creation of Leviathan

95. HRH served as the Construction Manager on the 21st Street Projectfor Lalezarian Developers. At all material times, Frank Lalezarian was the

President and Kevin Lalezarian was Vice President of Lalezarian Developers.

Both Frank Lalezarian and Kevin Lalezarian and, through them, Lalezarian

Developers were highly satisfied with HRHs construction management services

for the 21st Street Project and expressed their interest in using HRH as the


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Construction Manager for the new projects they were planning: the 37th Street

Project and the Gold Street Project.

96. On October 23, 2006, Brad Singer and Cuneo caused HRH to send aletter through the U.S. mail to Kevin Lalezarian of Lalezarian Developers which

contained bids for the general conditions work to be performed by HRH as the

Construction Manager for the 37th Street Project. Upon information and belief,

prior to March 1, 2007, Brad Singer and Cuneo reached an agreement with Kevin

Lalezarian, Frank Lalezarian and Lalezarian Developers for HRH to serve as the

Construction Manager for the 37th Street Project.

97. Upon information and belief, prior to March 1, 2007, Brad Singer andCuneo, made proposals to Kevin Lalezarian of Lalezarian Developers for HRH to

serve as the Construction Manager for the Gold Street Project. Upon information

and belief, prior to March 1, 2007, Brad Singer and Cuneo reached an agreement

with Kevin Lalezarian, Frank Lalezarian and Lalezarian Developers for HRH to

serve as the Construction Manager for the Gold Street Project.

98. Based upon their experience on the 21st Street Project with HRH asConstruction Manager and using union labor, Kevin Lalezarian, Frank Lalezarian

and Lalezarian Developers knew that HRH sent by U.S. mail monthly reports to

the employee benefit funds sponsored by the unions, including the MTDC

employee benefit funds, showing the members of and participants which HRH


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directly employed. Kevin Lalezarian, Frank Lalezarian and Lalezarian Developers

knew that these reports to the employee benefit funds listed each employee of

HRH in the categories covered by those union contracts, and set forth the

contribution payment HRH owed each fund for the period covered by the monthly

report.

99. Frank Lalezarian, Kevin Lalezarian and Lalezarian Developers furtherknew that when HRH served as a Construction Manager on a job, the

subcontractors it selected to perform work on the project were required to be

signatories to a collective bargaining agreement with the MTDC and would

maintain the same or substantially similar obligations as HRH with respect to the

reporting and payment of fringe benefit contributions.

100. Prior to March 28, 2010, Brad Singer and other representatives ofHRH met with attorneys and representatives of CAGNY to discuss whether it was

possible for HRH to engage in Construction Manager activities without violating

its obligations under the CAGNY Contract. They were informed that HRH could

not function as a Construction Manager without violating the CAGNY Contract

but that HRH would not be violating its union contracts if it served only as an

Owners Representative on a project.

101. At all material times, Kevin Lalezarian, Frank Lalezarian andLalezarian Developers wanted to have the expertise and skills of HRH as the


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Construction Manager for the Gold Street and 37th Street Projects. Kevin

Lalezarian, Frank Lalezarian and Lalezarian Developers insisted in its negotiations

that HRH serve as the Construction Manager for both the Gold Street and 37th

Street Projects and that HRH assign the same team of personnel to these projects

that had worked on the 21st Street Project.

102. On August 2, 2007, Brad Singer and Susan Singer caused Leviathanto be formed as a New York State limited liability corporation. Susan Singer was

the sole member of Leviathan and served as its president. Susan Singer had no

experience in the construction industry at the time Leviathan was created and still

has no experience in the construction industry. She was made the only member of

Leviathan solely to cloak the real ownership of Leviathan by the Singer Criminal

Enterprise.

103. On August 12, 2008, Susan Singer and Brad Singer caused to becreated in New York State a limited liability corporation, Avery Maya, named after

their grandchild. Avery Maya was formed by Diane Harris who is Susan Singers

mother, using her home address of No. 5T, 555 Kappock Street, Riverdale, NY

10463. After its creation, Susan Singer transferred 99.5% of the ownership of

Leviathan to Avery Maya and retained only .05% for herself. Susan Singer is the

sole member of Avery Maya. The Singers used Susan Singers mother to create


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Avery Maya to make it more difficult to trace the ownership of Leviathan back to

the Singer Criminal Enterprise.

104. The Singer Criminal Enterprise has a penchant for naming its entitiesbased on classical sources, such as Remus, Romulus and Hades. The selection of

the name Leviathan (the name of 17th Century English Philosopher Thomas

Hobbes seminal treatise) further demonstrates the coordinated and interrelated

nature of these entities.

105. Leviathan was utilized by the Singer Criminal Enterprise as a front forHRH services as a Construction Manager on three Projects: 37th Street; Gold

Street; and Kent Avenue.

106. Upon information and belief, from May 1, 2007 through March 31,2011, Lalezarian Developers paid to Leviathan more than [ REDACTED]for work

performed by HRH employees. The Singer Criminal Enterprise paid itself [

REDACTED]from the Lalezarian payments to Leviathan. Frank Lalezarian, Kevin

Lalezarian and Lalezarian Developers knew that the money it paid to Leviathan

was being diverted to the Singer Criminal Enterprise. Frank Lalezarian, Kevin

Lalezarian and Lalezarian Developers understood that their payments to Leviathan

The Lalezarians Knew That The Monies Paid To Leviathan Were Being

Transferred To The Singer Criminal Enterprise And That These Payments

Were In Exchange For The Lower Construction Costs That HRH Agreed To

Provide For The Two Projects


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were in exchange for the lower construction costs for the 37th Street and Gold

Street Projects.

