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Case 1:11-cv-02794-KMW
96-4 Filed
01/17/14 Page 1 of 2
New York Document
State Department
of Labor
Liability and Determination, Fraud Unit
State Office Campus, Building 12, Room 356
Albany, New York 12240-0001
Joint Enforcement Task Force on
Employee Misclassification, Reporting Fraud and Other Violations
If you think an employer is committing fraud by misclassifying its workers
or is committing violations of New York State laws related to the
employment of its workers, it is important that you let us know. All
allegations of fraud and violations are taken seriously. Please include
as much information as possible.
This information will remain confidential to the extent allowed by law.
New York State Labor Law imposes significant penalties on employers for
discharging, penalizing or in any other manner discriminating against any
employee for providing information to the Department of Labor.
Company and Owner
Name:
CMZ VENTURES, LLC, Delaware Incorporation Date: 06/09/2008 File
#: 4558558 comprised of entities controlled by: ARTHUR G. &
KAREN B. COHEN, PAUL J. MANAFORT, JR., and BRAD S. ZACKSON.
Also known as
KALLISTA INVESTMENTS, LLC Delaware Incorporation Date:
11/12/2008 File #:4622044; DYNAMIC WORLDWIDE PROPERTIES, LLC, a
New York corporation and real estate broker NYS
License#:49ZA1005448 / Office License #: 109923984; VULCAN
PROPERTIES, INC., Delaware Incorporation Date: 05/22/1991 File
#: 2263817; THE DYNAMIC GROUP; DYNAMIC WORLDWIDE DEVELOPMENT
LLC; DYNAMIC CAPITAL INC.; DYNAMIC CAPITAL CORPORATION; DYNAMIC
REAL ESTATE FUND I, LP, a Delaware limited liability
partnership; BARBARA ANN HOLDINGS, LLC; BALCOTT & MORGAN
MANAGEMENT, LLC; ZMC VENTURES, LLC; ZMC PARTNERS, L.P., a Cayman
Islands exempted limited partnership; BROOKMAR CORP., a New York
corporation, and BROOKLYN MARINA CORP., a Delaware corporation;
DVN ELEUTHERA DEVELOPMENT INC. a Panama corporation; DYNAMIC
VULCAN ELEUTHERA INC. a Panama corporation; JAB HOLDINGS, LLC, a
Nevada limited liability company; GRANDROCK INTERNATIONAL, LLC;
AMERICAN LAND DIVERSIFIED FUND I, LP; AMERICAN LAND CAPITAL
ADVISORS,LLC; ARTHUR G COHEN & PARTNERS; ZMC KALLISTA LLC; and
DYNAMIC REAL ESTATE SOLUTIONS, LTD. a New York corporation;
Real Estate Development, Fund Mgmt, RE Brokerage; Local & Intl.
Business
06/09/2008 – CMZ VENTURES, LLC
(doing business as):
Type of business:
Business began
operating:
Supervisor Name:
Brad Zackson, C.E.O.
Cell phone number:
718-306-2127
EIN: Unknown
Social Security Number: Unknown
Business Address:
1501 Broadway, 25th Floor, The Paramount Building, NY, NY 10036
Known workers at this site?
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Business Telephone:
(212) 248- 5230 Main
Describe the employer’s alleged fraudulent activity. Check all that apply. Please provide as much detail as possible. Include names, dates, documents and witnesses;
attach additional information if necessary. See Attached.
X Off the books wages (if any)
X No workers’ compensation coverage X Not paying appropriate rate for overtime work(work in excess of 40 hrs/week)
X
N/A
X
X
X
Case
1:11-cv-02794-KMW
Document
Not paying
employees for all
hours 96-4
worked Filed 01/17/14 Page 2 of 2
Not paying minimum wage
Not withholding taxes
Not keeping proper time records or records of wages/hours worked
Employer is under reporting/concealing payroll or misclassifying worker(s)
as independent contractors.
If so, please provide:
o Occupation(s) involved: CFO/Manager/Research/Marketing/Receptionist/IT
o Workers: 5 current-Steve Zackson, Chris Makos, Scott Snizek, Sam Lee,
Garth Symonds, & 1 former (Christy Gregory)
o How payroll is being concealed: No filing of employee payroll or IRS
documentation i.e. W-2’s or 1099’s;; No written employee contracts;
Selective Health Insurance; CMZ Ventures checks for payroll written as
expenses (i.e. travel expense) and other.
o
Explain / Other: Check written for CMZ Ventures payroll from company:
BALCOTT & MORGAN MANAGEMENT, LLC; misclassifying worker(s) as
independent contractors; promise of higher salary and reimbursement
after ZMC PARTNERS, L.P.’s Fund capitalized; frequent creation of new
Limited Liability Companies which serve as shell companies.
Yes
If you are an employee of the business you suspect of
fraud, please indicate:
40+
Date you started working there: 01/09/2008 PT
How many hours you work per
and then FT
week:
since 04/2008
Research, Marketing, Office, Capital Markets,
Your occupation with the
Acquisitions, Originations, IT
business:
Date the fraudulent activity
began:
Additional Comments:
09/23/2007
See Attached
Submitter information
Name:
Scott Snizek
Address:
831 Arthur Street
City:
West Hempstead
State: NY
Telephone:
(212) 248-5230 ext. 211
Cell Phone:(917) 502 – 9207 Preferred
E-mail:
Zip: 11552
[email protected], [email protected]
This form may be faxed to (518) 485-6172 or mailed to:
New York State Department of Labor
Liability and Determination, Fraud Unit
State Office Campus, Building 12, Room 356
Albany, New York 12240-0001
IA 318.26 (10/14/08)
Case 1:11-cv-02794-KMW Document 96-3
Filed 01/17/14 Page 1 of 10
NEW YORK STATE DEPARTMENT OF LABOR
ADDITIONAL COMMENTS
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ARTHUR G. COHEN, PAUL J. MANAFORT, JR., and BRAD S. ZACKSON collectively, in part, and/or
