J
oel Schreiber, a Brooklyn resident facing the possibility of prison time, appeared unfazed in court as he read his prayer book. He was there to address two judgments totaling over $88 million against him, issued by Starwood Capital. A judge had previously warned that failure to comply with court orders could result in imprisonment.
Despite this, Schreiber seemed calm, and the judge ultimately ruled that he had made "substantial efforts" to provide information and comply with the order. However, Schreiber still needs to respond to Starwood's requests for documents and information in a specific format.
The judgments stem from loans provided by Starwood for Schreiber's Broadway Trade Center in Downtown Los Angeles. In 2018, Schreiber signed personal guarantees on a $213 million loan, which was later increased to $219 million.
Schreiber's attorney, Kevin Nash, argued that his client had done everything possible to comply with the court order, sending over 18,000 pages of documents to Starwood two weeks prior. The judge scrutinized Schreiber's compliance, item by item, during a three-hour hearing.
A moment of excitement occurred when two young Lubavitchers appeared in the courtroom behind Schreiber, who was dressed in a blue suit with his peyos tucked behind his ears. Nash complained about negative press coverage, but the judge reminded him of the First Amendment.
Nash claimed that Schreiber did not have the funds to pay the judgment and was trying to fend off personal bankruptcy. He also stated that Schreiber's early investment in WeWork had lost value over time, leading to financial struggles. The court ordered another hearing in March, with the judge stating that Starwood would receive all information they were entitled to if it existed.
Schreiber has been facing judgments from creditors for years, including a $22 million judgment from Goldman Sachs. He claimed to have liquidity problems due to non-producing properties but had cashed out on at least $44.6 million of his WeWork stock in 2017.
