SUPREME COURT OF THE STATE OF NEW YORK

COUNTY OF NEW YORK

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -X

FRANKLYN CASTRO,

Plaintiff, VERIFIED COMPLAINT

TO SET ASIDE DEED
-against- and FOR DAMAGES
ASSOCIATED WITH
FRAUD AND COLLUSION
WILLIAM C. THOMPSON, JR.;
ELSIE McCABE;
MARC ANDREW LANDIS, ESQ.;
PHILLIPS NIZER, LLP;
NORMAN HOROWITZ;
HALSTEAD PROPERTY, LLC;
AMALGAMTED BANK;
DERRICK CEPHAS; and
CLAIRE PICKENS, Index No. _________/09

Defendants.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -X

Plaintiff, above-named, by his attorney, LAWRENCE H. BLOOM, ESQ.,

complaining of the Defendants, respectfully shows to this Court and alleges as follows:

AS AND FOR A FIRST CAUSE OF ACTION TO SET ASIDE DEED

1. Plaintiff, FRANKLYN CASTRO, is over the age of eighteen (18)

years and resides in Bronx County, in the City and State of New York.

2. Defendant, WILLIAM C. THOMPSON, JR., is over the age of

1
eighteen (18) years and resides at 106 West 121st Street, in the County, City and State of New

York.

3. Defendant, ELSIE McCABE, is over the age of eighteen (18)

years and resides at 106 West 121st Street, in the County, City and State of New York.

4. Upon information and belief, Defendant, MARC ANDREW

LANDIS, ESQ., is over the age of eighteen (18) years, and is an attorney with his principal place

of business in the County, City and State of New York.

5. Upon information and belief, Defendant, PHILLIPS NIZER, LLP,

is a law firm in which Defendant MARC ANDREW LANDIS, ESQ., is a partner, with its

principal place of business in the County, City and State of New York.

6. Upon information and belief, Defendant, HALSTEAD

PROPERTY, LLC, is real estate brokerage firm, with its principal place of business in the

County, City and State of New York.

7. Upon information and belief, Defendant, NORMAN HOROWITZ,

is over the age of eighteen (18) years, and is an Executive Vice President and real estate agent

with Defendant HALSTEAD PROPERTY, LLC, with his principal place of business in the

County, City and State of New York.

8. Upon information and belief, Defendant, AMALGAMATED

BANK, is a bank organized under the Banking Law of the State of New York, with its principal

place of business in the County, City and State of New York.

2
 9. Upon information and belief, Defendant, DERRICK CEPHAS, is

over the age of eighteen (18) years, and is President and Chief Executive Officer with Defendant

AMALGAMATED BANK, with his principal place of business in the County, City and State of

New York

10. Upon Upon information and belief, Defendant, CLAIRE

PICKENS, is over the age of eighteen (18) years, is the former wife of the Plaintiff, and resides

in the County, City and State of New York.

11. Defendants WILLIAM C. THOMPSON, JR. and ELSIE McCABE

are the current owners of the premises 106 West 121st Street, in the County, City and State of

New York.

12. Plaintiff and Defendant CLAIRE PICKENS are the former owners

of the premises 106 West 121st Street, in the County, City and State of New York.

13. Defendants MARC ANDREW LANDIS, ESQ., and PHILLIPS

NIZER, LLP, are/were the Court-appointed Receivers for the sale of the premises 106 West

121st Street, in the County, City and State of New York, having been appointed by Order

Appointing Receiver of the Supreme Court of the State of New York, County of New York (J.

Visitacion-Lewis) dated October 24, 2006 in an action entitled “CLAIRE PICKENS, Plaintiff,

against FRANKLYN CASTRO, Defendant” bearing New York County Index Number

350604/02, a copy of which is annexed hereto and labeled Exhibit “A”.

12. Upon information and belief, Defendants MARC ANDREW

3
LANDIS, ESQ., and/or PHILLIPS NIZER, LLP, retained the services of Defendants NORMAN

HOROWITZ and/or HALSTEAD PROPERTY LLP, as real estate brokers for the sale of the

premsies106 West 121st Street, in the County, City and State of New York.