107. On March 28, 2007, after the March 6, 2007 MTA award, HRHprepared a Memorandum of Understanding with Brooklyn Gold and Brooklyn

Tillary (owned by the Lalezarians) that reduced HRHs role to that of Owners

Representative and proposed diverting a fee of 1.5% of the construction costs to an

unnamed Construction Manager which Brad Singer and Cuneo explained to Kevin

Lalezarian, Frank Lalezarian and Lalezarian Developers would be a disguised

continuance of HRH.

108. On or about March 28, 2007, Brad Singer and Cuneo reached anagreement with the Lalezarians to enter into a phony Construction Manager

agreement for the Gold Street and 37th Street Projects with an entity to be created

later and agreed that the Lalezarians would divert to that entity money and fees that

were actually being earned by HRH. A phony agreement designating HRH as the

Owners Representative would also be made, but the specific understanding and

agreement between Brad Singer, Cuneo, HRH, Kevin Lalezarian, Frank Lalezarian

and Lalezarian Developers was that HRH would, in fact, function as the

Construction Manager for both the Gold Street and 37th Street Projects.

109. Kevin Lalezarian, Frank Lalezarian and Lalezarian Developers alsoknew that the individuals hired to be laborers on the Gold Street and 37th Street


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Projects would be paid only $12 an hour without any health insurance or retirement

benefits. Kevin Lalezarian, Frank Lalezarian and Lalezarian Developers knew that

laborers employed under the MTDC CAGNY Contract received a package of

substantially higher wages plus benefits. For every hour worked by laborers on the

Gold Street and 37th Street Projects, Kevin Lalezarian, Frank Lalezarian and

Lalezarian Developers knew they would save a substantial amount of money as a

result of the agreement to create a phony entity pretending to be the Construction

Manager on the Lalezarian projects.

110. There were thousands of hours of laborer work on the 37th StreetProject.

111. On June 4, 2007, in furtherance of the conspiracy to defraud theMTDC and their employee benefit funds, and in furtherance of the conspiracy to

divert money from HRH to an as yet unnamed titular Construction Manager, Brad

Singer caused HRH to send by U.S. mail a letter to Kevin Lalezarian at Lalezarian

Developers regarding the Gold Street Project that thanked the Lalezarians for the

opportunity to serve as the Owners representative on the above referenced

project and provided a listing of the hourly rates for the personnel that would

serve on the project. The listing included all of the functions and personnel that a

Construction Manager would utilize on such a project and included a reference to

HRH employees Alex Papadopoulos (Papadopolous) as Project Manager and


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Anthony Rafaniello, Jr. (Rafaniello) as Superintendent, both of whom played

similar roles as the HRH representatives on the 21st Street Project.

112. The construction management work for the 37th Street and Gold StreetProjects began in and around May, 2007 and it was performed by employees of

HRH and continued to be performed by employees of HRH throughout the length

of those Projects.

113. A Construction Management Agreement was executed on or about [REDACTED]between Brooklyn Gold and Brooklyn Tillary and Leviathan (the

Gold Street CM Agreement) [ REDACTED]. This agreement was in fact

negotiated by HRH prior to the creation of Leviathan, as the document bears a date

months before Leviathan was created.

114. The Gold Street CM agreement provides that Leviathan is to performa series of tasks that were in fact performed by HRH and its employees.

[ REDACTED] During the entire period from May 1, 2007 and October 17, 2007,

HRH did all of the construction management work on the Gold Street Project and

for the period of time after October 17, 2007 did virtually all of the construction

management work.

115. The Gold Street CM agreement required the designation of Leviathanemployees to perform the work of Construction Manager for the Gold Street

Project. The two persons designated at paragraph 3.3 of the Gold Street CM


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Agreement as employees of Leviathan include [ REDACTED]as Project Manager

and [ REDACTED] as Project Superintendent. These are the same individuals

designated as HRH employees in those positions in the letter of June 4, 2007.

116. HRH was not compensated by Leviathan for the work it performed asConstruction Manager for the Gold Street Project for the period from May 1, 2007

through October 17, 2007 or the work it performed after October 17, 2007.

117. The Singer Defendants and others received fees from KevinLalezarian, Frank Lalezarian or Lalezarian Developers directly or through their

development companies including Brooklyn Gold and Brooklyn Tillary for the

construction management work that HRH did in connection with the Gold Street

Project for the period from May 1, 2007 through August 2, 2007 and thereafter that

they used to create and maintain Leviathan.

118. Kevin Lalezarian and Lalezarian Developers were intimately involvedin the scheme to establish Leviathan as a phony alter ego of HRH. On January 14,

2008 at 12:35 a.m., Kevin Lalezarian received an email from a website developer

named Ronald J. Asche advising Thewww.leviathanconstruction.comhome page

is live. Please take a look and feel free to comment Thanks in advance for you

[sic] critique. Lalezarian Developers would have no legitimate business

justification for overseeing the establishment of the website of its Construction

Manager unless it was interested in ensuring that HRH/Leviathan was following

http://www.leviathanconstruction.com/http://www.leviathanconstruction.com/http://www.leviathanconstruction.com/http://www.leviathanconstruction.com/

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through on the promise to create the illusion that Leviathan was in fact an

independent entity and not a division of HRH. Finkelstein and Susan Singer also

received this email.

