Feds Let Ponzi Schemer Walk

20100927-NEWS--0001-NAT-CCI-CN_-- 9/24/2010 9:44 PM Page 1

REPORT ACCOUNTING How to become a bigger fish? Try swallowing your fellow minnows ® PAGES 19-27

INSIDE VOL. XXVI, NO. 39 WWW.CRAINSNEWYORK.COM SEPT. 27-OCT 3, 2010 PRICE: $3.00

TOP STORIES Alair Feds let Ponzi schemer walk Townsend lost a pile of the rest.Devastated,in but Isaac accepted responsibility on why Queens minister behind $10 million fraud November 2005, he appeared be- and wanted to confess,” recalls his it’s time walked in, confessed crime, left country fore the congregation, the lawyer, Brian King. “I Local Christian Assembly thought, ‘Are we really go- to end the city’s nearly $10 million of his parish- in Queens, and begged for 3YRS. ing to do this?’ ” BY AARON ELSTEIN ioners’ money in the spring of forgiveness. LAG between Over several meetings shakedown racket Isaac Ovid’s PAGE 11 2005. He soon lost or spent nearly A few weeks later, Mr. confession with federal authorities isaac ovid knew he had messed all of it, and then compounded his Ovid turned himself in to (2006) and through January 2006, Mr. up. Bad. errors by starting a Ponzi scheme, the Securities and Ex- delayed arrest Ovid “confess[ed] his Can you schmear me The 24-year-old day-trading raising $3 million in new money, change Commission and wrongdoing,”states a court now? Breakfast is enthusiast and church minister had some of which was used to partial- the U.S. Justice Department. document. That wrongdoing en- suddenly expensive been entrusted with investing ly repay initial investors before he “It was scary to go that route, See CONFESSED on Page 32 PAGE 2 Discounters grab A rebound, great city spaces PAGE 3 but without BUSINESS LIVES Wall Street Securities jobs lag lower-paying hires, a first in 50 years

BY DANIEL MASSEY

wall street typically drives economic recovery in New York City, right? Not this time around. GOTHAM GIGS In a marked shift from previous rebounds,the city has been gaining NOT GOING TO TAKE IT: He makes medals for jobs—78,300 private-sector posi- P. 33 “Government can be the U.S. military tions already this year—even as the wrong,” says Carl G ANNE FISHER on securities industry flounders. Paladino, the GOP’s the “Era of Mindful Growth in areas like restaurants, candidate for governor. Spending” P. 33 retail trade, and business and professional services has fueled the G GAEL GREENE tips a faster-than-expected bounce-back P. 35 rare four hats! in the five boroughs, while Wall Street firms have shed 4,000 jobs this year, with more expected as financial reform takes hold and lim-

its banking profits. ap images INDEX After five consecutive local recoveries—dating back to 1960—in THE INSIDER ______8 which the securities industry led SMALL BUSINESS ______12 the way for New York, total em- NEIGHBORHOOD JOURNAL ______14 ployment has started to rise with- FOR THE RECORD ______15 out a kick from the city’s econom- Accidental Candidate REAL ESTATE DEALS PLUS ______16 ic catalyst. “The main engine is idling, and CLASSIFIEDS ______28 See REBOUND on Page 31 HOT JOBS ______33 Carl Paladino didn’t plan to be this close to Albany EXECUTIVE MOVES ______33 GREG DAVID Why the forecasters THE WEEK AHEAD ______35 so frequently get it wrong Page 11 BY JEREMY SMERD State legislators didn’t respond to complaints. The derisively named Western New York Commuter Tax remained. In 2005, Mr. Paladino got involved. carl paladino’s road to Republican nominee for “Government can be wrong,”Mr.Paladino,64,says. 39

5 governor of New York began with a 75-cent toll. “You don’t have to sit there and take it.” The Interstate 190 tolls were a passionate cause for Mr.Paladino has channeled frustration with Albany Buffalo commuters in 2005.They thought it unfair that into an unlikely but successful campaign that has made ELECTRONIC EDITION they were the only upstate residents who had to pay a him the hottest draw in New York politics, energizing New York State Thruway toll to enter their city. The the governor’s race and casting doubt on the seemingly money, they argued, didn’t even stay in Buffalo. It was inevitable election of Andrew Cuomo. NEWSPAPER sent downstate to pay for maintenance of Interstate 84. See ACCIDENTAL on Page 31 71486 01068 0 20100927-NEWS--0002-NAT-CCI-CN_-- 9/24/2010 6:48 PM Page 1

IN BRIEF Inflation: It’s what’s for breakfast

GLADYS GEORGE, LONGTIME PRESIDENT AND he consumer price index rose just 1.1% annually at bagels and cereal noticeably more expensive. CHIEF EXECUTIVE OF LENOX HILL HOSPITAL, last count, but that fact might be hard to swallow at the Local chefs like Pershing Square’s Aaron Bashy are taking will retire at the end of 2010 after two decades breakfast table these days.Prices for many of New York’s action: He’s added four vegetarian items to his breakfast menu of leading the 153-year-old institution. One of favorite breakfast ingredients are soaring at double-dig- to help offset the soaring cost of bacon. Others see little choice the few women to lead a New York City it rates, pinching purses at home and profit margins at but to eat the extra costs. Sarabeth’s Kitchen is paying $275 for hospital, she was formerly called one of the 100 restaurantsT and food companies. five gallons of maple syrup, or $25 more than last year, but co- most influential women by Crain’s New York A scorching summer hurt harvests around the globe, fueling owner Sarabeth Levine hasn’t increased menu prices since 2008. Business. Lenox Hill joined the North Shore- higher feed prices that have boosted the costs of breakfast meats. “People don’t have the money anymore,” she explains. Long Island Jewish Health System last May And the Russian wheat crisis is expected to soon make bread, —lisa fickenscher and daily running of the hospital was handed to Philip Rosenthal, another longtime Lenox Hill administrator; Mr. Rosenthal most recently Orange juice: Prices have Milk: The average Coffee: Bad weather in South Bagels: Prices rose about 25 acted as the executive director of the hospital. been creeping upward since May, gallon went for $3.30 America and low U.S. stockpiles cents per bagel the last time wheat when OJ fetched $5.79 per in August, up 24% have bumped up bean prices. The prices escalated so dramatically. Just A SOUTH CAROLINA COMPANY IS PLANNING TO gallon. It touched $5.95 in early since January. The high least expensive product—domestic Bagels co-owner Cliff Nordquist BUILD ITS FIRST MANHATTAN HOTEL ON WEST September, largely the result of cost of feed for cows is canned brands—costs on average warns that flour is up $5 per 100 33rd Street. OTO Hospitality Development of bad weather in Brazil and a considered the main $3.86 per pound, up nearly 10% pounds from two months ago. “We Spartanburg, which owns 33 hotels operating smaller Florida crop. culprit. since March. will be forced to raise prices again if it under various brand names, purchased the site doesn’t stop,” he says. across from the James A. Farley Post Office last month for $21.9 million. OTO executives wouldn’t discuss their specific plans for the site or when construction might start, but Chief Executive Corry Oakes said the pending redevelopment of Penn Station and the Hudson rail yards made the site appealing. BY THE NUMBERS

Weekly shift of the city’s economy IT’S OFFICIAL Fall’s here, and as of June 2009, so is the recovery. Too bad the latter is far harder to feel than the former, but housing resales did rise from the floor last month. -51% $66 1.8% DROP in value of AVERAGE SUM GAIN in NYC area building Americans will Bloomberg starts in August spend on Crain’s NY Stock vs. a year earlier Halloween, up index over last Source: McGraw-Hill 18% vs. year ago five days Construction Source: National Retail Federation

INFLATION’S SHORT LEASH After peaking in January at still-low levels, the New York City consumer price index has settled back down istockphoto

Bacon: Retail prices are up 20% since Eggs: A massive recall of eggs after Maple syrup: Warm winters and summers January, to $4.35 per pound in August, a salmonella scare in August briefly in New England have damped the production of the highest level since the government affected supply, but there’s a sunny tree sap, with prices for maple syrup up 25% over started tracking the price in 1980. Hog side here long-term: Prices are actually the past four years. A recent surplus in Canada, Includes NY metro area Source: Bureau of Labor Statistics farmers cut production last year due to down nearly 15% from 2007 levels, however, is helping to bring down costs: Bascom rising feed costs, while fast-food chains with a dozen Grade A’s costing just 87 Maple Farms, the largest New England producer, ADDICTED TO NUMBERS? have stoked demand with new bacon- cents in mid-September. is charging $47.87 per gallon wholesale, a good GET A DAILY DOSE AT @STATSANDTHECITY centric offerings. 5% less than last year.

CORRECTIONS Sources: Florida Department of Citrus, U.S. Bureau of Labor Statistics, U.S. Department of Agriculture Gary Jacob is executive vice president of Glenwood Management. His title was misstated in the Sept. 20 article “Return of rental freebies?” Southwest Airlines flies to Las Vegas from Long Island MacArthur Airport. The airport was misstated in the Sept. 13 article “JetBlue is gaining altitude.” Trinity’s new Mr. Property New York state Comptroller Thomas DiNapoli reportedly had concerns over casino operator Genting’s involvement in VIP the Hudson Square neighborhood. Next panies. gambling rooms in a Macau casino, which is run by Pansy Ho, Church taps insider daughter of a Chinese casino mogul with alleged mob ties. month, he will succeed Carl Weisbrod, “We want to keep that momentum go- Genting, which was selected to develop Aqueduct Racetrack, has a to lead real estate arm, who will continue as a consultant. ing,” Mr. Pizer says. 3% stake in MGM. The information was misstated in the Sept. 13 Trinity’s real estate has suffered along story “It’s post time for Genting, as DiNapoli approval expected.” Hudson Sq.’s makeover The right stuff with the rest of the city’s as the recession mr.pizer,45, attended law school and had squelched demand, sending rents plum- vol. xxvi, no. 39, september 27, 2010—Crain’s New York Business BY THERESA AGOVINO (issn 8756-789x) is published weekly except for combined issues stints in construction and property man- meting and vacancy rates soaring. Howev- the fourth week of June and the first week of July, the fifth week of agement before joining Trinity 11 years er, it has fared better than other firms due August and the first week of September, and the third and fourth weeks of December, by Crain Communications Inc., 711 Third Ave., the massive real estate holdings that ago. The combination of his background to its comparatively low rents. New York, NY 10017. Periodicals postage paid at New York, N.Y., generate the bulk of the funds for Trinity and tenure made him the perfect candi- As he searches for more tenants, Mr. and additional mailing offices. Postmaster: Send address changes to: Church’s charitable missions around the date, says the Rev. James Cooper, rector of Pizer will also continue the push to turn Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call globe are in new hands. Trinity Wall Street. Hudson Square into a more 24/7 neigh- (888) 909-9111. Fax (313) 446-6777.$3.00 a copy, $59.79 one year, Longtime leasing director Jason Pizer Hudson Square has been transformed borhood through redeveloping some of $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2010 by Crain Communications Inc. was promoted to president of Trinity Real from a gritty industrial neighborhood Trinity’s buildings and lobbying for zoning All rights reserved. Estate, which has about 6 million square dominated by printing companies to a fa- changes to allow some residential develop- feet of space spread among 17 buildings in vored home for creative and media comment.

2 | Crain’s New York Business | September 27, 2010 20100927-NEWS--0003-NAT-CCI-CN_-- 9/24/2010 7:40 PM Page 1 Discounters on a spree

NPD Group Inc. West Side last week, Off-price apparel stores take spaces “Discounters are one of the few bringing its store SHOPPING FOR BARGAINS guys left standing who are taking count here to three. left vacant by booksellers, banks space,” says Jason Pruger, senior The recently resur- Discounters are snapping up retail space. managing director at Newmark rected Balducci’s is booksellers, banks and traditional Knight Frank Retail. “As concepts sniffing around for a CENTURY 21 SYMS CORP. T.J. MAXX BY ADRIANNE PASQUARELLI retailers.Most need between 20,000 like Blockbuster and Barnes & No- sizable outpost as well. square feet and 60,000 square feet, ble become obsolete, this new type “Between Whole Existing NY stores when barnes & noble announced so they’re the obvi- of retailer is filling Foods, Trader Joe’s earlier this month that it would be ous candidates to that void.” and Fairway, they’re vacating its Lincoln Square store, pick up the slack As demand Discount apparel all competing for the many worried about the fate of the from bankrupt Cir- increases, shops do have some same spaces that the 142 61,000-square-foot property. But cuit City or Gracious competition for pri- retail apparel tenants like a white knight in shining armor, Home, which is in mo locations, are potentially inter- Stores being added off-price apparel seller Century 21 the process of put- rents will though not from ested in,” notes Ms. swooped in and signed on for the ting its 24,000- their shrinking Abrams. space. The location, which will be square-foot Chelsea climb higher-priced rivals. Still, there seems the famed department store’s first store on the market. Instead, upscale su- to be enough avail- 112 new Manhattan store in five As frugal shop- permarkets are eat- ability of large spaces decades, is expected to open for pers remain eager for ing up spots, which at the moment to sat- business in fall of 2011. bargains,discounters could lead to rising isfy all comers. Fram- The retailer has company in its are thriving and stealing market rates. “As demand increases and ingham, Mass.-based TJX Cos., fall, and is reportedly in talks for a quest for more space. Discount ap- share from their full-price rivals. supply decreases, rents will climb,” owner of T.J. Maxx and Marshalls, spot at 14 Wall St. The company parel giants, from the recently wed Off-price retailers had a 9.5% share says Robin Abrams, executive vice is leading the charge. T.J. Maxx, plans to expand its Marshalls chain Syms and Filene’s Basement to T.J. of apparel sales for the year ended in president at The Lansco Corp. which already has two Manhattan here as well, sources say. Maxx and Marshalls,are aggressive- July, a rise of 0.3% over the prior Trader Joe’s opened in Chelsea locations, is launching on East 59th Similarly, Syms Corp., the Para- ly filling the spaces left behind by year, according to tracking firm over the summer and on the Upper Street and West 57th Street this See SHOPPING SPREE on Page 30 Family jewels: Possible sale Frequently roils Empire State portfolio unhappy Sale by big Helmsley fund their purchases. ey from the assets are still in the early travelers If the Malkin family buys out the stages. Sources say Mr. Malkin and trust may give Helmsley stake,or even the majority of it, trust representatives have met with the family could at last gain full control bankers from Goldman Sachs and Malkin family full of the properties.That feat would be eas- Bank of America, as well as lawyers Rewards from major airlines’ control, or migraines ier to manage financially if the building from Clifford Chance. Spokes- flier programs less rewarding stakes were sold over time. But experts say men for W&H, the trust and the Malkins might be able to snap up its Goldman declined to comment; BY THERESA AGOVINO partner’s share in one gulp. officials from Bank of America BY HILARY POTKEWITZ and Clifford Chance didn’t re- a charitable trust’s possible sale of a Access to cash turn calls. it’s not your imagination: Frequent-flier miles massive stake in one of the city’s largest “the malkins have a stellar reputa- Sources believe that both don’t buy what they used to. Rewards-eligible seats are commercial real estate portfolios, includ- tion,” says Scott Latham, an execu- parties in the partnership vanishing more quickly, the most desirable flights get ing the Empire State Building, would be tive managing director at Jones are attending the meetings, booked sooner, and there’s more competition for up- good news for the health, education and Lang LaSalle. “I think they would because their agreement grades. Frequent-flier programs have become so diffi- other nonprofits that receive the bulk of be able to raise money without too See EMPIRE STATE on Page 30 cult to use in recent months that for serious road war- the institution’s donations. But its impact many problems.” riors, the hassles are starting to outweigh the benefits. on the other key shareholder, the Malkin Discussions about how the “I have almost a million miles with a major airline,” family, is far less certain. Leona M. and Harry B. Helmsley says Kevin Maguire, chairman of the National Busi- The trust, which was set up by leg- Charitable Trust will extract mon- ness Travel Association, “and I’d rather walk barefoot endary real estate mogul Harry Helmsley over five miles of broken glass than go through the and his wife, Leona, is exploring a poten- POWERFUL DRAWING CARD: The procedures of trying to book a frequent-flier ticket.” tial sale of its interest in nine buildings that Empire State Building, worth as Mr. Maguire’s complaint has become more com- are estimated to be worth as much as $4 much as $1.5 billion, is the hub of mon as the airline industry emerges from a period of billion. Converting that stake, which a massive nine-property staggering financial losses and sweeping changes to portfolio. The Helmsley sources say is close to 50%,would assist the trust may sell its the way carriers do business. trust in funding its millions of dollars in interest, in what annual donations. is bound to be More fliers for fewer upgraded seats But any sale of a major stake in the 8 a long, u.s. airlines cut capacity by 13% in 2009, according million-square-foot portfolio carries risks complex to the Air Transport Association. Fewer flights mean for the Malkin family. Anthony Malkin process. fewer seats available for frequent-flier redemptions. oversees his family’s interest in the mid- Carriers have also downsized aircraft wherever possi- town properties and acts as their manager ble,which lowers the number of first-class or business- via W&H Properties, drawing millions of class seats available for upgrades,while efforts to stoke dollars in fees. A new partner may wish to more ticket sales through promotions and rewards play a more active role than the trust has. have swollen the ranks of elite-program members. A sale would also end a partnership that “Airlines have done such a good job of reducing ca- dates back to 1949, when Mr. Helmsley pacity that they’ve not only kept up with the falloff of sold a small building near Columbus Cir- demand, they’ve actually gone further,” says Tim cle to lawyer Lawrence Wein,Mr.Malkin’s Winship, publisher of FrequentFlier.com. grandfather. Together, the duo went on to Flights in the United States have been averaging change the way that real estate is bought in more than 80% passenger capacity since last year, he the United States, putting together syndi- says, a figure traditionally only achieved during busy

cates of thousands of small investors to buck ennis See FREQUENT FLIERS on Page 31

September 27, 2010 | Crain’s New York Business | 3 20100927-NEWS--0004-NAT-CCI-CN_-- 9/24/2010 6:50 PM Page 1

Three weeks of sold-out IN THE MARKETS shows, Broadway potential by Aaron Elstein

New York Musical have something other than the mu- Theatre Festival seum of musical theater.” Buffett in no mood for Moody’s begins today Breeding ground indeed, many producers can be seen or many years, critics have prowling festival shows, and it has pounded Moody’s Corp., contending BY MIRIAM KREININ SOUCCAR become a breeding ground for Broadway;69 of the 230 productions Fthat its credit ratings were terribly the new york musical Theatre that have played at the festival have inaccurate and its business model, which Festival, a three-week event show- been picked up for commercial runs. has bond issuers pay for ratings, was casing 30 newly created musicals Pulitzer Prize-winning Broad- that starts today,has become so pop- way musical Next to Normal began hopelessly conflicted.To which Moody’s ular that a number of its productions its life as a three-hour-long festival could respond: Warren Buffett is our biggest

have already sold out. production called Feeling Electric. shareholder, so we can’t be all that bad. newscom The 10 performances of Without Producer David Stone, of Wicked You, a one-man show by former fame,saw it and brought in the non- That particular defense may be slipping away.Last week,Mr.Buffett sold

Rent actor Anthony Rapp, sold out carol rosegg profit Second Stage Theatre to see shares in Moody’s for the third time this year, lightening his stake to 12%, last month within one hour of the BUT WILL IT PLAY ON BROADWAY? My it;together they developed it for off- from 20% in 2009. He’s still Moody’s biggest shareholder and, as is custom- tickets going on sale. Therapy Rocks Mother’s Lesbian Jewish Wiccan Wedding Broadway before transferring it to ary, didn’t give a reason for selling. Moody’s wouldn’t comment. is sold out and just added an extra the Great White Way. Mr. Buffett, who has been a Moody’s shareholder since it was spun off in show. And all seats are taken for the Another festival hit,called [title of 2000 from Dun & Bradstreet Corp.,sold some shares earlier this year for the first four evening performances of My members, up from 316 last year. show], was transferred to Broadway time,evidently to help finance his purchase of railroad Burlington Northern San- Mother’s Lesbian Jewish Wiccan Wed- Membership offers patrons early ac- by producer Kevin McCollum, who ta Fe Corp. So perhaps he’s raising cash again for another acquisition,although ding, thanks to strong buzz. cess to tickets and other perks. scours the festival each year and says his investment vehicle, Berkshire Hathaway Inc., already has $28 billion in cash Isaac Robert Hurwitz, the festi- the event is critical to a new produc- on hand. Whatever the case, Mr. Buffett seems to prefer selling whenever Must-see for theater lovers val’s executive director and producer, tion’s creative evolution.[title ofshow] the stock rises to $25 a share or higher, according to Market Folly, a site that “the show sold out before the post- says it offers audiences a chance to see closed after 16 weeks and didn’t make tracks trading activity at large investment firms. cards were even printed,”says David new musical work, of which there is back its original $1.7 million invest- Mr. Buffett may be whittling away at his position because he fears that Hein, a Toronto native who wrote currently little on Broadway. Mr. ment, but Mr. McCollum believes it Moody’s traditionally high profit margins are in jeopardy.The firm faces in- and performs in the production. Hurwitz chooses 12 of the 30 shows eventually will through licensing creased scrutiny from U.S. regulators thanks to the Dodd-Frank law, and reg- The 7-year-old festival, which from submissions sent in from rights. Regardless, he thinks the fes- ulators in Europe are also sharpening their knives. Moody’s earnings next runs every fall at six off-Broadway around the world;this year,there were tival is invaluable. year are expected to come in 22% below 2006 and 2007 levels, according to midtown theaters, is considered a a record 420 applicants. Others are “Often times, new work is heard consensus estimates. must-see for theater lovers.Last year, solicited by festival organizers. in a rehearsal room or sitting around Considering the huge hit Moody’s reputation suffered for botching its more than 40,000 people attended “What we’re doing is essentially a table,” Mr. McCollum says. “The ratings on billions of dollars of mortgage-backed securities and the chal- the event, up from 17,000 the first R&D for the industry,” Mr. Hur- ability to see a performance on a stage lenges it faces on the earnings front, the surprise is less that Mr. Buffett is year.So far this year,422 people have witz says. “This investment is re- in front of a paid audience and to see selling than that he hasn’t sold more. A report last week from the U.S. Gov- paid $100 to $500 to become festival quired if we’re going to continue to their reaction is very important.” ernment Accountability Office may give a clue why.The GAO found that the Se- curities and Exchange Commission lacks the staff to properly regulate the ratings agencies under a 2006 law, never mind the more recent Dodd-Frank legis- lation. If that doesn’t change, regulators might not prove such a drag on Moody’s future earnings after all—and the Oracle of Omaha may be tempt- ed to hold on to at least some shares a bit longer. The science of swearing it doesn’t come as news that Wall Wall Street have been feeling for sev- Street traders employ a lot of color- eral years now. As evidence of the ful words that are unprintable in a therapeutic power of a strategically family newspaper. But did you know placed f-bomb, Mr. Colas cited re- f-bombs are most commonly used search from Britain finding that col- when the market falls quickly, while lege students who swore repeatedly the s-word is more often used to ex- while burying their hands in ice wa- press pained resignation when the ter experienced less pain and were market declines able to keep their slowly? Also, Oh, Oh, Oh, Oh, hands sub- traders generally $*#! &$*! (+#)! %*$! merged longer prefer to use the than those who s-word as an ad- uttered such be- jective rather nign terms as than a noun. “table”or “chair.” This news you (By the way, can use comes women experi- courtesy of enced greater Nicholas Colas, benefit from chief market cursing than strategist at BNY men.) ConvergEx Group, Asked how who last week issued a PG-rated re- traders swear when markets rise,Mr. port titled The Role of Cursing in Colas says they suddenly grow tame. Trading and Life. Two common utterances: “Thank In his report, Mr. Colas addresses God,” and “Run, Forrest, run!” the value of swearing to relieve To which we can only say,“Hell, pain—something plenty of folks on yeah!”