13. The premises 106 West 121st Street, in the County, City and State

of New York were listed for sale at a listing price of $2,490,000.00, by Defendants NORMAN

HOROWITZ and/or HALSTEAD PROPERTY LLP, and/or Defendants MARC ANDREW

LANDIS, ESQ., and/or PHILLIPS NIZER, LLP.

14. Upon information and belief, Defendants NORMAN HOROWITZ

and/or HALSTEAD PROPERTY LLP, and/or Defendants MARC ANDREW LANDIS, ESQ.,

and/or PHILLIPS NIZER, LLP, located Defendants WILLIAM C. THOMPSON, JR. and ELSIE

McCABE as prospecitive buyers to purchase the premises 106 West 121st Street, in the County,

City and State of New York.

15. Defendants MARC ANDREW LANDIS, ESQ., WILLIAM C.

THOMPSON, JR. and ELSIE McCABE entered into a contract of sale of the premises 106 West

121st Street, in the County, City and State of New York dated July 7, 2008, a copy of which is

annexed hereto and labeled Exhibit “B”, for a purchase price of $2,150,000.00.

16. At all times subsequent to July 7, 2008, Defendant MARC

ANDREW LANDIS, ESQ., of Defendant PHILLIPS NIZER, LLP, represented that the purchase

of the premises 106 West 121st Street, in the County, City and State of New York, to Defendants

WILLIAM C. THOMPSON, JR. and ELSIE McCABE was “an all cash deal”.

17. Upon information and belief, and notwithstanding said

4
representations, Defendants WILLIAM C. THOMPSON, JR. and ELSIE McCABE obtained

financing from Defendant AMALGAMATED BANK through its President and Chief Executive

Officer, Defendant DERRICK CEPHAS, with the assistance of Defendants MARC ANDREW

LANDIS, ESQ., and/or PHILLIPS NIZER, LLP, and/or Defendants NORMAN HOROWITZ

and/or HALSTEAD PROPERTY LLP, for the acquisition of the premises in the amounts of

$729,000.00 and $400,000.00.

18. In the course of the matrimonial action between Plaintiff and

Defendant CLAIRE PICKENS, bearing New York County Index Number 350604/02, an Order

(J. Visitacion-Lewis) was granted on October 31, 2003 which, inter alia, provided for the

Defendant CLAIRE PICKENS to have exclusive occupancy of the premises 106 West 121st

Street, in the County, City and State of New York, effective November 11, 2003, effective

November 11, 2003.

19. Six months after the Plaintiff herein vacated the said premises,,

still in the course of the matrimonial action between Plaintiff and Defendant CLAIRE PICKENS,

bearing New York County Index Number 350604/02, said individuals entered into a written

Stipulation of Settlement dated May 11, 2004, a copy of which is annexed hereto and labeled

Exhibit “C”, which, inter alia, provided for the sale of the premises 106 West 121st Street, in the

County, City and State of New York and which further provided

“The Husband [Plaintiff herein] shall have right of first refusal to purchase

the Wife’s [Defendant CLAIRE PICKENS] interest in the Marital

Residence [the premises 106 West 121st Street, in the County, City and

State of New York]. The Husband’s right of first refusal must be

exercised, if at all, within forty-eight (48) hours of the receipt of a bona

5
 fide, arm’s length, offer that is acceptable to the Wife to purchase the

Marital Residence from an unrelated third party (the “Offer”), and the

Husband’s offer must match that offer term for term. The Husband must

provide to the Wife written proof satisfactory to the Wife that the Husband

qualifieds for a mortgage on the Marital Residence for the same amount as

the Offer.”

20. Said Stipulation of Settlement also required the sale of the

premises 106 West 121st Street, in the County, City and State of New York within sixty days.

21. Said Stipulation of Settlement was incorporated by reference in the

Judgment of Divorce (J. Visitacion-Lewis) dated December 7, 2004, dissolving the marriage

between the Plaintiff herein and Defendant CLAIRE PICKENS, which Stipulation survived and

not merged in said Judgment.