119. Frank Lalezarian, Kevin Lalezarian and Lalezarian Developers agreedwith Brad Singer, Susan Singer and Finkelstein [ REDACTED] that Leviathan

would pretend to perform Construction Manager services for the 37th Street

Project, that HRH would not report to MTDC the hours Leviathan employees

worked on the 37th

Street Project or contribute to the MTDC Funds in accordance

with those hours and that subcontractors HRH selected to perform work on the job

would similarly not report or make contributions to the MTDC Funds for hours

worked by their employees within the scope of MTDC collective bargaining

agreements.

120. Frank Lalezarian, Kevin Lalezarian, Lalezarian Developers, BradSinger, Susan Singer, Finkelstein and Cuneo caused HRH to send false and

fraudulent reports by U.S. mail to the MTDC Funds at 520 Eighth Avenue, New

York, NY each month for the period May, 2007 through March, 2011. The false

statements reflected HRHs failure to truthfully report and pay for the hours

worked by employees in laborer classifications on the 37th Street Project, and

similarly caused subcontractors working on the job not to submit such reports and


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payments despite HRHs obligations under the CAGNY labor agreements to

require subcontractors to do so.

121. Frank Lalezarian, Kevin Lalezarian and Lalezarian Developers agreedwith Brad Singer, Susan Singer, and Finkelstein on and before December 10, 2007

(when the contract was entered into between Leviathan and Brooklyn Gold and

Brooklyn Tillary), that Leviathan would pretend to perform Construction Manager

services for the Gold Street Project, that HRH would not report to MTDC the hours

Leviathan employees worked on the projects or contribute to the MTDC Funds in

accordance with those hours and that subcontractors selected by HRH would

similarly not be submitting any such reports or contributions.

122. Frank Lalezarian, Kevin Lalezarian, Lalezarian Developers, BradSinger, Susan Singer, Finkelstein and Cuneo caused HRH to send false and

fraudulent reports by U.S. mail to the MTDC Funds at 520 Eighth Avenue, New

York, NY each month for the period May, 2007 through March, 2011. The false

statements reflected HRHs failure to truthfully report and pay for the hours

worked by employees in laborer classifications on the Gold Street Project and the

failure of subcontractors to do the same.

123. In furtherance of this scheme to defraud Plaintiffs, Kevin Lalezarianand Lalezarian Developers utilized wire transfers of money and wire messages,

showing their participation in the creation of Leviathan as a false front for the work


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of HRH including the following emails that show Lalezarian Developers assisting

in the creation of Leviathan and using HRH to act as the actual construction

manager:

(a) On September 27, 2007 at 4:20 p.m., David Sani (Sani), anemployee and agent of Lalezarian Developers sent an email to Getler and

others, including Kevin Lalezarian, advising them that Lalezarian

Developers had obtained Revised Certificates for Leviathan Construction

Management Services LLC for the Gold Street and 37th

Street Projects.

(b) On October 3, 2007 at 3:38 p.m. and later at 6:47 p.m., KevinLalezarian received by email and sent by email copies of the Certificate of

Liability Insurance (DOB & DOT) and Certification by Broker forms for

Leviathan.

(c) On October 11, 2007 at 12:19 p.m., Kevin Lalezarian sent anemail to Lou Esposito (Esposito), an officer of HRH charged with

negotiating the subcontracts for both the 37th Street and Gold Street Projects,

stating: Lou, we are ready to send out plans to go out to bid, can you pls

send contact info for the window installer you had in mind to me and alex

thanks. On October 11, 2007 at 5:05 p.m., Esposito sent Kevin Lalezarian a

copy of an email Esposito sent to Papadopoulos instructing him to send

drawings and specs to a particular window installing company.


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(d) On October 15, 2007, a problem developed regarding access tostreet space during the construction of the Gold Street Project which would

typically be dealt with by a Construction Manager on a project. Kevin

Lalezarian sent and received emails on that day in which it was agreed that

HRH (not Leviathan, the titular Construction Manager) had to resolve this

problem.

124. After October 1, 2007, Brad Singer, in an effort to cloak his wifesownership of Leviathan, requested that Finkelstein become an officer of Leviathan.

Finkelstein was a social friend of the Singer family. At that time, Finkelstein was

an out of work insurance company executive who had no experience or expertise in

the construction industry apart from insurance related matters. Finkelstein has

played no substantive role in Leviathan apart from consultations regarding

insurance policies and allowing his name to be utilized as an officer of Leviathan

in connection with the construction management agreements for the 37th Street and

Kent Avenue Projects to conceal from the MTDC and the Bankruptcy Court the

Singer ownership and control of Leviathan.

125. A Construction Management Agreement was executed betweenTower 37 and Leviathan (the 37th Street CM Agreement). The 37th Street CM

Agreement was in fact negotiated by HRH prior to the creation of Leviathan.