THE DECLINE in global mergers and acquisitions volume so far this year, according to Thomson Reuters. The lack of deals helps explain why Wall 18% Street firms are starting to lay off dealmakers. 4 | Crain’s New York Business | September 27, 2010 Project2:fp template.qxd 9/21/10 12:16 PM Page 1

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NEW YORK,NEW YORK edited by Valerie Block

Funds roll in and Bloomberg LP came in with a for Africa exhibit gift in the six figures. “This exhibition is a ven before it opens, landmark “The Global moment,” says EAfrica Holly Hotchner, the Project” at the atsumi ryota museum’s director. Museum of Arts The show, which runs from and Design has broken records. Nov. 17 to May 15, explores the The exhibition has attracted more broad spectrum of contemporary outside funding than any other African art, design and crafts. It will show in the institution’s history.The feature the work of more than 100 show, which sources say will cost artists, ranging from well-known around $500,000 to mount, brought figures—like Cameroon-born Serge in first-time grants to the museum Mouangue, who lives in Japan and from both the Andy Warhol designs cars, architecture and kimonos Foundation and the Rockefeller (left)—to the Gahaya Links Weaving Foundation.The Robert Sterling Association, a collaborative of Hutu and Clark Foundation ponied up double Tutsi women working in traditional the amount the museum requested, basketry techniques in Rwanda.

Last week, Mr. Williams, 25, Cruising met with members of New York for dinner Angels, a group of investors who provide early-stage capital to if you build it, they will come— emerging tech companies, as part and hopefully by ferry. of an effort to raise $900,000 to Chris Siversen (below), chef and help the company hire marketing co-owner of Maritime and technology experts and Parc, a $5 million expand into mobile. restaurant opening “The industry is next month in controlled by a few providers, Liberty State Park, which has stifled it is lightweight,” says founder Tom N.J., is hoping to innovation,” he says. “There’s Patterson, adding that most lure lots of diners lots of opportunity to grow.” undershirts create a hot girdle for from the city. The site, hatched out of a men or have the EFG—excess Meet He knows it won’t be Syracuse University dorm room, fabric gut—effect. JAY H.WALDER easy to convince Manhattanites to offers 46 different strategy, action Tommy John shirts, made from island-hop. So he’s negotiating and arcade games. It is most MicroModal and spandex, have with Statue Cruises, which popular among middle-aged been selling for $36 apiece at Chairman & CEO of the MTA provides transportation from the housewives looking for “mental Neiman Marcus and Nordstrom, Marking his first anniversary as MTA Chairman & CEO, Jay World Financial Center ferry exercise and stimulation,” Mr. neither of which are found in the Walder will tell us how well our transportation network has terminal to Liberty State Park, to Williams says. five boroughs. But in November, withstood staff and service cuts, whether he expects state run its boats more frequently and the shirts will launch at Saks Fifth lawmakers and transit unions to help stabilize the MTA's well past the last departure from Tommy John Avenue in Manhattan. What’s finances and what progress he's made on such projects as New Jersey at 8:30 p.m. He also more, the whole company will wants his customers to get a price relocate from Los Angeles to bus rapid transit, the 2nd Ave subway and system-wide seeks NY fit break. Chelsea. “New York is the fashion ticket integration. He will be questioned by Crain’s Erik “I’m trying to work out a deal new york’s male population may capital of the world. It’s where the Engquist and another member of the media. that would give diners an not even realize it’s suffering the best designers and the top brands DATE: WEDNESDAY, OCTOBER 13, 2010 automatic discount on a ferry indignities of baggy undershirts are,” says Mr. Patterson, a South ticket for eating at the restaurant,” that mar trim physiques. Dakota native. Next up in 2011, TIME: 8:00-8:30 AM BREAKFAST he says. Currently, a round-trip However, a solution is on the way. Mr. Patterson plans to tackle the 8:30-9:30 AM PROGRAM ferry ride costs $14—the same as a Tommy John, a 2-year-old maker underwear sector. grilled squid appetizer. of men’s undergarments, is VENUE: HILTON NEW YORK Contributors: Lisa Fickenscher, 1335 Avenue of the Americas moving to the Big Apple. “Our shirt never comes Daniel Massey, Adrianne Pasquarelli, COST TO ATTEND: Gaming site untucked, it doesn’t bunch up, and Miriam Kreinin Souccar, $70 for individual ticket(s) if registered by October 6; $75 thereafter $650 for table(s) of ten if registered by October 6; $750 thereafter in the chips a navy petty officer who ILLEGAL LIVING GOES LEGIT To register, go to crainsnewyork.com and click on “Events”, or fax your business card and credit card information to “Walder Breakfast Forum” at 212-210-0499. served three tours in the Middle AUTHORS Roslyn Bernstein and Shael For more information, call the Events Hotline at 212-210-0739. East is now looking to make his Shapiro last week celebrated the publica- mark in the $20 billion-a-year You must be pre-registered to attend this event. No refunds permitted. tion of Illegal Living: 80 Wooster Street and online gaming industry. In just 18 the Evolution of SoHo. The building, once months, Raymond Williams’ SkillAddiction—an online casual home to the Fluxus art movement, now gaming community where players boasts a Christopher Fischer cashmere compete for cash and prizes in shop, where guests nibbled on sheep’s milk dozens of different games of cheese and purchased copies of the book. skill—has attracted 47,000 users.

6 | Crain’s New York Business | September 27, 2010 Project15:fp template.qxd 4/22/10 1:21 PM Page 1

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that the reason was to enact tax cuts. Mr. Wilson’s ad quotes Mr. DiNapoli saying he doesn’t regret CONFOUNDED Stephen Goldsmith THE INSIDER any of his votes, but omits the STEPHEN GOLDSMITH (below) is a student of government, but in his four comptroller saying, “I wish we had months as deputy mayor for operations the bureaucracy has confounded him. by Erik Engquist and Jeremy Smerd the kind of economy we had five “There are a lot of really creative people in New York City government you or six years ago. ... You have to wouldn’t find anywhere else in the world,” Mr. Goldsmith told a gathering of look at decisions in the context of the Citizens Budget Commission. “But they sit on some of the worst the time, you know, that you’re systems I’ve seen or taught about anywhere.” planted in.” Mr. Goldsmith cited work and procurement rules that stymie productivity Mr. DiNapoli fired back by and employee discretion, making operations inefficient. “The only having his office produce an management tool that’s left is the ability to lay off workers,” he said. “But DiNapoli-Wilson analysis showing that a 100% even that is not good enough.” fixed-income strategy for the state He lamented that the administration has little leeway to reassign pension fund would have earned unionized workers to new roles. “We need more people picking up the trash battle heats up $57 billion less than actual results and fewer people watching them pick up the trash,” Mr. Goldsmith said. “But I over the past 20 years. It was a can’t get from column A to column B so easily.” response to Mr. Wilson’s call for Andrew more conservative investing. Mr. Two weeks ago, Mr. Goldsmith attempted to elicit ideas from workers hile carl paladino tries to goad about changing how the city operates. “Into the room trotted legions of Cuomo Wilson responds, “It is disturbing into a fight, two other statewide that Mr. DiNapoli is using lawyers to say I was dangerously close to violating the direct dealing law, candidates are already engaged in a government employees to do his which says if you are in management, you can’t really talk to your employees,” campaign throw-down.The battle between campaign work,” adding that the Mr. Goldsmith said. “We’re in the process of getting around that one, too.” Thomas DiNapoli comptroller is “looking in the Mr. Goldsmith believes the way forward is through state Comptroller (left) technology. He wants to give every city worker an iPad or and his Republican challenger, Harry Wilson (right), intensified rearview mirror to support W market-performance assumptions equivalent device. “That iPad ought to tell them which last week when Mr. Wilson attacked the incumbent in a that simply no longer exist.” buildings to inspect, which kids to evaluate, which television commercial Earlier this month, Mr. decisions to make,” he said. It will collect data, too. and Mr. DiNapoli DiNapoli’s first commercial said “You do not need 25 people telling one person what his opponent “wants to bring the to do, because you can watch what that person does in called his nemesis’ worst of Wall Street to New York’s real-time and dramatically hold that person pension plan a $57 pension fund,” a reference to Mr. accountable,” Mr. Goldsmith said. Unions call such billion boondoggle. Wilson’s former employers, tracking an invasion of privacy; the administration Mr. Wilson’s ad, Goldman Sachs and private equity believes it’s entitled to know how workers spend firm The Blackstone Group. their on-duty time. which is running There was no mention that the “Three years from now, we should know how upstate, criticizes Mr. fund, which Mr. DiNapoli many minutes each building inspector spends DiNapoli for voting as controls, has invested $1.38 in each building, how many infractions they billion with Blackstone (including wrote and whether they were an outlier,” Mr. an assemblyman in $50 million in July) and $100 2006 to increase state Goldsmith said. “That model is what we’re million with Goldman, or that going to end up doing.” borrowing. The spot Mr. Wilson wants to reduce the cites a 2006 Buffalo fund’s exposure to alternative nyc.gov investments such as private News article about the Legislature increasing state debt by equity; Mr. DiNapoli asked to association and the Department of $11.7 billion, but does not mention increase it. Tea Party not in bag Consumer Affairs came out last week for Paladino against Ms. Lappin’s bill requiring “organic” cleaners to stop using lorraine scanni, co-founder of environmentally damaging chemical the Staten Island Tea Party, is perc or, alternatively, to post a sign hardly gung-ho for Carl Paladino. acknowledging their use of perc and Helping Your Small Business Succeed! “Personally, I haven’t made up my instead employ other green mind yet,” she says about the race practices.The trade group opposes for governor. Her ambivalence more regulation, and some green- underscores the challenge Mr. conscious cleaners say there’s no Paladino faces as he tries to follow shame in their minimal use of perc. his landslide win over Rick Lazio in Environmentalists, meanwhile, say the Republican primary with an the bill doesn’t go far enough. upset of Democrat Andrew Cuomo. Ms. Lappin proposes that Even the most energetic voters— organic cleaners pay $340 for two- those affiliated with the Tea year licenses and be monitored by Party—may not yet be sold. the city. She crafted the bill after Upstate Republicans carried Mr. three dry cleaners complained that Paladino to victory. Downstate, the competitors were using the term picture is much different. In the “organic” too liberally. city, Mr. Lazio beat Mr. Paladino 55% to 45%. Even in Staten Island, e NYS SBDC services include: where voters chose Tea Party Parsons a long shot favorite Michael Grimm over GOP- for Obama job Developing a customized business plan backed Michael Allegretti in a congressional primary, Mr. Lazio citigroup chairman Richard Help to secure low-cost funding beat Mr. Paladino 52% to 48%. Parsons (left) is the only New Yorker Entrepreneurial training programs on betting firm Paddy Power’s list of candidates Loan packaging assistance Dry cleaners to replace Lawrence steamed Summers as top economic Financial tracking/forecasting, research and marketing adviser to the president— councilwoman Jessica and the Brooklyn native For more information or to request a FREE consultation, contact us at: Lappin is trying to is a long shot with 10-1 establish a standard for odds.The favorites are dry cleaners to meet former Young & before they can call bloomberg news Rubicam chief Ann Fudge themselves “organic.” It’s proving at 5-2 and former Clinton 800-732-SBDC more complicated than she administration senior economic www.nyssbdc.org expected.The dry cleaners’ trade adviser Laura Tyson at 11-4. For daily political and government news, subscribe to * Funded in part through a cooperative agreement with the U.S. Small Business Administration CRAIN’S INSIDER @ www.crainsnewyork.com/insider

8 | Crain’s New York Business | September 27, 2010 CN013910 8/31/10 3:13 PM Page 1

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VIEWPOINT Ravitch as a Medicaid mentor editor in chief Rance Crain publisher, vp Jill R. Kaplan t would be easy to dismiss Lt. Gov. Richard would require changes in federal law, which are well beyond Ravitch’s new report on Medicaid as yet another the state’s authority. EDITORIAL editor Xana Antunes analysis that will collect dust on a shelf. No The primary obstacle, however, is the combination of managing editor Glenn Coleman deputy managing editors Valerie Block, lieutenant governor—let alone one who’ll be giant health care workers union 1199 SEIU and the Erik Ipsen leaving office in three months—has the power to hospitals—who get along more famously than any other contributing editor Elizabeth MacBride enact policy. And Mr. Ravitch’s report includes labor-management pairing in history, at least when it comes columnists Greg David, Alair Townsend more than a few proposals that have been ignored to lobbying lawmakers and manipulating public opinion. politics editor Erik Engquist pulse editor Barbara Benson for years by state legislators, some of whom pronounced They keep legislators subservient by mobilizing campaign senior reporters Theresa Agovino, them dead on arrival again last week. operations to elect or unelect them, and scare New Yorkers Aaron Elstein, Lisa Fickenscher, I Matthew Flamm, Miriam Kreinin Souccar But Mr. Ravitch has not lost faith in the state’s ability to with commercials warning that change would put nurses out reporters Marine Cole, Amanda Fung, Daniel Massey, Adrianne Pasquarelli, reform Medicaid, and neither have we.To do so would be to on the street and maybe even kill your Aunt Tillie. Hilary Potkewitz, Jeremy Smerd give up on the fiscal future of the state, which spends more The industry knows art director Steven Krupinski deputy art directors Carolyn McClain, than $52 billion annually, or 40% of its budget, on the that no amount of Daniel Mednick program. As Washington’s contribution decreases and more His blueprint is a campaigning and staff photographer Buck Ennis copy desk chief Wendy Zuckerman New Yorkers become eligible for Medicaid, the state’s bill is good road map marketing will produce copy editor Thaddeus Rutkowski research editor Denise Southwood projected to increase 18% annually through 2014. revenue that can be editorial interns Brian Chappatta, The leading candidates for governor promise to deal with for gubernatorial spent willy-nilly on David Montalvo, Laura Mortkowitz www.crainsnewyork.com the issue in their own inimitable fashion—Andrew Cuomo candidates health care, and that web editor Brian Tracey with a “fundamental restructuring” that includes a handful of only improved senior producer Elisabeth Butler Cordova producer Kira Bindrim Mr. Ravitch’s proposals; Carl Paladino with his proverbial efficiency can avert baseball bat. Both men would be well-served by sitting down crude cuts in the EDITORIAL AND ADVERTISING OFFICES 711 Third Ave., New York, NY 10017-5806 with Mr. Ravitch. coming years. Hospitals editorial: 212.210.0277 Fax 212.210.0799 advertising: 212.210.0259 While naysayers call his plan too ambitious, its aim is not and 1199 will fight to the death Mr. Ravitch’s proposal to Cable craincom nyk to reverse cost increases but merely to control their growth. remove rate-setting power from their cronies in the Fax 212.210.0499 Entire contents ©copyright 2010 Crain That’s a modest goal that wouldn’t result in widespread health Legislature, but ought to collaborate on reform in other areas. Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP care job losses. Not that there wouldn’t be upheaval: Nursing The lieutenant governor has done a great service by Inc., used under license agreement. home care, in particular, would have to be revamped. Indeed, providing a blueprint to fix a system that most elected TO SUBSCRIBE: Mr. Ravitch calls for a second Berger commission, saying officials know little about, even though it serves one in every Call 888.909.9111; fax 313.446.6777. $3.00 a copy, $59.79 one year, $109.79 two years. that the first one didn’t purge nearly enough inefficiency four New Yorkers.To implement it, the next governor must www.crainsnewyork.com from the system. We endorse that idea wholeheartedly. win over New Yorkers, lest public opinion be used against The report includes other good ideas, each of which faces him by the industry.Then he can get lawmakers to the table. ADVERTISING AND MARKETING advertising director Trish Henry major obstacles. For example, moving people who are If the Ravitch report ends up on the shelf, let it be dog-eared real estate sales manager Cornelius P. Gore senior account managers eligible for Medicare and Medicaid into managed care and covered with fingerprints by the time it gets there. Irene Bar-Am, Courtney McCombs, William E. Squitieri account executive Anthony Mowad sales manager, classified print & online John Gallagher sales coordinator, print & online CRAIN’S ONLINE POLL COMMENTS Lulé Haznedari newsletter product manager Alexis Sinclair IS THE ‘GREAT credit Todd J. Masura 313.446.6097 marketing director Amy Crossman RECESSION’ OVER assistant marketing manager It ain’t over till it’s over Sabra Harrison FOR YOU? director, audience development MAYBE THOSE ECONOMISTS population growth that’s projected through John LaMarca Date of poll: Sept. 20 senior audience development manager SHOULD GET OUT MORE OFTEN 2030. And it will not provide a no-transfer ride Tarek Cotran 216 votes to work for most NJT rail commuters, since so the economists are saying “Recession of- most of them do not work within walking general manager, interactive Yes. Business conditions are Marc Minardo ficially ended in June 2009” distance of 34th Street. A station farther web developer, interactive improving, and I’m no longer afraid (CrainsNewYork.com, Sept. 20). When my uptown is essential. to look at my 401(k) statement. Chris O’Donnell end-of-year totals are less than the year before, Transit planners considered many alterna- I do not call that the end of the recession. tives to the current project, but neither the NEW YORK PRODUCTION When my home is worth less than last year, I Metropolitan Transportation Authority nor production and pre-press director do not call that the end of the recession. When the railroad management that preceded it Michael Corsi advertising production manager our children are making less than we are and would cooperate with that effort, and New . 16% Suzanne Fleischman Wies when they can barely make ends meet, I do not York politicians have been equally blind. So call that the end of the recession. New Jersey planners and commuters finally PUBLISHED BY CRAIN COMMUNICATIONS INC. —gail pizzigati said, “Then we’ll build our own tunnel”—a chairman Keith E. Crain

short-sighted exercise in chauvinism that has president Rance Crain

secretary Merrilee Crain 84%. FRIGHT AT THE END OF THE TUNNEL produced this flawed plan. treasurer Mary Kay Crain It’s not too late to stop a misguided effort executive vp, operations William Morrow re: new jersey transit’s $8.7 billion rail- that will waste billions. Gov. Chris Christie senior vp, group publisher Gloria Scoby tunnel construction project (Sept. 13). Every- should continue to block the construction of group vp, technology, circulation, manufacturing Robert C. Adams body agrees that the future increase in Man- any new commuter-rail tunnel that won’t vice president/production & hattan jobs will mean an increase in the clearly improve the NJT commuter’s trip. manufacturing David Kamis No. There are far too many people still out of number of NJT commuters. Everybody also —jefferson chase chief information officer Paul Dalpiaz work. Consumers as a group may be agrees on the need to build another com- corporate circulation/audience spending more, but I’m not one of them. development director Kathy Henry muter-rail tunnel. But this tunnel is wrongly CRAIN’S WELCOMES SUBMISSIONS to its opinion placed and badly designed. pages. Send letters to [email protected]. founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) For this week’s questions: Go to Building only two additional tracks under Send columns of 475 words or fewer to www.crainsnewyork.com/poll to have your say. the Hudson River to Manhattan’s Penn Station [email protected]. Please include the writer’s will not even come close to accommodating the name, company, address and telephone number.