22. With there being no sale of the premises 106 West 121st Street, in

the County, City and State of New York, by March of 2005, Plaintiff herein moved in the

matrimonial action against his former wife, Defendant CLAIRE PICKENS, by Notice of Motion

dated March 29, 2009, seeking various relief including but not limited to the appointment of a

receiver for the sale of said premises.

23. Said Notice of Motion dated March 29, 2005, as well as a cross-

motion of Defendant CLAIRE PICKENS, was resolved by the Order Appointing Receiver

(Exhibit “A”) pursuant to which the Court (J. Visitacion-Lewis) removed the contractual right of

first refusal to purchase the premises 106 West 121st Street, in the County, City and State of

New York and directed that same be sold to “an independent third party”.

6
 24. The Plaintiff herein thereupon filed a Notice of Appeal from said

Order Appointing Receiver.

25. The Plaintiff herein also thereupon made application by Notice of

Motion dated January 3, 2007, seeking to stay the sale of the premises and modifying said Order

Appointing Receiver to restore his right of first refusal.

26. Said application was denied by Decision & Order (J. Visitacion-

Lewis) dated March 6, 2007 which Order also assessed sanctions against the Plaintiff herein.

27. The Plaintiff herein thereupon filed a Notice of Appeal from said

Decision & Order.

28. Various applications were made by the Plaintiff herein before the

Supreme Court of the State of New York, Appellate Division, First Judicial Department for stays

of the Orders appealed from.

29. The Plaintiff herein prefected his appeals before the Supreme

Court of the State of New York, Appellate Division, First Judicial Department; and said appeals

were orally argued before a Full Bench on January 15, 2008.

30. As said appeals remained sub judice, Defendant MARC

ANDREW LANDIS made application in the matrimonial action (New York County Index

Number 350604/02) before the Hon. Deborah Kaplan, J.S.C. (to whom this matter had then been

reassigned), seeking to confirm and approve the contract of sale of the subject premises to

7
Defendants WILLIAM C. THOMPSON, JR. and ELSIE McCABE (Exhibit “B”), by Order to

Show Cause dated July 22, 2008.

31. Emergency application was thereupon made by the Plaintiff herein

before the Supreme Court of the State of New York, Appellate Division, First Judicial

Department seeking to stay Defendant MARC ANDREW LANDIS and Defendant PHILLIPS

NIZER, LLP, from proceeding with their application, with a copy of that application, dated July

28, 2008, and supporting Affirmation (but without exhibits) being annexed hereto and labeled

Exhibit “D”.

32. Said emergency application was conditionally granted by the

Appellate Division (J. Sweeney) dated July 28, 2008, including various obligations on the

Plaintiff herein in Order to grant the stay, with a copy of said Order annexed hereto and labeled

Exhibit “E”.

33. Throughout the proceedings before the Appellate Division on July

28, 2008, and at all times since July 7, 2008 as well as after the July 28th date, Defendant MARC

ANDREW LANDIS of Defendant PHILLIPS NIZER, LLP, contined to represent that the sale of

the premises 106 West 121st Street, in the County, City and State of New York, to Defendants

WILLIAM C. THOMPSON, JR. and ELSIE McCABE was “an all cash deal”.

34. Based upon said representations and but for said representations,

the Plaintiff herein agreed to accept the contract of sale and to withdraw so much of his appeals

from the Order Appointing Receiver dated October 24, 2006 and to the Decision & Order dated

March 6, 2007 as wrongfully extinguished his contractually guaranteed right of first refusal to

purchase the subject premies.

8
 35. Said representations were false.

36. On October 29, 2009, the Plaintiff herein learned for the first time

that the purchase of the premises 106 West 121st Street, in the County, City and State of New

York, to Defendants WILLIAM C. THOMPSON, JR. and ELSIE McCABE by Defendants

MARC ANDREW LANDIS and PHILLIPS NIZER, LLP, was NOT “an all cash deal” by virtue

of a posting at VillageVoice.com, a copy of which is annexed hereto and labeled Exhibit “F”.

