J
oel Schreiber, WeWork's first investor, claims he is financially strained and unable to pay his creditors. However, this contradicts his recent business dealings, including the acquisition of Union Bank Plaza in Los Angeles for $104 million last year. His firm also purchased a small property in Tribeca.
Schreiber's finances have been shrouded in mystery, but Barry Sternlicht's Starwood Property Trust has been working to uncover the truth. In 2022 and 2023, a New York judge awarded Starwood two judgments totaling $88 million due to defaults on a loan for Schreiber's Broadway Trade Center building.
Starwood is seeking to hold Schreiber in contempt of court for failing to provide information about his accounts and companies as per a subpoena. If he refuses, he could face imprisonment. Judge Aaron Maslow warned that if necessary, Schreiber should be working on this project every day except his day of rest.
Schreiber claimed to have made "good faith efforts" to comply with Starwood's demands but alleged that the company kept changing its requirements. However, Starwood's attorneys discovered $70 million in transactions through accounts tied to Schreiber after a judgment was entered in 2022, yet the debt remained unpaid.
During a deposition, Schreiber responded "I don't recall" or "I don't know" over 600 times when questioned by a Starwood attorney. He also failed to file his 2023 tax return, stating it's his decision as a US citizen. When asked about various transactions, including $50,000 transferred from Upper Clapton to the Executive Travel Exchange for air travel and an $83,000 payment to Midos, a London-based firm affiliated with Schreiber's family, he claimed not to recall.
Starwood grilled Schreiber about his son's wedding expenses, including a wire transfer of $151,588 to "Catering by Michael Schick" in June. Schreiber said he didn't attend the wedding and couldn't estimate how many people attended. He also failed to provide documents about a company affiliated with Union Bank Plaza.
The next hearing is scheduled for January 13, where Starwood will seek to hold Schreiber in contempt of court if he fails to comply with their demands.