10 | Crain’s New York Business | September 27, 2010 20100927-NEWS--0011-NAT-CCI-CN_-- 9/24/2010 1:10 PM Page 1

OPINION

union protections. But he had already let the genie out of the bottle, It’s absurd to buy and Mr. Liu is seizing the initiative. Mr. Liu created a task force to study how to make CBAs more transparent and equitable, but not project support whether they are a good idea. Two landmark Supreme Court decisions say developers cannot be required to ayor michael bloomberg is reaping the provide unrelated benefits for zoning whirlwind. For years, his administration en- approval,but the task force’s draft re- couraged developers to sign community bene- port says communities won’t stop fits agreements, or CBAs, with self-styled asking and developers won’t stop giving, so standards should be set. The community representatives offering neighbor- draft also makes a preposterous argu- Mhood goodies such as day care centers, job training programs, ment that until the city develops so- small business loans and even cash pools in return for support lutions to issues such as poverty and unemployment,CBAs are necessary. for their projects. It was officially condoned extortion. The task force proposes adding a new step to the already lengthy,com- Now Comptroller ed Kingsbridge Armory plex and costly ULURP process: the John Liu is seeking to redo. Developer-funded hiring of a developer-funded con- formalize such negotia- mitigations are limited sultant to coordinate public partici- tions and extend a re- to adverse impacts such pation, planning and negotiations. quirement for agree- as damage to the envi- And who would monitor the im- ments to virtually every ronment or traffic con- plementation of these agreements? project of any conse- gestion. The deal-mak- Comptroller John Liu, who now has quence in our city. ing is public and no formal role in the land-use Some history is key. circumscribed by law. process. The ostensible reason for The city’s Uniform Land The process has been this power grab? The agreements Use Review Procedure enforced by all mayors “have a financial impact on the city.” began in 1976. The goal ALAIR since then, until the Many council members are livid was a standardized sys- TOWNSEND Bloomberg years, when at the comptroller’s intrusion into tem and an end to what rezoning has been used their bailiwick. They should be even many saw as the buying to extract from develop- more concerned that the high cost of of favors. Under ULURP, the City ers whatever anyone can grab. Ap- building will grow higher. Planning Commission,City Council parently, the Kingsbridge debacle Mayor Bloomberg must speak and mayor must approve projects was the turning point for the mayor. out forcefully about the absurdity of such as Columbia University’s Man- The demands included local hiring, institutionalizing and codifying the hattanville expansion and the ill-fat- community space, living wages and buying of political support.

the country.So much for New York’s fate being tied to the nation’s. NY juggernaut’s This isn’t the first time for such a disconnect. The 1982 U.S. downturn was almost as bad as the 2007- 09 Great Recession. But it barely economic lessons touched the city,which lost less than 50,000 positions, or 1% of its jobs. The reverse happened in the ear- n may,only five months ago, the Bloomberg admin- ly 1990s.The national economy fal- istration’s best economic minds looked into the future tered after the stock market crashed and projected that the city would see “a tepid economic in 1987, recovered, and then en- dured a modest downturn in 1991- recovery’’ in the second half of 2010, losing another 92. But New York was paralyzed by 38,000 jobs this year.New York would not recover all the its own Great Recession: The city’s jobs lost during the recession until 2014. economy plunged between 1989 and I 1993, losing 329,000 jobs, or 9% of The experts at the Independent Budget Office were more op- its work force. In the national reces- timistic, predicting that a slow recovery would mean a gain of sion, the decline was about 6%. The lesson: New York City is so about 30,000 jobs this The overriding factor, big (if it were a country, its gross do- year and the lost jobs they concurred, would mestic product would rank 17th— would be restored a year be the anemic national behind Turkey’s and ahead of earlier, in 2013. recovery, whose chill Switzerland’s) and is so tied to Wall Instead, in the first would cool New York. Street that it marches to its own eight months of 2010, In the months since, drummer. In 1982, financial services New York added 78,000 the U.S economy has were doing well; so did New York. private-sector jobs. At gotten worse, with un- Between 1989 and 1993,Wall Street this pace, the recession’s employment stubornly was a basket case,and so was the city. damage will be erased by high, job growth almost The city’s good fortune this time early next year. nonexistent and con- is a result of federal bailouts, which How could the fore- GREG cerns about a double-dip allowed much of Wall Street to sur- casters miss the strength DAVID recession growing. vive the financial crisis. A thriving of the local recovery by In New York, hiring tourism industry, which has helped such wide margins? The is gaining momentum in diversify the economy, also played a answer is surprisingly simple: They most sectors,financial companies are big part. The future of New York’s emphasize how much the national expanding (even if Wall Street—the economy depends not on the nation, economy affects the city, rather than securities industry—is not), tourism but on whether it contracts as it ad- how little. is strong and long-feared govern- justs to financial reform or whether it Last spring, the experts were es- ment cutbacks have been modest. In can find ways to grow again. sentially on the same page in predict- the first eight months, New York ac- Then again, it’s been that way for ing a lackluster recovery for the city. counted for 10% of all the new jobs in three decades.

September 27, 2010 | Crain’s New York Business | 11 20100927-NEWS--0012-NAT-CCI-CN_-- 9/23/2010 7:02 PM Page 1

SMALL BUSINESS Ground-transport firm flying high

from 30,000 feet in the air. flier who books a car Deal with in-flight Internet biz provides GroundLink’s reservations por- through the portal edge with travelers booking airport limos tal, LimoRes, became accessible in now receives a August from the home page of coupon for one free CLOUD COMPUTING: year—is on the move. Gogo Inflight Internet, which gives in-flight Internet Alex Mashinsky expects BY EILENE ZIMMERMAN to see his service on The Manhattan company enables airline passengers broadband-speed session, which can every North American travelers to use their laptops and Internet access on more than 3,500 be used immediately flight within months.

lobal transportation smartphones to book ground trans- flights daily in the continental U.S. or on a future trip. buck ennis firm GroundLink— portation for travel from airports, so GroundLink teamed up with “We’ll be on whose chief executive, they don’t get stranded waiting for Aircell, an aviation telecom compa- every flight in North America with- “smart strategic deal,” enabling Alex Mashinsky, was taxis or late limos. Thanks to a new ny based in Broomfield, Colo., in six to nine months,” says Mr. GroundLink to easily tap into the named one of Crain’s partnership, GroundLink users can which provides the Gogo Wi-Fi Mashinsky. growing population of business GTop Entrepreneurs in May of this now arrange pickups in advance, service on most major airlines. Any The partnership with Aircell is a travelers who use Wi-Fi in-flight, says David Rogers, executive director of the Center on Global Brand Leadership at Columbia University, and author of the forthcoming book The Network Is Your Customer: 5 Strategies to Thrive in a Digital Age. “This gives [travelers] an incen- tive to book ground transportation while they are on Gogo,” he says. Mr. Rogers adds that it will now be hard for potential rivals to catch up with first mover GroundLink. “GroundLink already has 45,000 vendors,” he says. “It would take a big investment by a competitor to get something up to speed quickly that offers an identical service. “It would have to be a company that really disrupts the space with a new technology,” he continues. “In the near term, I think that’s unlikely to happen.” A web of websites groundlink is also partnering with individual airlines, including Jet- Blue Airways and Delta Air Lines, which will display the LimoRes link on their websites. It plans to expand its network of vehicles by adding access to taxis in 41 markets (although not in the tristate area). Current offerings include five classes of sedans, vans, SUVs and buses. Mr. Mashinsky’s goal is for GroundLink clients to be able to go from their office to the limo to the airplane to the taxi and never lose their Internet connection. In August, he began providing Wi-Fi transmitters to New York City limos and livery cars in the GroundLink network for a small monthly fee, giving passengers free, roving connectivity. Outside of the city,Mr.Mashinsky plans to install transmitters in all vehicles, including taxis, that are part of GroundLink’s network; he aims to have 20,000 in cars worldwide by the end of 2011. GroundLink’s strategic moves are paying off. Its revenue was up nearly 70% in August from a year earlier; the company expects to hit $26 million in sales for 2010. Mr. Mashinsky is aiming for 100% year- over-year growth for 2011. “We are accelerating dramatically,” he notes. Mr. Mashinsky’s goal is to take the company public in 2012 or 2013, when he expects it to reach $100 million to $150 million in revenue. Not bad for a company that once saw its business plan rejected by more than 100 venture capital firms.

To sign up for Crain’s SMALL BUSINESS newsletter, go to www.crainsnewyork.com/smallbiz.

12 | Crain’s New York Business | September 27, 2010 CN013963 9/17/10 2:52 PM Page 1

impactful meetings, without impacting the environment.

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NEIGHBORHOOD JOURNAL Retailers strike out at Yankee Stadium

handed out fliers to get them in gear. boost to the Bronx is a controversial Despite BID’s efforts, local businesses miss But when the bright lights came on question,and some store and restau- chance to tie in with concerts, other events and tens of thousands of fans poured rant owners complain that the re- into the neighborhood, many ven- sults have been disappointing. But certs at the ballpark on Sept. 13 and dors just weren’t ready for show- the case of the hip-hop events rais- BY AMY YENSI 14, but most businesses in the time. es the question of whether local neighborhood dropped the ball. businesses are ready to capitalize on A failure to communicate amy yensi ay-z and eminem could They failed despite the best ef- the prospects. FACE THE MUSIC: While stadium employees teach the business owners forts of Cary Goodman, executive “our clothing and souvenir mer- One problem is that the compe- were selling Jay-Z and Eminem concert items, around Yankee Stadium a director of the 161st Street Business chants didn’t create a market for tition from inside the stadium itself some local firms actually shut their doors. thing or two about selling. Improvement District. He spent themselves,” says Mr. Goodman. is stiff. The new ballpark boasts a The hip-hop heavyweights months trying to convince area mer- Whether the new stadium is food court offering everything from Jsold out co-headlined con- chants to seize the opportunity. He providing the much-anticipated sushi to ziti, a Hard Rock Cafe and three stores equipped with all the blue-and-white keepsakes a Yankee fan could want. Hours before the concerts started,stadium employees had already set up outdoor kiosks to sell hip-hop tour T-shirts, hats and sweatshirts costing from $35 to $70 to dozens of fans. But Mr. Goodman notes that although local vendors could not sell products bearing the concerts’ “Home and Home” logo, they had plenty of time to stock up on alter- New York is different. natives. Any items with the rappers’ names on them would have generat- ed sales. However, the Concourse Card Shop, for example—a store located less than a block from the stadium— So is City National. shut down for the day before the first concert even started, because its owner decided that “the party crowd wouldn’t buy greeting cards after the concert,” says employee Nick Castillo. e City National difference? Two simple words: our people. City National Other vendors are stuck in the mind-set of selling only Yankee colleagues have the experience and resources to deliver tailored financial solutions. team products, despite an all-out effort by Yankees management to

lure a variety of other events.In June, Award-winning service for example, junior middleweight Miguel Cotto defeated Yuri Fore- A full range of commercial banking services: man in the first boxing match at the new stadium.On Nov.20,the annu- lending, cash management and foreign exchange al football classic Notre Dame vs. Army game will move to the stadi- Wealth management to preserve and grow your wealth um. The stadium will host the New Era Pinstripe Bowl, another college Financial strength and stability football bowl game, on Dec. 30. Trouble in mind some business owners foresee problems with nontraditional events at Yankee Stadium, not just opportunities. For a different kind of financial relationship contact us today. “I’m afraid of a potentially wild crowd,”says Jimmy Shawa,owner of New Stadium Pizza,referring to the Private Client Services Commercial Banking Wealth Management Entertainment Division boxing match—though he’s cau- Robin Balding Michael Vasami Geoff Sargeant Richard McCune tiously hopeful about other events. (917) 322-5202 (917) 322-0636 (917) 322-5245 (917) 322-5237 Mr. Goodman notes that many [email protected] [email protected] geoff[email protected] [email protected] restaurants did seize the opportunity presented by the hip-hop concerts 400 Park Avenue, 7th Floor, New York and were packed on those nights. He hopes that his BID can help create synergy between local enterprises and the events going on inside the stadium: He’ll push for “railgating” promotions at area businesses that offer the same services located within the stadium, like bars, restaurants and souvenir shops. The strategy would target visitors that come to

©2010 City National Bank the stadium by subway. “You can’t tailgate at this ballpark, but you can go to Yankee Tavern after you leave,” says Mr. Goodman. “The stadium can ac- commodate 70,000 people. They cnb.com Member FDIC can’t all fit into the Hard Rock Cafe.”

14 | Crain’s New York Business | September 27, 2010 20100927-NEWS--0015-NAT-CCI-CN_-- 9/23/2010 7:03 PM Page 1

FOR THE RECORD

directed to Luis Rodriguez at G Charles Schwab & Co. signed a 10- common stock at prices ranging from (212) 323-1733 or year lease for 11,000 square feet at 1 $30.29 to $31.14 between Sept. 13 and ABOUT THIS SECTION [email protected]. Grand Central Place, a 55-story, Sept. 15, in a transaction worth FOR THE RECORD is a weekly listing of information from the public record that 1,291,533-square-foot building owned $4,983,151. He now directly holds by W&H Properties.The firm will move 3,122,010 shares. can help businesspeople in the New York area find opportunities, potential REAL ESTATE DEALS into the ground and lower levels, new clients and updates on competitors. including frontage on street level. Paul G Take-Two Interactive Software Inc. To ask questions or get more information on this section, contact Denise Companies that would like to have details Spiegel of Scopa Real Estate and Steve (TTWO) Southwood at [email protected]. of their recent transactions appear in these Soutendijk of Cushman & Wakefield Carl C. Icahn, beneficial owner, listings should e-mail descriptions represented the tenant, while Amira purchased 422,900 shares of common following this format to Yunis of Newmark Knight Frank stock at prices ranging from $9.45 to [email protected], with “Real negotiated on behalf of the landlord.The $9.59 between Sept. 10 and Sept. 14, in estate transaction” in the subject line, or asking rent was $350 per square foot. a transaction worth $4,046,239. He now BANKRUPTCIES Services enter them online at indirectly holds 12,212,100 shares. Requests competitive sealed bids by crainsnewyork.com/submitadeal. Deals are The following listings are selected from the 11:30 a.m. on Oct. 29 for the upgrade of listed in order of square footage. STOCK TRANSACTIONS G Cognizant Technology Solutions Corp. most recent available filings by companies electrical systems at 215 E. 161st St., (CTSH) seeking bankruptcy protection in the Bronx. A mandatory prebid meeting is COMMERCIAL Following are recent insider transactions at John E. Klein, chairman, exercised Southern and Eastern Districts of New scheduled for 10 a.m. on Oct. 1 at 900 G Innovation Interactive, a division of New York’s largest publicly held companies options on 40,000 shares of common York. Information was obtained from U.S. Sheridan Ave., ninth-floor library, Dentsu, has signed a 10-year lease for filed with the Securities and Exchange stock at prices ranging from $21.85 to Bankruptcy Court records available on Bronx. For questions regarding this 48,993 square feet at 32 Sixth Ave.,a Commission by executives and major $34.51 on Sept. 15, in a transaction Public Access to Court Electronic Records. solicitation, contact Louis Pastore at 27-story, 1.2 million-square-foot shareholders. Listings are in order of worth $1,127,200. On the same day, he Listings are in alphabetical order. (212) 669-8557 or building owned by Rudin Management transaction value.The information was sold 40,000 shares at $62.75, in a [email protected]. Co. The firm will move into the eighth obtained from Thomson Reuters. transaction worth $2,510,000. He now G Fresh Harvest River floor. E.N. Cutler of Newmark Knight directly holds 428,700 shares. 41 Madison Ave. G Department of Parks & Recreation Frank represented Dentsu, while G Moody’s Corp. (MCO) Filed for Chapter 11 bankruptcy Requests competitive sealed bids by Robert Steinman negotiated on behalf Berkshire Hathaway Inc. sold 1,350,550 Thomas M. Wendel, director, exercised protection on Sept. 12.The filing cites 10:30 a.m. on Oct. 19 for the of Rudin in-house. Asking rents in the shares of common stock at prices options on 30,000 shares of common estimated liabilities of $1,000,001 to $10 construction and reconstruction of property are in the high $30s per square ranging from $25.10 to $25.22 between stock at prices ranging from $34.51 to million and estimated assets of $1,000,001 playgrounds in school yards at P.S. 91, foot. Sept. 10 and Sept. 14, in a transaction $37.48 between Sept. 13 and Sept. 14, in to $10 million. Among the creditors with 108 and 33 in the Bronx. For more worth $33,975,064. It now indirectly a transaction worth $1,094,700. During the largest unsecured claims are First information, contact Juan Alban at G T.Y. Lin International signed a holds 29,433,300 shares. the same period, he sold 30,000 shares at Commonwealth Bank, owed $3,625,393; (718) 760-6771 or renewal lease for 10,350 square feet at prices ranging from $64.01 to $64.03, in and Peter Romano, owed $350,000. [email protected]. 110 William St., a 32-story, 900,000- G Vornado Realty Trust (VNO) a transaction worth $1,920,600. He now square-foot building owned by 110 Steven Roth, chairman, sold 200,000 directly holds 50,000 shares. G Hampton Air East Inc. G Health and Hospitals Corp./Sea View William LLC. The firm will move to the shares of common stock at $86.30 on 26 Sawgrass Drive, Bellport, L.I. Hospital 29th floor. Brad Gerla and Jeff Sharon Sept. 14, in a transaction worth G Polo Ralph Lauren Corp. (RL) Filed for Chapter 7 bankruptcy Seeks competitive sealed bids by 2 p.m. of CB Richard Ellis Inc. represented the $17,259,960. He now directly holds Roger N. Farah, president, chief protection on Sept. 9. The filing cites on Oct. 15 for the repair of ornamental tenant, while Todd Korren of Swig 8,668,490 shares. operating officer and director, sold estimated liabilities of $1,000,001 to fences. For additional information Equities negotiated on behalf of the 22,812 shares of common stock at prices $10 million and estimated assets of regarding this solicitation, contact Pedro landlord. The asking rent was $33 per G WebMD Health Corp. (WBMD) ranging from $84.67 to $85.33 on Sept. $1,000,001 to $10 million. Among the Irizarry at (718) 317-3375 or square foot. Martin J. Wygod, chairman, sold 15, in a transaction worth $1,932,510. creditors with the largest unsecured [email protected]. 249,462 shares of common stock at He now directly holds 220,722 shares. claims are Bank of Smithtown, owed G Chicanowicz Callan Keane Vengrow $52.00 on Sept. 15, in a transaction $659,833.69; and S.W. Anderson Sales GOODS AND SERVICES & Textor signed a renewal lease for worth $12,972,024. He now indirectly G Acadia Realty Trust (AKR) Corp., owed $349,103.80. G Department of Environmental Protection 9,473 square feet at 61 Broadway, a 33- holds 2,256,360 shares. Kenneth F. Bernstein, president, chief Requests competitive sealed bids by story, 750,000-square-foot building executive and trustee, sold 100,000 G HFG 231 10:30 a.m. on Oct. 14 for service and owned by Broad Street Development. Kevin M. Cameron, director and special shares of common stock at prices 76 Bryant St., Woodmere, L.I. repair of Flygt submersible pumps at The firm will move into the 30th floor. advisor to the chairman, sold 64,052 ranging from $19.06 to $19.11 between Filed for Chapter 11 bankruptcy various DEP facilities citywide. A prebid Richard Gottlieb, Peter Sabesan and shares of common stock at $52.00 on Sept. 13 and Sept. 14, in a transaction protection on Sept. 14. The filing cites conference is scheduled for Sept. 30 at Wayne Siegel of Coldwell Banker Sept. 15, in a transaction worth worth $1,908,500. He now directly estimated liabilities of $1,000,001 to 10 a.m. at 96-05 Horace Harding Commercial Hunter Realty represented $3,330,704. He now directly holds holds 408,391 shares. $10 million and estimated assets of Expressway, second-floor conference the tenant, while the landlord was 373,017 shares. $10,000,001 to $50 million. Among the room No. 4. Questions should be represented in-house by David Israni, G Henry Schein Inc. (HSIC) creditors with the largest unsecured directed to Wen Hung at Daniel Blanco and Ramona Huegel. G Coach Inc. (COH) Mark E. Mlotek, executive vice claims are Hospitality Investors Group, (718) 595-6807. Asking rents in the building are $34 per Lewis Frankfort, chief executive, exercised president of corporate business owed $1,000,000; and Hamilton square foot. options on 297,493 shares of common development and director, exercised Financial Group, owed $526,039. G Department of Environmental Protection stock at prices ranging from $34.14 to options on 29,000 shares of common Seeks competitive sealed bids by 11:30 G Paul Revere Life Insurance Co. signed $34.85 between Sept. 13 and Sept. 14, in a stock at $35.49 on Sept. 14, in a G Quenzer Electric Inc. a.m. on Oct. 14 for medical screening a one-year lease for 4,849 square feet at transaction worth $10,277,949. transaction worth $1,029,210. On the 83 Park Ave., Bay Shore, L.I. and surveillance for upstate DEP 55 Broadway, a 32-story, 350,000- same day, he sold 29,000 shares at Filed for Chapter 7 bankruptcy employees. A prebid conference is square-foot building owned by Broad G G-III Apparel Group Ltd. (GIII) $56.23, in a transaction worth protection on Sept. 14. The filing cites scheduled for Oct. 7 at 10 a.m. at 465 Street Development. The firm will move Morris Goldfarb, chairman and chief $1,630,670. He now directly holds estimated liabilities of $500,001 to $1 Columbus Ave., second-floor training into the eighth floor. Joseph Pollaci and executive, sold 162,083 shares of 47,276 shares. million and estimated assets of $50,001 room in Valhalla, Westchester. Martin Horner of Jones Lang LaSalle to $100,000. Among the creditors with Questions should be sent to Scott Inc. negotiated the lease on behalf of the the largest unsecured claims are Engelien at (845) 340-7256. tenant, while the landlord was Prismatic Development Corp., owed represented in-house by David Israni, DEALS ROUNDUP $500,000; and General Supply & G Health and Hospitals Corp./Coler- Daniel Blanco and Ramona Huegel. Goldwater Memorial Hospital Services, owed $113,963. Asking rents in the building are $35 per TRANSACTION SIZE Seeks competitive sealed bids for square foot. COMPANY (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE G Red & Blue Trading Inc. maintenance of the hospital’s boiler 192-21 Station Road, Flushing, Queens system. Mandatory prebid site tours are G Consumer Marketing JGD Management Corp. $425.0 Credit Suisse Asset Management SB M&A Filed for Chapter 7 bankruptcy scheduled for Oct. 6 at 10:45 a.m. and Solutions/Shain+Oringer signed a (Manhattan) (unknown minority stake) protection on Sept. 10. The filing cites Oct. 14 at 10:45 a.m. at 1 Main St., three-year lease for 4,800 square feet at Hilton Garden Inn New York $68.4 DiamondRock Hospitality Co. SB M&A estimated liabilities of $100,001 to Roosevelt Island, in conference room B, 499 Seventh Ave., a 23-story, 180,000- (Manhattan) $500,000 and estimated assets of $0 to second floor, between buildings C and square-foot building owned by 499 Old Palm Golf Club Inc. $30.0 ING Clarion Partners SB M&A $50,000. Among the creditors with the D. For bid documents, refer to bid No. Fashion Tower. The firm will move (Manhattan) largest unsecured claims are Flushing 41211003 and contact Starr Kollore at into the 18th floor. Alicia Popper and Copia Interactive $20.0 DMC Capital Funding GCI Savings Bank, owed $55,364; and Chase (212) 318-4260 or Carol Sacks of Savitt Partners (Manhattan) Bank, owed $50,569. [email protected]. represented the owner, as well as the G5 Advisors $20.0 Evercore Partners Inc. (50%) SB M&A tenant. The asking rent was $42 per (Manhattan) G Housing Authority square foot. Odyssey Petroleum (US) Inc. $8.2 Iroquois Capital GCI GOVERNMENT CONTRACT Seeks competitive sealed bids by 10 a.m. (Manhattan) OPPORTUNITIES on Oct. 13 for the servicing of intercom RETAIL SAAG Consolidated (M) Bhd $6.5 Global Emerging Markets GCI systems in Brooklyn and the Bronx. G Fantastex Elegant Fabrics has (Manhattan) Following are selected contract Questions regarding this solicitation renewed its lease for seven years for STX Pan Ocean (America) Inc. $6.3 STX Pan Ocean Co. GCI opportunities recently announced by New should be sent to Maria Manfredi at 25,315 square feet at 218 W. 40th St.,a (Manhattan) York City agencies.To learn how to sell (212) 306-4666 or 12-story, 166,000-square-foot property Australian American Mining Corp. $3.4 SpringTree Global Investors GCI goods and services to city government, visit [email protected]. owned by 218 West 40th Associates. (Manhattan) www.nyc.gov/selltonyc. For a searchable The firm will move into the ground Avnel Gold Mining $2.5 G Office of Chief Medical Examiner Manchester Securities Corp. (9.61%) SB M&A database of current procurement notices, floor. Grant Greenspan of The Kaufman (Manhattan) visit www.nyc.gov/cityrecord. Listings are Seeks competitive sealed bids by noon Organization represented the tenant, alphabetical by category and department. on Oct. 22 for calibration, preventive while Bob Savitt and Carol Sacks of Selected deals announced for the week ended Sept. 18 involving companies in metro New York. GCI: Growth capital investment represents new money invested in a company for a minority maintenance and repair services for Savitt Partners negotiated on behalf of stake. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing CONSTRUCTION SERVICES Rainin-brand micro-pipettes. Questions the owner. The asking rent was $90 per shares of a company without the participation of a financial buyer. source: capitaliq G Department of Citywide Administrative regarding this solicitation should be square foot.