37. Upon information and belief, Defendants WILLIAM C.

THOMPSON, JR. and ELSIE McCABE obained financing of a $729,000.00 first mortgage plus

another $400,000.00 in the form of a home equity line of credit.

38. Upon information and belief, said first mortgage and equity

financing obtained by Defendants WILLIAM C. THOMPSON, JR. and ELSIE McCABE, at a

total of $1,129,000.00 were obtained through Defendants DERRICK CEPHAS and

AMALGAMATED BANK.

39. Upon information and belief, the first mortgage obtained by

Defendants WILLIAM C. THOMPSON, JR. and ELSIE McCABE was at a rate of 6.05%.

40. Upon information and belief, in or about October of 2009, the

Defendant WILLIAM C. THOMPSON, JR., the Democratic Party Candidate for Mayor of the

City of New York, represented this mortgage and ELSIE McCABE was at a rate of 7.1%

notwithstanding the reduced rate of 6.05%.

41. Upon information and belief, the said combined loan of

$1,129,000.00 was obtained through the personal relationship between Defendant WILLIAM C.

9
THOMPSON, JR. and Defendant DERRICK CEPHAS., as well as with Defendant MARC

ANDREW LANDIS and Defendant NORMAN HOROWITZ.

42. Upon information and belief, the said combined loan of

$1,129,000.00 was obtained in violation of the federal ceiling on such mortgages of $729,750.00.

43. As a result of all of the foregoing improprieties, not then disclosed

to the Plaintiff herein, Plaintiff elected not to match the offer of Defendants WILLIAM C.

THOMPSON, JR. and ELSIE McCABE (Exhibit “A”) which would have required an “all-cash”

outlay of $2,150,000.00, together with “reimbursing receiver for all debt service, real estate tax and

insurance payments paid by receiver and posting bond in the amount of $1,300,000” (see Exhibit “F”)

within a matter of three days.

44. It is now clear that a fraud was perpetuated by each of the

Defendants (with the possible exception of Defendant CLAIRE PICKENS), who also sustained

damages as a result of the fraud of the other Defendants.

45. This fraud has been perpetuated against the Plaintiff herein. It has

been perpetuated upon his attorney. It has been perpetuated against the Court. Indeed, it has

been perpetuated against the entire public of the City of New York in view of its impact upon the

candidacy of Defendant WILLIAM C. THOMPSON, JR.

46. With fraud having been committed, it is clear that the entire sales

contract and deed of and to the premises 106 West 121st Street, in the County, City and State of

New York, to Defendants WILLIAM C. THOMPSON, JR. and ELSIE McCABE by Defendants

MARC ANDREW LANDIS and PHILLIP SNIZER, LLP, should be rendered null and void and

that title to the premises 106 West 121st Street, in the County, City and State of New York,

10
should and must be restore to the Plaintiff herein and to Defendant CLAIRE PICKENS.

AS AND FOR A SECOND CAUSE OF ACTION FOR DAMAGES

47. Plaintiff repeats, reiterates and realleges each and every allegation

contained in paragraphs "1." through "46." hereinabove as if more fully set forth verbatim hereat.

48. Because of the blatant deceit, fraud, conspiracy and collusion by

and between Defendants WILLIAM C. THOMPSON, JR., ELSIE McCABE, PHILLIP SNIZER,

LLP, MARC ANDREW LANDIS, ESQ., HALSTEAD PROPERTY, and NORMAN

HOROWITZ, it is clear that their respective actions have been designed to and did actually

harass and maliciously injure the Plaintiff herein, as well as to cause Plaintiff to wrongfully give

up his interest in and to the premises 106 West 121st Street, in the County, City and State of

New York.

49. This blatant fraud upon the Plaintiff, the Court and the mandates

the imposition of sanctions pursuant to Part 130 of the Rules of Court.

50. As a result of the foregoing, the Plaintiff herein demands judgment

against Defendants (other than Defendant CLAIRE PICKENS) in the sum of $25,000,000.00

representing compensation for his injuries and punitive damages.

