A divided state appellate panel has upheld a $135 million default judgment against developer Maurice Cohen and his wife and son in a lawsuit accusing them of misappropriating the proceeds of a loan, finding that the default judgment was warranted because the three had committed fraud upon the court.
The 4-1 Appellate Division, First Department, panel ruled yesterday in CDR Créances v. Cohen, 109565/03, that Manhattan Supreme Court Justice James Yates did not abuse his discretion when he imposed the sanction of striking the Cohens pleadings and entering default judgment against them.