September 27, 2010 | Crain’s New York Business | 15 20100927-NEWS--0016,0018-NAT-CCI-CN_-- 9/23/2010 7:04 PM Page 1

REAL ESTATE DEALS PLUS

Leo Burnett jumps Retail condo supply to Park Ave. South PRICIEST STREETS Most expensive shopping corridors advertising giant Leo Burnett is in North America. moving its Big Apple office into a tests the market new hood—midtown south—and bloomberg news Cost per sq. ft. leaving Hudson Square behind. per year 1-yr. % change 2-yr. % change The Chicago-based agency has he supply of retail condominiums hitting the signed a six-year lease for 25,300 1 Fifth Avenue $1,850 +8.8% 0.0% market in New York is increasing. After a very square feet at 300 Park Ave. South,at 2 East 57th Street $1,000 +25.0% +11.1% weak 2009, during which developers dragged East 22nd Street.The asking rent for 3 Madison Avenue $831 -5.0% -30.8% the space was $42 per square foot. their feet, the number of such units up for sale has The wholly owned subsidiary of 4 Rodeo Drive (L.A.) $500 0.0% -25.4% risen by around 30% this year, according to Publicis Groupe decided to leave its Source: Cushman & Wakefield brokers. Meanwhile, demand for such properties has risen as 10 Hudson Square office, where its T lease expires Oct. 1, according to the economy has firmed up. Gordon Ogden of Byrnam Wood, “We are experiencing a terrific Broome and Grand streets in SoHo. “Right now, it’s the perfect storm,” says Adelaide Polsinelli, who represented Leo Burnett. amount of activity,”says John Peters The asking rent for the space,which associate vice president at Marcus & Millichap. “Interest rates While the ad agency considered of Cushman & Wakefield, who includes a 4,000-square-foot selling are ridiculously low, there’s pent-up demand, and the supply is other buildings, it picked 300 Park along with colleague Andrew Peretz basement, was $111 a square foot. still limited.” Ave. South because the space it will represented Rockrose. He adds that The retailer, selling women’s and occupy was nearly tailor-made,hav- many big leases in the building will men’s Italian-made shoes starting at Beginning early next year, that Street totaling 9,700 square feet. ing been built by and for an ad be expiring by the end of the year $200, already operates stores in could change in what could amount Though several of the condos have agency. An Interpublic Group sub- and new tenants are queuing up. London, Paris, Barcelona and to a major test of the still-recovering been on the market since 2008, the sidiary had occupied the space that —amanda fung Rome. It chose the Mercer Street market as retail condos go on the firm launched a new marketing Leo Burnett will take over before space, in a new building owned by block in increasing numbers. campaign. the end of the month. Mordechai Lipkis, for its size and “There will be more coming through Nearby, the 8,400-square-foot “The space will be done with Footwear seller downtown location. the pipeline once the foreclosures and retail condo in the Devonshire minimal capital expenses,” says Mr. laces into SoHo “Originally, they had looked at loans are settled,” Ms. Polsinelli House on East 10th Street and Uni- Ogden.“It is also in a better location Bleecker Street, but everything’s a says. versity Place sold for more than for commuting.” ash footwear international, bit smaller there,”says Pedro Carril- That rise has already begun. Pri- $10.3 million to the Brodsky Orga- The move is good news for Rock- which began in London 10 years lo, the SBC Associates broker who, vate real estate firm Beck Street nization in July. It is fully leased to rose Development, the landlord of ago, has just signed on for its first along with colleague Robert Buck- Capital recently renewed its mar- tenants, including Bagel Bus and 300 Park Ave. South. Recently, U.S. store. The company entered ley, represented Ash.“This present- keting push for the sale of a portfo- lingerie shop La Petite Coquette. agency Wilhemina Models renewed into a 10-year lease for 2,800 square ed an opportunity to do something lio of six retail condos on Bleecker —adrianne pasquarelli its lease in the 15-story building. feet at 44 Mercer St., between See REAL ESTATE DEALS on Page 18

16 | Crain’s New York Business | September 27, 2010 Project2:fp template.qxd 9/21/10 12:17 PM Page 1

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Member FDIC. ©2010 HSBC Bank USA, N.A. U.S. persons should consult a tax adviser for more information. obligations with respect to their of U.S. Foreign Bank and(Report non-U.S. (including,accounts for example, TD Form F 90-22.1 United in connection with your independent tax advisor. and are subject to investment risk, bank Not or FDIC insured any or ofits affiliates; insured by any federal government agency ofNot guaranteed the United States; OE67746. License#: conductsInc.,insurance SecuritiesHSBCServices. business asInsurance CommissionMerchant, awholly-owned Securities and Annuity products the full $100,000 balance requirement. Eligibility requirements may apply for some gift choices. (“Existing Balances”). A monthly maintenance fee ofw $50.00 Offer(s) valid when you be States perStates sons (including U.S. citizens and residents) are subject to U.S. taxation on their worldwide income and may be subject to tax a tax to subject be may and income worldwide their on taxation U.S. to subject are residents) and citizens U.S. (including sons a planned gin a new personal Premier relati Premier gin personal a new | customers upgrading to Premier, new money must be 7 2010 27, September are provided by Registered Representatives and Insurance Agents of HSBC Securities Inc.,a(USA) registmember NYSE/FINRA/SIPC, including possible loss of principal invested. All decisions regarding the tax implications of your investment(s) should be mad All ofdecisionsincluding principalloss implications yourof possible the regarding invested. tax investment(s) subsidiary of subsidiary square at feet deal forabout11,500 signeda10-year firms, sulting forfinancial incon- specializes which rent midtown quarters. 40% largerthanitscur- lease spacethat’s roughly where itwill Building, moving totheGraybar is porate InsightInc. the companytocreate aspecialarea streets. 43rd andEast44th o Ave. ton qualify for for qualify REAL ESTATE DEALS Corporate Insight, Corporate The additionalspacewillallow , between East between , HSBC Markets (USA) Inc. and an indirectly wholly-owned subsidiary of HSBC Holdings plc. In California, HSBC Securities (USA) Holdings(USA) SecuritiesInCalifornia,plc.HSBC ofHSBC subsidiary indirectlywholly-owned anand Inc. Markets(USA) HSBC HSBC Premierstatus, you need toopen a Pre commer onship in the United States funded in new money from September 20, 2010 to November 19, 2010. Please speak with a bank 420 Lexing- 420 ill be incu ill be cial bala rred if mini nces to or visit Stop by your nearest branch, call November 19, 2010 and receive a special gift. Start a Premier relationship with a qualifying balance by building you Are toyour extend you toinvestinyourchildren’s the Premier futures. And, benefitsof HSBC Inc. to a Financial develop a strategy enabling Advisor from HSBCSecurities (USA) to helpyoumeetyourfinancialgoals. Your Relationship willworkwith Manager knowledgeinover40 countries andterritories to provide you with on-the-ground With HSBC Premier, a Relationship Manager will work with a ofprofessionalsteam 420 Lexington Ave. in qualify for a personal Premier relati Premier a personal for qualify rements requi aremum balance not maintained. You have up to 90 days after account opening to meet addition to existing deposit and investment asbalances of closethe of busi hsbcpremierusa.com/network cations. spacetothecompany’s specifi- the SLGreen isbuildingout needs. Securities and Annuity Products are: Not a deposit or other obligation the of other or deposit a Not are: Products Annuity and Securities family aswell. mier Checking Account and maintain $100,000 in combined U.S. personal de personal U.S. combined in $100,000 maintain and Account Checking mier a life without boundaries? Woul to meethiscompany’s Corp.SL Green Realty willingness oflandlord andthe location central ofits building because tothe wasdrawn firm Ellison. Michael companyPresidentsays ious financialcompanies, ofvar- online capabilities consumer websitesand test will which groups, where hostfocus itcan Mr. Ellison says his says Ellison Mr. onship, but these balances cannot be used to meet the new money 866 375-6661 1 and Financial Accounts (“FBAR”)). (“FBAR”)). and Financial Accounts , by the bank or any of its affiliates; bythe bank or affiliates; anyits of yAhe e,avicepresident. by AshleyGee, SL Green wasrepresented in-house andStephen Winter.Scott Sloves brokers ed byCBRichardEllisInc. $45 asquare foot. signed tomyneeds.” Iwantitde- signing a10-yearlease, I’m “If heexplains. else’s design,” space you are dealingwithsomeone in subleasedspaceat675 Third Ave. Insightiscurrently that Corporate noting Ellison, Mr. says deal done, d you like to? like d you Corporate Insightwasrepresent-Corporate The askingrent forthedealwas you are insubleased “When togettingthe That wascritical ness on September 17, 2010 —theresa agovino—theresa PLUS nd other filing filing other nd ered Futures posit e 1375 Broadway er level of er level lease for600square inthelow- feet signeda10-year recently treats, known forhishigh-endcookiesand chocolatier the Jacques Torres, temporarily.chocolate—but only center rockefeller at 30 Rock New chocolatier bling itsspaceat micro office solutions doubles space Office suites outfit small businesscustomers. small company’s officesuitesfrom its meet increasing demandforthe West building. 20thStreet Properties managesthe Olmstead while West building, 27thStreet managesthe International Colliers district. intheFlatiron 20th St. W. Chelsea and6,000square feetat36 in 27thSt. square at122 feet W. complex agreements. or space withoutanyhiddenfees amountsofoffice looking forsmall so theygototheseincubators.” tenant lookingfor800square feet, brokers aren’t sokeentowork for a “Tenant tenant andthelandlord. negotiated onbehalfofboththe Meyer Marty who withcolleague International, Mesmer ofColliers Perry says term leasesornoleases,” doshort- can they 800 square feet, square-foot thirdfloor. the buildingforentire 22,000- with thetenant’s in existingcontract coincide leasewill Thenew foot. represented in-house. holiday rush. intimeforthe week ofNovember, shouldbeopenthefirst the Rock, isneartheexitfromwhich Top of hesays. to openmore stores,” like tocome.“They’d leasing activity resented Mr.Torres,says there’s more Knight Frank Retailbroker whorep- aswell. Chelsea Market, inthe signed onforalocation he thisyear, Earlier and inDumbo. dam Avenue andHudsonStreet, hasshopsonAmster- who currently Torres,up expansionplanfrom Mr. $250 asquare foot. Theaskingrent was va Chocolate. leasedtoGodi- space wasformerly The companysigneda15-year The companyalsoleases20,000 Micro Officetargets companies you needanofficeorasuiteof “If Landlord Tishman Speyer was Speyer Tishman Landlord Centerstore, The Rockefeller theNewmark Ross Kaplan, ofaramped- spotispart The new —adrianne pasquarelli 30 Rockefeller Plaza Rockefeller 30 —marine cole—marine 1375 Broadway 1375 tet was $36 asquare Street, West at 37th building, space inthe rent forthe The asking Enterprises. Court State owned by the building, square in feet 21,800 additional lease foran is givingup is dou- The . to 20100927-NEWS--0019-NAT-CCI-CN_-- 9/23/2010 7:05 PM Page 1

ACCOUNTING INSIDE He’s the accountants’ accountant Q&A with Baruch guru P. 20 Beyond tax returns Wanted: higher margins. Wealth management, anyone? P. 22 List NY’s largest accounting firms P. 24

philip anderson Gobbling up small fry

Those various reasons are all NY AREA Mattia of Edison, N.J., to create An M&A wave for accounting firms too familiar to the leaders of other CPA FIRM the 14th-largest accounting firm small and midsize accounting in the nation. One reason that as partners age and recession takes its toll firms: aging partners and growing MERGERS merger made sense, observers say, financial pressures made worse by is that it was a quick way to grow at ’01 4 the recession. Those factors, along a time when winning new cus- BY STEVE GARMHAUSEN with a drive among midsize firms tomers is slow and difficult. to expand their territory, have cre- ’02 10 At the root of the M&A surge ith 500 clients, a strong niche business ated an M&A boom in account- is the industry’s demographics. A ’03 and a history dating from 1918, Freeman & ing. 12 wave of baby-boomer partners are Over the past three years, ac- approaching retirement age— Davis might have seemed like a secure little counting firms in the New York ’04 8 more than 60% of them are at least accounting firm. metropolitan region have been 60 years old—and if there are no Its six partners, however, didn’t think combining like crazy. Between ’05 14 obvious successors in a firm,merg- so.Two were nearly ready to retire, and the 2000 and 2006, mergers averaged ing can be the only decent exit eight a year. That number jumped ’06 7 strategy for partners who want to firm had no candidates to replace them. to 31 in 2007, followed by 26 in wind down their involvement or both 2008 and 2009, according to cash out. What’s more, the growing pressure on fees meant there wasn’t enough ’07 31 cash for things like sorely needed technology upgrades. consulting firm RF Resources. If aging partners don’t merge W There have been at least 12 so far their firms while the market is re- In the spring of 2009,having decided the business could not continue this year. ’08 26 ceptive, they will be faced with to stand on its own, the partners agreed to combine with Wiss & Co. Most of the deals involve mid- holding a fire sale late in their lives, in Livingston, N.J. size firms snapping up small prac- ’09 26 or “running the business into the “For various reasons, we felt it was high time to look to merge,” says tices. But the most recent deal, in ground,”says Mark Goodman,co- mid-August, was a merger of ’10* 12 managing partner of Garden City, Arthur Schwartzman, a Freeman & Davis partner who now has the equals: Manhattan-based Eisner L.I.-based Janover, which bought *As of mid-August. same title with Wiss & Co. merged with Amper Politziner & Sources: RF Resources, Crain’s research See GOBBLING on Page 21

September 27, 2010 | Crain’s New York Business | 19 20100927-NEWS--0020,0021-NAT-CCI-CN_-- 9/23/2010 7:06 PM Page 1

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To succeed today, a business person must have complete faith in the advice that he or she receives in order to act with confidence. At Rothstein Kass, our advice does not come pre-packaged or off the shelf. Here’s what’s ahead It is always specific, highly focused and grounded in the realities of your business. Whether the state of the economy is tranquil, fluid or turbulent, you can rely on Rothstein Kass to help identify, protect and advance your company’s interest. in changing industry

Rothstein Kass is a premier professional services firm that has served privately held and publicly traded companies, individuals, and families for over 50 years. Beyond audit and tax services, the firm provides a That was Accounting guru probably on the full array of integrated services, including strategic business counseling, regulatory compliance and SEC discusses standards, minds of people advisory services, insurance and risk management consulting and family office services. at the FASB sees improvement when they If you understand the value of a skilled and trusted advisor and would like to find out how Rothstein Kass can made their assist you, contact Steven Kass, Co-CEO and Co-Managing Principal, at 973.994.6666 or [email protected]. decision BY AARON ELSTEIN concerning banks. AUDIT TAX ADVISORY ouglas carmichael is a former chief au- levinekarjean Q: The top Beverly Hills Douglas Carmichael Dallas ditor of the Public position at FASB Denver Company Account- is vacant. What Grand Cayman ing Oversight Board are the most important tasks for the New York and a member of its standing adviso- next chairman? Orange County D Roseland ry group, so when he speaks, ac- A: One of the most difficult tasks San Francisco countants listen.Among the govern- is convergence with the Walnut Creek ment agencies he’s consulted with on International Accounting www.rkco.com accounting matters are the Securities Standards Board. Everyone says, and Exchange Commission,the U.S. “We want convergence at a high- Department of Justice and the Fed- quality standard,” but it’s difficult to eral Trade Commission.He’s also the avoid concessions that reduce the Claire and Eli Mason professor of quality of accounting for the sake of accountancy at Baruch College’s convergence.There are questions Zicklin School of Business. whether IASB is under too much control by the European Q: In the last bear market, Commission. My belief is the new accountants were front and center in FASB chairman should resist scandals like Enron and WorldCom, pressure for convergence too but nothing like that has happened quickly and only make steps that during the present downturn. How result in high-quality accounting. you do explain that? Another issue is the need to re- A: Well, the Sarbanes-Oxley Act examine the move to fair-value did succeed in making auditors accounting. If you move too quickly more diligent. And I think PCAOB and broadly into valuing assets at inspections [of accountants’ work] their fair market value, you risk have resulted in important sacrificing the reliability you get improvements, too. It’s logical to valuing them at historic cost.The think if accountants know their move to fair-value accounting is work will be checked closely by an particularly important concerning outside party, they’ll do a better job. revenue recognition, which is where It’s interesting that a decade ago, the FASB is doing work now. It is accountants were criticized for not looking at ways of permitting letting investors know there were companies to recognize revenue problems at companies; now they before a product or service is get blamed for forcing huge delivered, so long as a fair-value companies to take huge write- estimate of the revenue is used. downs. In other words, accountants Anything that makes tradeoffs were blamed before for not being between relevance and reliability tough enough; now, they’re blamed concerning revenue recognition for being too tough. worries me.That’s because in the past, we’ve seen fraudulent Q: Were you disappointed by the reporting overwhelmingly due to Financial Accounting Standards misapplication of principles on Board’s decision to suspend fair-value revenue recognition. accounting for financial institutions when the markets got difficult? Q: Do you think the accounting A: I was, but I understand the profession is generally better than it pressure the FASB was under. was a decade ago? Congress was really pushing for the A: One of the most encouraging suspension; the risk was that the things I’ve seen involves the FASB would become irrelevant as a accounting fraud at Royal Ahold [a standard-setting organization if it Dutch supermarket conglomerate]. didn’t comply.There’s precedent for Their auditors at Deloitte got that sort of thing: Years ago, oil and questionable answers from the gas companies got angry with how company, so the people at Deloitte the FASB pushed them to make went to their higher-ups, and they their accounting more transparent, detected the fraud.This is how it’s so the companies lobbied Congress, supposed to work. Accounting can’t which pressured the SEC not to unveil the full dimensions of accept the FASB’s accounting corporate fraud, but it can detect it standards for oil and gas companies. by using professional skepticism.