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126. The 37th Street CM Agreement required Leviathan to perform a seriesof tasks that were in fact performed by HRH and its employees. Leviathan had [

REDACTED]employees from October 17, 2007 until April 17, 2008 and only [

REDACTED] employees through June 2008. During the entire period from

October 17, 2007 through the completion of this project, HRH did virtually all of

the construction management work on the project.

127. The 37th Street CM Agreement required the designation of Leviathanemployees to perform the work of Construction Manager for the 37

th

Street Project.

The two persons designated at paragraph 3.3 of the 37th Street CM Agreement as

employees of Leviathan are [ REDACTED]as Project Manager and

[ REDACTED] as Project Superintendent. Both individuals were known by Kevin

Lalezarian and Frank Lalezarian to be employees of HRH since they had worked

with them as HRH employees on their 21st Street Project.

128. Leviathan received fees from Kevin Lalezarian, Frank Lalezarian orLalezarian Developers directly or through their development companies, including

Tower 37, for the construction management work that HRH did in connection with

the 37th Street Project. These fees were sent to Leviathan by Kevin Lalezarian,

Frank Lalezarian, Tower 37, or Lalezarian Developers by mail and/or wire with the

express purpose of defrauding MTDC and its members of the wages and benefits


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due them under the HRH CAGNY Contract if HRH had been acknowledged as the

Construction Manager for the 37th Street Project.

129. Kevin Lalezarian and Lalezarian Developers received and senthundreds of emails in 2007, 2008 and 2009 to various parties, demonstrating that

HRH was in fact performing the work of Construction Manager at both the Gold

Street and 37th Street Projects, including:

(a) On November 20, 2007 at 7:02 a.m., HRH employee Espositosent an email to Papadopoulos with a copy to Kevin Lalezarian instructing

Papadopoulos to send drawings and specs to a particular plumbing, heating

and sprinkler contractor for work on the 37 th Street and Gold Street Projects.

(b) On November 20, 2007 at 10:10 a.m., HRH employee Espositosent an email to various parties including Kevin Lalezarian instructing

Papadopoulos to e-mail me the printers listing of the most current drawings

and specifications. Once I receive the same I will prepare bid lists (with

Kevins input) and a buyout schedule. Leviathan was not involved in the

preparation of these bid lists.

(c) On October 23, 2007 at 4:14 p.m., Joe Armocida (Armocida),then a long-time HRH employee, advised Kevin Lalezarian that he had just

spoke[n] to a vendor and he agreed to the reduced unit prices we discussed


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this morning, including no travel charge. Leviathan was not involved in

reaching terms with this vendor.

(d) On November 30, 2007 at 5:29 p.m., a Lalezarian Developersemployee named Andre Camacho sent an email to HRH employee

Armocida stating, attached please find Hercules Concrete Corps

foundation proposal as agreed to by us and Hercules for Brooklyn Tillary.

Please proceed with creating a formal contract including the following

stipulations: 6 week time schedule, minimum of 12 men working on site at

all times. Feel free to contact me should you have any questions or

concerns. Leviathan played no role in this subcontract.

(e) After October 17, 2007, Leviathan had a single employee,Papadopoulos, and when he was not present on the construction sites,

Lalezarian Developers arranged for HRH representatives to perform his

work. On December 27, 2007 at 15:06 (or 3:06 p.m.), Lalezarian

Developers, by Kevin Lalezarian, sent an email to HRH employee Armocida

asking him With Alex out this week, is anyone checking up on site at 350

W37? Kevin Lalezarian received a return email from HRH employee

Armocida on December 27, 2007 at 3:44 p.m. advising that I have been by

the site each day and met with Genaro today. Armocida and Kevin

Lalezarian exchanged further emails that day arranging for a meeting to be


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held at noon at the Gold Street Project on the following Wednesday with the

new Superintendent and Project Manager. Leviathan was not involved in

these meetings.

(f) March 3, 2008, Getler of HRH sent an email to KevinLalezarian which said: Kevin: here is the contract for US Reinforced.

They have the contract and have already sent us comments to it. I will

review their comments to the boiler plate and Lou [Esposito of HRH] is

reviewing the rider comments. There is no suggestion that Leviathan was

playing any role whatsoever in the selection or administration of contracts

with subcontractors on the 37th Street Project.

(g) On March 6, 2008 at 11:28 a.m., a subcontractor emailed KevinLalezarian advising him that he wanted a meeting with HRH and Lalezarian

to discuss in detail the scope of work for the projects. A day earlier, the

same subcontractor had emailed Lalezarian to report, we have submitted

pricing to HRH for the projects. Leviathan was not involved in this

subcontract.

(h) Kevin Lalezarian and other Lalezarian Developerrepresentatives and HRH representatives including Esposito received or sent

emails regarding the selection of subcontractors for the 37th Street and Gold

Street Projects without reference to any role by Leviathan in this process on:


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February 1, 2008 at 10:25 a.m.; March 10, 2008 at 10:51 a.m.; March 17,

2008 at 10:29 a.m.; March 18, 2008 at 3:39 p.m.; March 18, 2008 at 4:03

p.m.; March 19, 2008 at 10:53 a.m.; March 19, 2008 at 11:13 a.m.; March

20, 2008 at 10:27 a.m.; and March 21, 2008 at 11:49 a.m.

