Preview
FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022
NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
ALI BABA HOTEL CORP. d/b/a AMSTERDAM
COURT HOTEL and EAST SIDE INN LLC d/b/a THE Index No. 150993/2022
MARCEL AT GRAMERCY,
AFFIRMATION IN OPPOSITION TO
Plaintiffs, DEFENDANTS’ MOTIONS
FOR SUMMARY JUDGMENT AND
-against- IN SUPPORT OF PLAINTIFFS’
CROSS-MOTION FOR PARTIAL
ALEXANDER PROSE, REHAN KAPADIA, BELLA SUMMARY JUDGMENT
MANDOKI, CARLOS CARRILLO, and THALIA
HERRERA (Motion Sequence #12 and in Opposition
to Motion Sequences #’s 6, 8, 9, 10 & 11)
Defendants.
SCOTT F. LOFFREDO an attorney duly admitted to practice before the Courts of the
State of New York, hereby affirms the following to be true under the penalties for perjury pursuant
to CPLR § 2106:
1. I am a member of the law firm of Belkin Burden Goldman, LLP, attorneys for Ali
Baba Hotel Corp d/b/a Amsterdam Court Hotel (“Amsterdam”), the owner of 226 West 50th Street,
New York, New York 10019 (the “Amsterdam Court Hotel”), and East Side Inn LLC (“Marcel”),
the owner of the Marcel Hotel at Gramercy located at 321 Third Avenue, New York, New York
(the “Marcel Hotel”)(the Amsterdam and Marcel to be collectively referred to herein as the
(“Plaintiffs”).
2. This affirmation, together with the annexed memorandum of law (the
“Memorandum”), the affirmation of Saul Bienenfeld (“Bienenfeld Aff”), the affidavits of Sharon
Olson (“Olson Aff’d”), Ana Lopez (“Lopez Aff’d”), and Jay Podolsky (“Podolsky Aff’d”) and
accompanying exhibits are submitted in opposition to the virtually identical summary judgment
1 of 20
FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022
NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023
motions of Alexander Prose (“Prose”), Rehan Kapadia (“Kapadia”), Bella Mandoki (“Mandoki”),
Thalia Herrera (“Herrera”) and Carlos Carrillo (“Carrillo”) (collectively “Defendants”)1.
3. This affirmation, the accompanying affidavits and Memorandum is also submitted
in support of Plaintiffs’ cross-motion seeking: (i) partial summary judgment on Plaintiffs’ first
cause of action for breach of contract in addition to dismissing Prose’s first counterclaim, with
prejudice, upon finding Prose waived his right to ever again occupy a unit owned by Ali Baba
Hotel Corp. or its affiliates including but not limited to the Marcel, by virtue of having accepted
$100,000.00 as consideration for executing a July 26, 2019 surrender agreement; (ii) an order
staying any determination of Plaintiffs’ seventh cause of action or Defendants’ counterclaims
pertaining to their respective regulatory status pending a determination on Plaintiffs’ March 10,
2022 substantial rehabilitation application pending before DHCR; (iii) an order compelling
Defendants to either pay to Marcel or deposit with the Court all unpaid use and occupancy which
has accrued since the filing of this action on January 28, 2022 through August 31, 2023 (580
nights) at each Defendants contracted for, agreed upon nightly rates as consideration for their
continued occupancy of their respective rooms within the Marcel Hotel and further compelling
Defendants to pay Marcel prospective use and occupancy, pendente lite commencing September
1, 2023 as consideration for their ongoing, continued occupancy of their rooms within the Marcel
Hotel for so long as they remain in legal possession; and such other and further relief as this Court
deems just and proper.
1 (i) Prose’s motion found at (NYSCEF Doc Nos. 120-139), (ii) Kapadia’s motion found at NYSCEF Doc
Nos. 144-165, (iii) Mandoki’s motion found at NYSCEF Doc Nos. 166-184, (iv) Herrera’s motion found at NYSCEF
Doc Nos. 186-204, and (v) Carrillo’s motion found at NYSCEF Doc Nos. 205-223. By virtue of opposing all five (5)
motions and cross-moving for partial summary judgment, Plaintiffs have filed a letter application for leave to slightly
exceed this Court’s word limit on submissions.
2 of 20
FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022
NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023
SUMMARY OF THE ARGUMENT
4. Plaintiffs, the affiliated owners of the Amsterdam Court Hotel and Marcel Hotel,
seek summary judgment on their first cause of action against Prose as well as on Prose’s first
counterclaim based upon the clear, unambiguous terms of the July 26, 2019 surrender agreement
(the “2019 Surrender Agreement”) wherein Prose, a licensed real estate sales person in New York
State since 2013, received one hundred thousand dollars ($100,000.00) as consideration for: (i)
surrendering his unit in the Amsterdam Court Hotel, and (ii) an indefinite, continuing promise that
he “will not occupy any other unit affiliated with Owner [Ali Baba Hotel Corp/ d/b/a Amsterdam
Court Hotel]”.2
5. Notwithstanding the clear and unambiguous terms of the 2019 Surrender
Agreement, on October 19, 2021 Prose intentionally and willfully checked into Room 1101 of the
Marcel Hotel (an affiliate of the Amsterdam Court Hotel), and then immediately demanded a
permanent hotel stabilized lease. Prose has not paid Plaintiffs a nickel of consideration in exchange
for his continued occupancy of Room 1101 since checking in. Prose’s conduct was an intentional
and flagrant violation of the terms of the 2019 Surrender Agreement designed to “revisit the well”
and demand more monies from the Plaintiffs. In an effort to expand the ransom demand he would
eventually make of Plaintiffs and expand upon his prior success in extorting the Amsterdam Court
Hotel, Prose proceeded to enlist defendants Kapadia, Mandoki, Carrillo, and Herrera to do the
same exact thing.
6. Mandoki, Carrillo, and Herrera agreed to serve as Prose’s “pawns” and checked in
to the Marcel Hotel3, mirroring his scam. Each Defendant signed the same check-in form stating
2
A copy of the 2019 Surrender Agreement is annexed as Exhibit L.
3
Mandoki checked in December 5, 2021. Kapadia checked in December 21, 2021. Herrera and Carrillo
separately checked into the Marcel on January 27, 2022 notwithstanding the fact Herrera and Carrillo had been
3 of 20
FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022
NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023
that, ““The Hotel Guest Warrants and represents that he/she or no person or persons has or will
claim rights of continued occupancy or tenancy with the respect to the Hotel including but not
limited to family members and/or persons. Further guest is not allowed to stay great than 21 days
within the Hotel”. Then within minutes/hours, each Defendant proceeded to send a virtually
identical email to the Marcel Hotel staff demanding a rent-stabilized lease. Immediately upon
checking in, Carrillo asked the front ask to give Prose access to his room.4 Prior to moving to
California in June 2022, Mandoki asked the Marcel to provide a key to her room to Prose.5
7. When Prose was informed by Jay Podolsky that the Marcel Hotel was an affiliate
of the Amsterdam Hotel and he was in breach the 2019 Surrender Agreement, Prose took the
position that he did not know of any affiliation between the two and that any relationship between
the Marcel and Amsterdam was purely coincidental. As Humphrey Bogart said in the 1942 classic
film Casablanca, “Of all the gin joints in all the towns in all of the world, she walks into mine”.
(See Podolsky Aff’d).
8. It is plainly obvious that Prose’s conduct is not at all coincidental and he is well
aware of the Amsterdam Court Hotel’s affiliated hotels. In fact, in March 2023, Prose told an
individual by the name of Eric Klein to check into another affiliated hotel of Amsterdam Court
Hotel (the “Second Affiliated Hotel”) and make the identical claim to rent stabilized rights after
checking into the hotel for a single night. Once removed by police, Eric Klein commenced an
illegal lockout proceeding which was dismissed after a hearing. During the hearing, Klein admitted
dating since 2019 and believed to be next door neighbors of Rehan Kapadia at the addresses where they actually
reside-107 and 109 Freeman Street, Brooklyn, New York.
4
See Exhibit P here which is also Exhibit Q, NYSCEF Doc No. 212 attached to Carrillo’s own motion for
summary judgment where he asks “Alex Prose” be given a key to his room the same day he (at different times)
checked in with his longtime girlfriend, Thalia Herrera.
5
See Mandoki deposition transcript at Exhibit T, pages 31-32.
4 of 20
FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022
NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023
during my cross-examination that he had been told by Prose to check into the Second Affiliated
Hotel and declare “stabilized rights”. Ultimately, the Civil Court dismissed Klein’s petition finding
that his unit had been lawfully deregulated and that he therefore did not have any right to remain
in the hotel room he rented for a single night. (See annexed as “Exhibit VV” the relevant portion
of the Civil Court trial transcript within which I represented the Respondent at pages 68-69.
Specifically, (i) page 68 line 20: Q: When did Alexander Prose tell you to-tell you about your legal
rights? What date? A: When I was evicted. Q: When you were evicted from 64th Street? A: Mm-
hmm. Q: Got it. And do you know if Alexander Prose also told Robin London about her legal
rights? A: I believe so. Q: Okay. Did he specifically tell you to go to the [Second Affiliated] Hotel?
