Hillside Hotel files lawsuit over alleged $5 million fraud judgment


Attorney George C. Grasso of GCGrasso Law PLLC | Cornell Law School, Legal Information Institute

Hillside Hotel LLC has filed a lawsuit alleging a fraudulent scheme that led to a $5 million default judgment against the company. The lawsuit names Gorayeb & Associates, PC, Christopher J. Gorayeb, Jonathan D. Moran, and others as defendants.

According to the complaint, the alleged scheme involved recruiting construction workers to stage accidents at various sites across New York. Hillside claims that the law firm Gorayeb & Associates was involved in filing personal injury lawsuits and workers' compensation claims based on these incidents. One such case, Norma Gutierrez v. Hillside Hotel LLC, resulted in a default judgment of $5 million against Hillside.

The complaint asserts that no medical documentation was submitted before the entry of the default judgment and that Hillside was not afforded an opportunity to contest the claims. It further states that Dr. Andrew Merola, named in a separate federal case, was listed as one of Gutierrez’s treating physicians, which the plaintiff contends raises questions about the legitimacy of the injuries alleged in the underlying litigation. Hillside alleges that as a result of the judgment, its property is now subject to a court-ordered auction.

Hillside seeks multiple forms of relief, including a temporary restraining order and a preliminary injunction to stop the scheduled auction of its property. The complaint also requests compensatory damages for legal costs associated with years of related litigation, statutory damages under the Racketeer Influenced and Corrupt Organizations Act (RICO), punitive damages, and attorneys’ fees.

The plaintiff is represented by attorney George C. Grasso of GCGrasso Law PLLC. The case was filed in the United States District Court for the Eastern District of New York under Case ID 1:25-cv-02928-AMD-CLP and is presided over by Judge Ann M. Donnelly.

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