Safe Harbor Equity affiliate alleges in its $45M lawsuit that Chetrit stole insurance funds
The lender for the Chetrit Group’s Tides South Beach hotel notched a win in its $45 million foreclosure case.
Safe Harbor Equity’s affiliate sued CG Tides and other companies linked to New York-based Chetrit Group over the long-shuttered Tides, a 45-key hotel at 1220 Ocean Drive in Miami Beach. The lender’s suit, filed in February 2021, alleged that Chetrit stole $2 million in insurance money tied to damages from Hurricane Irma without the lender’s knowledge or consent and allegedly defaulted on its loan.
This month, Miami-Dade Circuit Court Judge Pedro Echarte Jr. granted the lender’s partial summary judgment. Following hearings in August and September, Echarte ruled that Chetrit did breach its mortgage agreement by transferring the insurance funds to its company bank account and the personal bank accounts of Joseph and Meyer Chetrit without their lender’s consent or knowledge.
The judge also ruled that the Chetrit entities breached their mortgage when they allowed their insurance coverage to lapse for months and that they defaulted on the loan when they failed to pay it back by the extended maturity date of Dec. 20, 2020. Emails included as attachments to the filings revealed that the Chetrit ownership allowed insurance coverage to lapse at the start of hurricane season in 2020.