A: Yes, sir.)
9. Evidence reveals that Prose and Kapadia are both active real estate agents who have
known each other for years prior to moving into the Marcel Hotel. Carrillo, Herrera and Kapadia
have been friends for years, vacation together, formed a company TCR Consulting Partners, LLC
[TCR are the initials of their first names] and Carrillo and Herrera are dating yet they separately
booked hotel rooms. The affidavits and documentary evidence demonstrate that, notwithstanding
their demands for permanent hotel stabilized leases at the Marcel Hotel, Mandoki was/is domiciled
in California, Kapadia has been, and is currently residing at, 107 Freeman Street, Brooklyn, New
York, and Carrillo and Herrera are believed to have been actually residing at 109 Freeman Street,
Brooklyn, New York. (See Exhibits HH, II, JJ, KK & LL).
10. Plaintiffs have come to learn these facts, in part, by reviewing the NYSCEF record
of two (2) recent Civil Court eviction proceedings wherein Kapadia and Prose made various
judicial admissions as party-respondents.
(a) In a Civil Court holdover eviction proceeding entitled Sonaal Industries Inv. v.
Jane Helmbreacht, Rehan Kapadia, Index No. 322660/2022, Kapadia swore under
5 of 20
FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022
NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023
oath in a verified pleading dated November 29, 2022 that he has primarily resided
at 107 Freeman Street, Brooklyn, New York for the last two (2) years. On May 24,
2023 Kapadia, by counsel Marc Aronson, signed a two (2) attorney stipulation
wherein he would be granted a rent stabilized lease at 107 Freeman Street,
Brooklyn, New York commencing December 1, 2023 at a rent of $1,613.47 per
month. Notwithstanding the judicial admissions which are public record for the
world to see, Kapadia has filed a motion with this Supreme Court asking the Court
find he is a permanent hotel stabilized tenant of room 814 at the Marcel. When
Kapadia was asked how he could openly maintain these dual positions, he told me
he wanted one million dollars $1,000,000.00 to vacate the Marcel.(See Freeman
Street Answer at Exhibit X, See Freeman Street Settlement at “Exhibit Y”).
(b) In a Civil Court nonpayment eviction proceeding entitled 326 Starr LLC v.
Christopher Martinez and Alexander Prose, Index No. 82347/2019, counsel Marc
Aronson also filed a verified answer on behalf of Prose. The answer claims Prose
paid rent pursuant to the terms of a lease from April 2019 through August 2019
and that Prose is entitled to a rent stabilized lease. A further investigation of the
Civil Court NYSCEF file reveals Prose was primarily residing at 326 Starr Street,
Apartment 3-F, Brooklyn New York pursuant to a lease dated April 12, 2019
which commenced May 1, 2019 and expired April 30, 2020. Meaning, at the time
Prose was paid $100,000.00 to vacate the Amsterdam Hotel on July 26, 2019-he
wasn’t even living there, he was living on Starr Street. After spending 3 years
litigating a claim to stabilized status with the owner of the Starr Street Apartment
and having his claims rejected by the Appellate Term, Second Department, Prose
surrendered the Starr Street Apartment on May 31, 2022-seven (7) months after
he “moved in” to the Marcel Hotel on October 19, 2021 and demanded a hotel
stabilized lease. (See Starr Street Lease at Exhibit MM; see also the Starr Street
Answer at “Exhibit LL”; see also the Appellate Term Second Department Starr
Street decision at “Exhibit NN”; see also the Starr Street two-attorney stipulation
of settlement at “Exhibit OO”).
11. Prose has most recently demanded ten million dollars ($10,000,000.00) to
vacate the Marcel Hotel.
12. As noted by this Court within its July 3, 2023 decision found at NYSCEF
Doc No. 238, “Notably, in his affidavit, defendant Prose does not deny the terms of the surrender
agreement or explain how he came to reside at the Marcel Hotel.” During their respective
depositions, all of which have been adjourned and remain open, Kapadia, Carrillo and Herrera all
universally refused to answer any questions, on the basis of “relevancy”, pertaining to what
brought each of them to the Marcel Hotel, where they had been living prior to the Marcel, where
6 of 20
FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022
NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023
they were currently living, or how they knew each other. Prose has all together refused to even sit
for a deposition in violation of this Court’s May 1, 2023 compliance conference Order found at
NYSCEF Doc No. 119. Notwithstanding the outright refusal to provide documentary responses to
discovery, or to answer questions during their depositions, Kapadia, Mandoki, Prose, Carrillo and
Herrera have all filed virtually identical summary judgment motions (none of which bother to
attach their own answers as required under CPLR 3212) which at a minimum should be denied
pursuant to CPLR 3212(f). (By way of example see Kapadia condensed deposition at Exhibit S,
page 34, lines 23-25, page 35, lines 1-2 & 9-11: Q: How did you first come into possession of the
Marcel? What made you decide to stay at that hotel? A: It’s irrelevant to this case. I refuse to
answer…Q: Why did you decide to check in to the Marcel on December 17, 2021? A: It’s
irrelevant”; see also Carrillo condensed deposition transcript at Exhibit U, pages 34-35, lines 18-
25, 1-4, Q: Okay. Why did you request a one-year long lease in Room 103 at 201 East 24th Street?
A: I think it’s irrelevant. Q: You think that’s irrelevant? A: Yes. Q: So you’re refusing to answer
that question? A: That’s my answer. See also Herrera condensed deposition transcript at Exhibit
U, page 14, lines 3-14, Q: Okay. And what made you decide to both move in to the Marcel at
Gramercy? A: Well, I wanted to-I needed a place to live. Q: Okay. So but what made you decide
of all places, let’s go to the Marcel at Gramercy and lets stay there? A: I don’t remember. Mr.
Kapadia: Objection”).
13. Only Mandoki was forthcoming enough during her deposition to answer
questions relating to how she came to reside at the Marcel Hotel. Mandoki admitted that: (i) she
was told about the Marcel Hotel and her ability to bring a claim for hotel stabilized status by Alex
Prose, (ii) that Prose accompanied her to the Marcel Hotel on December 5, 2021 to check in, (iii)
that she has “cut, copied, and pasted” pleadings and discovery responses in this action, (iv) that
7 of 20
FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022
NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023
after “moving into” the Marcel she relocated to California and asked the Marcel Hotel to give
Prose access to her room, and (v) that she was “prepared” for the deposition by Prose.6 If this is
not a clear acknowledgement of a conspiracy and shakedown, nothing else can be.
14. The facts before this Court are not disputed. Prose and Kapadia are
sophisticated, licensed real-estate brokers seeking to “shakedown” Plaintiffs. Mandoki, Carrillo
and Herrera are willful pawns declaring rights to rooms they have no intent to use while “cut,
copying and pasting” Prose and Kapadia’s pleadings and discovery responses in this action with
the hope of being paid for their services.
15. Once Defendants were in legal possession of rooms within the Marcel
Hotel, the “stage was set” for Prose and Kapadia to undertake an orchestrated, synchronized
campaign of harassing the Marcel, their employees and the non-profit migrant shelter operating
therein in a blatant attempt to compel the Plaintiffs to pay the Defendants substantial sums of
monies to vacate. (See Exhibits PP, QQ & RR detailing the intense nuisance conduct at the Marcel
Hotel).
6 See Mandoki condensed deposition transcript at: (i) Exhibit T, page 17, lines 1-25 (Q: So did your
conversation cause you to move into the Marcel at Gramercy in November of 2021? A: Um, yeah-yeah-yea. I, um,
like never heard of it before, so I was, like, um confused on it and..” Q: So what did he tell you in November of 2021?
A: He just kind of shared me—I remember he sent an article about, like SRO’s and (hesitation) I think-I don’t
remember. Like we walked by the—I think the Marcel, and he just showed it to me and that was really it; see also (ii)
pages 79-80 (Q: Okay. So did anyone help you bring your stuff into the Marcel Hotel on 12/5/21? A: Yes. I think Alex
helped me out Yes. Q: Okay. So you told Alex in early December 2021, Hey, I’m going—and I am paraphrasing here.
“I’m going to do exactly what you did and I will come to the Marcel Hotel, and I will make the exact thing that you
made; and do you want to help me bring stuff over? A: Yes. He wanted to help out, yes. Q: And you said, sure? A:
Yes”; (iii) pages 31-32, Q: Okay and between December first of 2021 and today, were you ever enrolled in any school
or study or educational program? A: Um, from today until then? Q: No. From December 1st of 2021, through today,
were you ever enrolled in any school or education program of any type? A: Yes. I moved to LA for like a few months
and I was enrolled in school there. Q: and when did you move to LA? A: June of 2022. (iv) page 36, lines 13-20. Q:
And did you give anyone the keys to room 1103 while you were done? A: Well yea. Alex wanted to—like he—well—
year. Q: Alex wanted to what? A: Um—you can have like roommates or something—I don’t remember. Yea, cause
he’s like a tenant too there; (v) page 119 lines 11-22, Q: Isn’t it true that Alex Prose assisted you with preparing for
this depositions? A: No. I was—No. Q: You are under oath. You have to answer the question. Isn’t it true that Alex
Prose assisted you in preparing for this deposition; isn’t that true? A: I mean, I guess, yea. Yeah, yes. Q: Okay. And
that was last week, correct? A: I think, yes.