20 | Crain’s New York Business | September 27, 2010 20100927-NEWS--0020,0021-NAT-CCI-CN_-- 9/23/2010 7:06 PM Page 2

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backlog of firms that want to merge With limited resources, they must but are sitting on the sidelines.Their keep pace with technology, stay Gobbling up the smaller fry reasoning? They believe they will be abreast of ever-more-complex rules, able to command better deals if they and apply new accounting standards Continued from Page 19 absorb another firm and its clients. advises firms in M&A and other ar- wait until an economic re- as their clients go global. two succession-challenged prac- That’s what Janover is looking to do. eas.“They want good staff, good lo- bound bolsters revenues. And yet, there’s broad tices in 2007. And because of the weak economy cations and niche businesses.” That approach may backfire, 20% agreement that as long as For Freeman & Davis, a 30-em- and the pressure on fees, it’s become Mr. Fligel warns, if all these DROP in there are small businesses, ployee firm based in Manhattan,the When the M&A smoke clears firms enter the market at once amount needed a buyer’s market, especially when to acquire a there will be small account- issue of leadership loomed large. It the sellers are plain-vanilla tax and businesses with profitable niches, and create a glut of sellers. firm, compared ing firms. lacked obvious in-house successors accounting firms.Prices are down as such as forensic work, litigation and When the smoke from with 5 years ago “A glass manufacturer in who were willing and able to take much as 20% compared with five business valuation, are finding that the current cycle of mergers Long Island City, Queens, over the firm.Indeed,would-be suc- years ago, and buyers are being they don’t have to accept the dis- clears, there are likely to be far fewer with $2 million a year in sales is not cessors must be triple threats, with much more selective. counted pricing being dictated by ac- small accounting practices, experts going to want to be handled by Eis- the ability to buy out retiring part- “Now they want more than just quirers (see the story on Page 22). say. Even without the one-two nerAmper, or anyone close to that ners, run the business and bring in the revenue,” says Robert Fligel, As much as merger activity has punch of recession and succession, size,” says Mr. Fligel. “They’ll get new clients. president of RF Resources, which picked up, there still appears to be a such firms face special pressures. lost in the shuffle.” “Finding partner-quality people is not easy,” says Mr. Schwartzman, who is in his late 50s and plans to retire in seven or eight years Increasing financial pressures are also driving more firms to the altar. Sigmund Balaban & Co., a three- partner, 12-employee firm, agreed late last year to merge with Manhat- tan-based Resnick Druckman Group, in large part because the firm lacked the resources to grow on its own.As a small independent firm that mostly did straightforward, commodity-type tax work,63-year- old Sigmund Balaban could not af- ford to hire the additional people and expertise it needed to expand the business. Now, coupled with Resnick Druckman, the firm can give clients access to a broader range of expertise. Similarly, when Freeman & Davis’ employees merged with Wiss, the firm was finally able to go paperless,using slender laptop com- puters instead of the stacks of heavy binders employees used to carry around to clients’ offices. “Will you see a lot more deals like this? Yes,” says Jeffrey Resnick, managing partner at Resnick Druckman, which acquired two firms last year, one of which was led by two partners who are now 70 and 80, respectively. Clients go out of business for acquirers, too, mergers are one way to deal with shrinking profit margins. Accounting firms have suffered as the recession has put many of their clients out of business. What’s more, recession-hit clients are demanding price breaks from their accountants and frequently shopping their business to at least half a dozen firms. Cash-strapped businesses are looking at accounting services as “a necessary evil and a place to cut costs,” says Mark Bosswick, a partner with Berdon in Manhattan. Adds Janover’s Mr. Goodman:“I find us doing more work for less money. And if you’re not willing to do it, someone else will.” That “someone else” is often a larger firm, whose recession discounts can be a sore spot among their smaller counterparts. Making matters worse, some kinds of high- margin work have frozen up alto- gether. Transactional business, the work associated with corporate mergers and acquisitions or real estate refinancing, for example, has been a casualty of the recession. One way for small and midsize firms to offset the revenue loss is to

September 27, 2010 | Crain’s New York Business | 21 20100927-NEWS--0022,0023-NAT-CCI-CN_-- 9/23/2010 5:13 PM Page 1

The place for CRUNCHING Specialties adding v NUMBERS Firms turn to profitable niches like forensic OCEAN PLACE. THE PLACE FOR MEETINGS. accounting, divorce, wealth management Trade your boring meetings, boardrooms and cubicles for a ballroom with a view of the Atlantic Ocean wise. “Having these other areas has BY STEVE GARMHAUSEN helped bring stability.” says Mr. and team building activities on the beach - how’s Goodman. that for motivating your team? Shake up your next it’s tough for any accounting firm Meanwhile, estate planning for group meeting, corporate retreat or training event by to negotiate a weak economy. But business owners has been a reces- bringing your group to Ocean Place Resort & Spa and it’s even harder for those that offer sion-era boon for Berdon.The firm’s see what a difference a little salt air can do. Not to only tax preparation and auditing, estate planning business—it devel- mention, what accountant wouldn’t be happy with our two services that have become low- ops plans but lets law firms draw up low Winter CMP rates? margin commodities. One way the legal documents—has tripled small and midsize firms have made during the recession. The niche is themselves more recession-proof is booming in part because business CMP RATES FROM $199* by diversifying into profitable owners, being less busy, have turned niches such as forensic accounting, more of their attention to personal Low Winter Rates on Winter Dates divorce work and affairs, says Mark even wealth man- Bosswick, a partner ON SELECT MEETING DATES FROM The estate NOVEMBER 2010 THRU FEBRUARY 2011. agement. with Berdon. “Getting into Having a strong these other areas adds planning niche business can value for clients, and also make a firm more it also gives you addi- field is attractive to would- tional protection,” be acquirers, as Free- says Mark Good- booming man & Davis learned

LONG BRANCH, NEW JERSEY man, co-managing last year. Among its 800.411.7321 • WWW.OCEANPLACE.COM partner of Janover. services, the firm ad- Janover brought vises more than 200

Some restrictions apply. Blackout dates apply. See website for full list of applicable dates. Offer not valid on previously booked group business. Blackout dates apply. Some restrictions apply. in a specialist part- businesses about how ner last year to focus to tap into govern- on bankruptcy work and to expand ment incentives. The niche is a big its forensic accounting practice, reason Freeman & Davis got good which involves detailed digging terms when it agreed to merge into through records in the wake of a Wiss & Co.in Livingston,N.J.,says theft, say, or prior to an acquisition. Arthur Schwartzman, a Freeman & Davis partner who is now a partner New services with Wiss & Co. the new and expanded business- One way accounting practices es have already attracted a dozen as- can enter niche businesses, of signments for Janover,some of them course, is by acquiring them. It’s a worth six figures. What’s more, the quick way of diversifying a menu of firm has a small but growing busi- services, but it’s also a shortcut to ness helping divorcing couples di- new clients, which are hard to come vide their assets less expensively by in a weak economy. than they would by duking it out Last year, Manhattan-based through their lawyers. Mitchell & Titus bought a 10-per- Janover’s niche specialties have son practice from Ernst & Young helped it fare much better during the that evaluates the risks firms take in downturn than it would have other- marketing and advertising.The new

BUYING IN: Anthony Kendall says the acquisition of a practice that evaluates risk has brought Mitchell & Titus “a significant number of new clients.”

22 | Crain’s New York Business | September 27, 2010 20100927-NEWS--0022,0023-NAT-CCI-CN_-- 9/23/2010 5:14 PM Page 2

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SHIFT HAPPENS g value, and more business Between 2003 and 2010, New York’s largest accounting firms moved away from auditing and accounting and toward more profitable services. The percentage of management advisory services professionals saw the greatest boost over the seven-year span, while the percentage of tax professionals remained relatively constant. —BRIAN CHAPPATTA practice is a profitable one that com- that clients’ investments are prop- build their customer and asset bases, plements the firm’s other services, erly diversified. But it draws the in part by courting accounting firms and it has brought Mitchell & Titus line at recommending particular as referral partners, says Berdon’s “a significant number of new investments, and it does not accept Mr. Bosswick. clients,” says Anthony Kendall, the commissions from asset managers He points to Kenneth Starr, the firm’s chief executive. in return for steering client money accountant indicted in June for al- Perhaps the most lucrative and their way. legedly running a $59 million Ponzi controversial area that accounting There is ample temptation for scheme, as a cautionary tale about firms have delved into is wealth man- accounting businesses to jump into conflicts of interest. agement. Some firms refer clients to the business of referrals for commis- “We believe our role should be outside advisory firms and receive a sions.In the wake of the 2008 crash, limited to creating transparency and Percentages are rounded. Source: Crain’s research commission for doing so, and some asset managers are striving to re- giving evaluations,” he says. manage clients’ assets in-house. Tapping into wealth until several years ago,industry standards aimed at avoiding conflicts of interest barred certified public accountants from taking commissions for anything,especially investments. Once the Financial Accounting Standards Board re- laxed its rules, accounting firms saw wealth management as a potential new source of revenue, says Robert Fligel, M&A consultant to accounting firms. by providing expert accounting services They also saw it as a way to make their companies more valuable: Wealth management businesses sell by minimizing your taxes for far more than accounting businesses do. Even as wealth management by maximizing your personal wealth services have become more common among smaller and midsize accounting firms, they have remained by identifying tax planning opportunities a controversial niche.Janover,which got into the business in 1999, be- helping your business lieves offering wealth management is a benefit to clients who know and in a by listening to your needs trust the firm and don’t have the grow time to hunt for a separate, trust- worthy, financial planner, says Mr. by understanding your goals Goodman. challenging “We believe whatever controver- sy there was will die over time,” he economy says. Berdon has a different view.The firm provides only limited wealth by developing an effective business plan management services, making sure

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September 27, 2010 | Crain’s New York Business | 23 20100927-NEWS--0024,0025,0026,0027-NAT-CCI-CN_-- 9/24/2010 8:49 PM Page 1

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Employment in the Accounting Field The Big Four’s Share Total NY Area Professionals The number of jobs in the accounting sector in New York City As expected, the four largest firms account for more than The number of area professionals at the top 25 firms declined dropped by more than 2,900 professionals in August from a two-thirds of the professionals employed by all 25 firms on by 745 people versus year-earlier levels. The decline was not as year ago. Figures are in thousands. this year’s list. significant as the 1,929 jobs lost between 2008 and 2009.

90 New York City 80.5 Top 25 total: 26,879 75 New York state 27,624 26,879 52.5 -2.7% 60 28.9% 45 7,765 30 All Others 71.1% 15 19, 114 1991 2000 2010 Big four 2009 2010 Figures are for August of each year. Jobs Include accounting, tax preparation, bookkeeping and payroll services. Source: NYS Department of Labor (as of June 30) (as of June 30) New York Area’s Largest Accounting Firms Ranked by number of area professionals

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26 | Crain’s New York Business | September 27, 2010 20100927-NEWS--0024,0025,0026,0027-NAT-CCI-CN_-- 9/24/2010 8:50 PM Page 4

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September 27, 2010 | Crain’s New York Business | 27 nb39p28-29cl.qxp 9/24/10 8:50 PM Page 28

EVENT PUBLIC & LEGAL NOTICES

Mercer is conducting an exclusive, Notice of Qualification of AGA 15th Notice of Qualification of FAIRCHILD Notice of Qualification of SOURCERY Notice of Qualification of Civic Capital highly interactive one-day M&A Street, L.L.C. Authority filed with NY ONSHORE FUND LP. Authority filed SOLUTIONS LLC. Authority filed with Advisors, LLC. Authority filed with Dept. of State on 6/11/10. Office with Secy. of State of NY (SSNY) on Secy. of State of NY (SSNY) on NY Dept. of State on 9/10/10. Office Corporate Cultural Integration location: NY County. Princ. bus. 09/09/10. Office location: NY County. 08/03/10. Office location: NY County. location: NY County. LLC formed in MasterClass on 16 Nov 2010. addr.: 245 Park Ave., 26th Fl., NY, NY LP formed in Delaware (DE) on LLC formed in Delaware (DE) on DE on 8/25/10. NY Sec. of State www.mercer.com/culturemasterclass 10167. LLC formed in DE on 6/2/10. 08/11/10. Princ. office of LP: 1350 Ave. 06/25/10. Princ. office of LLC: 360 designated agent of LLC upon whom NY Sec. of State designated as agent of the Americas, 9th Fl., NY, NY 10019. Madison Ave., 18th Fl., NY, NY 10017. process against it may be served and of LLC upon whom process against it SSNY designated as agent of LP SSNY designated as agent of LLC shall mail process to the principal may be served and shall mail process upon whom process against it may upon whom process against it may business address: 60 Collister St., to: c/o CT Corporation System, 111 be served. SSNY shall mail process be served. SSNY shall mail process Apt. 3A, NY, NY 10013. DE address of REAL ESTATE 8th Ave., NY, NY 10011, regd. agent to Corporation Service Co., 80 State to c/o Zachary Wydra, Beck Mack & LLC: c/o The Corporation Trust Co., upon whom process may be served. St., Albany, NY 12207-2543. Name Oliver at the princ. office of the LLC. 1209 Orange St., Wilmington, DE DE addr. of LLC: The Corporation and addr. of each general partner are DE addr. of LLC: 2711 Centerville 19801. Cert. of Form. filed with DE OFFICE SPACE Trust Co., 1209 Orange St., available from SSNY. DE addr. of LP: Rd., Ste. 400, Wilmington, DE 19808. Sec. of State, 401 Federal St., Dover, Wilmington, DE 19801. Arts. of Org. 2711 Centerville Rd., Wilmington, DE Arts. of Org. filed with DE Secy. of DE 19901. Purpose: any lawful activity. Wall Street filed with DE Sec. of State, 401 19808. Arts. of Org. filed with Secy. State, P.O. Box 898, Dover, DE Federal St., Dover, DE 19901. of State of DE, John G. Townsend 19903. Purpose: Any lawful activity. Notice of Formation of Remedy Boutique Law Firm in Class A space on Purpose: any lawful activity. Bldg., 401 Federal St., Dover, DE Hospitality Group LLC. Arts. of Org. Wall Street with federal and state 19901. Purpose: Any lawful activity. Notice of Formation of Hester Street filed with NY Dept. of State on commercial litigation and related Notice is hereby given that a license, LLC. Art. of Org. filed with Secy. of 8/2/10. Office location: NY County. bankruptcy practice seeks comparable number 1247222 for liquor has been Notice of Formation of GENESEO State of NY (SSNY) on 07/23/2010. Sec. of State designated as agent of firm of highly credentialed attorneys applied for by the undersigned to sell HIGHLANDS INVESTOR, L.P. Cert. Office location: NY Co. SSNY LLC upon whom process against it having at least a $ 1 million, compatible, liquor at retail in a wine bar and cafe of LP filed with Secy. of State of NY designated as agent of LLC upon may be served and shall mail low cost income book of business under the Alcoholic Beverage Control (SSNY) on 08/25/10. Office location: whom process against it may be process to the principal business addr.: 350 William St., Scotch Plains, for potential expansion in collegial Law at 53 Irving Place, New York, NY County. Princ. office of LP: 60 served. SSNY shall mail process New York County for on premises to the LLC, 113 Hester Street, NJ 07076. Attn: John J. Roder, Jr. environment; Opportunities beginning Columbus Circle, 18th Fl., NY, NY consumption. H.O.C Wine Inc. d/b/a 10023. Latest date on which the LP New York, NY 10002. Purpose: Purpose: any lawful activity. with counsel and referral arrangements Pierre Loti Wine Bar & Cafe may dissolve is 12/31/2110. SSNY any lawful act or activity. and space sharing. Contact managing designated as agent of LP upon 1559 LEXINGTON AVENUE REALTY, partner at [email protected]; Notice of Qualification of Spring whom process against it may be Notice of Formation of 501 Madison- LLC a domestic Limited Liability principals only. Studios New York, LLC. Authority served. SSNY shall mail process to Sutton LLC. Arts. of Org. filed with NY Company (LLC), filed with the Sec of filed with NY Dept. of State on c/o Corporation Service Co., 80 Dept. of State on 7/22/2010. Office State of NY on 6/17/10. NY Office 8/9/10. Office location: NY County. State St., Albany, NY 12207. Name location: NY County. Sec. of State location: New York County. SSNY is Princ. bus. addr.: 50 Varick St., NY, and addr. of each general partner are designated agent of LLC upon whom designated as agent upon whom TELECOMMUNICATIONS NY 10013. LLC formed in DE on available from SSNY. Purpose: Any process against it may be served and process against the LLC may be 8/4/10. NY Sec. of State designated lawful activity. shall mail process to the principal served. SSNY shall mail a copy of as agent of LLC upon whom process business addr.: 1185 Park Ave., NY, any process against the LLC served against it may be served and shall Notice of Formation of 234 Starr NY 10128, Attn: Grace S. Sutton, upon him/her to The LLC, 351 E. mail process to: c/o CT Corporation Street Developers LLC. Arts. of Org. regd. agent upon whom process may 61st St., #10C, NY, NY 10065. System, 111 8th Ave., NY, NY 10011, filed with Secy. of State of NY (SSNY) be served. Term: until 12/31/2060. General Purposes. regd. agent upon whom process may on 7/29/10. Office location: NY Co. Purpose: any lawful activity. be served. DE addr. of LLC: c/o The SSNY designated as agent of LLC Notice of Formation of NAMM FAMILY Corporation Trust Co., 1209 Orange upon whom process against it may CC REALTY SERVICES LLC, a ASSOCIATES, LLC. Arts. of Org. filed St., Wilmington, DE 19801. Cert. of be served. SSNY shall mail process domestic Limited Liability Company with Secy. of State of NY (SSNY) on Form. filed with DE Sec. of State, to: 110 Third Ave., Apt. 21C, NY, NY (LLC) filed with the Sec of State of 08/03/10. Office location: NY County. 401 Federal St., Dover, DE 19901. 10003. Purpose: any lawful activities. NY (SSNY) on 7/16/10. NY office Princ. office of LLC: 875 Park Ave., Purpose: any lawful activity. Location: New York County. SSNY is #10A, NY, NY 10075. SSNY desig- Notice of Formation of VETRINA designated as agent upon whom nated as agent of LLC upon whom Notice of Qualification of Aqueduct NEW YORK LLC. Arts. of Org. filed process against the LLC may be process against it may be served. Operator LLC, Authority filed Sec’y with Secy. of State of NY (SSNY) on served. SSNY shall mail a copy of SSNY shall mail process to c/o of State (SSNY) 7/1/10. Office loc.: 09/03/10. Office location: NY County. any process against the LLC served Andrew Namm at the princ. office of NY County. LLC org. in DE 6/25/10. SSNY designated as agent of LLC upon him/her to The LLC, c/o the LLC. Purpose: Any lawful activity. SSNY desig. as agent of LLC upon upon whom process against it may Clemente Cohen, 49 E. 86th St., NY, whom process against it may be be served. SSNY shall mail process NY 10028 General Purpose NOTICE OF FORMATION OF LIMITED served. SSNY shall mail copy of to Vincenti & Vincenti, P.C., 80 Broad LIABILITY COMPANY. NAME: ALL proc. to c/o Nat. Reg. Agents, 875 St., Ste. 1200, NY, NY 10004. Notice of Formation of GLUTTONY MY BIDS L.L.C. Articles of Organization Ave of the Americas, NY, NY 10001, Purpose: Any lawful activity. NEW YORK LLC, a domestic LLC. were filed with the Secretary of State the Reg. Agt. upon whom proc. may Arts. of Org. filed with the SSNY on of New York (SSNY) on 08/12/10. be served. DE office addr.: 160 Notice of Formation of Pennant 08/26/2010. Office location: NY Office location: New York County. Greentree Dr., Ste. 101, Dover, DE County. SSNY has been designated SSNY has been designated as agent 19904. Cert. of Form. on file: SSDE, General Partner, L.L.C., Art. of Org. filed Sec’y of State (SSNY) 8/4/10. as agent upon whom process against of the LLC upon whom process Townsend Bldg., Dover, DE 19901. the LLC may be served. SSNY shall against it may be served. SSNY shall Purp.: any lawful activities. Office location: NY County. SSNY designated as agent of LLC upon mail a copy of process to: 231 15th mail a copy of process to the LLC, PUBLIC & LEGAL whom process against it may be St Apt. #3A, Brooklyn, NY 11215. 36 West 20th Street, 3rd Floor, New Notice of Qualification of Oskie served. SSNY shall mail copy of Purpose: Any Lawful Purpose. York, New York 10011. Purpose: For NOTICES Partners, LP, Authority filed Sec’y of process to 152 W. 57th St., 19th Fl., any lawful purpose. State (SSNY) 8/10/10. Office loc.: NY NY, NY 10019. Purpose: any lawful Notice of Formation of 555 WEST County. LP org. in DE 8/6/10. SSNY activities. 23RD PROPERTIES, LLC. Arts. of Notice of Formation of TAMARA YORK Notice of Formation of GWB DEVEL- desig. as agent of LP upon whom Org. filed with Secy. of State of NY PUBLIC RELATIONS, LLC. Arts. of OPMENT PARTNERS, LLC. Arts. of process against it may be served. (SSNY) on 08/13/10. Office location: Org. filed with Secy. of State of NY Notice of Formation of INTERCON- Org. filed with Secy. of State of NY SSNY shall mail copy of proc. to 10 NY County. SSNY designated as (SSNY) on 05/05/10. Office location: NECTED LIFE LLC. Arts. of Org. filed (SSNY) on 06/30/10. Office location: E. 53rd St., 31st Fl., NY, NY 10022. agent of LLC upon whom process NY County. SSNY designated as with Secy. of State of NY (SSNY) on NY County. Princ. office of LLC: 250 DE office addr.: CSC, 2711 Centerville against it may be served. SSNY shall agent of LLC upon whom process 07/12/10. Office location: NY County. W. 57th St., Ste. 1120, NY, NY 10107. Rd., Wilmington, DE 19808. Cert. of mail process to the LLC, 24 Altamont against it may be served. SSNY shall SSNY designated as agent of LLC SSNY designated as agent of LLC LP on file: SSDE, Townsend Bldg., Ct., Morristown, NJ 07960. Purpose: mail process to Corporation Service upon whom process against it may upon whom process against it may Dover, DE 19901. Name/addr. of Any lawful activity. Co., 80 State St., Albany, NY 12207- be served. SSNY shall mail process each gen. ptr. avail. at SSNY. Purp.: be served. SSNY shall mail process 2543, regd. agent upon whom and at to c/o Kudman Trachten Aloe LLP, to the LLC at the addr. of its princ. any lawful activities. Notice of Qualification of APOLLO which process may be served. office. Purpose: Any lawful activity. 350 Fifth Ave., Ste. 4400, NY, NY Purpose: Any lawful activity. 10118. Purpose: Any lawful activity. CREDIT MANAGEMENT II, L.P. Notice of Qualification of BROOKFIELD Authority filed with Secy. of State of Notice of Qualification of Richard HH GP LLC. Authority filed with NY (SSNY) on 07/30/10. Office loca- Notice of Qualification of BROOKFIELD Bernstein Advisors LLC. Authority Secy. of State of NY (SSNY) on Notice of Qualification of STEPH-JIM, tion: NY County. LP formed in REAL ESTATE TURNAROUND FUND filed with Secy. of State of NY 09/16/10. Office location: NY County. L.L.C. Authority filed with Secy. of Delaware (DE) on 06/29/10. Princ. GP OF GP, LLC. Authority filed with (SSNY) on 6/28/10. Office location: LLC formed in Delaware (DE) on State of NY (SSNY) on 09/10/10. office of LP: Attn: John J. Suydam, 9 Secy. of State of NY (SSNY) on NY County. LLC formed in Delaware 09/01/10. Princ. office of LLC: c/o Office location: NY County. LLC W. 57th St., 43rd Fl., NY, NY 10019. 08/26/10. Office location: NY County. (DE) on 5/14/09. SSNY designated Brookfield Asset Management Inc., formed in Delaware (DE) on 09/07/10. SSNY designated as agent of LP LLC formed in Delaware (DE) on as agent of LLC upon whom process Three World Financial Center, 200 Princ. office of LLC: 350 Park Ave., upon whom process against it may 02/24/10. Princ. office of LLC: c/o against it may be served. SSNY Vesey St., 10th Fl., NY, NY 10281- 4th Fl., NY, NY 10022. SSNY desig- be served. SSNY shall mail process Brookfield Asset Management LLC, shall mail process to: c/o The LLC, 1021. SSNY designated as agent of nated as agent of LLC upon whom to the LP at the addr. of its princ. Three World Financial Center, NY, NY 520 Madison Ave., 28th Fl., NY, NY LLC upon whom process against it process against it may be served. office. Name and addr. of each gen- 10281-1010. SSNY designated as 10022, also the Principal Office. may be served. SSNY shall mail SSNY shall mail process to c/o eral partner are available from SSNY. agent of LLC upon whom process Address to be maintained in DE: c/o process to the LLC at the addr. of its Corporation Service Co. (CSC), 80 DE addr. of LP: c/o Corporation against it may be served. SSNY shall The Corporation Trust Company, princ. office. DE addr. of LLC: c/o State St., Albany, NY 12207-2543. Service Co., 2711 Centerville Rd., mail process to the LLC at the addr. of Corporation Trust Center, 1209 Corporation Service Co., 2711 DE addr. of LLC: c/o CSC, 2711 Ste. 400, Wilmington, New Castle its princ. office. DE addr. of LLC: c/o Orange St., Wilmington, DE 19801. Centerville Rd., Ste. 400, Wilmington, Centerville Rd., Ste. 400, Wilmington, Cnty., DE 19808. Arts. of Org. filed Corporation Service Co., 2711 Arts of Org. filed with DE Secy. Of DE 19808. Arts. of Org. filed with DE 19808. Arts. of Org. filed with DE with The Secy. of State of the State Centerville Rd., Ste. 400, Wilmington, State, Div. of Corporations, P.O. Box State of DE, Secy. of State, Div. of Secy. of State, Div. of Corp., 401 of DE, Dept. of State, Div. of Corps., DE 19808. Arts. of Org. filed with Secy. 898, Dover, DE 19903. Purpose: Corps., 401 Federal Bldg., Dover, DE Federal St., Dover, DE 19901. John Townsend Bldg., Dover, DE of State of DE, 401 Federal St., Dover, any lawful activities. 19901. Purpose: Any lawful activity. Purpose: Any lawful activity. 19901. Purpose: Any lawful activity. DE 19901. Purpose: Any lawful activity.

