A jury hit Harvey Silverman and his business partners with a $14.3 million verdict, including $5.3 million in compensatory damages and $9 million in punitive damages, over an attempt to wipe out a $5.5 million mortgage according to Law360.
In 2007, Silverman and partners bought the property known as the Lynx lot for $21.5 with a $5.5 million loan from the seller, 1225 8th Street Properties Inc., along with a $16 million mortgage from Orion Bank. Following the market collapse in 2009, Silverman and his partners crafted a plan to buy the first mortgage from the bank and foreclose on the property in order to eliminate the $5.5 million mortgage, according to court filings cited by Law360. Court records state that Silverman’s manager used a shell company to buy the mortgage.
The property is best known for the Lynx proposal prepared by Pei Partners and Chad Oppenheim, although the developers who dreamed up Lynx never actually owned the land. It is currently owned by Wharton Equity Partners.
Separately, Silverman and his partners are suing the developers of Miami Worldcenter over a claim that he was swindled out of of an ownership stake in the project after investing $40 million.