Nightlife kingpin Eddie Dean, the owner of now-defunct Pacha NYC, has reportedly placed a bid – a whopping $400,000 – to purchase Williamsburg nightclub Verboten, according to Gothamist. The space is currently being auctioned off in an effort to help its dubious owners, Jen Schiffer and John Perez, pay off some of their debts.
In January, Schiffer and Perez faced accusations of fraud and mismanagement; two months later, it was revealed that the former also brought sexual harassment and racism into the workplace. Verboten was then seized at the end of March by the New York State Department of Taxation & Finance for evading nearly $360,000 in sales tax, with Schiffer and Perez filing for chapter 11 bankruptcy the following day. Not too long after, Schiffer was arrested for writing fraudulent checks.
Schiffer has since pointed fingers at two managing employees, who allegedly “stole a checkbook from the club’s safe and cut checks amounting to thousands of dollars to themselves and other employees, forging Schiffer’s signature.” The checks bounced, she claims, because she was oblivious to the bank account’s loss of funds.
On May 26, the U.S. Trustee overseeing the bankruptcy case, William K Harrington, urged the court the convert Jen’s chapter 11 bankruptcy filing to chapter 7 due to “gross mismanagement,” or the accusation that Verboten’s funds were used for personal interests and expenses. If converted, Verboten will be forced to shut its doors.
All potential bidders must submit by July 13, and the court hearing for the sale of Verboten’s lease will take place July 20.
Verboten owner arrested for writing thousands in fraudulent checks
Verboten files for Chapter 11 bankruptcy, all scheduled events to go on as planned
Verboten co-owner accused of sexual harassment and racism in the workplace