8 of 20
FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022
NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023
16. Knowing that they have engaged in a conspiracy to extort money from Defendants
and defraud other owners of rent regulated housing throughout the City, Defendants engaged in a
coordinated effort to avoid discovery, refusing to produce documents showing where they
live/lived, their relationship to each other, how they came to even check-in to the Marcel and why.
Such conduct is an affront to New York’s rent regulatory system and must not be tolerated nor
rewarded by this Court.
17. Applying the law to the undisputed facts, Prose’s claims must be rejected by this
Court for two reasons. First, Prose explicitly waived any right or claim to occupy the Amsterdam
Hotel or any units owned by an affiliate of the Amsterdam within the 2019 Surrender Agreement.
18. Prose’s claim as to the meaning, interpretation and understanding of the 2019
Surrender Agreement is belied by the very terms of the document itself. First, his claim that he is
barred from occupying “any other unit affiliated with Owner” really means any other unit just in
the Amsterdam Hotel is not a reasonable interpretation of the 2019 Surrender Agreement as it
intentionally overlooks the parties intent to use broad, expansive language of “any units affiliated
with Owner” which would not be necessary to effectuate Prose’s purported interpretation of the
2019 Surrender Agreement. For Prose’s absurd interpretation, there would have been no need to
add this language whatsoever or any reference to affiliation.
19. The only reasonable interpretation of the 2019 Surrender Agreement is that Prose
was paid $100,000.00 in exchange for his agreement not to occupy any units affiliated with Owner
anywhere - not just those in the Amsterdam Court Hotel that he was moving out of. Again, there
would have been no need to use the words “affiliated with Owner” if it just meant those units in
the Amsterdam Court Hotel. Would Plaintiffs ever pay Prose $100,000.00 so he can go to each
and every hotel and shakedown Plaintiffs again and again? Of course not, and Prose knows it.
9 of 20
FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022
NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023
20. As to his claims of pressure and not understanding the 2019 Surrender Agreement,
such claims are belied by, not only paragraphs four (4) and eight (8) of the 2019 Surrender
Agreement, but how he has manipulated Klein, noted above, and the other Defendants. These
paragraphs state:
(4) The Occupant was afforded the opportunity to engage counsel and has waived
said opportunity. Occupant further states that he/she is freely entering into this
agreement and understand the contents contained herein.7
(8) With this agreement you confirm that during your entire tenancy you have not
been subject to any harassment and been satisfied with your living conditions
during your tenancy. (See “Exhibit L”)
21. Prose’s claim that he did not know of any affiliated hotels of the Amsterdam is also
plainly disingenuous. Prose has either directly or indirectly made identical claims to rent stabilized
status against the Amsterdam Court Hotel (in 2019 while actually living elsewhere), the Marcel
Hotel (in 2021 while actually living elsewhere), and the Second Affiliated Hotel (vis-à-vis Eric
Klein in 2023) in the last four (4) years. And he suggested and encouraged the other defendants to
do the same thing. Is the Court supposed to believe this is purely coincidental and that this licensed
real estate agent just keeps stumbling upon and making monetary demands from the same owners
of affiliated hotels in this City?
22. Second, Defendants’ hotel rooms are not hotel-rent stabilized for the reasons
submitted in a pending substantial rehabilitation application submitted in March 2022 to the New
York State Division of Housing Community and Renewal (“DHCR”). Plaintiffs’ extensive
submission to DHCR conclusively demonstrates that the Marcel Hotel was substantially
rehabilitated as a matter of law between 1997 and 2009 when its owners gut renovated the Marcel
7
At the time Prose signed this agreement he was being represented by counsel Marc Aronson within the
326 Starr nonpayment proceeding.
10 of 20
FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022
NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023
Hotel and built brand new floors 6 through 11 (where all of Defendants’ units are located) on top
of what previously was a dilapidated five (5) story building. A copy of the application and all
paperwork filed and communications to and from DHCR is annexed as “Exhibit R”. As further
detailed within the Memorandum, as a consequence of the Marcel Hotel being substantially
rehabilitated, it is exempt from New York State’s Rent Stabilization Law as a matter of law. (See
9 NYCRR § 2520.11(e)).8
23. Once the DHCR grants Plaintiffs’ Substantial Rehabilitation Application, Plaintiffs
will be entitled to summary judgment on its seventh cause of action and all Defendants’ first
counterclaims dismissed as well as to substantial monetary judgments against all Defendants.
Accordingly, Plaintiffs have cross-moved this Court to stay any determination on Plaintiffs’
seventh cause of action or Defendants’ counterclaims relating to rent regulatory status pending a
determination of the Substantial Rehabilitation Application. See 9 NYCRR § 2520.11(e).9
24. Finally, in order to maintain the status quo of the parties, Plaintiffs’ seek an Order
compelling all Defendants to pay to the Marcel or deposit with the Court unpaid use and occupancy
which has accrued from the filing of this action in January 2022 through August 30, 2023 and
further directing payment of prospective use and occupancy commencing September 1, 2023 at
each Defendants’ previously agreed upon, contracted for nightly room rate pending the outcome
of this action. (See “Exhibit M” where Prose agreed to pay $249.00 per night to occupy unit 1101;
see “Exhibit N” where Kapadia agreed to pay $519.00 per night to occupy unit 814; see “Exhibit
O” where Mandoki agreed to pay $479.00 per night to occupy unit 1103; see “Exhibit P” where
8
See “Exhibit R” a true accurate and full copy of East Side Inn LLC’s Substantial Rehabilitation
Application together with all supporting documentation submitted to the DHCR.
9
Since the Marcel’s Substantial Rehabilitation Application was filed in March 2022, Plaintiffs expect to
receive a favorable decision from the DHCR within a matter of weeks or months.
11 of 20
FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022
NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023
Carrillo agreed to pay $217.62 to occupy unit 1003; see “Exhibit Q” where Herrera agreed to pay
$124.02 to occupy unit 704). While each Defendant first entered the Marcel Hotel at different
times, Plaintiffs’ have sought payment of use and occupancy from the commencement of this
action on January 28, 2022 through August 31, 2023 in this motion as well as prospective use and
occupancy commencing September 1, 2023 until such time as the action is resolved. For the
Court’s convenience a summary chart is presented as follows:
Occupant Unit Move-in Date Nightly Rate Days Without Arrears
Paying from Owed to
January 28, Plaintiff from
2022 through January 28,
through 2022 through
August 31, 2023 August 31,
2023
Alexander Prose 1101 10/19/21 $249.00 580 $144,420.00
Rehan Kapadia 814 12/17/21 $519.00 580 $301,020.00
Bella Mandoki 1103 12/5/21 $479.00 580 $277,820.00
Carlos Carrillo 1003 1/27/22 $217.62 580 $126,219.60
Thalia Herrera 704 1/27/22 $124.02 580 $71,931.60
25. There is simply no basis in law, logic, or equity where the Defendants can conspire
to warehouse Plaintiffs’ hotel units (otherwise being rented to the City of New York to house
migrants awaiting immigration hearings or even if Plaintiffs wanted to rent them as hotel units) as
hostages for ransom without having to pay the nightly consideration they contracted to pay when
they first entered into legal possession of the Marcel Hotel.
12 of 20
FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022
NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023
26. As detailed in the Memorandum, there is no factual dispute whatsoever that no
“permanent tenant” as defined under New York Law has ever occupied any of the rooms currently
occupied by Defendants since the rooms were first created in 2007.
27. Therefore, even if, for the sake of argument, DHCR were to deny the Marcel’s
substantial rehabilitation application and it were somehow determined that Defendants were
entitled to rent-stabilized leases at the Marcel Hotel, the monthly rate for those leases for the newly
created rooms Defendants currently occupy has been found by the DHCR and Courts to be set at
the rate each Defendant originally agreed to since they are the first and only individuals to ever
claim “permanent tenant” status within their respective housing accommodation. (See the
Memorandum).
28. Accordingly, whether they appreciate it or not, Defendants are claiming entitlement
to rent-stabilized leases in substantially rehabilitated hotel rooms charging the following monthly
rates: (i) Prose (Room 1101) - $7,470.00 per month ($249.00 per night), (ii) Kapadia (Room 814)
- $15,570.00 per month ($519.00 per night), (iii) Mandoki (Room 1103) - $14,370.00 per month
($479.00 per night), (iv) Carrillo (Room 1003) - $6,528.60 per month ($217.62 per night), (v)
Herrera (Room 704) - $3,720.60 per month ($124.02 per night). (See the Memorandum).