individually, do business together as the following:
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DYNAMIC WORLDWIDE PROPERTIES, LLC, a New York real estate broker Office License #: 109923984;
DYNAMIC WORLDWIDE DEVELOPMENT LLC, a New York corporation;
DYNAMIC CAPITAL INC;
DYNAMIC REAL ESTATE SOLUTIONS LTD. a New York corporation;
DYNAMIC REAL ESTATE FUND I, LP, a Delaware limited liability partnership;
DYNAMIC FUND MANAGEMENT, LLC, a Delaware limited liability company;
DYNAMIC FUND ADVISORS, LLC, a Delaware limited liability company;
DYNAMIC CAPITAL CORPORATION;
THE DYNAMIC GROUP;
DVN ELEUTHERA DEVELOPMENT INC a Panama corporation;
DYNAMIC NEVADA ELEUTHERA, LLC;
DYNAMIC VULCAN ELEUTHERA INC, a Panama corporation;
CMZ VENTURES REAL ESTATE FUND I, LP, Delaware limited partnership;
CMZ VENTURES REAL ESTATE FUND II, LP, Delaware limited partnership;
CMZ VENTURES FUND ADVISORS, LLC, a Delaware limited liability partnership
VULCAN PROPERTIES, INC, a Delaware corporation;
ARTHUR G COHEN & PARTNERS; (and/or KAREN B. COHEN)
BARBARA ANN HOLDINGS, LLC; a Delaware corporation;
BALCOTT & MORGAN MANAGEMENT, LLC; a New York corporation;
BROOKMAR CORP., a New York corporation;
BROOKLYN MARINA CORP., a Delaware corporation;
JAB HOLDINGS, LLC, a Nevada limited liability company;
GRANDROCK INTERNATIONAL, LLC;
AMERICAN LAND DIVERSIFIED FUND I, LP;
AMERICAN LAND CAPITAL ADVISORS, LLC;
KALLISTA INVESTMENTS, LLC a Delaware corporation;
ZMC VENTURES, LLC;
ZMC PARTNERS, L.P., a Cayman Islands exempted limited partnership;
ZMC KALLISTA LLC.
EMPLOYEES:
STEVEN ZACKSON, CFO, Brother, BRAD ZACKSON
516-678-4572 Home
917-566-1987 Cell
[email protected]
CHRISTOS “Chris” MAKOS, CAPITAL MARKETS, RESEARCH, MARKETING, ACQUISITIONS
917-853-2131 Cell
[email protected]
SCOTT SNIZEK, CAPITAL MARKETS, RESEARCH, MARKETING, ACQUISITIONS, IT
917-502-9207 Cell
[email protected]
SAMUEL LEE, DIRECTOR of ACQUISITIONS & FINANCE
917-806-4103 Cell
[email protected]
[email protected]
GEOFFREY “GARTH” J. SYMONDS, DIRECTOR OF DEVELOPMENT
212-712-9857 Home
917-576-9097 Cell
[email protected]
Case 1:11-cv-02794-KMW Document 96-3
Filed 01/17/14 Page 2 of 10
NEW YORK STATE DEPARTMENT OF LABOR
ADDITIONAL COMMENTS
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FORMER EMPLOYEES:
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PRINCIPALS AND RELATED PERSONS OF THE FRAUDULENT CORPORATIONS:
CHRISTY GREGORY, ASSISTANT TO BRAD ZACKSON
646-306-2599 Cell
[email protected]
RICHARD PRZONEK
516-659-2509 Cell
[email protected]
ARTHUR G. COHEN is a representative of his wife, KAREN B. COHEN, and Vulcan Properties, Inc.
Office:
1270 Avenue of the Americas, Suite 2310, NY, NY 10020
Office Phone: 212-632-4805
Home Phone:
516-482-5638 or 516-482-5655
Home:
205 Kings Point Road, Great Neck, NY 11024-1017
Mobile:
917-363-9816
Fax:
212-632-4810
Email:
[email protected]
STEPHEN B. DELMAN is the Cohen’s in house attorney.
Office:
515 Madison Avenue, 29th Floor, NY, NY 10022
Office Phone: 212-279-9500 or 212-632-4817
Office Fax:
212-279-9595 (Direct)
Home Phone: 201-864-1950
Home Fax:
201-866-6959
Mobile:
917-626-8884
E-Mail:
[email protected]
PAUL J. MANAFORT, JR. is also a partner of the Washington, DC lobbying firm, Davis Manafort.
Office:
Home 2:
Office Phone:
Home:
Mobile:
Fax:
Email:
Assistant:
211 North Union Street, Suite 250, Alexandria, VA 22314
174 Jobs Lane, Bridgehampton, NY 11932
703-299-9100
703-780-4455
703-623-4678
703-299-9110
[email protected]
Amanda Van Sickle [email protected] Cell: 202-425-2455.
RICK W. GATES is Paul Manafort’s representative and Investment Manager at Pericles, LP
Office:
14471 West Salisbury Road, Midlothian, VA
Office Phone: 703-299-9100
Mobile:
(202) 257-7801
Email:
[email protected]
Email:
[email protected]
Email:
[email protected]
BRAD S. ZACKSON, C.E.O.
Office:
1501 Broadway, 25th Floor, NY, NY 10036
Office Phone: 212-248-5230
Fax:
212-248-5236
Home:
20 West 64th Street, Apartment 20-E, NY, NY 10023
Mobile:
718-718-306-2127
Email:
[email protected]
Email:
[email protected]
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Case 1:11-cv-02794-KMW Document 96-3
Filed 01/17/14 Page 3 of 10
NEW YORK STATE DEPARTMENT OF LABOR
ADDITIONAL COMMENTS
LETTER IN REGARD TO REQUEST FOR INVESTIGATION BY THE PRESIDENT'S CORPORATE FRAUD TASK FORCE:
May 17, 2009
Senator Charles E. Schumer
Senator Kirsten Gillibrand
757 Third Avenue, Suite 17-02
New York, NY 10017
P: 212-486-4430
F: 212-688-7444
RE: Request for immediate assistance & investigation of white collar crime
We understand that Senate Rules prohibit you or your staff from giving legal advice or intervening
in proceedings of any case that involves a lawsuit or litigation. Currently, our matter does not,
but eventually will. As our federal representatives, we request that you help us interact with the
agency of The President's Corporate Fraud Task Force and request that they look into a matter
involving corporate fraud.
We are aware that prosecutors Mr. Robert Morgenthau and Mr. Andrew M. Cuomo have followed money
trails overseas in pursuit of prosecuting rogue politicians and recidivist white-collar criminals,
but some corporate wrongdoings are based in our own backyard and the players are well-known and
falsely respected by the public.
Our request is for immediate assistance in seeking recourse to resolve blatant violations of