130. Lalezarian Developers utilized hundreds of emails in furtherance oftheir fraudulent scheme with the Singer Criminal Enterprise to coordinate and

review the payments to both Leviathan and HRH, including:

(a) On February 27, 2008 Lalezarian Developers caused a wiretransfer of $50,000 to be sent to a bank account maintained by Leviathan

based on the work performed for the 37th Street and Gold Street Projects by

HRH.

(b) On February 27, 2008 at 4:39 pm, Getler, the General Counselfor HRH, sent an email to HRH executives Brad Singer, Armocida, Frank

Ross, Jr. (Ross) and to Lalezarian Developers employees and

representatives Kevin Lalezarian, Ahn and Sani stating: Kevin, thank you.

Leviathan received the wire. I appreciate your attention to this matter.

(c) On March 18, 2008 at 10:35 am, Getler, General Counsel forHRH, sent an email to various Lalezarian Developers employees including

Kevin Lalezarian and Sani stating that I understand that Kevin has


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authorized a wire to Leviathan today . Kevin, if you could have someone

let us know the confirmation number, I would appreciate it.

(d) On March 19, 2008 at 11:03 a.m., Getler of HRH sent an emailmarked re Leviathan wire to Kevin Lalezarian asking what about the

rest? after being advised by an earlier email from Lalezarian Developers

that a wire transfer of $50,000 had been made to Leviathan for Tower 37.

(e) On March 20, 2008 at 3:51 p.m., Kevin Lalezarian andLalezarian Developers sent to Getler and other parties an email advising that

we are reviewing the Leviathan reqs/back up. However we dont have any

hrh reqs/backup for either project. Would you please send us. Getler

replied by email to Kevin Lalezarian on March 20, 2008 at 15:57 p.m., or six

minutes later, saying Because HRH is Owners Rep, we do not requisition

our time/costs. We have sent you invoices.

(f) On March 20, 2008 at 21:47 p.m., HRH employee Armocidasent an email to various parties including Getler and Kevin Lalezarian

advising that when your [sic] received the first Leviathan requisitions the

HRH requisitions were in the same envelope. Kevin Lalezarian replied to

Armocida on March 21, 2008 at 8:12 a.m.: Youre right. We have hrh1.

thanks.


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Getler responded with an email to Ahn, copied to Brad Singer and Kevin

Lalezarian, stating that: The 50% [salary reimbursement calculation] should

only be 37th street not gold street. We do not have a fee on gold street and

all employees are billable 100%. Please restore Joes time. Further franks

time is billable on gold street. The we to which Getler refers is

HRH/Leviathan and the 100% reimbursement of time refers to the

fraudulent agreement to reimburse Leviathan 100% of the costs for time

spent by HRH on the Gold Street Project.

(j) On May 1, 2008 at 3:42 p.m., Ahn emailed Kevin Lalezarianasking him if the scheme proposed by Getler was correct. On May 1, 2008

at 18:43, three hours and one minute later, Ahn sent an email to Getler, Brad

Singer and Kevin Lalezarian stating: Hi Janine, you are correct In

this email she proposed to pay $256,816 to fully pay HRH Precon 1 and 2

and requisitions 1 and 2 after the receipt of certain confirmations regarding

the agreement of HRH employee Ross to attend all weekly meetings for both

the Gold Street and the 37th Street Projects.

(k) On May 2, 2008 at 10:57 a.m., Ahn sent an email to Getler,Brad Singer and Kevin Lalezarian stating per our conversation Ive

moved all payments made to Leviathan against the Tower 37

preconstruction invoices 1 and 2 and the requisitions. Total paid to date is


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$402,186.13. To clarify, you want no payments to HRH Construction for

either project right now. You would like the payments made to

Leviathan: $146,327.40 for Tower 37 and $102,833 for Gold Street. Total is

$249,160.40. I will confirm the above is OK with Kevin once he gets in the

office.

(l) Lalezarian Developers and Kevin Lalezarian sent emails as partof a scheme to initially put the name of the construction permit for the 37th

Street Project in the name of Genrus Corp. instead of HRH to allow

construction to go forward. Lalezarian Developers and Kevin Lalezarian

needed to use the name of Genrus Corp. because they knew that Leviathan

did not yet have the necessary New York City municipal tracking numbers

to obtain a permit in its own name. Kevin Lalezarian asked Papadopoulos

what the charges and fees would be for obtaining a second permit by

Leviathan to replace the permit taken out in the name of Genrus Corp.

because he knew that while Genrus Corp. was being identified as the permit

holder for the 37th Street Project, HRH would be the Construction Manager

in fact, and the permits would be taken out in the name of Leviathan. On

September 7, 2007 at 10:30 a.m., Papadopoulos, then an employee of HRH,

advised Kevin Lalezarian that the costs for new permits would be $1400 or

we keep the permits in place until the foundation is filled, at which time we


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will need new permits anyway. On September 7, 2007 at 1:40 pm, Kevin

Lalezarian sent Papadopoulos the following instruction by email: lets get

permit asap.

131. [ REDACTED], but he had no role in negotiating or in subsequentlyperforming this agreement. Cuneo, as Chairman of the Board of HRH, and Brad

Singer as President of HRH, negotiated every aspect of this agreement including

the compensation to be paid to Leviathan for the work of HRH.

