Contractor claims developer judgment-proofed New Rochelle condo project

The general contractor on a New Rochelle condo project claims that the developer has judgment-proofed his company to evade paying $1.1 million.

CNB Contracting Corp. of the Bronx sued Bradley Gold and GS Utah Wind Acquisition LLC to enforce a previous court judgment and to make Gold personally responsible for the debt.

“Gold looted GS Utah,” according to an Aug. 17 complaint filed in Westchester Supreme Court, “transferring millions of dollars to himself and … leaving GS Utah without sufficient assets to satisfy the judgment.”

Gold hired CNB in 2017 to install and complete three pre-built, two-unit modular residential structures on Maple Avenue in New Rochelle, for $2.3 million.

The project quickly ran into delays and cost overruns, according to a decision by Westchester Supreme Court Justice Sam D. Walker, following a bench trial on CNB’s original lawsuit against Gold and GS Utah.

GS Utah had changed the modular home specifications before they were shipped, Walker says in his April 24 decision. The structures arrived four to six months late. A major rock formation was discovered and had to be excavated. Twice, the city delayed deliveries after the manufacture’s trucks struck a traffic signal. And GS Utah required numerous change orders.

CNB, operated by Bill Lougheed, claimed it was still owed $877,161 when it sued Gold and GS Utah in 2019. Gold and GS Utah filed a counterclaim for $1 million, claiming that CNB’s work was defective and untimely.

Judge Walker concluded that CNB was not responsible for project delays and there was no dispute about the quality of the work. He dismissed the counterclaim and issued a $1,142,249 judgement, including interest, against Gold and GS Utah.

But even when that case was pending, CNB claims in the new action, Gold was transferring money out of GS Utah.

GS Utah sold the six housing units for nearly $4.2 million in 2019, according to the new complaint, and Gold transferred the entire net proceeds to himself, leaving GS Utah insolvent and unable to satisfy the court judgment.

For instance, Gold allegedly fabricated a lien, “not based on any legitimate lending transaction,” in which GS Utah granted Gold a priority security interest in all of the company’s assets.

Even after judge Walker’s ruling, according to the complaint, Gold tried to circumvent the $1.1 million judgment. On June 1, GS Utah filed a confession of judgment in New York County, where he and his company are based, claiming that it owed Gold $2.9 million for repayment of loans for the New Rochelle project.

The county clerk rejected the filing.

Gold refiled the next day in Brooklyn, where neither CNB nor Gold nor GS Utah are connected. The confession of judgement states that Gold demanded full repayment of loans but GS Utah “does not have the funds or ability to repay Gold”

A Brooklyn judge denied entry of the confession of judgment.

“Gold was and remains the sole owner, manager, and decision-maker concerning GS Utah,” the complaint states, and “used GS Utah and its assets as his own personal assets.”

CNB is demanding enforcement of the $1.1 million judgment and is asking that the transfers and lien be set aside, that Gold be declared the alter-ego of GS Utah, and that CNB may go after Gold’s assets to satisfy the judgment.

The attorney who represented Gold and GS Utah in the original lawsuit, Raymond Castronovo, did not reply to a message asking for his clients’ side of the story.

CNB is represented by Manhattan attorney Brian L Gardner.