employment law concerning an employer’s intentional disregard for registration and compensation of employees while operating under a state licensed workplace of DYNAMIC WORLDWIDE PROPERTIES, LLC, a
New York corporation and REAL ESTATE BROKER NYS LICENSE #: 49ZA1005448 / OFFICE LICENSE #:
109923984. It has recently become clear as to how the employer’s partnership fraudulently operates within the offices located at 1501 BROADWAY, 25TH FLOOR, NY, NY 10036, and how we have been
considerably harmed as employees from being denied our full salary.
Managing partners of the employer’s partnership include: KAREN B. COHEN and her husband ARTHUR G.
COHEN, a prolific billionaire developer who is a tax expert with a documented history of
litigations and investigations of banking fraud; PAUL J. MANAFORT, JR., a high ranking Republican
political lobbyist partner of the firm Davis Manafort, who has been an advisor to local and
international presidential campaigns and who currently has close ties to the businesses of Ukranian
billionaire, Dmitry Firtash; and lastly, a local New York developer, BRAD S. ZACKSON, C.E.O. of The
Dynamic Group, who has been seemingly exploited in the partnership for his real estate knowledge,
his relationships, and the services of his staff.
First and foremost, there is no reason the partnership can give for not filing employee and tax
documents or paying employees. It is unfathomable, that a partnership made up of attorneys and a
state licensed individual under New York State Law, would be so negligent, especially since they
are surrounded by industry leaders and lawmakers who know the seriousness of this kind of crime.
The arrogance displayed by the members when employees attempted to apprise them of their salary
inconsistencies is ethically disgusting. Arthur Cohen stated that the employees were only
consultants and they should go ahead and sue him because they have no case!
Any monies paid to workers as full time employees have ceased by the employer in March of 2009.
When partners Arthur G. Cohen and Paul Manafort did contribute to cover the payroll and operating
expenses, monies were inconsistent at best, and never meet the full amount due. Checks issued to
employees were issued with incorrect accounts, and were often carelessly incomplete as to correct
spelling of an employee’s name, or incorrect in the memo/note as to what they were for. Executed
checks never resembled a normal paycheck where specific items such as Federal Income, Medicare,
Social Security, Insurance, 401k, IRA, Retirement, State Income Tax, etc. would be indicated.
Instead, they were regular business checks from CMZ Ventures, LLC or Dynamic Worldwide Properties.
Employer Identification Numbers were requested, but none were received. No tax documents were ever
filed in regard to employees.
Employees were consistently misled to believe that they were to be compensated salaries owed out of
sale commissions from acquisitions and the 1.5-2.0% fees that would occur from managing the
business deals of the partnership and the INTERNATIONAL REAL ESTATE FUND being set up by ZMC
PARTNERS, LP, through Partner, Paul J. Manafort, authorized signatory on behalf of General Partner,
ZMC INVESTORS, L.P., and David Brown, authorized signatory on behalf of Limited Partner, Group DF
Real Estate for a real estate fund and its Alternative Investment Vehicles & Parallel Investment
Entities. As per the agreement, “The initial minimum capital commitment from the Limited Partners
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Case 1:11-cv-02794-KMW Document 96-3
Filed 01/17/14 Page 4 of 10
NEW YORK STATE DEPARTMENT OF LABOR
ADDITIONAL COMMENTS
shall be two hundred million dollars (US $200,000,000.00). It is expected that the Fund will be
composed of a combination of capital and real assets owned by the Limited Partner and to be
developed by the Fund. The total value of the Fund shall approximate one billion dollars (US $1
billion) with the cash contribution being the difference between the ceiling of the Fund minus the
cost value of the real property contributed to the Fund. The initial capital commitment closing
shall occur on or about April 2009. The contribution of selected Ukrainian properties owned by
investor shall occur as agreed by the parties. Additional capital to be invested subsequent to
initial minimum capital shall be contributed as agreed by the parties.”
When extreme financial hardship was expressed by employees, Chris Makos and Scott Snizek, they were
given miniscule amounts for travel pay to cover the cost of coming into NYC from Long Island.
Employees desperately tried to endure this treatment primarily through the financial support of
their families in order to recoup what they were owed. This resulted in employees and their
families altering their lifestyles to survive until the partnership got their funding. It is gross
negligence on behalf of the employer to knowingly and willfully subject their loyal employees to
this abuse and extend that abuse to their families by using their support to keep the partnership
in operation. The considerable distress caused to family members has been unnecessarily caused.
Subsequent damage to credit scores due to lack of funds available for utilities, leases, mortgage
loans, home equity loans, insurance, etc., are all directly related. Resentment ensued toward the
