PEOPLE v. NORTHERN LEASING SYSTEMS, INC.

450460/2016.

2017 NY Slip Op 27453

PEOPLE OF THE STATE OF NEW YORK, BY ERIC T. SCHNEIDERMAN, ATTORNEY GENERAL OF THE STATE OF NEW YORK, and FERN A. FISHER, DEPUTY CHIEF ADMINISTRATIVE JUDGE FOR NEW YORK CITY COURTS AND ADMINISTRATIVE AUTHORITY OF THE CIVIL COURT OF THE CITY OF NEW YORK, Petitioners, v. NORTHERN LEASING SYSTEMS, INC., LEASE FINANCE GROUP LLC, MBF LEASING LLC, LEASE SOURCE-LSI, LLC A/K/A LEASE SOURCE, INC., GOLDEN EAGLE LEASING LLC, PUSHPIN HOLDINGS LLC, JAY COHEN A/K/A ARI JAY COHEN, INDIVIDUALLY, AS PRINCIPAL OF NORTHERN LEASING SYSTEMS, INC., AS A MEMBER OF LEASE FINANCE GROUP LLC, and AS AN OFFICER OF PUSHPIN HOLDINGS LLC, NEIL HERTZMAN, INDIVIDUALLY and AS AN OFFICER OF NORTHERN LEASING SYSTEMS, INC., JOSEPH I. SUSSMAN, P.C., JOSEPH I. SUSSMAN, INDIVIDUALLY and AS A PRINCIPAL OF JOSEPH I. SUSSMAN, P.C., and ELIYAHU R. BABAD, INDIVIDUALLY and AS A PRINCIPAL OR ASSOCIATE OF JOSEPH I. SUSSMAN, P.C., Respondents.

Supreme Court, New York County.

Decided November 17, 2017.


Attorney(s) appearing for the Case

Jane Azia Esq. , Bureau Chief, Mary Alestra Esq. , Special Counsel, Mark Ladov Esq. , Assistant Attorney General, Office of Attorney General Eric T. Schneiderman , 120 Broadway, New York, NY 10271, for Petitioners.

Thomas J. Kavaler Esq. , Cahill Gorden & Reindel LLP, 80 Pine Street, New York, NY 10005, Robert Lillienstein Esq. , Moses & Singer LLP, 405 Lexington Avenue, New York, NY 10174, for Respondents Northern Leasing Systems, Inc., Lease Finance Group LLC, MBF Leasing LLC, Lease Source-LSI, LLC, Golden Eagle Leasing LLC, Pushpin Holdings, Cohen, and Hertzman.

Mark M. Rottenberg Esq. , Rottenberg Lipman Rich, P.C., 369 Lexington Avenue, New York, NY 10017, for Respondents Joseph I. Sussman, P.C., Sussman, and Babad.


I. BACKGROUND

Petitioner Schneiderman, New York Attorney General, sues pursuant to New York Executive Law § 63(12) and General Business Law (GBL) § 349 for respondents' fraud and illegal conduct in leasing credit card equipment. The lessors are respondents Northern Leasing Systems, Inc., Lease Finance...

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