29. In blindly following Prose’s roadmap to duplicating the $100,000.00 payment he
fraudulently extracted from Amsterdam in 2019 without knowing the history of the Marcel Hotel
or the exceptions to New York’s Rent Stabilization law, it can be said the Defendants have
inadvertently taken a series of hand-grenades as hostages and have run up hundreds of thousands
of dollars in debt to the Marcel just in the 580 days this case has been pending before this Court
(January 28, 2022 through August 31, 2023).
13 of 20
FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022
NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023
30. As a matter of law and equity, Defendants should not be permitted to continue to
warehouse various hotel rooms in the Marcel Hotel and deprive the owner of the right to lawfully
use them as they deem appropriate.10
EXHIBITS
1. A true and accurate copy of the June 30, 2022 Verified Amended
Complaint, filed in this action is annexed hereto as Exhibit “A”.
2. A true and accurate copy of Prose’s amended verified answer is annexed as
Exhibit “B”
3. A true and accurate copy of Kapadia’s amended verified answer is annexed
as Exhibit “C”.
4. A true and accurate copy of Mandoki’s amended verified answer is annexed
as Exhibit “D”.
5. A true and accurate copy of Herrera’s amended verified answer is annexed
as Exhibit “E”.
6. A true and accurate copy of Carrillo’s amended verified answer is annexed
as Exhibit “F”.
7. A true and accurate copy of Plaintiffs’ reply to Prose’s counterclaim is
annexed as Exhibit “G”.
8. A true and accurate copy of Plaintiffs’ reply to Kapadia’s counterclaim is
annexed as Exhibit “H”.
10
During this time, Plaintiffs are unable to offer these empty rooms to New York City for use during the
migrant crisis it currently faces. See Exhibit TT, N.Y. Times June 30, 2023 Article entitled “New York’s Shelters
Were Packed. Now They Are Bursting at the Seams.”
14 of 20
FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022
NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023
9. A true and accurate copy of Plaintiffs’ reply to Mandoki’s counterclaims is
annexed as Exhibit “I”.
10. A true and accurate copy of Plaintiffs’ reply to Herrera’s counterclaims is
annexed as Exhibit “J”.
11. A true and accurate copy of Plaintiffs’ reply to Carrillo’s counterclaims is
annexed as Exhibit “K”.
12. A true and accurate copy of the 2019 Surrender Agreement is annexed as
Exhibit “L”.
13. A true and accurate copy of Prose’s initial check-in invoice to the Marcel
Hotel is annexed as Exhibit “M”.
14. A true and accurate copy of Kapadia’s initial check-in receipt to the Marcel
Hotel is annexed as Exhibit “N”.
15. A true and accurate copy of Mandoki’s initial check-in receipt to the Marcel
Hotel is annexed as Exhibit “O”.
16. A true and accurate copy of Carrillo’s initial check-in receipt to the Marcel
Hotel is annexed as Exhibit “P”.
17. A true and accurate copy of Herrera’s initial check-in receipt to the Marcel
Hotel is annexed as Exhibit “Q”.
18. A true and accurate copy of the Marcel’s Substantial Rehabilitation
Application filed with the DHCR in March 2022 together with all requests for additional
information and responses thereto are collectively annexed as Exhibit “R”.
19. A true and accurate copy of Rehan Kapadia’s condensed deposition
transcript is annexed as Exhibit “S”.
15 of 20
FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022
NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023
20. A true and accurate copy of Bella Mandoki’s condensed deposition
transcript is annexed as Exhibit “T”.
21. A true and accurate copy of Carlos Carrillo’s condensed deposition
transcript is annexed as Exhibit “U”
22. A true and accurate copy of Thalia Herrera’s condensed deposition
transcript is annexed as Exhibit “V”.
23. A true and accurate copy of Bella Mandoki’s driver’s license taken at the
time of her deposition is annexed as Exhibit “W”.
24. A true and accurate copy of a verified answer of Rehan Kapadia filed in the
Civil Court, summary holdover proceeding entitled Sonaal Industries, Inc. v. Jane Helmbreacht,
Rehan Kapadia, et. al. Index No. 322660/2022 is annexed as Exhibit “X”.
25. A true and accurate copy of the two (2) attorney stipulation of settlement
filed within the Civil Court, summary holdover proceeding entitled Sonaal Industries, Inc. v. Jane
Helmbreacht, Rehan Kapadia, et. al. Index No. 322660/2022 is annexed as Exhibit “Y”.
26. A true and accurate copy of the Marcel Hotel’s 1950 certificate of
occupancy is annexed as Exhibit “Z”.
27. A true and accurate copy of the Marcel Hotel’s 2020 certificate of
occupancy is annexed as “AA”.
28. A true and accurate copy of Ali Baba Hotel Corp d/b/a Amsterdam Court
Hotel’s 2021 Tax Form K-1 relating to Sharon Olson’s ownership interest therein is annexed as
Exhibit “BB”.
29. A true and accurate copy of Ali Baba Hotel Corp d/b/a Amsterdam Court
Hotel’s 2019 Tax Form K-1 relating to Sharon Olson’s ownership interest therein is annexed as
16 of 20
FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022
NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023
Exhibit “CC”.
30. A true and accurate copy of Marcel 201 LLC’s 2021 Tax Form K-1 relating
to Sharon Olson’s ownership interest therein is annexed as Exhibit “DD”.
31. A true and accurate copy of Marcel 201 LLC’s 2021 Tax Form K-1 relating
to Sharon Olson’s ownership interest therein is annexed as Exhibit “EE”.
32. A certified copy of the deed to 226 West 50th Street, New York, New York
10019 (the Amsterdam Hotel) is annexed as Exhibit “FF”.
33. A certified copy of the deed to 321 Third Avenue, New York, New York
10010 (the Marcel Hotel) is annexed as Exhibit “GG”.
34. A true and accurate copy of Rehan Kapadia’s Linkd’in In Profile
Demonstrating he is a “Licensed Real Estate Broker, Real Estate Executive, Consultant” is
annexed as Exhibit “HH”.
35. A true and accurate copy of New York State’s occupational licensing
management system showing Alexander Prose is a licensed real estate salesperson is annexed as
Exhibit “II”. See https://appext20.dos.ny.gov/nydos/details.do?anchor=d7e9872.0.0
36. A true and accurate copy of Alexander Prose’ NYState MLS webpage
listing his active listings for sale is annexed as Exhibit “JJ”. See
https://www.nystatemls.com/profiles/ny/brooklyn/realty-collective-llc/alexander-prose/114711/
37. A true and accurate copy of Alexander Proses’ Link’d In Profile Page where
he holds himself out as a Licensed Real Estate Salesperson and owner of “Starr Talent LLC” is
annexed as Exhibit “KK”
38. A true and accurate copy of the answer filed by Prose within the Civil Court
nonpayment proceeding entitled 326 Starr LLC v. Christopher Martinez, Alexander Prose, Index
17 of 20
FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022
NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023
No. 82348/2019, Docket #2021 is annexed as Exhibit “LL”.
39. A true and accurate copy of the lease agreement entered into by Prose for
the 326 Starr Apartment as filed within the Civil Court nonpayment proceeding entitled 326 Starr
LLC v. Christopher Martinez, Alexander Prose, Index No. 82348/2019, Docket #2021 is annexed
as Exhibit “MM”.
40. A true and accurate copy of the Appellate Term, Second Department’s
decision is 326 Starr LLC v. Christopher Martinez, Alexander Prose, Index No. 82348/2019,
Docket #2021 is annexed as Exhibit “NN”.
41. A true and accurate copy of the May 5, 2022 Two Attorney Stipulation of
Settlement entered into in 326 Starr LLC v. Christopher Martinez, Alexander Prose, Index No.
82348/2019 is annexed as Exhibit “OO”
42. A true and accurate copy of the September 29, 2022 affidavit of Ana Lopez,
hotel manager of the Marcel, is annexed as Exhibit “PP”.
43. A true and accurate copy of the September 29, 2022 affidavit of Haddiya
Rolle as program director for the not-for-profit entity that operates a temporary housing assistance
program for migrant families at the Marcel Hotel is annexed as Exhibit “QQ”.
44. A true and accurate copy of the September 7, 2022 affidavit of Amara
Challal, a part-time worker at the Marcel, is annexed as Exhibit “RR”.
45. A true and accurate copy of DHCR Fact Sheet #38 pertaining to
“Substantial Rehabilitation” applications is annexed as Exhibit “SS”.
46. A true and accurate copy of DHCR Operational Bulletin 95-2 entitled
“Substantial Rehabilitation” is annexed as Exhibit “TT”.
18 of 20
FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022
NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023
47. A true copy of the June 23, 2023 Article found in the NY Times entitled
“New York’s Shelters Were Packed. Now They Are Bursting at the Seams” is annexed as “UU”
48. A portion of a related trial transcript relating to a second affiliated hotel
within which Scott F. Loffredo appeared on behalf of Respondent is annexed as Exhibit “VV”.