partnership after learning that employees and their families were unwillingly contributing to their
employer’s well being while their employees and their families suffered financial hardships caused
by the negligence of the partnership. Rather than cutting losses and walking away, employees built
a case in support of their knowledge of the corrupt ways of the members.
Employees of the developer’s firm, Dynamic Worldwide Properties, LLC, have inadvertently and
unfairly become involved in the scheme of CMZ VENTURES, LLC and the other companies created and/or
using the 25th Floor of 1501 Broadway as a primary office. With no defining reference points to
distinguish new corporations, it appears that the corporations were formed by the members, for the
sole purpose of serving as pass thru conduit or as shell corporations to avoid responsibilities
encountered through conducting business. Adding to the charade is that 1501 Broadway was
represented and understood to be owned by Arthur G. Cohen. In short, it is an elaborate smoke-andmirrors act played by well-known individuals, who used their experience, high level relationships
and influence to avoid suspicion as to their pattern of behavior while they go after the biggest
deals in real estate without remorse for the damage they cause to those who they get involved.
CMZ VENTURES, LLC was formed in Delaware by Steven Delman, the Cohen’s attorney, on 06/09/2008. It
is composed of ARTHUR G. & KAREN B. COHEN, PAUL J. MANAFORT, JR., and BRAD S. ZACKSON. The first
letters of their last names create the initials to name the ventures of the partners. The entities
use the offices and employees of DYNAMIC WORLDWIDE PROPERTIES, LLC, a New York real estate broker
(Office License #:109923984) located on the 25th floor of 1501 Broadway, New York, NY 10036. The
partnership often switches the order (i.e. CMZ-ZMC) to create associated entities or ties an
association to Dynamic.
Arthur G. Cohen, Paul J. Manafort, Jr., and Brad S. Zackson individually, and/or collectively, also
do business as the following entities:
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DYNAMIC WORLDWIDE PROPERTIES, LLC, a New York real estate broker Office License #: 109923984;
DYNAMIC WORLDWIDE DEVELOPMENT LLC; a New York corporation;
DYNAMIC CAPITAL INC;
DYNAMIC REAL ESTATE SOLUTIONS LTD. a New York corporation;
DYNAMIC REAL ESTATE FUND I, LP, a Delaware limited liability partnership;
DYNAMIC FUND MANAGEMENT, LLC, a Delaware limited liability company;
DYNAMIC FUND ADVISORS, LLC, a Delaware limited liability company;
DYNAMIC CAPITAL CORPORATION;
THE DYNAMIC GROUP;
DVN ELEUTHERA DEVELOPMENT INC a Panama corporation;
DYNAMIC NEVADA ELEUTHERA, LLC;
DYNAMIC VULCAN ELEUTHERA INC, a Panama corporation;
CMZ VENTURES REAL ESTATE FUND I, LP, Delaware limited partnership;
CMZ VENTURES REAL ESTATE FUND II, LP, Delaware limited partnership;
CMZ VENTURES FUND ADVISORS, LLC, a Delaware limited liability partnership;
VULCAN PROPERTIES, INC, a Delaware corporation;
ARTHUR G COHEN & PARTNERS;
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Case 1:11-cv-02794-KMW Document 96-3
Filed 01/17/14 Page 5 of 10
NEW YORK STATE DEPARTMENT OF LABOR
ADDITIONAL COMMENTS
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BARBARA ANN HOLDINGS, LLC; a Delaware corporation;
BALCOTT & MORGAN MANAGEMENT, LLC; a New York corporation;
BROOKMAR CORP., a New York corporation;
BROOKLYN MARINA CORP., a Delaware corporation;
JAB HOLDINGS, LLC, a Nevada limited liability company;
GRANDROCK INTERNATIONAL, LLC;
AMERICAN LAND DIVERSIFIED FUND I, LP;
AMERICAN LAND CAPITAL ADVISORS, LLC;
KALLISTA INVESTMENTS, LLC a Delaware corporation;
ZMC VENTURES, LLC;
ZMC INVESTORS, L.P.;
ZMC KALLISTA LLC;
ZMC PARTNERS, L.P., a Cayman Islands exempted limited partnership; Partnership's
registered agent is Walkers SPV Limited, Walker House, Mary Street, George Town,
Grand Cayman, Cayman Islands KY1-9002.
Ventures of the partnership focus primarily on real estate development and financing, but also
include local and international business investments. The following is a partial list of business
ventures representing investments in the billions of dollars that Dynamic/CMZ employees was
directly involved in creating works for, and providing services for:
ZMC PARTNERS, LP - INTERNATIONAL REAL ESTATE FUND (ZMC INVESTORS, L.P), a $200M-$1B
distressed real estate fund led by investor DMITRY FIRTASH (“DF”) of GROUP DF, a private
international group of companies whose interests and assets range from energy and chemicals
through to energy infrastructure and real estate in Ukraine and Hungary; (ZMC PARTNERS has
maintained operations since January based on the previous agreement with DF. The principals
have been funding the operations in the first quarter as an advance on the commitment by DF.)
DF’s investment allows for the Fund to be established and funded operationally.
BVLGARI TOWER - An $850M purchase of the real property and $225M mortgage note from iStar to
develop a 70-story mixed-use development on the former Drake site located at 440 Park Avenue
with investors from Kazakhstan called ALATAU HOSPITALITY LIMITED, a Cyprus registered company
venture between the existing shareholders of the LANCASTER GROUP and MR. FRANK ORENSTEIN, AND
INOVALIS S.A., a French Investment & Real Estate Services company (currently in litigation