Kent Avenue Project

132. Kent Fee considered contracting with a non-union firm known as Pav-Lak as its Construction Manager in July, 2008. On July 17, 2008, Kent Fee and

JMH the owner and developer of the property involved in the Kent Avenue

Project created a Comparison between Leviathan vs. Pav-Lak to analyze the

relative advantages and disadvantages of entering into a construction manager

contract with either firm (the Comparison). The Comparison demonstrates that

HRH was intended to be the actual Construction Manager if Leviathan was

selected. Comments in the July 17, 2008 document under a column titled

Leviathan (HRH) state:

(a) Parent company HRH performed a detailed review of allbought trades[.] This statement is an acknowledgment of the HRH control

over Leviathan.


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(b) All personnel proposed for the project are existing HRHExecutives[.] (Emphasis added.)

(c) Our understanding is that a $3.5 million fee has beennegotiated [for construction management services]. This proposed figure

was subsequently divided between HRH and Leviathan with the latter

receiving a much greater share, in part to divert payments to the Singer

Family.

(d) Leviathan is a 1-year old entity with no finished projects todate[.]

(e) Strong parent company with extensive experience in newresidential construction[.]

(f) A handwritten note about Leviathans Financial Strengthindicates that the decision makers at Kent Fee were still waiting for HRH

financials.

133. The observations above demonstrate that Kent Fee was keenly awareof the relationship between HRH and Leviathan and that HRHs experience and

expertise were the true advantages to choosing Leviathan to perform

construction management services.

134. Moreover, Kent Fee was seeking a Construction Manager Agreementthat utilized a Guaranteed Maximum Price (GMP). GMPs are determined by the


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Construction Managers. For the Kent Avenue Project, it was HRH and not

Leviathan that established the GMP. A legal opinion mailed or faxed to Jason

Halpern (Halpern) the founder and Managing Partner of JMH on July 18,

2008 from the firm of Rivelis, Pawa & Blum LLP anticipated that the proposed

GMPs from Pav-Lak and HRH should be in hand early next week and asked,

Have change orders been requested, or agreed to with the trades and have Pav-

Lak and HRH been so advised to include in their GMP proposal?

135. The Leviathan Draft Construction sheets, dated July 16, 2008, were infact prepared on that date by HRH. The September and October Monthly Progress

Reports for the Kent Avenue Project each featured an Executive Summary that

was authored by HRH/Leviathan. Also, among the topics for discussion listed in

a February 4, 2009 agenda about HRH/JMH Internal matters is HRH/LCMS

org chart/staffing. The same agenda includes a list of HRH-Critical Construction

Issues to be addressed at the meeting such as Two/shower body installation and

light fixture approvals.

136. The Kent Avenue Project personnel consistently refer to Leviathan,when they refer to it at all, as HRH/Lev or HRH/L, including in:

(a) February 6, 2009 and January 25, 2009 memoranda to Halpernfrom Jay M. Jameson which include a request for a dedicated P[roject]

M[anager] from HRH/Lev to be responsible (and solely responsible) for


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Organization Contact List was created for the Kent Avenue Project. The

document identifies 17 HRH employees as involved in the Project and only six

individuals ostensibly from Leviathan working on the Project. The HRH

employees included:

Brian Tierney Technical ServicesJim Egan HVACKevan McKinney Interior/FinishesVincent DOnofrio Electrical/TelecomJim Muscianesi Chief EstimatorLou Esposito Purchasing Manager

Gregory Cuneo Principal in ChargeFrank Ross Jr. Project OperationsJoe Armocida Project ExecutiveJoe Chan Accounting SupervisorJerlyn Serrano AccountantJanine Getler General CounselDaisy Olivero Contract AdministratorDonna Mollica Risk ManagerNino A. Noto Project ManagerCari Deutsch Asst. Project ManagerCarlton Grey Plan Clerk

139. The September 10, 2008 document lists six people as fromLeviathan, including Lou Finkelstein, President; Sandy Perrota, General

Superintendent; Marcin Jablonski, MEP Superintendent; Ellen Rodriguez; and

Sean Carroll. But four of those people are listed with MaxCon email addresses

because they were actually employees of MaxCon who were put on the Leviathan

payroll in August, 2008 as part of the conspiracy with the Singer Criminal


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Enterprise to cover up the fact that Leviathan was a mere shell that was being paid

millions of dollars for work that HRH was actually doing.

140. The inclusion on this list of Finkelstein, who knows nothing about theconstruction industry and played no meaningful role in the Kent Avenue Project,

demonstrates the concerted efforts by these defendants to cloak the use of HRH as

the Construction Manager.

141. The HRH Requisition Number 2 to Kent Fee for the period 9/1/08 to9/30/08, dated October 14, 2008, shows that HRH employees were reimbursed for

792.50 hours of work on the Kent Avenue Project.

142. The Leviathan Requisition Number 3 to Kent Fee for the period9/1/08 to 9/30/08 shows that Leviathan was reimbursed for 749.55 hours of work

on the Kent Avenue Project. The vast majority of those hours were worked by

Peter Axtens, Sandy Perrota, and Ellen Rodriguez, who were all employees of

MaxCon. That requisition reports that Finkelstein spent 29.5 hours on the 184

Kent Avenue Project for activities such as:

Go to HRH to sign documents .50Go to HRH sign assumption documents .50Go to HRH sign documents for funding 184

Kent. Review general conditions 3.50

Finkelstein, the alleged Officer in Charge of the Project, also reported that he

performed clerical tasks such as the following in this period:

Developed resume and faxed Scott JMH Dev. .50


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Fedex employment apps to Montalto CPA .25Various emails re: Peter Axtons [sic] email.