28 | Crain’s New York Business | September 27, 2010 nb39p28-29cl.qxp 9/24/10 12:45 PM Page 29

PUBLIC & LEGAL NOTICES

Notice of Qualification of Autumn Notice of Qualification of DWUWS NOTICE OF FORMATION of Wanclan NOTICE OF FORMATION OF Notice of Qualification of CYAN Games RS I, LLC. Authority filed with LLC. Authority filed with Secy. of Productions, LLC. Article of Organization Skywriting Media LLC. Article of Management Group LLC. Authority NY Dept. of State on 8/6/10. Office State of NY (SSNY) on 07/28/10. filed with the Secretary of State of Organization filed with the Secretary filed with Secy. of State of NY (SSNY) location: NY County. Princ. bus. Office location: NY County. LLC NY (SSNY) on 06/21/10. Office location: of State of NY (SSNY) on 4/26/2010. on 7/13/10. Office location: NY addr.: 54 Thompson St., 4th Fl., NY, formed in Delaware (DE) on NY County. SSNY has been desig- Office location NEW YORK County. County. LLC formed in Delaware (DE) NY 10014. LLC formed in DE on 07/19/10. Princ. office of LLC: c/o nated as agent upon whom process SSNY has been designated as agent on 2/26/10. SSNY designated as 8/2/10. NY Sec. of State designated Janover, LLC, 805 Third Ave. - 10th against it may be served. The Post upon whom process against it may agent of LLC upon whom process as agent of LLC upon whom process Fl., NY, NY 10022. SSNY designated Office address to which the SSNY be served. The Post Office address against it may be served. SSNY shall against it may be served and shall as agent of LLC upon whom process shall mail a copy of any process to which the SSNY shall mail a copy mail process to: c/o Corporation mail process to: c/o CT Corporation against it may be served. SSNY shall against the LLC served upon him is of any process against the LLC Service Company (CSC), 80 State St., System, 111 8th Ave., NY, NY 10011, mail process to the LLC at the addr. C/O the LLC 7014 13th Avenue, Suite served upon him/her is C/O the LLC Albany, NY 12207. DE address of regd. agent upon whom process may of its princ. office. DE addr. of LLC: 202, Brooklyn, NY, 11228. Purpose 72 Seaman Avenue 1C. New York, LLC: c/o CSC, 2711 Centerville Rd., be served. DE addr. of LLC: 1209 c/o Corporation Service Co., 2711 of LLC: to engage in any lawful act or NY 10034. Purpose of LLC: to Ste. 400, Wilmington, DE 19808. Arts. Orange St., Wilmington, DE 19801. Centerville Rd., Ste. 400, Wilmington, activity. Street address of Principal engage in any lawful act or activity. of Org. filed with DE Secy. of State, Cert. of Form. filed with DE Sec. of DE 19808. Arts. of Org. filed with Business location is: 250 E. 30th Street address of Principal Business 401 Federal St., Ste. 4, Dover, DE State, 401 Federal St., Dover, DE Secy. of State - DE, Div. of Corps., Street, Apt. 6B, New York, NY, 10016. location is: 72 Seaman Avenue 1C. 19901. Purpose: any lawful activity. 19901. Purpose: any lawful activity. John G. Townsend Bldg., 401 New York, NY 10034. Federal St., Dover, DE 19901. DIAMOND HILL PROPERTY HOLD- Notice of Formation of SCKB Partners Purpose: Any lawful activity. Notice of Formation of limited liability INGS LLC Articles of Org. filed NY Notice of Formation of JAZTB LLC. LLC. Art. Of Org. filed with Secy. Of company (LLC). Name: Derived Data, Sec. of State (SSNY) 8/3/2010. Arts. of Org. filed with Secy. of State State of NY (SSNY) on 6/21/10. LLC. Articles of Organization filed Notice of Formation of Carlton House Office in NY Co. SSNY desig. agent of NY (SSNY) on 08/04/10. Office Office Location: New York County. with Secretary of State of New York Development LLC. Arts. of Org. filed of LLC upon whom process may be location: NY County. SSNY designat- SSNY designated as agent of the LLC (SSNY) on 7/15/2010. NY office loca- with Secy. of State of NY (SSNY) on served. SSNY shall mail copy of ed as agent of LLC upon whom upon whom process against it may tion: New York County. SSNY has 7/13/10. Office location: NY Co. SSNY process to 24 O’Shea Lane, Summit, process against it may be served. be served. SSNY shall mail a copy of been designated as agent of the LLC designated as agent of LLC upon NJ 07901. Purpose: Any lawful pur- SSNY shall mail process to any process to: c/o Jerome H. upon whom process against it may whom process against it may be pose. Principal business location: 45 Corporation Service Co., 80 State St., Siegel, M.D., P.C., 60 East End Ave., be served. The post office address to served. SSNY shall mail process to: Park Ave., #1606 , NY, NY 10016. Albany, NY 12207, regd. agent upon New York, NY 10028. Purpose: To which SSNY shall mail a copy of any National Registered Agents, Inc., 875 whom and at which process may be engage in any lawful act or activity. process against the LLC served upon Ave. of the Americas, Ste. 501, NY, NY Notice of Formation of YTR SOLU- served. Purpose: Any lawful activity. him/her is: Oleg Doina, 866 United 10001. Purpose: any lawful activities. TIONS LLC. Arts. of Org. filed with Notice of Formation of WyThe Funding Nations Plaza, Ste 566, New York, NY Secy. of State of NY (SSNY) on Notice of Formation of PHELAN, LLC. LLC amended to Wythe Funding LLC. 10017. Purpose/character of LLC: Notice of Formation of 2861-2865 08/11/10. Office location: NY County. Arts. of Org. filed with Secy. of State Arts. of Org. filed with Secy. of State any business activity allowed by law. Broadway LLC. Art. of Org. filed with SSNY designated as agent of LLC of NY (SSNY) on 8/19/10. Office of NY (SSNY) on 7/29/10. Office Secy. of State of NY (SSNY) on upon whom process against it may location: NY County. SSNY designated location: NY County. SSNY designated 07/28/10. Office location: NY Co. be served. SSNY shall mail process as agent of LLC upon whom process as agent of LLC upon whom process NOTICE OF FORMATION OF Salem SSNY designated as agent of LLC to Corporation Service Co., 80 State against it may be served. SSNY shall against it may be served. SSNY shall Ginger LLC. Article of Organization upon whom process against it may be St., Albany, NY 12207-2543, regd. mail process to princ. bus. loc.: c/o mail process to: The LLC, 207 W. filed with the Secretary of State of served. SSNY shall mail process to the agent upon whom and at which The LLC, 144 E. 24th St., 5D, NY, NY 25th St., Ste. 602, NY, NY 10001. NY (SSNY) on 06/10/2010. Office LLC, c/o Humes & Wagner LLP, 147 process may be served. Purpose: 10010, Attn: Chris Ann Phelan. Purpose: any lawful activity. location NEW YORK County. SSNY Forest Ave., Locust Valley, NY 11560. Any lawful activity. Purpose: any lawful activity. has been designated as agent upon Purpose: any lawful act or activity. Notice of Formation of AMBASSADOR whom process against it may be NOTICE OF FORMATION OF LIMITED served. The Post Office address to NOTICE OF FORMATION OF LIMITED MEDIA SALES LLC. Arts. of Org. ACQUA RPS LLC App. for Auth. filed LIABILITY COMPANY. NAME: BRAND LIABILITY COMPANY. NAME: filed with Secy. of State of NY (SSNY) which the SSNY shall mail a copy of SPIRIT DESIGNS LLC. Articles of any process against the LLC served NY Sec. of State (SSNY) 8/25/2010. PLATINUM REAL ESTATE GROUP, on 12/02/09. Office location: NY LLC was organized on 8/13/2010 in Organization were filed with the LLC. Articles of Organization were filed County. SSNY designated as agent upon him/her is C/O the LLC 45 Secretary of State of New York (SSNY) West 60th St,, #5J. New York, NY DE. Office in NY Co. SSNY desig. as with the Secretary of State of New of LLC upon whom process against agent of LLC upon whom process on 07/30/10. Office location: New York (SSNY) on 08/27/09. The latest it may be served. SSNY shall mail 10023. Purpose of LLC: to engage York County. SSNY has been desig- in any lawful act or activity. Street may be served. SSNY to mail copy of date of dissolution is 12/31/2050. process to c/o the LLC, 245 W. 17th process to 110 Greene St., Ste. 1100, nated as agent of the LLC upon whom Office location: New York County. St., 2nd Fl., NY, NY 10011-5387. address of Principal Business loca- process against it may be served. tion is: Same as above. NY, NY 10012. Required office at SSNY has been designated as agent Purpose: Any lawful activity. 3500 S. Dupont Hwy., Dover DE SSNY shall mail a copy of process to of the LLC upon whom process 19901. Cert. of Org. filed with SSDE, the LLC, 330 East 48th Street, New against it may be served. SSNY shall Notice of Formation of RONAJ LLC. Notice of Qualification of AMBASSADOR 401 Federal St., Ste. 3, Dover DE York, New York 10017. Purpose: For mail a copy of process to the LLC, Arts. of Org. filed with Secy. of State PUBLICATIONS, LLC. Authority filed 19901. Purpose: Any lawful purpose. any lawful purpose. 250 West 57th Street, Room 1401, of NY (SSNY) on 07/21/10. Office with Secy. of State of NY (SSNY) on New York, New York 10107. location: NY County. Princ. office of 04/06/01. Office location: NY County. Notice of Qualification of AMB LOCAL Notice of Qualification of Hamptons Purpose: For any lawful purpose. LLC: c/o Sky Management, 226 E. LLC formed in Delaware (DE) on MEDIA LLC. Authority filed with Secy. Residence II LLC. Authority filed with 54th St., Ste. 402, NY, NY 10022. 01/19/01. Princ. office of LLC: 231 of State of NY (SSNY) on 06/10/09. Secy. of State of NY (SSNY) on Notice of Formation of Carmen NY SSNY designated as agent of LLC W. 29th St., Ste. 401, NY, NY 10001. Office location: NY County. LLC 8/9/10. Office location: NY County. LLC. Art. of Org. filed with Secy. of upon whom process against it may SSNY designated as agent of LLC formed in Delaware (DE) on 05/08/09. LLC formed in Delaware (DE) on State of NY (SSNY) on 05/13/2010. be served. SSNY shall mail process upon whom process against it may SSNY designated as agent of LLC 8/5/2010. SSNY designated as Office location: NY Co. SSNY desig- to the LLC at the addr. of its princ. be served. SSNY shall mail process upon whom process against it may agent of LLC upon whom process nated as agent of LLC upon whom office. Purpose: Any lawful activity. to c/o Cowan, DeBaets, Abrahams & be served. SSNY shall mail process against it may be served. SSNY process against it may be served. Sheppard LLP, 40 W. 57th St., NY, to Vincent Lombardo, 195 Tanglewood shall mail process to: c/o SSNY shall mail process to the LLC, NOTICE OF FORMATION OF LIMITED NY 10019. Arts. of Org. filed with DE Dr., Staten Island, NY 10308. DE Corporation Service Company, 80 c/o Michael Goodman, 125 Jericho Secy. of State, Lookerman and addr. of LLC: 1521 Concord Pike, State St., Albany, NY 12207-2543. LIABILITY COMPANY. NAME: REDI- Turnpike, Ste. 300, Jericho, NY 11753. CHEM LLC. Articles of Organization Federal St., Dover, DE 19901. As #301, Wilmington, DE 19803. Arts. of Address to be maintained in DE: Purpose: any lawful act or activity. amended by Cert. of Amendment Org. filed with Jeffrey W. Bullock, 2711 Centerville Rd., Ste. 400, were filed with the Secretary of State filed with SSNY on 09/10/07, the Dept. of State, Div. of Corps., John Wilmington, DE 19808. Arts of Org. of New York (SSNY) on 08/16/10. name of the LLC is: AMBASSADOR G. Townsend Bldg., 401 Federal St., filed with DE Secy. Of State, 401 Name of LLC: THE FEARLESS Office location: New York County. MEDIA GROUP, LLC. Purpose: Any #4, Dover, DE 19901. Purpose: Any Federal St., Ste. 4, Dover, DE 19901. GROUP LLC. Art. of Org. filed Dept. SSNY has been designated as agent lawful activity. lawful activity. Purpose: any lawful activities. of State of NY on 7/9/2010. Off. Loc. of the LLC upon whom process in NY: NY Cty. Princ. bus. loc.: Robert against it may be served. SSNY shall Davidman, 15 E. 26th St., Ste. 802, mail a copy of process to the LLC, NY, NY 10010. Secy. of State desig- c/o Mordente Law Firm, LLC, 160-29 Place your business card in Crain’s Business Connections nated as agent of LLC upon whom Union Turnpike, Fresh Meadows, process against it may be served. New York 11366. Purpose: For any and reach New York City’s Top Level Executives Sec. of State shall mail a copy of lawful purpose. process to: Robert Davidman, 15 E. 26th St., Ste. 802, NY, NY 10010. Notice of Qualification of COHESIVE Purpose: any lawful activity. CAPITAL PARTNERS, L.P. Authority filed with Secy. of State of NY (SSNY) Notice of Qualification of CANTERBURY on 08/06/10. Office location: NY JUPITER, L.L.C. Authority filed with County. LP formed in Delaware (DE) Secy. of State of NY (SSNY) on on 07/06/10. Princ. office of LP: c/o Contact 08/30/10. Office location: NY County. Cohesive Capital (GP), L.P., 650 5th LLC formed in Delaware (DE) on Ave., 31st Fl., NY, NY 10019. SSNY llagher 08/27/10. Princ. office of LLC: 350 designated as agent of LP upon whom John Ga Park Ave., 4th Fl., NY, NY 10022. process against it may be served. insnewyork.com SSNY designated as agent of LLC SSNY shall mail process to c/o jgallagher@cra upon whom process against it may Cohesive Capital Partners, 650 5th .0189 be served. SSNY shall mail process Ave., 31st Fl., NY, NY 10019. Name 212.210 to c/o Corporation Service Co. (CSC), and addr. of each general partner are 80 State St., Albany, NY 12207-2543. available from SSNY. DE addr. of LP: DE addr. of LLC: c/o CSC, 2711 c/o Corporation Service Co., 2711 Centerville Rd., Ste. 400, Wilmington, Centerville Rd., Wilmington, DE 19808. DE 19808. Arts. of Org. filed with DE Arts. of Org. filed with Secy. of State Secy. of State, Div. of Corps., 401 of DE, Dept. of State, Div. of Corps., Federal St., Dover, DE 19901. John Townsend Bldg., Dover, DE Purpose: Any lawful activity. 19901. Purpose: Any lawful activity.

