| A Case Grows in Brooklyn |
It was after Weinstock's victory in the Appellate Division, that Handler resumed his methods. The lawsuit is entitled, Jack Walker, Emmerich Handler, and Kamenitzer Yeshiva of Jerusalem v. Israel Weinstock. Handler and Kamenitzer Yeshiva of Jerusalem (KYJ) were represented by Cleary, Gottlieb, Steen & Hamilton (CGS&H) and Walker by other Handler attorneys Schlam, Stone & Dolan (SS&D). SS&D were retained by Handler to "represent" Walker. They were simultaneously representing Handler against Walker. Their claims, under oath, were that Handler "jointly" with KYJ owned 48% of the stock in "Realty Corp." and that Jack Walker owned 32% of the stock of "Realty Corp.". It was acknowledged under oath that Weinstock was given 20% of the stock as a legal fee. This second lawsuit was filed in Brooklyn and as will later been seen--for good reason. The creation of such a dispute would discourage law enforcement agencies from pursuing criminal activities that were to follow. The agencies do not wish to become involved in what CGS&H and SS&D had deemed a "civil dispute". CGS&H and SS&D (former Ass't US Attorneys) knew the policies of the law enforcement agencies, and thus headed off what would have otherwise been a clear case of bank and mail fraud.
In order to facilitate the theft of Weinstock's 100% ownership in the corporation, CGS&H "graciously" offered to "assist" Weinstock in obtaining the properties in question (4200/4211 Ave. K) from the sellers in accordance with the Appellate Division decision. CGS&H induced Weinstock to allow them to be substituted as attorneys for Realty Corp., acknowledging in writing that " the substitution was based solely on the ground that Weinstock's current illness has left him temporarily unable to handle the urgent matters which it is expected would imminently have to be addressed". George Weisz, Esq., a senior partner at CGS&H, would later challenge under oath, the fact that Weinstock was severely ill, noting to the court that Weinstock had not submitted any medical proof that he has been ill.
Had not Weinstock been served with papers while he was in his hospital room? Was not Weinstock's illness the reason for CGS&H to be substituted as attorneys for the "Realty Corp." purchase? The fact is: Weinstock's critical illness was the reason for that lawsuit. CGS&H and Handler simply did not expect Weinstock to survive. If he had died, it would have been a windfall for all involved. Weinstock's ownership would have disappeared without a trace. The almost perfect crime.
CSG&H persuaded Weinstock to agree to the substitution so that CGS&H would be able to represent "Realty Corp." in concluding the litigation against the sellers. To obtain Weinstock 's consent, they assured Weinstock in writing, that the substitution would not in any way affect Weinstock's rights to the stock in "Realty Corp.". Weinstock asserted that he owned 100% of the stock in Realty Corp. as a result of an assignment which had been made to him by Walker. The assurance provided that:
“It (CGS&H) will see to it that pending a final determination of the action entitled Jack Walker, et al. v. Israel Weinstock, et. al., now pending in the Supreme Court, Kings County, either by final judgment or by settlement, that:
i. fee title will remain in the corporation, which will not transfer or encumber the title to the real property, except insofar as it may be necessary or appropriate to refinance he mortgage and obtain a first mortgage from a lending institution; "(emphasis added)
The Brooklyn lawsuit was predicated upon a newly minted assertion by Walker that Weinstock had coerced him into assigning all of the stock in the corporation. Weinstock had threatened to sue Walker for having previously fabricated serious charges of fraud and forgery against him and having initiated the fabricated lawsuit in 1984. Walker had admitted under oath, that the 1984 lawsuit was contrived.
Walker asserted under oath, in affidavits prepared for his signature by Handler attorneys (CGS&H and SS&D) that he had assigned the stock in "Realty Corp." to Weinstock because he was afraid of Weinstock initiating litigation against him. Ironically, it was Walker who initiated the lawsuit against Weinstock in 1984 and then again initiated the lawsuit against Weinstock in 1986. Walker in 1986 revived the claims he had made in the first lawsuit (1984). The lawsuit that he had admitted under oath was fabricated. Walker had discontinued it in 1985, with prejudice, therefore expressly surrendering the right to ever make the same claims again. Walker was represented by an attorney of his choice when he discontinued the 1984 lawsuit.
The allegations that were made under oath in the 1986 lawsuit violated the sworn statements made by Walker in connection with the 1984 lawsuit and more importantly, in the underlying suit against the seller in which Walker had sworn that he was the sole owner of all the stock in "Realty Corp."(with no mention of Handler or KYJ). During the course of the 1986 lawsuit Walker and SS&D presented to the Court several contradictory versions of Walker's interest in the corporation. As the litigation progressed, each new version attributed an ever shrinking interest to Walker and an ever-growing interest to Handler. Was it possible that SS&D (Handler's attorneys) were using Walker as a "shill" to assist Handler and CGS&H? During more than the decade long litigation, Handler and CGS&H offered, under oath, 12 mutually contradictory versions of his alleged ownership in "Realty Corp.", and how he acquired the interest. All under oath. He swore that he had no (-0- ) interest whatsoever and also swore that he had 14%, 50%, 60% and then finally, 1%. From whom did he acquire the interest? Handler's testimony varied: he acquired it from Walker, then from KYJ, and then from his law partners. When? His claims, all under oath, ran for a period of eight years from 1979 through 1987. Handler's methods were purely improvisational, making it all up as he went along. The fact that each version contradicted the previous one was deemed irrelevant in the Brooklyn courts.
CGS&H had assured Weinstock in writing that the "fee title to the property will remain in the corporation." This is how they stripped the corporation of its assets by using a two-step process:
1. Handler obtained a mortgage loan secured by the properties owned by "Realty Corp." in the amount of $3.8 million dollars. He did so after falsely representing to the bank (First Nationwide Bank) that neither he nor his wife were parties to any litigation and that Handler owned 90% of the corporate stock.
2. One Samuel Roth (investor, friend and partner of Handler, who purportedly owned the remaining 10% of "Realty Corp") forged a deed to the corporate properties transferring the same out of the corporation and into a partnership in which Handler's wife was designated as the general partner.
These actions accomplished exactly what CGS&H had assured Weinstock in writing, would not happen. Following these clandestine dealings, the bank wired $2.2 Million directly into a Handler account (not the "corporate" account) and CGS&H later received hundreds of thousands of dollars from Handler from the proceeds of the mortgage loan. They (Handler, Walker, CGS&H and SS&D) in fact, were waiting for Weinstock to draw his last breath, and to go away. Forever. In fact, Walker confirmed this notion when he stated, in testimony, that the attorneys expected Weinstock to die and thus the false affidavits would never be scrutinized. They acted like vultures disguised in gray flannel suits with briefcases, hovering over helpless prey. Predatory in motive, just waiting for the precise moment to go in for the kill. But as will be seen, they could not wait-they relied on their confidence that Weinstock would soon die, as everyone had expected.
For almost two years, Israel Weinstock was rendered helpless, but not hopeless by his condition. His medical condition steadily worsened and Weinstock was prevented from mounting a defense to the lawsuit that CGS&H, Handler, SS&D and Walker had launched against him.