
OCTOBER 5, 2015 LAST UPDATED: MONDAY, OCTOBER 5, 2015, 9:42 PM
BY HUGH R. MORLEY
STAFF WRITER |
THE RECORD
A federal lawsuit filed against David Kushner, the prominent Cresskill businessman charged with stalking and harassing his son’s basketball coach, accuses him and others of racketeering and conspiring to defraud investors in a mortgage business.
An attorney representing Kushner and others named in the suit dismissed the allegations Monday as “utterly without merit.”
The suit, filed by a Suffolk County, N.Y., investor, claims that Kushner, several businesses of which he is part-owner, and two other owners engaged in “a widespread criminal enterprise” and a “pattern of racketeering activity” in a business that solicited investments to be lent as mortgages.
The investor, Arnold Rosenshein, says in the suit filed in U.S. District Court in Manhattan that he invested just over $4 million with the Kushner companies after he was assured that the deals would be “conservative” and short term, and that his money would be just a small part of the mortgage granted. Rosenshein also said he was told that in the event of a default, the properties would be foreclosed upon and sold at a profit.
But several of the mortgages soon went into default, and the properties remained unforeclosed upon for years, because company executives wanted to wait until the property gained in value, Rosenshein alleges. Meanwhile, Kushner and two other company principals, Jeffrey Meshel and Wayne Sturdman, both of New York, made millions from the loans by taking “origination” and “servicing” fees, the suit alleges.