WHEREFORE, Plaintiff demands judgment

A. Vacating the transfer of the premises 106 West 121st Street, in the

County, City and State of New York; and

B. Restoring title to the Plaintiff herein and Defendant CLAIRE

11
PICKENS; and

C. Assessing sanctions against each Defendant herein (other than

Defendant CLAIRE PICKENS); and

D. Awarding the Plaintiff judgment agaisnt the Defendants (other than

Defendant CLAIRE PICKENS), in the sum of $25,000,000.00 in further compensation and

punitive damages against each Defendant (other than Defendant CLAIRE PICKENS), jointly

and severally; and

E. For such other and further relief as may be just and equitable.

Dated: New York, New York

November 2, 2009

Yours, etc.,

_________________________________________
LAWRENCE H. BLOOM, ESQ.
Attorney for Plaintiff
11 Park Place - Suite 1200
New York, New York 10007
212.964.3502

TO: WILLIAM C. THOMPSON, JR.

Defendant
106 West 121st Street
New York, New York

ELSIE McCABE
Defendant
106 West 121st Street
New York, New York

MARC ANDREW LANDIS, ESQ.

Defendant

12
 666 Fifth Avenue
New York, New York 10103

PHILLIPS NIZER, LLP

Defendant
666 Fifth Avenue
New York, New York 10103

NORMAN HOROWITZ
Defendant
831 Broadway
New York, New York 10003

HALSTEAD PROPERTY, LLP

Defendant
831 Broadway
New York, New York 10003

AMALGAMATED BANK
Defendant
275 Seventh Avenue
New York, New York 10001

DERRICK CEPHAS
Defendant
275 Seventh Avenue
New York, New York 10001

CLAIRE PICKENS
Defendant
1 Morningside Drive
New York, New York

VERIFICATION

STATE OF NEW YORK )

: ss:
COUNTY OF NEW YORK )

FRANKLYN CASTRO, the Defendant herein, deposes and says:

That your deponent has read the foregoing Verified Complaint and knows

13
the contents thereof; that same is true to deponent’s own knowledge, except as to those matters
alleged upon information and belief, and as to those matter, deponent believes them to be true.

_________________________________________
FRANKLYN CASTRO
Sworn to before me this
2nd day of November, 2009

__________________________________
Notary Public

CLIENT CERTIFICATION

STATE OF NEW YORK )

: ss:
COUNTY OF NEW YORK )

I, FRANKLYN CASTRO, HEREBY CERTIFY, under penalty of perjury,

that I have carefully reviewed my Verified Complaint, and that all information contained in that
document is true and accurate in all respects to the best of my knowledge and understanding.
I FURTHER CERTIFY, under penalty of perjury, that neither my
attorney, nor anyone acting on my attorney’s behalf, was the source of any of the information
contained in said document; that I provided all of the information contained in that document to
my attorney; and that I understand that my attorney, in executing the Attorney Certification
required by 22 NYCRR 202.16(e), is relying entirely upon the information provided by me and
upon my certification that all such information is true and accurate.
I FURTHER CERTIFY that the said document includes all information
which I provided to my attorney which is relevant to such document and that my attorney has not
deleted, omitted or excluded any such information.

Dated: November 2, 2009

_________________________________________
FRANKLYN CASTRO

ATTORNEY CERTIFICATION

STATE OF NEW YORK )

: ss:
COUNTY OF NEW YORK )

I, LAWRENCE H. BLOOM, HEREBY CERTIFY pursuant to 22

14
NYCRR §130-1.1-a(b) that, to the best of my knowledge, information and belief, formed after an
inquiry reasonable under the circumstances, the presentation of the papers listed below or the
contentions therein are not frivolous as defined in 22 NYCRR §130-1.1(c):

VERIFIED COMPLAINT

Dated: New York, New York

November 2, 2009 _________________________________________
LAWRENCE H. BLOOM
11 Park Place - Suite 1200
New York, New York 10007

15