Create email acct. .25Set up emails [for] new employees .50Called Amex add new cardholder, increase

credit limit 1.0Go to Verizon to purchase new Blackberrys in

corporate name 2.50Fax addtl timesheet, voided check and W4s .25

Finkelsteins invoice for time spent in October, 2008 for Leviathan included 15.25

hours spent in connection with the Kent Avenue Project on matters such as:

Purchased blackberry at Verizon[;]Fedexed to Eric 1.75

Fedexed bills to Montalto CPA .50Notarized/fedexed Sept. Requisition .75Resign/fedex Sept req .50Deleted George C from email .25Prepared new employee packets .75Traveled to HRH, signed trade

contracts/reqs for subs 1.25Verified Staples order .25Travel/sign trade contracts 1.0Notarized Req. #4 .50

Finkelsteins invoice to Leviathan for September 2008 has the same pattern of

trivial or clerical duties for 22.5 hours combined for the Gold Street, 37th Street,

and Kent Avenue Projects, including:

Attempted to purchase Blackberrys[at]Verizon Store 1.75

Purchased Blackberrys at Verizonand fedexed 2.0

Complete application, Pearlgreen, fax .25Complete rebates on 3 Blackberrys, mail .50Fill out credit appBedford Inustrial .25


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Verizon store new employee phone .75Speak with Donna/Verizon re: shutting off

phones [at] Gold St. .50Donna having phone problems[;] made calls

to rectify .25

143. Finkelstein used Federal Express on scores of occasions from 2008through 2010 to maintain the fiction that he was the Officer in Charge of the Kent

Avenue Project, including: (1) to send a certification for payment on August 6,

2008; (2) to send employment applications to Montalto, CPA on August 16, 2008;

(3) to send a Blackberry to Eric Faison on October 2, 2008; (4) to send bills to

Montalto, CPA on October 10, 2008, and; (5) to send the September Requisition to

Kent Fee on October 10 and 15, 2008.

144. On or about August 11, 2008, HRH entered into an OwnersRepresentative Agreement with Kent Fee to serve as the Owners Representative

for the construction of the Kent Avenue Project (Kent Fee OR Agreement).

Paragraph 1.4 of the Kent Fee OR Agreement specifies that the Construction

Manager for the Kent Avenue Project shall be Leviathan.

145. Paragraph 33 of Schedule A to the Kent Fee OR Agreement statesthat:

Owner expressly acknowledges that it has advisedOwners Representative that Owner will be performingthe work with a non-union Construction Manager andnon-union trade contractors, and further acknowledgesand agrees that Owners Representative has advisedOwner that Owners Representative cannot directly assist


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in any labor event that arises out of or relates to the useof non-union trades or labor.

146. HRH drafted and suggested that language to Kent Fee as part of itsfraudulent scheme to cover up the fact that HRH was the actual Construction

Manager for the Kent Avenue Project.

147. HRH was selected for the Kent Avenue Project because MaxCon hadto be replaced due to difficulties with its performance on the Project. The

developers need for an experienced large project Construction Manager benefited

HRH, which offered almost 100 years of successful construction performance as

an inducement to select it as the actual Construction Manager for the Kent Avenue

Project. If HRH had not agreed to surreptitiously serve as Construction Manager

and divert income and profits due to it to Leviathan, HRH would have been

selected as the Construction Manager on the Kent Avenue Project, utilizing union

labor to perform the work on this project.

148. Paragraph 2.7.1 of the Kent Fee CM Agreement states that the Officerin Charge of the project will be Finkelstein. At the time he became an officer of

Leviathan and since that date until the present, Finkelstein has had no experience

in the construction industry apart from insurance issues. He would be unable by

training and inclination to serve as the Officer in Charge of any construction

industry project especially a large one with 338 apartments and a history of


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problems with its Construction Manager. Kent Fee agreed to pretend that

Finkelstein as the Officer in Charge of this project only upon the assurance of

Cuneo and Brad Singer that Leviathan was a fiction created to enable HRH to

divert money from its creditors and to defraud the Plaintiffs and their members of

the wages and benefit payments due them under the CAGNY Contracts.

149. Paragraph 5.1 of the Kent Fee CM Agreement states that theConstruction Managers fee for performing the work shall be a fixed lump sum of

$2,200,000. Article 5.1 of the Kent Fee OR Agreement states that the Owners

Representatives fee to HRH shall be a lump sum of $1,000,000. HRH thus

diverted to Leviathan at least $2.2 million of the $3.5 million dollar fee that it had

negotiated for Construction Manager services as of July 18, 2008.

150. [ REDACTED] Since HRH actually did the ConstructionManagement work for which Leviathan was paid on the Kent Avenue Project,

Kent Fee knowingly diverted to Leviathan millions of dollars that should have

been paid to HRH for its work on the Kent Avenue Project.

151. Upon information and belief, JMH and Brad Singer exchangedhundreds of emails in connection with the agreement that HRH would do the work

of a Construction Manager on the Kent Avenue Project while payment for the

work would actually go to Leviathan.


