T
oby Moskovits and her business partner Michael Lichtenstein have been trying to keep a low profile since losing control of the Williamsburg Hotel two years ago. However, their efforts have been hindered by Benefit Street Partners, the lender that provided a $68 million loan for the hotel. A New York Supreme Court judge recently ruled that Moskovits and Lichtenstein are liable for guarantees they made on the loan.

    The amount owed to Benefit Street is still in question, but the property was sold in bankruptcy for $96 million in 2023. The lender alleges that Moskovits and Lichtenstein owe an additional $33 million in damages plus attorney fees. A referee has been appointed to calculate the actual damages.

    This dispute dates back to 2019 when Benefit Street initiated foreclosure proceedings against the hotel, alleging that Heritage Equity Partners defaulted on loan payments. However, the company paused the foreclosure by filing for bankruptcy in 2021. The lender claimed that Moskovits and Lichtenstein had violated the terms of their loan by doing so.

    The case has been marked by contentious statements from both sides, with Lichtenstein accusing Benefit Street and other lenders of being "biggest asshole lenders" in New York City. An examiner appointed by the bankruptcy court found evidence of a complex scheme to divert funds at the Williamsburg Hotel, which was one of several properties lost by Heritage after the pandemic began.