with CMZ VENTURES, LLC);
Bahamian land development and casino ventures for both an 80-acre island 30 minutes from
Miami called SOUTH CAT CAY and a $14M, 2000-acre Peninsula on the island of Eleuthera called
SOUND POINT;
A Chinese sovereign wealth fund joint-venture with potential placement agent/partner JOHN
COPPOLINO of JAB HOLDINGS, LLC and MS. ANGEL WANG, founder and chairman of GREATER CHINA
SECURITIES, INC., and ETECH CAPITAL GROUP;
UNITED STUDIOS OF AMERICA, ON THE EAST COAST, a large film and TV studio facility, backed by
Arthur G. Cohen and GC Corp. venture capitalists Adi Cohen and Joseph Grinkorn, plus Howard
and Karen Baldwin of Baldwin Entertainment;
Purchase and Development of the ST. JOHN’s CENTER located at 550 Washington Street, NY, NY.
Numerous distressed real estate deals in New York, Boston, Florida, and Texas.
A Canadian Pharmaceutical joint-venture with CANUSA HEALTH INC., a Canadian corporation
having its head office at 2444 Alexandra Avenue, Windsor, Ontario N9E 2J3 formed to establish
a network of various companies, organizations and individuals (including patients,
physicians, pharmacies, medical care companies, systems companies, third party
administrators, call centers and others) for the supply, on a cost-effective basis, of
certain “maintenance-type” prescription pharmaceutical products from Canadian Pharmacies and
of prescription pharmaceutical products from U.S. Retail Pharmacies and/or U.S. Mail Order
Pharmacies to residents of the United States of America.
A real estate facility assessment software joint-venture with 4TELLSOLUTIONS.
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Case 1:11-cv-02794-KMW Document 96-3
Filed 01/17/14 Page 6 of 10
NEW YORK STATE DEPARTMENT OF LABOR
ADDITIONAL COMMENTS
As employees, we have provided multiple contacts, numerous services, research, presentations,
materials, and cash to our employer. Most of the above has been used and abused by the employer,
especially, in conjunction with the partnership, to artificially boost the professional credential
of the partnership to its potential investors. In addition, disregard of non-disclosure and
confidentiality agreements by partners, have caused harm to the employee’s professional reputations. It also has repeatedly allowed the partnership to translate employee’s labors and information, both directly and indirectly, into lucrative investment opportunities for affiliated
services involving numerous ventures of the partnership, both locally and internationally, in
various forms of escrow monies and retainers. While those service companies were enriched by the
retainers, and further lured by the grandeur of the sizable deals, they also have been harmed by
the partnership when funding ceased after services were provided. The partnership never disclosed
that they did not intend to fully pay for services that they were provided in connection to
business conducted by the partnership. The bigger the deals became, the bigger the liabilities
became and the longer the list of companies who are seeking payment for services rendered.
The incurred liabilities do not fairly reflect on all the members as they should. Most of the firms
seeking payment for their services have singled out Mr. Zackson and not Mr. Manafort or Mr. Cohen.
Further complicating the matter, is the fact that some of the companies that are now demanding
payment for service are ones that Mr. Cohen steered the partnership to do business with. Where
there were opportunities to involve businesses of the members, such as Boomerang Parking, an
affiliated company of Arthur Cohen, said companies were immediately recommended. Affiliated
service companies, such as those relating to legal (Akin, Gump, Hauer, Strauss & Feld, LLP;
Goldberg, Weprin & Ustin LLP) and real estate services (Plaza Construction Corp.) as well as
sheetrock subcontracting (Curtis Partitions), office cleaning, property management (Newmark,
Knight, Frank), and financing (Howard Michaels) have been involved with Arthur Cohen in the past.
Arthur Cohen has financed or has vested interests in some of the above firms who have gained from
retainer monies, and/or partial payments from the partners. While referring business to those
companies is ok, leaving behind unpaid employees and an outstanding onto a partner is not.
While Mr. Zackson has been financially compensated more than any other employee to date, he has
also been caused financial harm by actions of Paul Manafort, and Arthur G. Cohen. Mr. Zackson has
expressed financial hardship and has tried numerous times to collect monies owed to himself and his
employees, but Mr. Manafort and Mr. Cohen both ceased funding although they were contractually
obligated to continue to do so until April 1, 2009 as per the CMZ Ventures, LLC operating
agreement. Further complicating matters are the forfeiture of rights to trial by jury in the
promissory notes that Mr. Zackson has with both Mr. Manafort and Mr. Cohen for amounts of no less
than $100,000.00 each. Mr. Zackson as Payor waived his rights to trial by jury in any action or
proceeding of any kind or nature in any court in which an action may be commenced arising out of
the notes.
According to the Schedule A of the preliminary 2009 budget created for Dynamic/ZMC Kallista LLC by
Rick Gates, Director of Asset Management, the company was to compensate:







Brad Zackson, CEO $62,500 per month*;
Steve Zackson Accounting $10,417 per month*;
Chris Makos Acquisitions $8,333 per month;
Scott Snizek, Acquisitions $8,333 per month;
Christy Gregory, Acquisitions $8,333 per month*;
Garth Symonds, Director of Development $12,500 per month;
Sam Lee, Director of Acquisitions $12,500 per month.
(*were compensated with a United Health Care/Oxford Health Care Coverage.)
Although Chris Makos, Scott Snizek and Sam Lee work over 40 hours per week, only Brad
Zackson, Steve Zackson and Christy Gregory were provided with a United Health Care/Oxford
Health Care Coverage through United Health Care/Oxford Health Care Plan Group Number:
DW4910, Billing Group: BG01 DYNAMIC WORLDWIDE PROPERTIES, LLC.
Subscriber: 948404201 Christy Gregory
Subscriber: 841496101 Brad Zackson Coverage Type CSP01 HealthCR Premium $2192.50
Subscriber: 841495901 Steve Zackson Coverage Type CSP01 HealthCR Premium $1414.51
Case 1:11-cv-02794-KMW Document 96-3
Filed 01/17/14 Page 7 of 10
NEW YORK STATE DEPARTMENT OF LABOR
ADDITIONAL COMMENTS
324
DYNAMIC/ZMC KALLISTA LLC SCHEDULE A – SALARIES
Name
Position
Brad
Zackson
CEO
Rick
Singer
President
Sep
Oct
Nov
Dec
Total
$62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500
$62,500
$62,500
$62,500
$62,500
$750,000
$41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667
$41,667
$41,667
$41,667
$41,667
$500,000
Director of
Acquisitions $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500
$12,500
$12,500
$12,500
$12,500
$150,000
Garth
Director of
Symonds Development $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500
$12,500
$12,500
$12,500
$12,500
$150,000
Sam
Lee
Jan
Feb
Mar
Apr
ZMC Kallista LLC
Forecasted Budget 2009
May
Jun
Jul
Aug
Carolyn
Schlam
Director of
Marketing
$12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500
$12,500
$12,500
$12,500
$12,500
$150,000
Rick
Gates
Director
Asset Mgt
$12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500
$12,500
$12,500
$12,500
$12,500
$150,000
Sol
Levitt
Director of
Management $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500
$12,500
$12,500
$12,500
$12,500
$150,000
Chris
Makos
Acquisitions
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$100,000
Christy
Gregory
Acquisitions
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$100,000
Scott
Snizek
Acquisitions
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$100,000
Steve
Zackson
Accounting
$10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417
$10,417
$10,417
$10,417
$10,417
$125,000
Steve
Delman
Legal
$10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417
$10,417
$10,417
$10,417
$10,417
$125,000
TOTAL
325
326
327
328
329
330
331
332
333
334
335
336
337
338
339
340
$212,500 $212,500 $212,500 $212,500 $212,500 $212,500 $212,500 $212,500 $212,500 $212,500 $212,500 $212,500 $2,550,000
Salaries listed above were made known to and expected by the employees who are highlighted (Some of
the non-highlighted employees (excluding S.Delman, S.Lee & G.Symonds) never did work for the
company). Furthermore, it was understood that any commissions earned through acquisitions would
generate additional income which employees could potentially receive as bonus. Similar budgets were
prepared for the other ventures of the partnership however, financially; none of them were realized
by employees despite work being produced for them. After each budget was reviewed by Arthur G.
Cohen, it was drastically reduced, and the new amount never discussed with, or agreed to, by the
employees. Employees only found out what the amount they actually received when they received their
check.
For example, the salary for Scott Snizek at $8,333/month was reduced by Arthur Cohen to
$4,000/month then further reduced by issuing a check amounting to only $1,500 for the month. Adding
insult was the note of “Travel Expense” as indicated on one check in the memo section or an
incomplete or misspelled name field when handed a check.
341
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392
393
394
395
Case 1:11-cv-02794-KMW Document 96-3
Filed 01/17/14 Page 8 of 10
NEW YORK STATE DEPARTMENT OF LABOR
ADDITIONAL COMMENTS
As time passed and Mr. Manafort and Mr. Cohen stopped funding their required amounts, money was
misappropriated and checks became more sporadic. One check for pay was even written to Scott Snizek
from Balcott & Morgan Management, LLC-a company of Brad Zackson’s. It was seemingly meant to
provide financial help, but in reality, it is just another way they avoid paying employees what
they are owed.
The following check images for Scott Snizek can be shown in support of the above:





08-06-2008
02-03-2009
02-28-2009
03-12-2009
04-02-2009
$1500
$1500
$ 600
$ 800
$ 250
CMZ Ventures, LLC to Scott Snizek Check #1021(1st check)
CMZ Ventures, LLC to Scott Snizek Check #1103
CMZ Ventures, LLC to Scott Snizek Check #1114
CMZ Ventures, LLC to Scott Snizek Check #1115
Balcott & Morgan Management, LLC to Scott Snizek Check #1190
Related CitiBank ATM DEPOSITs can be indicated in the Citibank checking account of Scott Snizek:










08-11-2008
08-18-2008
09-15-2008
10-15-2008
11-26-2008
12-15-2008
02-05-2009
03-18-2009
03-23-2009
04-10-2009
ATM
ATM
ATM
ATM
ATM
ATM
ATM
ATM
ATM
ATM
DEPOSIT
DEPOSIT
DEPOSIT
DEPOSIT
DEPOSIT
DEPOSIT
DEPOSIT
DEPOSIT
DEPOSIT
DEPOSIT
Total
$
$
$
$
$
$
$
1,500.00
1,000.00
1,500.00
1,500.00
1,500.00
1,500.00
1,500.00
$ 800.00
$ 600.00
$ 250.00
$11,750.00
Balance owed to Scott Snizek (not including health insurance, taxes, etc.) is approx. $88,250.00.
It is calculated as $100,000 indicated salary - $11,750 of total compensation given by CMZ Ventures
and Balcott & Morgan Management, LLC which equals $88,250.00.
Employees Steve Zackson and Chris Makos have been employed longer and are owed greater amounts.
Former employee, Christy Gregory, left due to her loss of pay. She was partially reimbursed after
being owed close to 8 months of back pay, but she is still owed pay. She left after realizing the
same pattern of non payment forming.
Employees, Garth Symonds and Sam Lee are recognized as senior employees, and it is believed that
they are owed monies as well. On May 6th, 2009 Garth Symonds emailed a request to Arthur Cohen for
$900.00 on behalf of Brad Zackson to keep the Dynamic-CMZ business phone line in service. Long
distance phone service was turned off so Mr. Symonds used his cell phone for the long distance
calls dialed by the company. As of June 19th, 2009 212-248-5230, the main business phone line for
Dynamic, had been turned off. It has only recently been turned back on.
Prior to this, there was a time when the company was without internet service and relied solely
upon the wireless modem and internet service of employee, Scott Snizek. No reimbursement was ever
offered by Dynamic for the cost of service or for the use of his personal internet access to allow
Dynamic to conduct business. Verizon originally supplied the internet service to Dynamic. DIGIZIP,
a Verizon 3rd party company that Arthur Cohen used and recommended to Dynamic was used when Dynamic
was having problems dealing with Verizon. After using DIGIZIP and contacting them about a question
with a billing statement, Dynamic learned that DIGIZIP never had the services transferred over from
Verizon. Steve Zackson noticed the redundant charges for internet service from both Verizon and
DIGIZIP, so he cancelled the Verizon service. As a result, ALL internet service was turned off.
When it was questioned, it was found out that DIGIZIP only cashed checks from Dynamic and never did
anything in regard to providing service. Since Verizon’s service was never switched over by Arthur Cohen’s recommended company it was the only service to be turned off resulting in full loss of
internet to Dynamic. An appointment was then required to reconnect Verizon which took over two
weeks to resolve. Snizek’s modem was the only access to the internet during that time.
Case 1:11-cv-02794-KMW Document 96-3
Filed 01/17/14 Page 9 of 10
NEW YORK STATE DEPARTMENT OF LABOR
ADDITIONAL COMMENTS
396
397
398
399
400
401
402
In conducting research on Mr. Cohen it documented that he has been accused of fraud before and has
been investigated by the Federal Bureau of Investigation. He settled with the Department of Justice
and agreed to pay $4.5 million to resolve claims that he violated federal banking laws during the
time when he owned and controlled CorEast Savings Bank, FSB of Richmond, Virginia and its
predecessors. The $4.5 million settlement represented the largest monetary recovery by the United
States in a civil penalty action under the Financial Institutions Reform, Recovery, and Enforcement
Act of 1989 (FIRREA).
403
404
The Lancaster Group, in conducting due diligence on Cohen in connection to involvement in the Drake
transaction, was provided to Dynamic by Mr. Frank Orenstein. (See attached)
405
406
407
408
409
410
411
412
413
414
415
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U.S. Settles Civil Suit With Arthur G. Cohen Of New York; Cohen To Pay Record $4.5 Million
In conducting research on Mr. Manafort, there are similar questions surrounding business practices
of his with companies, 3eDC and Davis Manafort as noted in the following postings hyperlinks below:

Wall Street Journal: “McCain Manager Roils Campaign Davis Returns After Ouster Amid Questions on
Spending, Ties”

The Washington Post: “The Hidden Campaign-A Well-Connected Campaign Firm Resurfaces”

Newsweek: “Freddie Mac Money Trail Catches Up With McCain”

A portion of Divina K. Westerfield’s blog is more reference material of Manafort’s character. Westerfield was a former employee of Manafort’s firm:
http://my.barackobama.com/page/community/blog/divinawesterfield:
o
”Some of you may know that I have worked in D.C. directly for the very man (Charlie Black)
that runs McCain’s campaign. I worked for Black, Manafort, Stone & Kelly (BMSK) for 1 year
as a lobbyist – the most trying year of my life – and I received a W-2 from them. BMSK were
the worst womanizers I had ever experienced. Roger Stone (a Republican operative called the
“state of the art sleaze ball” by The New Republic) had his girlfriend into the office often;; we had to be careful to keep his wife away from the girlfriend“.
o
”Paul Manafort made untold passes at me which I discussed directly with Charlie – and when I
did, I got fired. Charlie Black is now running McCain’s campaign.”
o
DIVINA K. WESTERFIELD, JD, 5020 Clark Road, Suite 117, Sarasota, FL 34233. Cell: 941-544-3174
Tax violations and related employment violations of New York City, State, and Federal laws, will
likely found in regard to the business practices of the partners.
Due to the players involved, a potential cascade of additional violations will likely be uncovered
as well involving interstate and international employment law, foreign representation registration,
money laundering, wiring crime, Securities and Exchange Commission violations, and violations of
interstate and international limited liability laws. We are requesting that your offices help us
navigate through the investigation process with the proper authorities.
We request that federal prosecutors such The President's Corporate Fraud Task Force work with the
local offices of Mr. Robert Morgenthau, and Mr. Andrew M. Cuomo, to conduct an investigation of our
claim so that they may aggressively seek amends for our matter and prohibit the practice from
occurring in any future. We request that Mr. Cuomo excuse himself from the investigation due to his
familiarity with Mr. Zackson.
As employees, we wish to remain anonymous in the press to avoid further harm to our professional
reputations and future earning potential should we be personally named. We request assistance in
expediting payment of our full salaries, health care and any other compensation that we as
employees may be entitled to.
Supporting documents relating to the above matter can be provided to
investigation to take place. On behalf of my fellow employees, thank you.
Respectfully submitted,
Scott Snizek
allow
a
comprehensive
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Case 1:11-cv-02794-KMW Document 96-3
Filed 01/17/14 Page 10 of 10
NEW YORK STATE DEPARTMENT OF LABOR
ADDITIONAL COMMENTS
Background:
DYNAMIC WORLDWIDE DEVELOPMENT LLC, originally, was a client of employee, Scott Snizek. He
negotiated a contract to purchase a 2000 acre peninsula known as Sound Point on Eleuthera, in The
Commonwealth of The Bahamas. The purchase agreement was signed on 09/23/2007. Purchase price:
$14,000,000 USD. The sale commission of 10% equaled $1,400,000 to be split between vendor’s and purchasers respective agents.) Date of completion was to be on or before May 1, 2008 or within 30
days of approvals.
In January of 2008, arrangements were begun in order to make a smooth transition from Knickerbocker
Village New York where he served as the Director of Commercial. Following the unexpected death of
Bishop Thompson-their Bahamian representative, in August of 2007, Snizek began making arrangements
to make a transition to Dynamic so he could work closely on the deal. In January of 2008, he
started part time and became full time in late March, early April of 2008. Attempts to transfer his
sales license to Dynamic were unsuccessful because Dynamic was not in good standing with the NY
Department of State so it remained with Knickerbocker Village New York.
First notice of odd activities:

Snizek was never reimbursed by DYNAMIC WORLDWIDE DEVELOPMENT LLC for the cost of hiring pilot
Captain Ricardo Laing and cost of airplane transportation to Eleuthera in connection to a
site visit to Sound Point on 06/03/07. In attendance were architect Donald Dean, Vendor’s broker, Hugh Burke, Bishop Thompson, Scott Snizek and Brad Zackson. The flight cost $1650.00.
Bishop Thompson and Scott Snizek gave Capt. Laing a cash deposit of $600.00 to reserve the
plane. The balance of $1050.00 was wired by Scott Snizek on Monday June 4, 2007 to the
Savings account ABA021000021 Acct#737-8557 in the Name of Ricardo & Dorothy Laing. Citibank
reference number: 1561211299.

The Common Seal of DYNAMIC WORLDWIDE DEVELOPMENT LLC was incorrectly affixed as DYNAMIC
WORLDWIDE PROPERTIES, LLC to page 16 of the Sound Point contract on 10/01/07.

Lazar Kasey Thompson who was working as Dynamic’s exclusive Bahamian representative was also
not fully reimbursed for his services and expenses in connection to the Sound Point
transaction. He tragically died from complications from a stress related illness a month
before receiving the Sound Point contract. Obituary: THOMPSON, BISHOP LAZAR KASEY, 41, of
Miami Beach. Born in Alicetown Bimini, Bahamas went to be with his Savior on 8/20/07. He was
survived by his mother, Beatrice Thompson and father, Patrick Brown both of Bimini Bahamas.
He was also survived by 1 brother and 6 sisters and many Aunts, Uncles, Nieces and Nephews.
Visitation will be Friday 8/31 5pm-9pm at Victory Christian Center 100 SW Dixie Hwy.,
Hallandale, FL. Service will be Sat. 9/1, 11 AM at New Jerusalem Baptist Church 777 NW 85 St.
Miami, FL. Published in The Miami Herald on 8/30/2007. Oddly, nothing was sent by Dynamic to
show their respect. A floral arrangement was sent by Knickerbocker Village NY.

Numerous wiring delays, draws and transactions on behalf of Arthur Cohen’s entity, Vulcan Properties, Inc., and lender Rob Entler of Big Horn Capital, Inc., to the Vendor W.G.B.
Limited c/o Messrs, Dupuch & Turnquest & Co., and purchaser’s Bahamian attorney Ruth BoweDarwille, in February and March of 2008. See attached.

On 05/08/2008 at 2pm Brad Zackson, Paul Manafort, Jr., were introduced by Scott Snizek to the
Bahamian Ambassador C.A. Smith at The Embassy of the Bahamas to discuss the Sound Point
contract. Location: 2220 Massachusetts Ave., N.W., Washington, D.C. 20008, T: 202-319-2660
x618 Assistant-Cecile, F: 202-319-2668. As per our conversation, stated plans were to
include another visit to the site in June of 2008 with architect Donald Dean and a “world class” due diligence team. In fact, proper due diligence in connection to the purchase was
never performed at all and absolutely no new studies were conducted on the land. No site
visits were ever made after the contract was executed. Contract never closed.

Alvaro Alguilar Alfu ([email protected]) on 01/08/09 requested $900.00 from Brad Zackson
for annual taxes and agent fees due for second period 2008-2009 in connection to Panama
Corporation Taxes for: DVN ELEUTHERA DEVELOPMENT INC. and DYNAMIC VULCAN ELEUTHERA INC.

Upon joining Dynamic in April of 2008, no contract and no tax documentation was offered.

Compensation from CMZ Ventures/Dynamic to Snizek only began on August 6th of 2008.

Eleuthera contract was extended to a September 2008 closing date but never closed.

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