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152. JMH and Kent Fee knew that Leviathan was a fiction and that theConstruction Manager work on the Kent Avenue Project would be performed by

HRH. On July 11, 2008 at 5:28 p.m., Halpern and Kent Fee caused to be created

and then signed a Guaranty of Completion between HRH as Guarantor in favor of

Kent Fee as beneficiary/owner. The Guaranty states that Leviathan has entered

into a Construction Management Agreement pursuant to which Leviathan is

obligated to construct approximately 338 residential units and related amenities

pursuant to a Guaranteed Maximum Price and that HRH unconditionally,

absolutely and irrevocably guarantees to Owner that the Work [by Leviathan] shall

be fully completed under the Contract including price, quality and timeliness of

performance.

153. Upon information and belief, Halpern demanded and received thisGuaranty because Brad Singer and Cuneo informed him that HRH, and not

Leviathan, would be the real Construction Manager on the job. Halpern and Kent

Fee knew that the money diverted to Leviathan was then transferred to the Singer

Criminal Enterprise.

154. Kent Fee knew that Brad Singer and Susan Singer were divertingLeviathan assets to themselves. Leviathan Requisition #5 for November, 2008

contained an American Express Bill showing that Susan Singer charged Leviathan


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$1521.04 in personal parking and restaurant expenses and $658 for an airline ticket

for Brad Singer to fly to Florida on November 6, 2008.

155. HRH did not receive any compensation from Leviathan for enteringinto this Guaranty of Leviathans performance for the Kent Avenue Project.

156. On September 9, 2009, HRH filed a Chapter 11 petition in theBankruptcy Court for the Southern District of New York. In re HRH Construction

LLC, 09-23665 (RDD). The filing fraudulently listed Leviathan as a creditor of the

HRH estate and did not include the assets of Leviathan as assets of the HRH estate.

The filing fraudulently failed to list an address for Leviathan because the real

office of Leviathan was the office of HRH at 50 Main Street, White Plains, NY.

Bankruptcy Fraud in connection with the Chapter 11 Filing

157. On August 31, 2010, almost a year after HRHs Chapter 11 filing,Cuneo and Brad Singer negotiated another Construction Management Agreement

for 20 Henry Street, Brooklyn New York in which HRH would be the actual

construction manager but Leviathan would be given the title of Construction

Manager. Cuneo and Brad Singer diverted over $1million in fees that HRH would

have been entitled to from HRH to Leviathan to prevent these fees from becoming

part of the HRH Chapter 11 estate.


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158. On October 29, 2009, HRH filed schedules of assets and liabilities(Docket No. 107, the Schedules) and a statement of financial affairs (Docket No.

108, the SOFA).

Schedules of Assets and Liabilities, Statements of Financial Affairs

159. Remus is listed on the Schedules as holding a secured claim againstHRH for $10,640,170.

160. The SOFA lists a total of $3,509,689.95 (the SOFA Question 3Payments) as having been paid by the Debtors to or for the benefit of creditors

within 90 days of the Filing Date.

161. Of the SOFA Question 3 Payments, $1,043,700 was paid to RemusHoldings by check no. 360, dated June 8, 2009.

162. On March 30, 2010, Remus filed a secured claim in the amount of$10,189,061.21, plus interest after the Filing Date at the rate of 12% per annum

(the Remus Claim).

163. The September 9, 2009 filing failed to identify the millions of dollarsin preferential transfers from HRH to Remus and other members of the Singer

Criminal Enterprise from March 1, 2007 through September 8, 2009, as described

below.


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164. Upon information and belief, between June 17, 2007 and February 17,2008, HRH paid all or part of Gary Singers credit card bills totaling $183,684.87.

Transfers from HRH to the Defendants

165. Upon information and belief, during calendar year 2007, HRHtransferred approximately $1,699,656.95 to Starrett.

166. Upon information and belief, between March 2006 and June 2009,HRH transferred approximately $2,999,590 to the Gary & Karen Singer Childrens

Trust.

167. Upon information and belief, between March 1, 2007 and June 30,2007, HRH transferred approximately $3,119,260 to Remus Holdings.

168. On or about June 8, 2009, which date is within the 90 days precedingthe Filing Date, the Debtors transferred the aggregate amount of $1,193,700 to

Remus Holdings.

169. Upon information and belief, between March 6 and June 9, 2006,HRH made monthly payments to Remus Holdings, the Gary & Karen Singer

Childrens Trust and Starrett totaling approximately $5,000,000.

170. Upon information and belief, from and after February 4, 2009, HRHtransferred substantially all funds that came into its possession to Remus.


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171. Upon information and belief, between March and June, 2009, HRHcontinued to make monthly payments to Remus Holdings, the Gary & Karen

Singer Childrens Trust, and Starrett.

172. On or about March 3, 2006, Friedman LLP issued an independentauditors report (the 2005 Auditors Report) as of December 31, 2005 and 2004

to the members of HRH and its subsidiaries.

The Auditors Reports

173. The 2005 Auditors Report states that members made $6,100,000 incontributions to HRH and its subsidiaries during 2005.

174. On or about June 24, 2008, Friedman LLP issued an independentauditors report (the 2007 Auditors Report) as of December 31, 2007 to the

members of HRH and its subsidiaries.

175. The 2007 Auditors Report lists a $11,900,170 liability as Loanspayable related party, net of current maturities.

176. Upon information and belief, the alleged notes were not recorded onHRHs Financial Statements until the 2007 Auditors Report.

177. As se

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