New York / Miami — Developer Michael Stern, founder of JDS Development Group, rose to prominence as a bold visionary behind some of America’s most ambitious real estate projects. From ultra-skinny towers on Billionaires’ Row to glass-clad high-rises in Miami, his name became synonymous with cutting-edge design and complex deal-making.

But behind the glass and steel, a different story is unfolding — one of lawsuits, unpaid taxes, investor disputes, and, now, abandoned lawyers.

📉 A Legal Storm in the Making

For years, the New York-based firm Katsky Korins LLP was Stern’s go-to legal counsel. They represented him in major disputes involving marquee developments such as 111 West 57th Street (Steinway Tower), 613 Baltic Street in Brooklyn, and projects along the High Line. They successfully fended off fraud allegations, won appeals, and pushed back against investor claims.

But by 2024, even they had enough.

“We reached a point where defending the client started to endanger the integrity of the firm,” said one former partner familiar with the matter.

🔍 Judges Call Out Forgery and Litigation Abuse

Court records in multiple New York State cases reveal troubling findings:

• In Baltic Fourth LLC v. Stern, the judge acknowledged evidence of forgery involving a construction loan application.
• In Largo 613 Baltic v. Stern, Stern was ordered to post a $1 million litigation bond due to what the judge described as potentially bad-faith conduct, including filing a bankruptcy petition in the middle of litigation.
• On appeal, the court refused to remove a statement asserting that “Stern committed forgery” — leaving it in the record as background for the court’s rulings.

💰 A Pattern of Debt and Disputes

The legal troubles come on top of a growing list of financial red flags:

• Stern failed to pay over $515,000 in property taxes on his Miami mansion in 2024 — following a similar delay the previous year.
• A High Line investor group sued him for $1.5 million, alleging breach of a verbal loan agreement.
• Former partners and contractors accused him of inflating construction costs and misappropriating funds for personal luxury expenses — including private jets and exotic cars.

These are not isolated incidents. Over the past decade, Stern and his entities have been involved in dozens of lawsuitswith lenders, partners, and investors — many of which have ended in confidential settlements or Stern losing control over the very projects he once championed.

⚠️ What It Means for Legal Firms

Stern’s case has become a cautionary tale for attorneys working in high-stakes real estate litigation.

Katsky Korins, a respected Manhattan firm, reportedly faced:

• Nonpayment of legal fees across several years of active litigation;
• Mounting ethical concerns related to the authenticity of documents provided by the client;
• Procedural challenges as Stern pursued controversial legal strategies — such as weaponizing bankruptcy filings.

By late 2023, the firm had quietly disengaged. In subsequent defamation-related litigation, Stern turned to Clare Locke LLP and Florida-based Stearns Weaver Miller, both known for their work in reputational risk and cyber-libel.

🧾 The Reputational Fallout

The loss of long-time legal counsel left Stern exposed — not just legally, but strategically.

Katsky Korins had built institutional memory around Stern’s complex corporate structure and long-running disputes. Their absence signals a reset — one that is unlikely to go unnoticed by institutional lenders, equity partners, or municipal agencies.

In filings related to his recent defamation lawsuit, Stern himself admitted that “negative press has disrupted conversations with current and potential investors.”

📌 Why It Matters

Michael Stern is not the only high-profile developer to face legal scrutiny. But the scale and pattern of allegations — forgery, fraud, nonpayment, and bad-faith litigation tactics — set him apart.

His story is no longer just about a struggling skyscraper. It’s about the limits of legal protection when the client’s behavior repeatedly pushes the boundaries of trust, compliance, and ethics.

When even elite law firms walk away — it’s not just a red flag.

It’s a siren.

Sources: New York court records, Miami-Dade property filings, reporting from The Real Deal, Business Insider, and interviews with legal professionals familiar with the matter.