49. The Marcel Hotel’s business records for their 2018 nightly rate rentals for
each of units 704, 814, 1101, 1103 and 1003 are collectively annexed as Exhibit “WW”.
50. A true and accurate copy of East Side Inn’s 2021 Tax Form K-1 relating
Preview
FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022 NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK ALI BABA HOTEL CORP. d/b/a AMSTERDAM COURT HOTEL and EAST SIDE INN LLC d/b/a THE Index No. 150993/2022 MARCEL AT GRAMERCY, AFFIRMATION IN OPPOSITION TO Plaintiffs, DEFENDANTS’ MOTIONS FOR SUMMARY JUDGMENT AND -against- IN SUPPORT OF PLAINTIFFS’ CROSS-MOTION FOR PARTIAL ALEXANDER PROSE, REHAN KAPADIA, BELLA SUMMARY JUDGMENT MANDOKI, CARLOS CARRILLO, and THALIA HERRERA (Motion Sequence #12 and in Opposition to Motion Sequences #’s 6, 8, 9, 10 & 11) Defendants. SCOTT F. LOFFREDO an attorney duly admitted to practice before the Courts of the State of New York, hereby affirms the following to be true under the penalties for perjury pursuant to CPLR § 2106: 1. I am a member of the law firm of Belkin Burden Goldman, LLP, attorneys for Ali Baba Hotel Corp d/b/a Amsterdam Court Hotel (“Amsterdam”), the owner of 226 West 50th Street, New York, New York 10019 (the “Amsterdam Court Hotel”), and East Side Inn LLC (“Marcel”), the owner of the Marcel Hotel at Gramercy located at 321 Third Avenue, New York, New York (the “Marcel Hotel”)(the Amsterdam and Marcel to be collectively referred to herein as the (“Plaintiffs”). 2. This affirmation, together with the annexed memorandum of law (the “Memorandum”), the affirmation of Saul Bienenfeld (“Bienenfeld Aff”), the affidavits of Sharon Olson (“Olson Aff’d”), Ana Lopez (“Lopez Aff’d”), and Jay Podolsky (“Podolsky Aff’d”) and accompanying exhibits are submitted in opposition to the virtually identical summary judgment 1 of 20 FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022 NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023 motions of Alexander Prose (“Prose”), Rehan Kapadia (“Kapadia”), Bella Mandoki (“Mandoki”), Thalia Herrera (“Herrera”) and Carlos Carrillo (“Carrillo”) (collectively “Defendants”)1. 3. This affirmation, the accompanying affidavits and Memorandum is also submitted in support of Plaintiffs’ cross-motion seeking: (i) partial summary judgment on Plaintiffs’ first cause of action for breach of contract in addition to dismissing Prose’s first counterclaim, with prejudice, upon finding Prose waived his right to ever again occupy a unit owned by Ali Baba Hotel Corp. or its affiliates including but not limited to the Marcel, by virtue of having accepted $100,000.00 as consideration for executing a July 26, 2019 surrender agreement; (ii) an order staying any determination of Plaintiffs’ seventh cause of action or Defendants’ counterclaims pertaining to their respective regulatory status pending a determination on Plaintiffs’ March 10, 2022 substantial rehabilitation application pending before DHCR; (iii) an order compelling Defendants to either pay to Marcel or deposit with the Court all unpaid use and occupancy which has accrued since the filing of this action on January 28, 2022 through August 31, 2023 (580 nights) at each Defendants contracted for, agreed upon nightly rates as consideration for their continued occupancy of their respective rooms within the Marcel Hotel and further compelling Defendants to pay Marcel prospective use and occupancy, pendente lite commencing September 1, 2023 as consideration for their ongoing, continued occupancy of their rooms within the Marcel Hotel for so long as they remain in legal possession; and such other and further relief as this Court deems just and proper. 1 (i) Prose’s motion found at (NYSCEF Doc Nos. 120-139), (ii) Kapadia’s motion found at NYSCEF Doc Nos. 144-165, (iii) Mandoki’s motion found at NYSCEF Doc Nos. 166-184, (iv) Herrera’s motion found at NYSCEF Doc Nos. 186-204, and (v) Carrillo’s motion found at NYSCEF Doc Nos. 205-223. By virtue of opposing all five (5) motions and cross-moving for partial summary judgment, Plaintiffs have filed a letter application for leave to slightly exceed this Court’s word limit on submissions. 2 of 20 FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022 NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023 SUMMARY OF THE ARGUMENT 4. Plaintiffs, the affiliated owners of the Amsterdam Court Hotel and Marcel Hotel, seek summary judgment on their first cause of action against Prose as well as on Prose’s first counterclaim based upon the clear, unambiguous terms of the July 26, 2019 surrender agreement (the “2019 Surrender Agreement”) wherein Prose, a licensed real estate sales person in New York State since 2013, received one hundred thousand dollars ($100,000.00) as consideration for: (i) surrendering his unit in the Amsterdam Court Hotel, and (ii) an indefinite, continuing promise that he “will not occupy any other unit affiliated with Owner [Ali Baba Hotel Corp/ d/b/a Amsterdam Court Hotel]”.2 5. Notwithstanding the clear and unambiguous terms of the 2019 Surrender Agreement, on October 19, 2021 Prose intentionally and willfully checked into Room 1101 of the Marcel Hotel (an affiliate of the Amsterdam Court Hotel), and then immediately demanded a permanent hotel stabilized lease. Prose has not paid Plaintiffs a nickel of consideration in exchange for his continued occupancy of Room 1101 since checking in. Prose’s conduct was an intentional and flagrant violation of the terms of the 2019 Surrender Agreement designed to “revisit the well” and demand more monies from the Plaintiffs. In an effort to expand the ransom demand he would eventually make of Plaintiffs and expand upon his prior success in extorting the Amsterdam Court Hotel, Prose proceeded to enlist defendants Kapadia, Mandoki, Carrillo, and Herrera to do the same exact thing. 6. Mandoki, Carrillo, and Herrera agreed to serve as Prose’s “pawns” and checked in to the Marcel Hotel3, mirroring his scam. Each Defendant signed the same check-in form stating 2 A copy of the 2019 Surrender Agreement is annexed as Exhibit L. 3 Mandoki checked in December 5, 2021. Kapadia checked in December 21, 2021. Herrera and Carrillo separately checked into the Marcel on January 27, 2022 notwithstanding the fact Herrera and Carrillo had been 3 of 20 FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022 NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023 that, ““The Hotel Guest Warrants and represents that he/she or no person or persons has or will claim rights of continued occupancy or tenancy with the respect to the Hotel including but not limited to family members and/or persons. Further guest is not allowed to stay great than 21 days within the Hotel”. Then within minutes/hours, each Defendant proceeded to send a virtually identical email to the Marcel Hotel staff demanding a rent-stabilized lease. Immediately upon checking in, Carrillo asked the front ask to give Prose access to his room.4 Prior to moving to California in June 2022, Mandoki asked the Marcel to provide a key to her room to Prose.5 7. When Prose was informed by Jay Podolsky that the Marcel Hotel was an affiliate of the Amsterdam Hotel and he was in breach the 2019 Surrender Agreement, Prose took the position that he did not know of any affiliation between the two and that any relationship between the Marcel and Amsterdam was purely coincidental. As Humphrey Bogart said in the 1942 classic film Casablanca, “Of all the gin joints in all the towns in all of the world, she walks into mine”. (See Podolsky Aff’d). 8. It is plainly obvious that Prose’s conduct is not at all coincidental and he is well aware of the Amsterdam Court Hotel’s affiliated hotels. In fact, in March 2023, Prose told an individual by the name of Eric Klein to check into another affiliated hotel of Amsterdam Court Hotel (the “Second Affiliated Hotel”) and make the identical claim to rent stabilized rights after checking into the hotel for a single night. Once removed by police, Eric Klein commenced an illegal lockout proceeding which was dismissed after a hearing. During the hearing, Klein admitted dating since 2019 and believed to be next door neighbors of Rehan Kapadia at the addresses where they actually reside-107 and 109 Freeman Street, Brooklyn, New York. 4 See Exhibit P here which is also Exhibit Q, NYSCEF Doc No. 212 attached to Carrillo’s own motion for summary judgment where he asks “Alex Prose” be given a key to his room the same day he (at different times) checked in with his longtime girlfriend, Thalia Herrera. 5 See Mandoki deposition transcript at Exhibit T, pages 31-32. 