September 27, 2010 | Crain’s New York Business | 29 20100927-NEWS--0030-NAT-CCI-CN_-- 9/24/2010 6:48 PM Page 1

er Li & Fung is close to signing a families fought each other in court lease for 500,000 square feet. for control of the properties; the Empire State portfolio in play Yet for all of its success,the build- Malkins finally won the last of the ing is still burdened with many battles in 2006,according to Securi- Continued from Page 3 of the real estate department at law would undoubtedly drive up the long-term tenants that pay low ties and Exchange Commission likely forbids one to make a major firm Morrison & Foerster. REIT’s value. The 2.8 million- rents.According to a financial filing, documents. move without the consent of the One proposal under considera- square-foot Art Deco tower is clear- the building earned only $46 million Relations between the two fam- other. tion would be to create a real estate ly the crown jewel of the prewar in 2008, the last year for which a full ilies deteriorated sharply after Mr. Unlocking the buildings’ value is investment trust from the assets and building portfolio. Experts say that report was filed. Helmsley’s health failed and Mrs. expected to be a long and complicat- sell shares directly to the public.Ob- it could be worth as much as $1.5 Over time, renovations of all the Helmsley—infamous in the ed process, since each property is servers suggest that the Malkins billion, especially since the property portfolio’s buildings have lured bet- tabloids at the time as the “Queen of owned by a separate partnership would much prefer that the build- is in the midst of a multimillion- ter-heeled companies willing to pay Mean”—assumed a greater opera- that includes numerous junior in- ings remain privately held. dollar renovation. higher rents. tional role. vestors. They don’t have a say in the “[The REIT] would be the easiest “Now, true quality office tenants In 1988, the couple was charged buildings’ operations, but they may way for some of the parties to cash Small fry winnowed out will consider the buildings,” says with tax evasion. Mr. Helmsley was have the right to object to any sig- out, but the ones that want to stay in in the process, Mr. Malkin has Jeffrey Peck, a senior managing di- deemed too sick to stand trial, but nificant changes. can do so,”says Dan Fasulo,a manag- eased out thousands of small tenants rector at Studley. his wife spent 18 months behind “So much of this will depend on ing director at Real Capital Analytics. and replaced them with larger, cor- Under the Helmsleys’ manage- bars. Mrs. Helmsley died in 2007, the terms of their joint-venture doc- He adds that the Empire State porate tenants. In the biggest such ment, the buildings had fallen into and the trust has been slowly selling uments,” says Mark Edelstein, head Building’s globe-spanning fame move,giant Chinese apparel suppli- disrepair. Starting in 1997, the two off assets. Shopping Delivering results. spree Continued from Page 3 mus, N.J.-based clothier that pur- Leading over $15 billion in debt capital markets transactions. chased Filene’s in a bankruptcy auc- tion in 2009, opened last week on West 80th Street and Broadway,and August 2010 August 2010 July 2010 July 2010 July 2010 expects to open a 34,000-square-foot store at 530 Fifth Ave.—a former Bank of New York with a ground-

A portfolio company of floor asking rent of $400 a square foot—in late spring. The site will be Syms’ new flagship, replacing a location on Park Avenue.In addition,it’s $775 Million $300 Million $140 Million $1.435 Billion $405 Million hunting for an outpost in Brooklyn. Senior Secured Senior Secured Senior Unsecured Senior Secured Senior Notes Daffy’s, another New Jersey- Credit Facilities Credit Facilities Credit Facility Credit Facilities based off-price chain, is said to be growing its seven-store Manhattan Joint Lead Arranger & Lead Arranger & Lead Arranger & Joint Lead Arranger & fleet. Even Loehmann’s, which has Joint Bookrunner Administrative Agent Administrative Agent Joint Bookrunner Joint Lead Manager had its financial ups and downs, has looked at some spaces, such as the 60,000-square-foot former Barnes July 2010 July 2010 June 2010 June 2010 June 2010 & Noble on East 86th Street,before it was leased to Fairway Market earlier this year. “I remember when we were looking in the mid-’90s to go to midtown, there was very limited space,” $360 Million $500 Million $320 Million $250 Million $1.5 Billion says Marcy Syms, chief executive of Syms. But this time around, she Private Placement Senior Unsecured Senior Unsecured Senior Notes Senior Unsecured adds, “I had choices.” Senior Secured Notes Credit Facility Credit Facility Credit Facility Not every big empty space is re- Joint Lead Joint Lead Arranger & Joint Lead Arranger & Joint Lead Arranger & tail-ready, however. Many properties, such as those that were former Placement Agent Joint Bookrunner Administrative Agent Lead Manager Co-Documentation Agent banks, have to be converted to ac- commodate large-scale discounters. We know that successful, long-term business relationships depend upon delivering results for our clients. Leading over $15 billion Each space must meet city require- in debt capital markets transactions by August speaks to that unwavering objective. ments for escalators and have prop- At KeyBanc Capital Markets,® more than 500 professionals leverage extensive industry knowledge, equity and debt capital er delivery zones for unloading store merchandise. Such extra details can markets expertise, and a leading merger and acquisition advisory practice to deliver strategic solutions that help our clients be costly and often require back- capitalize on opportunities. and-forth with city officials. Today, the markets are volatile, but at KeyBanc Capital Markets our dedication to delivering results for clients remains constant. “That limits the number of locations that retailers can go into,” says For information on how KeyBanc Capital Markets can help you reach your business objectives, Joanne Podell, the Cushman & call Randy Paine, Co-Head of KeyBanc Capital Markets, at 216-689-4119, Wakefield Inc. executive vice presi- Doug Preiser, Co-Head of KeyBanc Capital Markets, at 216-689-5944 or dent involved with the $10 million Amy K. Carlson, EVP and Group Head, Debt Capital Markets, at 216-689-4227. T.J. Maxx deal at 250 W. 57th St., a former Chase Bank. She noted that the retailer “had to hire multiple specialists” to address such issues. And while all the activity is bailing out landlords, they might have some concerns about the sector. Some experts say the appeal of off-price apparel stores may wane as the economy improves, especially as flash-sale KeyBanc Capital Markets is a trade name under which corporate and investment banking products and services of KeyCorp and its subsidiaries, KeyBanc Capital Markets Inc., websites like Gilt Groupe vie with Member NYSE/FINRA/SIPC, and KeyBank National Association (“KeyBank N.A.”), are marketed. Securities products and services are offered by KeyBanc Capital Markets Inc. brick-and-mortar sellers for over- and its licensed securities representatives, who may also be employees of KeyBank N.A. Banking products and services are offered by KeyBank N.A stocked merchandise. ©2010 KeyCorp ADL1753 Filene’s bankruptcy, for example, was attributed in part to increased competition.

30 | Crain’s New York Business | September 27, 2010 20100927-NEWS--0031-NAT-CCI-CN_-- 9/24/2010 7:39 PM Page 1

could be enjoying a lingering boost from the $20.3 billion in bonuses Can rebound stick? handed out by Wall Street firms Accidental candidate flush with cash at the end of last year Continued from Page 1 nomic disaster. No matter. Taking as a result of government bailouts Continued from Page 1 Mr. Paladino is no longer actively in- the sidecars are doing all of the advantage of discounts on rents and and near-zero interest rates. A lawyer by training, Mr. Paladi- volved, though he retains ownership work,”says Barbara Byrne Denham, wine during the depths of the down- “Profits last year were so extraor- no has made his mark as a developer, of property adjacent to the casino. chief economist at real estate bro- turn,his venture,The Costello Plan, dinary, and a good chunk of bonus- amassing one of the largest real estate kerage Eastern Consolidated. opened its doors last February. es came in this calendar year,” says portfolios in Buffalo by shrewdly Taking tolls Those sidecars can’t,of course,re- “People still want to go out to eat, Ronnie Lowenstein, director of the buying dilapidated buildings and us- when he joined the crusade to end place the club cars known as the se- and they realize they don’t have to Independent Budget Office. “It’s ing tax breaks to renovate them and the tolls on I-190,Mr.Paladino again curities industry, where jobs paid an spend $100 per head to have a great reasonable to expect they’re having lure buyers for luxury condos. turned to the law and legislators. Mr. average of $311,279 in 2009,even af- experience,” Mr. Heemskerk says. an impact on leisure and hospitality Aggressively underbidding com- Paladino, known as an indelicate ter a two-year 24% plunge in wages. “It’s part of the culture of New York.” and other sectors as well.” petitors, he has won at least 37 leases straight shooter, took his case to then- Indeed, many of the city’s job gains Similar bets throughout the city with federal, state, county and city Gov. George Pataki—to whom he have come in low-paying industries have helped lift restaurant employ- Bonuses shriveling agencies as tenants in his office build- apologized last week for calling him a like restaurants and retail, which to- ment well above even prerecession those bonuses are expected to shriv- ings, making him the largest govern- “degenerate idiot”—and Eliot Spitzer, gether have accounted for about a levels. The 10,700 restaurant jobs el this year, however. The IBO pre- ment landlord in Buffalo. His rev- who was running for governor. third of the jobs added through the added from August 2009 through dicts Wall Street profits will be sliced enue from public sources this year will “People tend to be flattered by an first eight months of this year. last month marked the largest over- in half,and a recent report by banking surpass $10 million. audience with a political person,”says “What you don’t want to see is a the-year increase in the city’s histo- analyst Meredith Whitney forecasts Today, the son of Italian immi- John Giardino, a member of Buffalo permanent shift toward lower-pay- ry, raising the question of whether that the global securities industry grants is worth more than $150 mil- Fiscal Stability Authority. “That’s ing industries,” says Marisa Di Na- it’s a blip or sustained growth. could shed up to 10% of its work force lion.Over the past decade,he’s donat- not Carl.He saw them as being in our tale, a director at Moody’s Econo- Major real estate development over the next 18 months.That would ed approximately $450,000 to community and he was going to let my.com. projects that had been approved be- translate to 16,000 of the city’s high- politicians of all political stripes. them know how our community felt.” fore the collapse also have helped est-paying jobs disappearing. In 2004, the New York Public In- Mr. Paladino had told his lawyer, Stimulus drying up fuel the rebound.The city has seen a The fallout from such a job chop terest Research Group found that “Find me a bulletproof case.” The the federal stimulus—credited 14,100-job gain in retail employ- could put additional pressure on the several companies controlled by Mr. smoking gun was a decades-old law by the Fiscal Policy Institute with ment, even as retailing has slumped city’s and state’s already strained Paladino, including ones that re- mandating that tolls be removed creating or saving 80,000 jobs in the nationally. Mega-shopping centers budgets. Gov. David Paterson has ceived state contracts, had apparently when the original bonds for that por- city and pumping $16 billion into its featuring BJ’s and Costco wholesale ordered state commissioners to cut violated state law limiting corporate tion of the Thruway were repaid. economy—has already started to dry clubs, Best Buy electronics outlets 2,000 jobs by Dec. 31. And Mayor political contributions to $5,000.The That had happened in 1996.Mr.Pal- up, with local government employ- and Bob’s Discount Furniture stores Michael Bloomberg, staring at a state has not accused Mr. Paladino of adino sued, and the state Thruway ment falling by more than 51,400 have opened in East Harlem and $3.2 billion gap, last week an- any wrongdoing. Authority removed the tolls. from August 2009 through last Flushing, Queens. nounced a hiring freeze and ordered “I think those experiences illus- month. Major infrastructure proj- New York was late to the big-box city agencies to slash their budgets. Casino games trate our capabilities,” Mr. Paladino ects and the higher-paying con- game, due to stringent zoning regu- While the mayor’s announcement mr. paladino’s focus has been pri- says. “I’m a very determined person. struction and engineering jobs that lations that can make it difficult to was undoubtedly geared toward pres- marily local.Some have joked that he I will do my homework. I will learn come with them hang in the balance. build,but it’s now making up for lost suring municipal unions for conces- had an office on the second floor of all the facts best I can. There’s no Add in the uncertainty on Wall time. “The big-box retailers open- sions on wages and pensions, layoffs Buffalo’s City Hall, where his friend, challenge I can’t take on.” Street, the major source of both per- ing all around are generating a lot of could be on the horizon, especially Anthony Masiello, was mayor until sonal and taxable income for the city jobs,” Ms. Denham says. “Nowhere with federal stimulus dollars running 2005, the same year Mr. Paladino Deciding to run and state, and a stalled recovery be- in the country are they opening big out this year and the state budget fac- changed his registration from Demo- bringing the tolls down made comes more of a possibility. boxes like they are here, and if they ing a projected $12 billion gap. crat to Republican. Mr. Paladino something of a local Thus far, the jobs in the city’s re- are, they’re not doing well because “We will again be in a dogfight to It was with Mr. Masiello that Mr. hero. His son, Patrick, urged him to covery have come in places like Dit- they’re in oversaturated markets.” get our fair share [from Albany],” Paladino ventured into the gray area run for office, but Mr. Paladino had mas Park, Brooklyn, where Ben Manhattan tourism is clearly Deputy Mayor Howard Wolfson between public policy and personal no interest. That changed last year Heemskerk signed a lease for a new giving retail outlets and restaurants told a Citizens Budget Commission profit when he joined the city in 2004 when Patrick died in a car crash. wine and tapas bar in March 2009. a lift,but those industries—depend- forum last week. “Next year’s budget and successfully sued to stop the “Carl Paladino’s knees hit the Headlines at the time screamed eco- ent on local consumers, too—also will likely be a bit of a bloodbath.” Seneca Nation of Indians from build- ground when he heard Patrick got ing a casino on Buffalo’s outskirts. killed,” says Rus Thompson, a Tea Stymied, the tribe moved its casi- Party activist and Mr.Paladino’s driv- ty International Airport,while Delta no project to Buffalo and bought a er. “When he got up from his knees, and American maintain hubs at John nine-acre plot of land near downtown he was a different man.” Frequent fliers F. Kennedy International Airport. that was part of the Seneca Nation’s Mr. Paladino says: “Nothing can Left unaddressed, the growing Buffalo Creek Reservation until hurt a person worse than that.” Continued from Page 3 held frequent-flier promotions much discontent could neutralize the cus- 1838. The seller? Mr. Paladino and The loss, coupled with Mr. summer months. Airlines have hit of last year, offering rewards of dou- tomer loyalty airlines spent decades his business partners. The tribe paid Thompson’s urging, inspired Mr. such heights by replacing wide-bod- ble-elite-qualifying miles on certain trying to gain. close to $3.75 million,but Mr.Paladi- Paladino to throw his hat into the po- ied aircraft with smaller, regional jets ticket purchases. While the promo- A March study by research firm no says he netted only $47,000. litical ring. The decision was made and cutting down on frequency. tions successfully encouraged people IdeaWorks ranked 22 frequent-flier “We didn’t tell them where to put easier by a lackluster slate of Repub- Filling planes at this rate is good to buy tickets in a sluggish travel mar- programs for seat availability.Conti- the casino,” Mr. Paladino says.“They lican candidates, dysfunction in Al- as far as management and investors ket—American reports that the pro- nental’s OnePass program ranked had their choice. They happened to bany and voter discontent. are concerned, Mr. Winship says, motion was “extremely popular”—it 11th, with rewards seats available go into an area where we’ve been as- “I said: ‘By God! Four more years “but it’s created a double-whammy swelled the ranks of “elite” travelers, 71% of the time. American’s AAd- sembling land for 25 years.” of this?’ ” he recalls. situation for people trying to redeem making everyone less special. vantage members could book 58% of Mr. Paladino opposed what he At the onset of his campaign, Mr. their frequent-flier miles.” “I was recently at a gate in Chica- the time, enough for 17th place, calls “Atlantic City-type”casinos that Paladino revealed that he has a The industry’s latest merger wave go, and there were 39 people on the while Delta SkyMiles members bundle hotels and restaurants and daughter from an extramarital affair. is helping to reduce capacity,too.The upgrade list for a first-class cabin that could only secure rewards seats 13% gaming under one roof, stifling adja- His campaign has been propelled 2008 tie-up between Delta Air Lines seats 10 people,” says Manhattan- of the time, in 21st place. cent development. But he favored by his money,popular discontent and and Northwest Airlines led to big based entrepreneur Peter Shankman, Delta disputes the survey and says construction of a stand-alone casino his sharp tongue—he equated As- schedule cuts—Delta’s Cincinnati a public speaker and Continental it is proud of what it’s doing for fre- in Buffalo because it would spur de- sembly speaker Sheldon Silver with hub, for example, saw daily flights Platinum Elite member who logs quent fliers. It’s rolled out more seat velopment of the surrounding area, the anti-Christ and Hitler. He wants drop to 200 from 323 prior to the about 250,000 air miles per year. availability, particularly for upgrade- including land he owned. to slash taxes and spending by 20% merger. The newly approved mar- obsessed business travelers. “He thinks of himself as part of and cut $20 billion from Medicaid. riage of Continental Airlines and Going to extremes “Delta continues to expand and city government,” says Joel S. Rose, In the Republican primary, he United Airlines is also expected to he’s resorted to extreme tactics to invest in New York, and one of the co-chair of Citizens Against Casino beat GOP-backed Rick Lazio in a slice the number of available seats,al- secure an upgrade:“I will check in ex- ways we’re doing it is by offering Gambling in Erie County. “He’d say landslide. If he beats Mr. Cuomo, he though it’s too early for estimates. actly 24 hours in advance of my more first-class seats out of New we had a deal with them,as if that was promises to lead a fight to remove Mr. While airline management, labor flight, even if it means waking up at York than any other major carrier,” some sort of enforceable contract. Of Silver as speaker. He also pledges to unions and shareholders can largely 4:55 a.m. so I can be sitting at my says Jeff Robertson of SkyMiles. course, the first thing the Seneca Na- serve one term. decide a merger’s fate, members of computer at the right time. If there If business travelers had their way, tion started to do was build a hotel.” Despite his deeply entrenched up- the airlines’ frequent-flier programs are only two first-class seats available, all airlines would be doing the same. With a new mayor,the tribe struck state perspective, and having told lo- are just left to wait and worry. I’ll make sure I get one of them.” “Business travel means spending a a $330 million deal to build a hotel cal audiences that downstaters are Business travelers, who generally For their parts, the airlines claim considerable number of hours sitting and casino complex, exactly the kind “not like us,”Mr.Paladino is now try- are more interested in cabin upgrades that the oversaturation of elite mem- on your butt in an airplane,” says Mr. of project Mr. Paladino had fought ing to win over skeptics. “There’s no than free tickets, have been hit par- bers tends to be a problem only in hub Winship.“If that is your life,then up- against. Legal issues persist, however, difference between upstate and ticularly hard lately by the changes. cities—rather cold comfort for New grading to a bigger seat, a nicer meal and today all that sits on the nine acres downstate,” he says. “The faces are Major U.S.carriers such as Amer- York’s business travelers. Continen- and an overall less stressful travel ex- are rusting steel girders and a rudimen- different, but the look is the same: ican Airlines, Continental and Delta tal maintains a hub at Newark Liber- perience is hugely meaningful.” tary casino featuring slot machines. People have lost hope.”

September 27, 2010 | Crain’s New York Business | 31 20100927-NEWS--0032-NAT-CCI-CN_-- 9/24/2010 5:45 PM Page 1

LET US PREY: The Local Christian Assembly church in Forest Hills, Queens, Confessed Ponzi schemer walked was home to both fraudsters and the defrauded in a nearly Continued from Page 1 forcement director when Mr. Ovid gant and every evildoer will be stub- $10 million scheme. tailed cheating about 70 church confessed, didn’t return repeated ble, and that day that is coming will members and their families—in- calls, nor did Mark Schonfeld, who set them on fire.” cluding the founding minister, who headed the SEC’s New York office Mr. Ovid moved to New York lost his life savings. when Mr. Ovid came forward. and joined the church, where his fa- But rather than arresting and The SEC said in a statement:“As ther was a minister, after graduating charging Mr. Ovid, the feds let him a general matter, numerous factors from the University of the West In- go free, according to a recent review determine the timing of enforcement dies in 2002 with a bachelor’s degree of his case file by Crain’s. Mr. Ovid actions, including the number of po- in management. At the church, returned to his native Trinidad, tential defendants, the number of young Mr. Ovid preached, played where he enrolled in an M.B.A.pro- agencies conducting investigations, guitar and edited the newsletter. gram and got a job at a construction and whether assets are further at risk He also took courses with Pris- management firm. or financial recoveries are likely.” tine Capital Management, a White It wasn’t until three years later— One unstated factor that may Plains firm that teaches investors to

while on a business trip to Florida in have played a role in Mr. Ovid’s de- divine market movements by using larry ford March 2009—that Mr.Ovid was ar- layed arrest: the egg on government charts and darting into and out of rested. This time, the government officials’ faces after the Bernie Mad- stocks.He began day-trading to help and furnish their office in Uniondale, before the congregation seeking for- threw its full weight at him.The U.S. off case burst forth in late 2008. support himself, and by 2004 he was L.I. Mr. Ovid and a partner even giveness. Then he turned himself in Attorney’s Office in Brooklyn Humiliated by their failure to de- managing $445,000 of his own and spent $200,000 of parishioner mon- to the government—to no avail. charged him and four associates with tect the decades-long investment his friends’ money. ey on a Bentley Motors automobile. Nearly five years later, he sits in a three counts of fraud and conspiracy, fraud, officials pledged to crack Word got around church mem- cell in the Metropolitan Detention and the SEC filed a lawsuit. down on similar cases with particu- bers that an investing savant was in Out of luck Center in Brooklyn after pleading It can take time for prosecutors or lar rigor. In an August 2009 speech their midst. “People in the church unfortunately, Mr. Ovid’s day- guilty earlier this year to one count of the SEC to file charges in an invest- to the New York City Bar Associa- thought he was the chosen one,”says trading luck abandoned him, and he conspiracy. He is 29 now, waiting to ment fraud because they’re chroni- tion, SEC Director of Enforcement lawyer Mr.King,“when all he’d done lost $2 million within weeks of rais- begin a five-year sentence in a New cally short-staffed and the criminal Robert Khuzami stated, “In recent was gotten lucky day-trading.” ing the money. He ordered that the Jersey federal prison, after which he details can be complex. But in Mr. months, Ponzi schemes have be- Later that year, Mr. Ovid joined news be concealed, and potential is to be deported. Four hedge fund Ovid’s case, he had offered full de- come an even higher priority.” with the son of church founder customers were told he was up 15% colleagues have also pleaded guilty. tails of his crimes, raising a big ques- Last year, the SEC brought 60 Joseph Coleman and three others to for the year.Another investor was lo- Calls to the church weren’t re- tion: What took the feds so long? such cases, double 2008’s figure, and launch a hedge fund called Logos cated in Panama, who was willing to turned, and several victims of the “It’s hard to explain why the gov- it’s on pace for an equally busy 2010. Multi-Strategy I and began solicit- pour $3 million into a new hedge fraud declined to comment when ernment would wait three years to ing parishioners,promising fantastic fund. Some of that new money was reached. Mr. King observes that the charge someone who confessed to a “Surely the day is coming” returns of as much as 75%.The Rev. used to help church members par- feds capped Mr. Ovid’s sentence at $10 million fraud and why that per- the community on which Mr. Coleman even held a prayer service tially recoup their losses. five years, rather than the 19 for son was allowed to leave the coun- Ovid preyed, the Local Christian to drum up publicity. By the spring “It sounds like a classic sort of which he was eligible, suggesting try,” says Robert Mintz, a partner at Assembly in posh Forest Hills, of 2005, congregants had invested Ponzi scheme,” observes Mr. Mintz, that they recognized his client’s co- McCarter & English and a former draws several-hundred congregants $9.5 million in Mr. Ovid’s fund. the former prosecutor. operation and accepted that he did- federal prosecutor. “In my experi- each week, some from as far away as Mr. Ovid and his colleagues But the new funds didn’t save Mr. n’t intend to cheat clients. ence, $10 million is certainly signif- Pennsylvania. The church’s website hoped the money represented the Ovid. In August 2005, he suffered “Isaac has suffered and pained icant enough to pursue a case.” says its members are devoted to a start of a new business and quickly losses yet again. By October, all but over this mistake,” his mother wrote The prosecutors who brought the portion of the Book of Malachi that began spending it to look the part of $166,000 raised from parishioners to the court this year.“He now has to case declined to comment. Linda reads: “Surely the day is coming; it high-flying hedge fund managers. was gone. come to terms with the ... conse- Chatman Thomsen, the SEC en- will burn like a furnace. All the arro- They used $1.6 million to renovate The next month, Mr. Ovid came quences that lay ahead.”

