Jacobs P.C. and the Law Office of Eric J. Warner, LLC secured a major defense victory in a $45 million commercial dispute tried in the Supreme Court of the State of New York, Nassau County.

In RSH BTSW, LLC and Realstar Holdings, LLC v. BT Supplies West, Inc., Steven Odzer, and Ruben “Ruby” Azrak (Index No. 613625/2021), Justice Driscoll dismissed all fraud and punitive damages claims. The ruling left only a limited unjust enrichment finding against defendant Steven Odzer, which is being appealed. Co-defendant Ruben “Ruby” Azrak was cleared of all liability.

The case involved loans made during the COVID-19 pandemic to finance personal protective equipment purchases. Plaintiffs alleged fraud and misuse of funds. Defense attorneys argued that the transactions were risky, high-interest loans knowingly entered into by experienced investors and that no money was misappropriated.

Key findings included:

• Investor sophistication: Evidence showed plaintiffs’ principal, Eitan Jeremy Rubin, was an experienced businessman who knowingly assumed high-risk positions during a volatile market.
• Transparency: Plaintiffs’ communications and site visits demonstrated that BTSW operated openly. Even plaintiffs’ own experts conceded there were no improper diversions of funds.
• Excessive loan terms: Expert testimony confirmed loan interest rates of 120%–144% annually, which are unenforceable under New York law.
• Repayments: BTSW repaid more than $20 million, exceeding the original principal.

To help repay investors, Azrak leveraged his family’s portfolio of real estate holdings, including good faith repayment of BTSW’s debt to the plaintiffs. As a result, that portfolio faced multiple foreclosure actions. The court’s ruling is seen as protecting Azrak’s family’s properties from what his attorneys describe as opportunistic and predatory lenders.

“This ruling makes clear that predatory, usurious lending cannot be rewarded,” said Leo Jacobs, founder of Jacobs P.C., who represented Azrak and BTSW. “The Court recognized that our client, Ruby Azrak, did nothing wrong.”

Eric J. Warner, counsel for Odzer, added: “The Court properly rejected the fraud claims and punitive damages demands. We will continue to challenge the unjust enrichment finding against Mr. Odzer.”

About Jacobs P.C.

Jacobs P.C. is a boutique corporate bankruptcy and commercial litigation law firm with over 100 years of combined experience. Dedicated to advocating for businesses facing complex challenges, Jacobs P.C. provides innovative solutions to overcome even the toughest legal and business obstacles. From the outset, the firm’s practical, results-oriented approach focuses on delivering immediate relief from legal pressures while building strategic, long-term pathways for clients to regain control and achieve their ideal outcomes. Jacobs P.C. leverages negotiation, mediation, settlement, advocacy, and motion practice to establish clear advantages for clients, helping them navigate and resolve disputes effectively.

About the Law Office of Eric J. Warner, LLC

Based in Bridgewater, NJ, the Law Office of Eric J. Warner, LLC represents clients in complex commercial and corporate disputes across state and federal courts, with a focus on practical solutions and trial-ready strategies.

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“This ruling makes clear that predatory, usurious lending cannot be rewarded,” said Leo Jacobs, founder of Jacobs P.C.