4 of 20 FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022 NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023 during my cross-examination that he had been told by Prose to check into the Second Affiliated Hotel and declare “stabilized rights”. Ultimately, the Civil Court dismissed Klein’s petition finding that his unit had been lawfully deregulated and that he therefore did not have any right to remain in the hotel room he rented for a single night. (See annexed as “Exhibit VV” the relevant portion of the Civil Court trial transcript within which I represented the Respondent at pages 68-69. Specifically, (i) page 68 line 20: Q: When did Alexander Prose tell you to-tell you about your legal rights? What date? A: When I was evicted. Q: When you were evicted from 64th Street? A: Mm- hmm. Q: Got it. And do you know if Alexander Prose also told Robin London about her legal rights? A: I believe so. Q: Okay. Did he specifically tell you to go to the [Second Affiliated] Hotel? A: Yes, sir.) 9. Evidence reveals that Prose and Kapadia are both active real estate agents who have known each other for years prior to moving into the Marcel Hotel. Carrillo, Herrera and Kapadia have been friends for years, vacation together, formed a company TCR Consulting Partners, LLC [TCR are the initials of their first names] and Carrillo and Herrera are dating yet they separately booked hotel rooms. The affidavits and documentary evidence demonstrate that, notwithstanding their demands for permanent hotel stabilized leases at the Marcel Hotel, Mandoki was/is domiciled in California, Kapadia has been, and is currently residing at, 107 Freeman Street, Brooklyn, New York, and Carrillo and Herrera are believed to have been actually residing at 109 Freeman Street, Brooklyn, New York. (See Exhibits HH, II, JJ, KK & LL). 10. Plaintiffs have come to learn these facts, in part, by reviewing the NYSCEF record of two (2) recent Civil Court eviction proceedings wherein Kapadia and Prose made various judicial admissions as party-respondents. (a) In a Civil Court holdover eviction proceeding entitled Sonaal Industries Inv. v. Jane Helmbreacht, Rehan Kapadia, Index No. 322660/2022, Kapadia swore under 5 of 20 FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022 NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023 oath in a verified pleading dated November 29, 2022 that he has primarily resided at 107 Freeman Street, Brooklyn, New York for the last two (2) years. On May 24, 2023 Kapadia, by counsel Marc Aronson, signed a two (2) attorney stipulation wherein he would be granted a rent stabilized lease at 107 Freeman Street, Brooklyn, New York commencing December 1, 2023 at a rent of $1,613.47 per month. Notwithstanding the judicial admissions which are public record for the world to see, Kapadia has filed a motion with this Supreme Court asking the Court find he is a permanent hotel stabilized tenant of room 814 at the Marcel. When Kapadia was asked how he could openly maintain these dual positions, he told me he wanted one million dollars $1,000,000.00 to vacate the Marcel.(See Freeman Street Answer at Exhibit X, See Freeman Street Settlement at “Exhibit Y”). (b) In a Civil Court nonpayment eviction proceeding entitled 326 Starr LLC v. Christopher Martinez and Alexander Prose, Index No. 82347/2019, counsel Marc Aronson also filed a verified answer on behalf of Prose. The answer claims Prose paid rent pursuant to the terms of a lease from April 2019 through August 2019 and that Prose is entitled to a rent stabilized lease. A further investigation of the Civil Court NYSCEF file reveals Prose was primarily residing at 326 Starr Street, Apartment 3-F, Brooklyn New York pursuant to a lease dated April 12, 2019 which commenced May 1, 2019 and expired April 30, 2020. Meaning, at the time Prose was paid $100,000.00 to vacate the Amsterdam Hotel on July 26, 2019-he wasn’t even living there, he was living on Starr Street. After spending 3 years litigating a claim to stabilized status with the owner of the Starr Street Apartment and having his claims rejected by the Appellate Term, Second Department, Prose surrendered the Starr Street Apartment on May 31, 2022-seven (7) months after he “moved in” to the Marcel Hotel on October 19, 2021 and demanded a hotel stabilized lease. (See Starr Street Lease at Exhibit MM; see also the Starr Street Answer at “Exhibit LL”; see also the Appellate Term Second Department Starr Street decision at “Exhibit NN”; see also the Starr Street two-attorney stipulation of settlement at “Exhibit OO”). 11. Prose has most recently demanded ten million dollars ($10,000,000.00) to vacate the Marcel Hotel. 12. As noted by this Court within its July 3, 2023 decision found at NYSCEF Doc No. 238, “Notably, in his affidavit, defendant Prose does not deny the terms of the surrender agreement or explain how he came to reside at the Marcel Hotel.” During their respective depositions, all of which have been adjourned and remain open, Kapadia, Carrillo and Herrera all universally refused to answer any questions, on the basis of “relevancy”, pertaining to what brought each of them to the Marcel Hotel, where they had been living prior to the Marcel, where 6 of 20 FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022 NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023 they were currently living, or how they knew each other. Prose has all together refused to even sit for a deposition in violation of this Court’s May 1, 2023 compliance conference Order found at NYSCEF Doc No. 119. Notwithstanding the outright refusal to provide documentary responses to discovery, or to answer questions during their depositions, Kapadia, Mandoki, Prose, Carrillo and Herrera have all filed virtually identical summary judgment motions (none of which bother to attach their own answers as required under CPLR 3212) which at a minimum should be denied pursuant to CPLR 3212(f). (By way of example see Kapadia condensed deposition at Exhibit S, page 34, lines 23-25, page 35, lines 1-2 & 9-11: Q: How did you first come into possession of the Marcel? What made you decide to stay at that hotel? A: It’s irrelevant to this case. I refuse to answer…Q: Why did you decide to check in to the Marcel on December 17, 2021? A: It’s irrelevant”; see also Carrillo condensed deposition transcript at Exhibit U, pages 34-35, lines 18- 25, 1-4, Q: Okay. Why did you request a one-year long lease in Room 103 at 201 East 24th Street? A: I think it’s irrelevant. Q: You think that’s irrelevant? A: Yes. Q: So you’re refusing to answer that question? A: That’s my answer. See also Herrera condensed deposition transcript at Exhibit U, page 14, lines 3-14, Q: Okay. And what made you decide to both move in to the Marcel at Gramercy? A: Well, I wanted to-I needed a place to live. Q: Okay. So but what made you decide of all places, let’s go to the Marcel at Gramercy and lets stay there? A: I don’t remember. Mr. Kapadia: Objection”). 13. Only Mandoki was forthcoming enough during her deposition to answer questions relating to how she came to reside at the Marcel Hotel. Mandoki admitted that: (i) she was told about the Marcel Hotel and her ability to bring a claim for hotel stabilized status by Alex Prose, (ii) that Prose accompanied her to the Marcel Hotel on December 5, 2021 to check in, (iii) that she has “cut, copied, and pasted” pleadings and discovery responses in this action, (iv) that 7 of 20 FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022 NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023 after “moving into” the Marcel she relocated to California and asked the Marcel Hotel to give Prose access to her room, and (v) that she was “prepared” for the deposition by Prose.6 If this is not a clear acknowledgement of a conspiracy and shakedown, nothing else can be. 14. The facts before this Court are not disputed. Prose and Kapadia are sophisticated, licensed real-estate brokers seeking to “shakedown” Plaintiffs. Mandoki, Carrillo and Herrera are willful pawns declaring rights to rooms they have no intent to use while “cut, copying and pasting” Prose and Kapadia’s pleadings and discovery responses in this action with the hope of being paid for their services. 15. Once Defendants were in legal possession of rooms within the Marcel Hotel, the “stage was set” for Prose and Kapadia to undertake an orchestrated, synchronized campaign of harassing the Marcel, their employees and the non-profit migrant shelter operating therein in a blatant attempt to compel the Plaintiffs to pay the Defendants substantial sums of monies to vacate. (See Exhibits PP, QQ & RR detailing the intense nuisance conduct at the Marcel Hotel). 6 See Mandoki condensed deposition transcript at: (i) Exhibit T, page 17, lines 1-25 (Q: So did your conversation cause you to move into the Marcel at Gramercy in November of 2021? A: Um, yeah-yeah-yea. I, um, like never heard of it before, so I was, like, um confused on it and..” Q: So what did he tell you in November of 2021? A: He just kind of shared me—I remember he sent an article about, like SRO’s and (hesitation) I think-I don’t remember. Like we walked by the—I think the Marcel, and he just showed it to me and that was really it; see also (ii) pages 79-80 (Q: Okay. So did anyone help you bring your stuff into the Marcel Hotel on 12/5/21? A: Yes. I think Alex helped me out Yes. Q: Okay. So you told Alex in early December 2021, Hey, I’m going—and I am paraphrasing here. “I’m going to do exactly what you did and I will come to the Marcel Hotel, and I will make the exact thing that you made; and do you want to help me bring stuff over? A: Yes. He wanted to help out, yes. Q: And you said, sure? A: Yes”; (iii) pages 31-32, Q: Okay and between December first of 2021 and today, were you ever enrolled in any school or study or educational program? A: Um, from today until then? Q: No. From December 1st of 2021, through today, were you ever enrolled in any school or education program of any type? A: Yes. I moved to LA for like a few months and I was enrolled in school there. Q: and when did you move to LA? A: June of 2022. (iv) page 36, lines 13-20. Q: And did you give anyone the keys to room 1103 while you were done? A: Well yea. Alex wanted to—like he—well— year. Q: Alex wanted to what? A: Um—you can have like roommates or something—I don’t remember. Yea, cause he’s like a tenant too there; (v) page 119 lines 11-22, Q: Isn’t it true that Alex Prose assisted you with preparing for this depositions? A: No. I was—No. Q: You are under oath. You have to answer the question. Isn’t it true that Alex Prose assisted you in preparing for this deposition; isn’t that true? A: I mean, I guess, yea. Yeah, yes. Q: Okay. And that was last week, correct? A: I think, yes. 8 of 20 FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022 NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023 16. Knowing that they have engaged in a conspiracy to extort money from Defendants and defraud other owners of rent regulated housing throughout the City, Defendants engaged in a coordinated effort to avoid discovery, refusing to produce documents showing where they live/lived, their relationship to each other, how they came to even check-in to the Marcel and why. Such conduct is an affront to New York’s rent regulatory system and must not be tolerated nor rewarded by this Court. 