Property Owner Sues New York City Developer for Misappropriated Funds

By Evan Mix

Published on January 21, 2009

The Ciao-Di Restaurant Corp. has filed suit against private housing developer and New York City development official Alan Friedberg to recover almost $2 million in misappropriated money and additional losses.

According to papers filed today, Friedberg demanded kickbacks, physically attacked a business partner, and transferred $1.925 million of Ciao-Di's money into a separate account, refusing to return it.

The suit stems from the development of a private condo building in Greenwich Village begun in 2003. The $14 million, four-year project suffered from delays and increased costs, ultimately taking nearly four years and $20 million to complete.

The legal papers cite a former executive at construction contractor Ameribuild Construction Management who claims that Friedberg asked for $50,000 in exchange for awarding the project to the company. Ameribuild was subsequently awarded the contract, and the executive quit in protest. Friedberg also allegedly threatened and physically attacked business partner Al Noe, grabbing him by the throat, choking him, and throwing him off the property during a dispute.

Friedberg has denied all allegations.

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