The legal fight between Steven Ostad and his brothers Michael and Edward is getting heated.
An legal professional for Steven accused his brothers of harassing and intimidating a key witness within the case by intermediaries. Counsel for the defendants rejected the allegations, calling them a determined resort and “defamatory.”
The brothers are battling for management of 10 rental properties and a lending arm referred to as Flatiron Capital. The 2 older brothers, each former urologists, initially sued Steven in April 2025. They hoped to dissolve firms the three have been companions in, however stated Steven was standing in the way in which. In addition they accused him of “a lifelong historical past of great private points and self-destructive behaviors.”
Steven fired back in April, saying his brothers have been artificially defaulting the worth of their actual property by taking rents in money and depositing them to private accounts. The brothers have denied the allegations by attorneys.
The witness in query for the most recent authorized squabble is Amram Tehrani, who in response to courtroom paperwork, is a former worker of Michael and Edward Ostad. In a letter to the courtroom, Leo Jacobs, a lawyer for Steven, stated Tehrani “possesses important firsthand information concerning the Brothers’ scheme to gather money rents off the books of firm entities, their commingling of funds, and their fabrication of rental data.”
The allegations of witness tampering come on the heels of different incendiary claims from Steven. He claims he was unfairly excluded from an actual property portfolio and lending enterprise he invested in whereas his brothers skimmed cash off the highest of “baggage of money.”
Jacobs, who’s newly representing Steven after a change in counsel, requested the courtroom for a protecting order for Tehrani. He stated three individuals had reached out to Tehrani and “pressured him” to satisfy along with his brothers or their representatives.
“Mr. Tehrani has expressed worry for his private security as a direct consequence of this
marketing campaign of strain, intimidation and harassment,” Jacobs wrote.
In response, Glen Lenihan, an legal professional for Micheal and Edward with Oved & Oved, accused Jacobs of “weaponizing the judicial course of by the petty, ineffective, ambush type litigation techniques.”
Lenihan stated there isn’t any proof to help that these three individuals reached out to Steven Ostad on behalf of his brothers.
“The Brothers reject this unsubstantiated allegation. But, even when this have been true, which it isn’t, such conduct is totally correct,” he wrote.
After Tehrani retained a lawyer, his legal professional took a extra reserved tone and didn’t provide any allegations of improper conduct.
“We respectfully request that you just direct all communications to Mr. Tehrani concerning this matter to my consideration,” Adam Felsenstein with Tannenbaum Helpern, wrote to the brothers’ counsel. “We additional request that you just make no try and contact Mr. Tehrani by a third-party or middleman.”
In response to a request for remark Jacobs stated, “our obligation as new counsel was to place the courtroom on discover; right here that’s obligation sufficient.”
Learn extra
“Bags of cash”: Steven Ostad accused brothers of exclusion and mismanagement
Ostads v. Ostad: Rent-stabilized distress frays family ties
Ostad brothers face foreclosure suits over $70M in loans