17. Applying the law to the undisputed facts, Prose’s claims must be rejected by this Court for two reasons. First, Prose explicitly waived any right or claim to occupy the Amsterdam Hotel or any units owned by an affiliate of the Amsterdam within the 2019 Surrender Agreement. 18. Prose’s claim as to the meaning, interpretation and understanding of the 2019 Surrender Agreement is belied by the very terms of the document itself. First, his claim that he is barred from occupying “any other unit affiliated with Owner” really means any other unit just in the Amsterdam Hotel is not a reasonable interpretation of the 2019 Surrender Agreement as it intentionally overlooks the parties intent to use broad, expansive language of “any units affiliated with Owner” which would not be necessary to effectuate Prose’s purported interpretation of the 2019 Surrender Agreement. For Prose’s absurd interpretation, there would have been no need to add this language whatsoever or any reference to affiliation. 19. The only reasonable interpretation of the 2019 Surrender Agreement is that Prose was paid $100,000.00 in exchange for his agreement not to occupy any units affiliated with Owner anywhere - not just those in the Amsterdam Court Hotel that he was moving out of. Again, there would have been no need to use the words “affiliated with Owner” if it just meant those units in the Amsterdam Court Hotel. Would Plaintiffs ever pay Prose $100,000.00 so he can go to each and every hotel and shakedown Plaintiffs again and again? Of course not, and Prose knows it. 9 of 20 FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022 NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023 20. As to his claims of pressure and not understanding the 2019 Surrender Agreement, such claims are belied by, not only paragraphs four (4) and eight (8) of the 2019 Surrender Agreement, but how he has manipulated Klein, noted above, and the other Defendants. These paragraphs state: (4) The Occupant was afforded the opportunity to engage counsel and has waived said opportunity. Occupant further states that he/she is freely entering into this agreement and understand the contents contained herein.7 (8) With this agreement you confirm that during your entire tenancy you have not been subject to any harassment and been satisfied with your living conditions during your tenancy. (See “Exhibit L”) 21. Prose’s claim that he did not know of any affiliated hotels of the Amsterdam is also plainly disingenuous. Prose has either directly or indirectly made identical claims to rent stabilized status against the Amsterdam Court Hotel (in 2019 while actually living elsewhere), the Marcel Hotel (in 2021 while actually living elsewhere), and the Second Affiliated Hotel (vis-à-vis Eric Klein in 2023) in the last four (4) years. And he suggested and encouraged the other defendants to do the same thing. Is the Court supposed to believe this is purely coincidental and that this licensed real estate agent just keeps stumbling upon and making monetary demands from the same owners of affiliated hotels in this City? 22. Second, Defendants’ hotel rooms are not hotel-rent stabilized for the reasons submitted in a pending substantial rehabilitation application submitted in March 2022 to the New York State Division of Housing Community and Renewal (“DHCR”). Plaintiffs’ extensive submission to DHCR conclusively demonstrates that the Marcel Hotel was substantially rehabilitated as a matter of law between 1997 and 2009 when its owners gut renovated the Marcel 7 At the time Prose signed this agreement he was being represented by counsel Marc Aronson within the 326 Starr nonpayment proceeding. 10 of 20 FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022 NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023 Hotel and built brand new floors 6 through 11 (where all of Defendants’ units are located) on top of what previously was a dilapidated five (5) story building. A copy of the application and all paperwork filed and communications to and from DHCR is annexed as “Exhibit R”. As further detailed within the Memorandum, as a consequence of the Marcel Hotel being substantially rehabilitated, it is exempt from New York State’s Rent Stabilization Law as a matter of law. (See 9 NYCRR § 2520.11(e)).8 23. Once the DHCR grants Plaintiffs’ Substantial Rehabilitation Application, Plaintiffs will be entitled to summary judgment on its seventh cause of action and all Defendants’ first counterclaims dismissed as well as to substantial monetary judgments against all Defendants. Accordingly, Plaintiffs have cross-moved this Court to stay any determination on Plaintiffs’ seventh cause of action or Defendants’ counterclaims relating to rent regulatory status pending a determination of the Substantial Rehabilitation Application. See 9 NYCRR § 2520.11(e).9 24. Finally, in order to maintain the status quo of the parties, Plaintiffs’ seek an Order compelling all Defendants to pay to the Marcel or deposit with the Court unpaid use and occupancy which has accrued from the filing of this action in January 2022 through August 30, 2023 and further directing payment of prospective use and occupancy commencing September 1, 2023 at each Defendants’ previously agreed upon, contracted for nightly room rate pending the outcome of this action. (See “Exhibit M” where Prose agreed to pay $249.00 per night to occupy unit 1101; see “Exhibit N” where Kapadia agreed to pay $519.00 per night to occupy unit 814; see “Exhibit O” where Mandoki agreed to pay $479.00 per night to occupy unit 1103; see “Exhibit P” where 8 See “Exhibit R” a true accurate and full copy of East Side Inn LLC’s Substantial Rehabilitation Application together with all supporting documentation submitted to the DHCR. 9 Since the Marcel’s Substantial Rehabilitation Application was filed in March 2022, Plaintiffs expect to receive a favorable decision from the DHCR within a matter of weeks or months. 11 of 20 FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022 NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023 Carrillo agreed to pay $217.62 to occupy unit 1003; see “Exhibit Q” where Herrera agreed to pay $124.02 to occupy unit 704). While each Defendant first entered the Marcel Hotel at different times, Plaintiffs’ have sought payment of use and occupancy from the commencement of this action on January 28, 2022 through August 31, 2023 in this motion as well as prospective use and occupancy commencing September 1, 2023 until such time as the action is resolved. For the Court’s convenience a summary chart is presented as follows: Occupant Unit Move-in Date Nightly Rate Days Without Arrears Paying from Owed to January 28, Plaintiff from 2022 through January 28, through 2022 through August 31, 2023 August 31, 2023 Alexander Prose 1101 10/19/21 $249.00 580 $144,420.00 Rehan Kapadia 814 12/17/21 $519.00 580 $301,020.00 Bella Mandoki 1103 12/5/21 $479.00 580 $277,820.00 Carlos Carrillo 1003 1/27/22 $217.62 580 $126,219.60 Thalia Herrera 704 1/27/22 $124.02 580 $71,931.60 25. There is simply no basis in law, logic, or equity where the Defendants can conspire to warehouse Plaintiffs’ hotel units (otherwise being rented to the City of New York to house migrants awaiting immigration hearings or even if Plaintiffs wanted to rent them as hotel units) as hostages for ransom without having to pay the nightly consideration they contracted to pay when they first entered into legal possession of the Marcel Hotel. 12 of 20 FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022 NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023 26. As detailed in the Memorandum, there is no factual dispute whatsoever that no “permanent tenant” as defined under New York Law has ever occupied any of the rooms currently occupied by Defendants since the rooms were first created in 2007. 27. Therefore, even if, for the sake of argument, DHCR were to deny the Marcel’s substantial rehabilitation application and it were somehow determined that Defendants were entitled to rent-stabilized leases at the Marcel Hotel, the monthly rate for those leases for the newly created rooms Defendants currently occupy has been found by the DHCR and Courts to be set at the rate each Defendant originally agreed to since they are the first and only individuals to ever claim “permanent tenant” status within their respective housing accommodation. (See the Memorandum). 