consultants are sandburs

Tuesday, August 13, 2013

Zygi Stardust, or Zygi Crabgrass - a protypical developer or exceptional, and if exceptional, in what ways?

I only know what I read in online news reporting, but some people, you shake hands and you may need to check rings after to see all are there. Not that I can say that about Zygi, but it seems about what the Judge said: New Jersey coverage, here, here and here; PiPress, here and here. Favored quote, from here, and sure to put Zygi into the Developers Hall of Fame, first ballot, unanimous choice:

Discussing the Wilfs’ misdeeds, [Judge Deanne] Wilson said they failed to meet the “barest minimum” of their responsibilities as business partners.

“I do not believe I have seen one single financial statement that is true and accurate,” Wilson said, adding that annual statements were not given to Halpern and Reichmann after 1989.

What, you want numbers your Honor? I can give you numbers. How many, how little, how big, how accurate? It will involve a "giving numbers fee" of at least six figures, however. It's how it is. Corzine would appreciate Wilfare, and might even want some.

I recall Al Mugel teaching agency and future interests in law school, but I do not recall the exact context of his advising, "[...] It can affect minority interests in a closely held corporation. [dramatic/emphatic pause, two/three puffs on his ever present pipe] I don't know who the hell would ever want a minority interest in a closely held corporation, but it happens." Something like that, it was years ago but memorable, with that surely being the gist of the quote if not verbatim.

Moreover, would you want a minority interest in a Zygi venture? Believing what is reported about New Jersey dealings? Being a skeptic, I would not even want a minority interest in a Flaherty venture, much less a second lender position behind about $25 million in the first position held by a Pittsburg bank - with a mortgage, no less. And no Judge Wilson has, to my knowledge, ever said any such things about Flaherty; or Collins.

Another trenchant quote from the New Jersey reporting:

Wilson found that Zygmunt Wilf, along with his brother, Mark, and their cousin, Leonard, committed fraud, breach of contract and breach of fiduciary duty and also violated the state’s civil racketeering statute, or RICO.

The partners, Ada Reichmann of Toronto and her brother, Josef Halpern of Brooklyn, the longtime former on-site manager at Rachel Gardens, are entitled to compensatory damages, punitive damages, triple damages under the RICO statute, a redistribution of revenues dating to 1992 and reimbursement for their attorneys’ fees, Wilson said.

Ouch. Mark Knopfler explains.

_________FURTHER UPDATE__________
For a detailed analysis of Zygi and weighing options, as of 2007, G.R. Anderson's City Pages "Eye of the Beholder" item speculates about speculative hopes resonating from the get-go between Zygi's ears upon coming to town, and thereafter.

Has the reporting of how Zygi operated in New Jersey rained on his parade as to speculative promotional opportunity in our state? We can only hope so. These screen captures are from Zygi's Gardens, here and here, where he cultivates dollars and dollars - and Crabgrass:

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