RIVERHEAD, N.Y. (CN) – A Long Island woman claims she had no idea that a Queens hotel she partially owns was operating as a brothel, and is suing for sole ownership.
Joan Therese Hudson sued Delta Kew Holding Corp. fka 37-05 Realty Corp., Shinhan Bank America, and CHB America Bank fka Cho Hung Bank of New York, in Suffolk County Supreme Court.
Hudson claims that on March 27 this year New York City brought proceedings against her and her co-owner, Delta Kew, forcing them to shut down the hotel because it was being used as a “house of prostitution or for conducting other illegal activities.”
The city cited 21 police investigations on 15 dates that resulted in at least 16 arrests for prostitution, according to the complaint, which does not state the name of the hotel, nor its precise address.
Hudson claims she inherited her one-third ownership of the hotel in 2002, but says the property was managed entirely by Kew, and that her only involvement with the hotel’s affairs was receiving a $200 rent check in the mail each month.
Hudson claims that Kew’s illegal activities make the 99-year lease null and void and that she should be given full control of the property.
She claims that New York law “explicitly authorizes a landlord … to recover possession of leased premises from an objectionable tenant when: ‘the premises, or any part thereof are occupied as a bawdy-house or house or place of assignation for lewd persons, or for purposes of prostitution.'”
In addition to running a brothel without her knowledge, Hudson says, Kew took out multiple mortgages on the hotel without her consent. She claims that in 2003 three of the mortgages were consolidated for $6.2 million by defendant Chohung Bank.
Hudson seeks declaratory judgment that the lease is null and void, an injunction, monetary damages, and exclusive possession of the hotel.
She is represented by Brian Egan with Egan & Golden, of Patchogue.