28. Accordingly, whether they appreciate it or not, Defendants are claiming entitlement to rent-stabilized leases in substantially rehabilitated hotel rooms charging the following monthly rates: (i) Prose (Room 1101) - $7,470.00 per month ($249.00 per night), (ii) Kapadia (Room 814) - $15,570.00 per month ($519.00 per night), (iii) Mandoki (Room 1103) - $14,370.00 per month ($479.00 per night), (iv) Carrillo (Room 1003) - $6,528.60 per month ($217.62 per night), (v) Herrera (Room 704) - $3,720.60 per month ($124.02 per night). (See the Memorandum). 29. In blindly following Prose’s roadmap to duplicating the $100,000.00 payment he fraudulently extracted from Amsterdam in 2019 without knowing the history of the Marcel Hotel or the exceptions to New York’s Rent Stabilization law, it can be said the Defendants have inadvertently taken a series of hand-grenades as hostages and have run up hundreds of thousands of dollars in debt to the Marcel just in the 580 days this case has been pending before this Court (January 28, 2022 through August 31, 2023). 13 of 20 FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022 NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023 30. As a matter of law and equity, Defendants should not be permitted to continue to warehouse various hotel rooms in the Marcel Hotel and deprive the owner of the right to lawfully use them as they deem appropriate.10 EXHIBITS 1. A true and accurate copy of the June 30, 2022 Verified Amended Complaint, filed in this action is annexed hereto as Exhibit “A”. 2. A true and accurate copy of Prose’s amended verified answer is annexed as Exhibit “B” 3. A true and accurate copy of Kapadia’s amended verified answer is annexed as Exhibit “C”. 4. A true and accurate copy of Mandoki’s amended verified answer is annexed as Exhibit “D”. 5. A true and accurate copy of Herrera’s amended verified answer is annexed as Exhibit “E”. 6. A true and accurate copy of Carrillo’s amended verified answer is annexed as Exhibit “F”. 7. A true and accurate copy of Plaintiffs’ reply to Prose’s counterclaim is annexed as Exhibit “G”. 8. A true and accurate copy of Plaintiffs’ reply to Kapadia’s counterclaim is annexed as Exhibit “H”. 10 During this time, Plaintiffs are unable to offer these empty rooms to New York City for use during the migrant crisis it currently faces. See Exhibit TT, N.Y. Times June 30, 2023 Article entitled “New York’s Shelters Were Packed. Now They Are Bursting at the Seams.” 14 of 20 FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022 NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023 9. A true and accurate copy of Plaintiffs’ reply to Mandoki’s counterclaims is annexed as Exhibit “I”. 10. A true and accurate copy of Plaintiffs’ reply to Herrera’s counterclaims is annexed as Exhibit “J”. 11. A true and accurate copy of Plaintiffs’ reply to Carrillo’s counterclaims is annexed as Exhibit “K”. 12. A true and accurate copy of the 2019 Surrender Agreement is annexed as Exhibit “L”. 13. A true and accurate copy of Prose’s initial check-in invoice to the Marcel Hotel is annexed as Exhibit “M”. 14. A true and accurate copy of Kapadia’s initial check-in receipt to the Marcel Hotel is annexed as Exhibit “N”. 15. A true and accurate copy of Mandoki’s initial check-in receipt to the Marcel Hotel is annexed as Exhibit “O”. 16. A true and accurate copy of Carrillo’s initial check-in receipt to the Marcel Hotel is annexed as Exhibit “P”. 17. A true and accurate copy of Herrera’s initial check-in receipt to the Marcel Hotel is annexed as Exhibit “Q”. 18. A true and accurate copy of the Marcel’s Substantial Rehabilitation Application filed with the DHCR in March 2022 together with all requests for additional information and responses thereto are collectively annexed as Exhibit “R”. 19. A true and accurate copy of Rehan Kapadia’s condensed deposition transcript is annexed as Exhibit “S”. 15 of 20 FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022 NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023 20. A true and accurate copy of Bella Mandoki’s condensed deposition transcript is annexed as Exhibit “T”. 21. A true and accurate copy of Carlos Carrillo’s condensed deposition transcript is annexed as Exhibit “U” 22. A true and accurate copy of Thalia Herrera’s condensed deposition transcript is annexed as Exhibit “V”. 23. A true and accurate copy of Bella Mandoki’s driver’s license taken at the time of her deposition is annexed as Exhibit “W”. 24. A true and accurate copy of a verified answer of Rehan Kapadia filed in the Civil Court, summary holdover proceeding entitled Sonaal Industries, Inc. v. Jane Helmbreacht, Rehan Kapadia, et. al. Index No. 322660/2022 is annexed as Exhibit “X”. 25. A true and accurate copy of the two (2) attorney stipulation of settlement filed within the Civil Court, summary holdover proceeding entitled Sonaal Industries, Inc. v. Jane Helmbreacht, Rehan Kapadia, et. al. Index No. 322660/2022 is annexed as Exhibit “Y”. 26. A true and accurate copy of the Marcel Hotel’s 1950 certificate of occupancy is annexed as Exhibit “Z”. 27. A true and accurate copy of the Marcel Hotel’s 2020 certificate of occupancy is annexed as “AA”. 28. A true and accurate copy of Ali Baba Hotel Corp d/b/a Amsterdam Court Hotel’s 2021 Tax Form K-1 relating to Sharon Olson’s ownership interest therein is annexed as Exhibit “BB”. 29. A true and accurate copy of Ali Baba Hotel Corp d/b/a Amsterdam Court Hotel’s 2019 Tax Form K-1 relating to Sharon Olson’s ownership interest therein is annexed as 16 of 20 FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022 NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023 Exhibit “CC”. 30. A true and accurate copy of Marcel 201 LLC’s 2021 Tax Form K-1 relating to Sharon Olson’s ownership interest therein is annexed as Exhibit “DD”. 31. A true and accurate copy of Marcel 201 LLC’s 2021 Tax Form K-1 relating to Sharon Olson’s ownership interest therein is annexed as Exhibit “EE”. 32. A certified copy of the deed to 226 West 50th Street, New York, New York 10019 (the Amsterdam Hotel) is annexed as Exhibit “FF”. 33. A certified copy of the deed to 321 Third Avenue, New York, New York 10010 (the Marcel Hotel) is annexed as Exhibit “GG”. 34. A true and accurate copy of Rehan Kapadia’s Linkd’in In Profile Demonstrating he is a “Licensed Real Estate Broker, Real Estate Executive, Consultant” is annexed as Exhibit “HH”. 35. A true and accurate copy of New York State’s occupational licensing management system showing Alexander Prose is a licensed real estate salesperson is annexed as Exhibit “II”. See https://appext20.dos.ny.gov/nydos/details.do?anchor=d7e9872.0.0 36. A true and accurate copy of Alexander Prose’ NYState MLS webpage listing his active listings for sale is annexed as Exhibit “JJ”. See https://www.nystatemls.com/profiles/ny/brooklyn/realty-collective-llc/alexander-prose/114711/ 37. A true and accurate copy of Alexander Proses’ Link’d In Profile Page where he holds himself out as a Licensed Real Estate Salesperson and owner of “Starr Talent LLC” is annexed as Exhibit “KK” 38. A true and accurate copy of the answer filed by Prose within the Civil Court nonpayment proceeding entitled 326 Starr LLC v. Christopher Martinez, Alexander Prose, Index 17 of 20 FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022 NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023 No. 82348/2019, Docket #2021 is annexed as Exhibit “LL”. 39. A true and accurate copy of the lease agreement entered into by Prose for the 326 Starr Apartment as filed within the Civil Court nonpayment proceeding entitled 326 Starr LLC v. Christopher Martinez, Alexander Prose, Index No. 82348/2019, Docket #2021 is annexed as Exhibit “MM”. 40. A true and accurate copy of the Appellate Term, Second Department’s decision is 326 Starr LLC v. Christopher Martinez, Alexander Prose, Index No. 82348/2019, Docket #2021 is annexed as Exhibit “NN”. 41. A true and accurate copy of the May 5, 2022 Two Attorney Stipulation of Settlement entered into in 326 Starr LLC v. Christopher Martinez, Alexander Prose, Index No. 82348/2019 is annexed as Exhibit “OO” 42. A true and accurate copy of the September 29, 2022 affidavit of Ana Lopez, hotel manager of the Marcel, is annexed as Exhibit “PP”. 43. A true and accurate copy of the September 29, 2022 affidavit of Haddiya Rolle as program director for the not-for-profit entity that operates a temporary housing assistance program for migrant families at the Marcel Hotel is annexed as Exhibit “QQ”. 44. A true and accurate copy of the September 7, 2022 affidavit of Amara Challal, a part-time worker at the Marcel, is annexed as Exhibit “RR”. 45. A true and accurate copy of DHCR Fact Sheet #38 pertaining to “Substantial Rehabilitation” applications is annexed as Exhibit “SS”. 46. A true and accurate copy of DHCR Operational Bulletin 95-2 entitled “Substantial Rehabilitation” is annexed as Exhibit “TT”. 18 of 20 FILED: NEW YORK COUNTY CLERK 08/11/2023 05:22 PM INDEX NO. 150993/2022 NYSCEF DOC. NO. 251 RECEIVED NYSCEF: 08/11/2023 47. A true copy of the June 23, 2023 Article found in the NY Times entitled “New York’s Shelters Were Packed. Now They Are Bursting at the Seams” is annexed as “UU” 48. A portion of a related trial transcript relating to a second affiliated hotel within which Scott F. Loffredo appeared on behalf of Respondent is annexed as Exhibit “VV”. 49. The Marcel Hotel’s business records for their 2018 nightly rate rentals for each of units 704, 814, 1101, 1103 and 1003 are collectively annexed as Exhibit “WW”. 50. A true and accurate copy of East Side Inn’s 2021 Tax Form K-1 relating