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32 | Crain’s New York Business | September 27, 2010 20100927-NEWS--0033-NAT-CCI-CN_-- 9/24/2010 1:11 PM Page 1

68% of retailers expect to hire more workers this holiday season L Source: CIT Retail Outlook EXECUTIVE INBOX Anne Fisher SENIOR JAVA BURSTING WITH PRIDE: Ronald ARCHITECT Steinberg still hand- Courting the COMPANY RevTrax manufactures medals at his factory in new ‘mindful’ JOB DESCRIPTION Developing Woodside, Queens. front- and back-end architecture shopper MOST IMPORTANT TASKS Engag- IT MIGHT NOT BE readily apparent ing with clients, managing proj- in New York, where conspicuous ects with aggressive deadlines consumption never really goes CREDENTIALS NEEDED Bache- out of style, but it seems that lor’s degree; 10+ years’ experi- elsewhere, people are weary of ence with core Java, SQL; 5+ shopping ’til they drop. They say years with XML, XSL, Web services they’re tired of spending too SALARY $125,000 to $150,000, much money on stuff they don’t plus equity need, enriching huge corporations and cluttering up RECRUITER Internal our strained planet. Even when DOWNSIDE Not a traditional the recession finally ends, fully 9-to-5 office job 82% of Americans intend to buy less, choose durability over glitz, UPSIDE Control over client inter- and get more of what they need action; reporting straight to CTO from socially responsible RevTrax offers online couponing businesses. and a cross-channel analytics plat- That’s according to a survey form for retailers to deliver, track, of 5,700 adults worldwide— manage and measure digital pro- about 1,500 of them in the motions that drive in-store sales. U.S.—by Euro RSCG. As detailed —MAGGIE WELLS in a new book called Consumed: Rethinking Business in the Era of Mindful Spending, the survey turned up evidence that what EXECUTIVE MOVES author Andrew Benett calls “hyperconsumerism” is dead. For Abyssinian one thing, 86% of respondents Development Corp.: said saving money makes them Tommy J. Harris,63, feel good about themselves, was appointed chief versus just 24% who said the financial officer at the not-for-profit GOTHAM GIGS same about flaunting bling. organization. He was “We’re seeing a shift in values, as formerly an people rethink what’s independent consultant advising public important,” Mr. Benett observes. and privately held companies in the A recipe for catering to the development phase of business newly mindful consumer: Mix planning. Chadbourne & Parke: Heidi Lawson,45, Into Heavy Medals earth-friendliness with a knack joined the international corporate law for drawing customers into an firm as a partner. She was previously at some point, Ronald Steinberg stopped counting his military unending conversation. international counsel at Debevoise & ‘The Navy medals. “There must be hundreds of them. Who can keep track?” Consider, for instance, Manhat- Plimpton. tan-based Holstee Designs. Kurtzman Carson Consultants: Benjamin doesn’t says the 67-year-old U.S. Army veteran. ¶ This isn’t battlefield Started in 2009 by brothers Schrag, 30, joined the Computershare- bravado: He owns Baldwin Ribbon & Stamping, one of the main Dave and Mike Radparvar, owned provider of administrative call me support services as a director of manufacturers of medals and ribbons for the U.S. Military. ¶ Mr. Holstee describes its mission as corporate restructuring services. He was ahead of Steinberg grew up with pride in the factory that his father, a “design with a conscience.” The an associate in the restructuring group silversmith, co-founded in the 1960s. He started working there at company’s products include at Kirkland & Ellis. time’ T-shirts made from recycled Orrick Herrington & Sutcliffe: Joseph J. 16, in the soldering department. But it wasn’t until he returned plastic bottles and wallets made Frank, 45, was named a partner at the from service in Vietnam that he understood what the medals mean of newspapers and plastic bags. global law firm. Previously, he was a partner at Latham & Watkins. to those who wear them. (He earned three Bronze Stars.) ¶ He The Radparvar brothers keep Hudson Securities Inc.: still gets excited when the Defense Department creates new ones, up a 24-hour live chat. “Our Ara Berkwits, 39, customers like the way we share joined as director of like the Global War on Terrorism Medals. Baldwin has made ideas and take the time to listen the firm’s recently more than 40,000 of those this year, and recently supplied 300 to them,” Mike Radparvar says. launched corporate Purple Hearts. “You don’t want to get a big order for those,” he Holstee, financed out of the access group. Most recently, she was says, “though they are beautiful.” ¶ Rush orders are a fact of life at co-founders’ savings, turned senior road-show the factory in Woodside, Queens. “Let me put it this way:The profitable a few weeks ago. planner and vice president of corporate events at Robert W. Baird & Co. Navy doesn’t call me ahead of time to tell me an aircraft carrier is HAVE YOU NOTICED a difference in Blaine R. Carroll, 49, joined as a senior coming in to base,” he says. what shoppers want now? Tell us at

See EXECUTIVE MOVES on Page 34 —hilary potkewitz buck ennis www.crainsnewyork.com/execinbox.

September 27, 2010 | Crain’s New York Business | 33 20100927-NEWS--0034-NAT-CCI-CN_-- 9/24/2010 1:12 PM Page 1

RÉSUMÉ REVIEW Richard Ravitch’s latest act Is your job search all it could be? We ask the experts. for medical care for the elderly and York state who are content with Lt. gov. looks to cut covers certain people with disabili- where it is.They say,“Ravitch,you’re NAME CYNDIE BURKHARDT skyrocketing costs ties. Medicaid is funded by the state too Cassandra-like; you’re too pes- SUMMARY and the federal government. It was simistic.” If it were just me, I would Communications and marketing specialist for Medicaid program originally seen as an adjunct to be less vocal about it, but it’s not. with a successful track record in leading poverty programs. For good or for People who deal with budget deficits product development, branding programs bad, it’s turned increasingly into a are saying this privately. Believe me, and new product launches BY JEREMY SMERD middle-class entitlement program. I know they’re talking about it. PROFESSIONAL EXPERIENCE n his waning weeks on the Why is Medicaid a problem? Isn’t federal health reform supposed to The Promotion Factory, 2005-2010 job, Lt. Gov. Richard Ravitch, It’s the single largest driver of the bend the health care “cost curve”? Director 77, is sounding alarms over state’s deficit. Yes, but federal funding hasn’t been Developed product launch strategies for high-end European brands what he says is the greatest appropriated yet and may never be. entering the United States marketplace Ithreat to the state’s fiscal health:sky- This didn’t happen overnight. Why hasn’t The Sterling Group, 2003-2005 rocketing Medicaid costs,which ac- anything been done So what are our options? Vice president, account director count for a third of state spending to address the Cutting and taxing, if nothing is Ran Fortune 500 client accounts in food and beverage, home consumer and leave less money for needed in- growing costs? done to run the Medicaid program products, pharmaceuticals, cable television vestments in higher education and There are a in a much more efficient way. Swatch Group US, 2001-2003 infrastructure. lot of com- Centralize the administration of Senior manager In a report he peting forc- the program instead of localizing Represented 10 international watch brands; developed media, published last es that have it at the county level; get more of promotion and event strategies MOVERS & week, Mr. an impact the most complicated beneficiar- Teague, 1989-1995 SHAKERS Ravitch de- on the poli- ies into managed-care organiza- Assistant director tailed how the tics of New tions; tighten eligibility rules so Created company’s first corporate marketing plan; promoted a $52 billion-a- people can’t hide their assets and rebranded corporate image and diverse design portfolio Richard year state and claim they are poor enough to be el- federally fund- igible for Medicaid. And, of course, EDUCATION Ravitch ed program— depoliticize the parts that are New York University, M.A., international affairs projected to politicized, like the set- Philadelphia College of Art, B.F.A., photography and graphic design grow 18% an- ting of reimburse- Résumé appears in condensed form. nually through 2014—should be ment rates to reformed. providers. EXPERT ADVICE Cyndie has given a thorough review of her 15-plus years of experience. In your report, you write, “Medicaid is Why did you There are two things she can do to take this résumé from good to great. In not Medicare.” Do people understand take this on? her initial overview, Cyndie talks about “building client relationships and the difference? I wanted to do increasing revenue.” On the client-relationship side (especially at The Not enough people outside the nar- something useful Promotion Factory and The Sterling Group), Cyndie can add language row world of those directly inside in my remaining around managing up and her executive relationships (C-level, etc). On the Medicaid business know about days in public increasing revenue, there is a noticeable lack of numbers. What were the it.Medicare is wholly federal.It pays service. sizes of the accounts/budgets she managed? Did she grow them? Did she bring in new business? If so, how much? That should take her to the next level. EXECUTIVE MOVES responsible for major and principal gifts brokerage firm. Most recently, he served —jason levin, senior account executive, Vault.com for Columbia University’s Department as vice president with American Home To contact this candidate or to be featured in “Résumé Review,” e-mail us of Neurology and for its Taub Institute Assurance Co., a New York-based at [email protected]. Continued from Page 33 for Research on Alzheimer’s Disease division of American International equity analyst covering the telecom and the Aging Brain. Group Inc. industry. Previously, he was a managing The International CNY Builders: Ravi Bhatia, 47, has been director at FTN Midwest Securities. Academy of Television appointed director of operations, MF Global Holdings: Bradley Abelow, 52, Arts & Sciences: Blair interior division, at the construction and has been named global chief operating Westlake, 55, has been development organization. Previously, officer. Most recently, he was a founding appointed treasurer of he served as a project executive at partner at NewWorld Capital Group. the Academy. He is Madison Equities. a counsel at Kaminer Kouzi & Benun. NAI Friedland Inc.: Anthony “Tony” inVentiv Health: Joe Massaro, 40, has been currently the Edwards Angell Palmer Colliers International: Jack A. Cohen, 30, Lembeck, 53, has been promoted to chief appointed chief financial officer. He had corporate vice & Dodge: Mark Peters, has joined as a managing director in the executive at the commercial real estate been managing director at Liberty Lane president of 45, joins as partner in New York office of the global real estate firm. He was formerly chief operating Partners. Microsoft’s Media & the regulatory and company. His was previously an officer. League of American Orchestras: Robin J. Entertainment Group. transactional services associate director with Cushman & Jay Olshonsky, 50, was appointed chief Roy, 57, has joined as vice president for JM Associates: Jean-Baptist Tateossian, practice group. Wakefield. operating officer. He joins the firm after development. Most recently, she was 39, was named vice president at the Previously, he was the Kantar Video: Sholien Houng-Babalis, 33, 15 years as managing director and senior special deputy has been appointed director, client vice president of CB Richard Ellis Inc. superintendent in services, for the division of media and in Washington, D.C. CORPORATE LADDER charge of the New marketing services company WPP. Most H3 Hardy Collaboration York Liquidation Bureau. recently, she served as global director of Architecture: Daria HACHETTE FILIPACCHI TURNS TO PARR Child Mind Institute: Roy Boorady, 49, digital operations at Dynamic Logic. Pizzetta, 49, has been joined the institute as director of Media6Degrees Inc.: promoted to partner. STEVE PARR, former president of Primedia Enthusiast Media and Source psychopharmacology service. He served Richard Kosinski, 45, She was formerly a Interlink Media, last week was named president and chief executive of eight years as the clinical director of the has been appointed project manager. Hachette Filipacchi Media U.S., publisher of magazines NYU Child Study Center’s chief revenue officer Jack Martin, 55, was including Elle and Woman’s Day. Mr. Parr succeeds Alain Psychopharmacology Service and as an for this social targeting promoted to partner. assistant professor of child psychology at firm. He was most He had been a senior Lemarchand, who will be appointed to a new senior the NYU School of Medicine. recently senior vice associate. management post within parent company Lagardère Active. Dahlman Rose & Co.: president and chief LCOR: David Sigman, 49, has been Mr. Lemarchand arrived from France in 2008, just as the Erik Codrington, 46, digital officer of promoted to the position of executive recession took hold, and implemented significant cost cuts, has been appointed Westwood One Inc. vice president at the real estate and which included selling five titles. Lagardère called Mr. Parr’s managing director, Office of the New York City Comptroller: development company. He has appointment the next step in a multiyear plan for HFMUS. project finance, at the Michael Garland, 47, has been named previously served as development investment banking “With 20+ years experience in magazines, books and executive director for corporate director, vice president and senior vice firm. He was formerly governance. He had been director of president. new media, Steve has an excellent reputation in the a financial adviser for value strategies at CtW Investment —maggie wells market. He is ideally suited to solidify the company’s the U.S. Department Group. position as an industry leader and execute the next of Energy’s Loan MTV Music Group: Chris Ficarra, 36, has EXECUTIVE PROMOTIONS steps of the plan, which include increasing market Guarantee Program. been promoted to senior vice president, share and profitability,” Lagardère said in a memo. The Berman Group Inc.: Michael E. integrated marketing, for MTV.com, The fastest way to get an announcement into Mittelman, 34, has been appointed VH1.com and CMT.com. He most Crain’s is to submit details online. Fill out the form —NAT IVES senior account executive at the corporate recently served as vice president for at www.crainsnewyork.com/submit. The communications firm. Formerly, he was VH1’s integrated marketing team. Executive Moves column is also available online.

34 | Crain’s New York Business | September 27, 2010 20100927-NEWS--0035-NAT-CCI-CN_-- 9/24/2010 1:11 PM Page 1 chemex / INSATIABLE CRITIC will be presented by The Urban Land flickr.com Gael Greene Institute New York at The Union THE League Club, 38 E. 37th St., Lincoln Hall, on the second floor, from 7:30 a.m. to 9:30 a.m. Fees are $50 for members, WEEK $45 for Young Leaders Group/students, $45 for public officials, and $70 for New Season nonmembers. Call (800) 321-5011. AHEAD SATURDAY, OCTOBER 9 Join the INSTITUTE FOR ECONOMIC EMPOWERMENT OF WOMEN as it presents

OCT. 4-10 newscom at Jean Georges a Dialogue with Women Entrepreneurs. The event will be held from 8:30 a.m. to PROGRAMS & SEMINARS 10:30 a.m. at 28 W. 44th St., suite 5500. WHAT SHE’S City, Central Park MONDAY, OCTOBER 4 There is no fee. Call (405) 943-4474 for Attend THE CEOS SUMMIT: SHAPING THE further information. READING West restaurant come FUTURE OF LATIN MEDIA, ENTERTAINMENT, TECHNOLOGY & ADVERTISING at the Time CULTURAL EVENTS TODAY SHOW co-anchor Natalie alive in September Warner Center on the 10th floor. The FRIDAY, OCTOBER 8 Morales is not alone in her current event is sponsored by LatinVision Director NORMAN Pick choice of reading material. The Girl JEWISON n paris, they call September Media, the Interactive Advertising will be joined by of the Who Played With Fire, the second the retour, when toutes breeze Bureau and the Latin Media and OLYMPIA DUKAKIS, ANITA GILLETTE JOHN PATRICK week novel in the page-turning crime home from August out of Entertainment Commission, and it runs and from 8 a.m. to 6 p.m. The fee is $295 for SHANLEY to share trilogy from the late Swedish town and the city comes alive members and $395 for nonmembers. For filmmaking stories and insights, author Stieg Larsson, is still on again. I’m feeling that New information, e-mail [email protected] followed by a screening of 1987 many best-seller lists. York retour right now. It’s that pre- or call (646) 519-2452. Academy Award-winning film I buck ennis “I read it on my iPad,” said cious moment when a tomato can EGGED ON: Caviar over molten egg yolk Moonstruck. This edition of “A Director NETWORKING RECEPTIONS Ms. Morales, who was attending still astonish, corn remains sweet in in Focus” begins at 6 p.m., and the film the Nanette Lepore runway show its short Byronic life, and fruit begs WEDNESDAY, OCTOBER 6 screens at 7 p.m. Come to the Grace at New York Fashion Week earlier to be eaten quickly. JEAN GEORGES Come to BUSINESS SPEED NETWORKING Rainey Rogers Auditorium at the FOR PROFESSIONALS this month. I’m at Jean Georges, lunching 1 Central Park West —Make 15 New Metropolitan Museum of Art for the with a longtime associate with whom (212) 299-3900 Connections in One Hour at Pulse show.Tickets for all sections are $25 “I just love the series. I got www.jean-georges.com Restaurant & Bar at 45 Rockefeller and can be purchased online. Call hooked with the first one,” said the my ties have always been proper. But Plaza on the third floor from 5:30 p.m. to (212) 570-3949 for more information. in the shared rapturous discovery of journalist, noting that she also 8 p.m. It is sponsored by Connecting to enjoyed the Swedish film version of firm, perfectly cooked shrimp with Greatness-Inspired Business SUNDAY, OCTOBER 10 the first book, The Girl With the flutters of celery leaves and the alche- CUISINE American Networking. Fees are $18 in advance and Join THE EMERGING NEW YORK my created by a voluptuous dose of $25 cash only at the door. For further ARCHITECTS COMMITTEE in the Bronx for Dragon Tattoo. She is looking for- peach paired with horseradish, I am PRICE Two-course lunch $29.50 information, call (917) 696-8051 or a tour of the historic High Bridge and a ward to the American version starring already feeling a new intimacy. SERVING Lunch, noon to 2:30 p.m. e-mail [email protected]. preview of the upcoming High Bridge Daniel Craig, due out next year. Jean Georges at lunch is like that. exhibition. This event is free, and tours Ms. Morales was decked out in RESERVATIONS Yes FORUMS leave at 1 p.m., 2 p.m., 3 p.m. and 4 p.m. The room, filling up at 12:30, has a TUESDAY, OCTOBER 5 open-toed platform pumps and an NOISE LEVEL RSVP at [email protected]. buzz of contentment, tables turning, Restrained THE IMPACTS OF THE DIGITAL REVOLUTION —maggie wells olive-colored dress with a lace business plotters, Asian tourists, overlay designed by Ms. Lepore. I take my hat off. ladies who lunch. It’s not just the re- To view Crain’s full calendar listings, go to www.crainsnewyork.com/events —ADRIANNE PASQUARELLI tour. It was like this in July, too. It’s I can’t wait to return. been this way since I wrote—and cer- I will definitely go back. tain affluent influentials agreed— I’ll let them simmer awhile. that lunch at Jean Georges is the best NO HATS Never again. deal in town, even at $29.50 for two courses (up from $28), with each additional dish at $14.50 (up from $12) and with just two macaroons per per- You might dismiss the room in its MIND YOUR son (down from six). latest makeover as unremarkable, Often when I eat here, the rather gray, with a ridiculous octopus kitchen sends an inhibition-melting of a chandelier above. But it’s com- hill of caviar atop a thin leaf of but- fortable, and the light—today in clar- BUSINESS tered toast enfolding molten egg ion sunshine, but also on overcast yolk, a $30 giveaway.I go mad. Now days—is cosmetic. And with leaves we’ve got your back end* I’m flying over the edge after tasting blowing on the trees outside, you are the sea trout sashimi. Draped in sheltered. You could be anywhere, in trout eggs beside a swath of dill, it’s the Bois de Boulogne or Central Park. * Hint: You don’t have to choose between productivity, security, and compatibility arranged as if alive on the side of the Before he rushes off, my friend bowl trying to escape a roiling sea, a orders dessert. The house’s pastry foaming whirlpool thick as mayon- Adonis, Johnny Iuzzini, sends out naise, fiercely lemony with an un- two. “Garden”—with chocolate cre- FREE APPLE BUSINESS EVENTS AT dertone of horseradish. The first meux,mochi,blackberries and sweet Join us for advice, tech tips & best practices to grow your business taste is so smart-ass tangy, I almost pea ice cream—is much too creative, cry out. The next bite has a crunch, too discordant for me. I’m happier Thursdays at Tekserve at Noon, 2, 4 and 6 p.m. (6 p.m. sessions begin with networking reception) from crispy curls of skin, cut thin as with “Market”—grilled poached can be, and fried in hot oil until it peach, apricot panna cotta and September 30 Solutions for Retail Stores puffs up. It’s one of those oh-my- brown sugar ice cream,especially the October 7 & 14 Advertising, Graphics and Design Solutions god moments I’ve come to expect quite weird sugar plum and tomato here. It’s not easy to distract my gazpacho in a cone alongside. I don’t October 21 Solutions for Real Estate Professionals companion from the heirloom expect it to be so delicious. October 28 Building a Paperless Ofﬁce - Document Management Solutions tomatoes to negotiate an exchange. My friend runs off to an appoint- November 4 Tekserve Solutions for Any Small Business Chef Jean-Georges Vongerichten ment, and I should, too, but I stay for has substituted wild black bass for the chocolates because Iuzzini’s are the For more info and to register visit: tekserve.com/meansbusiness snapper on my next dish.“He liked it best I’ve tasted in any restaurant. I better,” the server explains. It is “rar- think I’ll just have two. But then I ish,” as I prefer, just barely opaque, have three,remembering that I’m due Tekserve Solution Partners: paved with a thin crust of pounded tonight at ABC Kitchen to show off nuts and seeds,its sweetness set off by what Jean-Georges and chef de cui- a tangy broth where cherry tomatoes sine Dan Kluger can do with vegeta- 119 W 23rd St., NYC | 212 381-6381 float alongside soft pearl onions. A bles to food friends from Florence. I MEANS brilliant show,especially alongside an have six hours to clear my brain. BUSINESS Expert advice, Apple products and full-service tech support for business overdressed grilled halibut with corn and chanterelles in a too-distracting Copyright © 2010 by Gael Greene. carrot slick. Syndicated by www.insatiable-critic.com. Apple, the Apple logo, iPhone, iPad, Mac OS X, iWork, iLife, and Mac are trademarks of Apple Inc., registered in the U.S.and other countries.

September 27, 2010 | Crain’s New York Business | 35 Project3:fp template.qxd 9/21/10 12:19 PM Page 1

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