Saxton Sharad finds himself in a nightmare worthy of a surreal Franz Kafka novella. 

After New York state confiscated $163,000 from his bank account, and took his driver’s license, Sharad knows he won’t be awaking any time soon from a bad dream.

Sharad’s firm Revival Hotels LLC was hired to manage the Abbey Inn & Spa in Peekskill in November 2022 and began as general manager on Jan. 1, 2023. The two parties terminated the deal in September 2023, nine months later. Revival managed the property through a new company, RHM Peekskill LLC.

Sharad was contacted by the Abbey’s owner, Ginsburg Development Companies (GDC), in October 2024, a year after he left, regarding a tax audit being conducted by the New York State Department of Taxation and Finance (NYSDTF). According to a lawsuit filed by Sharad, GDC controller Rob McDermott asked him to send tax filing and payment documents to help GDC respond to the audit.

Sharad gave McDermott the documents, and, believing that GDC would handle the matter, took no further action.

But in March 2025, Sharad heard from the state of New York. “I unexpectedly received two Notices of Determination from NYSDTF, issued to RHM Peekskill. 

“In one notice, the agency demanded payment for unpaid sales and use tax, as well as interest and penalties, amounting to $435,410.21. In the other notice, the agency demanded payment for unpaid sales and use tax, as well as interest and penalties, amounting to $106,000,” according to the lawsuit.

The following months in 2025 involved numerous communications, primarily phone calls, between Sharad and GDC CFO Douglas Ramsay. Sharad claims Ramsay assured him GDC would handle the matter.

But on Sept. 9, 2025, the hammer dropped. Sharad discovered one of his personal bank accounts had been ordered frozen by NYSDTF. “I immediately called Mr. Ramsay at GDC. I did not receive a response. Two days later, I followed up by phone and email. Still no response,” Sharad claims.

Ten days later, Sharad was informed by the state that the balance he then owed was $644,180.85 and his driver’s license was suspended. He decided it was time to file a lawsuit.

Fighting Back

Ginsburg Development Companies CFO Ramsay did not return a call from the Peekskill Herald seeking comment. Attorney Lee Lefkowitz of the White Plains firm Zarin & Steinmetz LLP started the action for Sharad against 1876 Abbey LLC and Ginsburg Development Companies LLC in Nassau County Court in October 2025. Lefkowitz told the Herald GDC has not responded to numerous court filings in the lawsuit.

Asked by the Herald why New York state has confiscated Sharad’s bank account while taking no action against GDC, a spokesperson for NYSDFT declined to explain the agency’s actions.

“That information is covered by tax secrecy laws and is not something we can comment on,” wrote Ryan Cleveland, public affairs, New York State Department of Taxation and Finance.

Saxton’s attorney Lefkowitz told the Herald about his client’s reaction to his situation.

“He’s astounded, he’s perplexed on several levels,” Lefkowitz said. “Number one, that a known entity like Ginsburg Development would do this in the first place in terms of not dealing with a taxing authority to pay taxes, and number two, that they wouldn’t step in and do the right thing. 

“Then, once they realized that the state was going after both of them, to [not] step in and say we’re the ones that are responsible for this, and finally that they wouldn’t even respond to our lawsuit. It’s all perplexing.” 

Auditing Ginsburg, Penalizing Hotel Manager

According to court documents, NYSDTF selected the Abbey Inn randomly for a tax audit for the period of December 2021 through May 2024. [RHM served as manager from January to October 2023].  The audit began after RHM stopped managing the Abbey.

The state tax auditors alleged that Abby Inn failed to pay the proper quarterly sales tax amounts in August 2023, November 2023 and February 2024. With penalties and interest, the total tax warrant owed is $644,180.85. [Sharad is suing GDC to indemnify him for that amount, to have GDC resolve the tax dispute with the state, and to pay for his legal bills and other damages] 

The state issued tax warrants for $574,595.26 and $63,039.96 in August and September of 2025. Both warrants were filed in the land records division in the Westchester County clerk’s office.

And each warrant named both RHM Peekskill LLC and The Abbey Inn & Spa. According to the records filed in the court documents, NYSDTF has seized money from Sharad personally but has taken no action against Abbey Inn & Spa and its owner Ginsburg Development Companies.

There is also no public record of whether or not GDC is disputing the findings of the state tax audit or blaming RHM for not paying the taxes.

Sharad’s attorney, Lefkowitz, cites a clause in the termination agreement that he claims holds GDC responsible for resolving the tax audit…

“… 1876 Abbey LLC agrees to indemnify and hold harmless Revival Hotels and its employees, directors, officers, principals, and affiliates for any liability, claim or cost imposed on, incurred or asserted against them in any capacity arising 

out of the actions of 1876 Abbey LLC or related to this agreement except to the extent that such liability, claim, assessment or cost arises out of the gross negligence or willful misconduct of Revival Hotels LLC.”

The termination agreement, dated Sept. 12, 2023, was signed by Irene Ginsburg for 1876 Abbey LLC.

Lefkowitz told the Herald that GDC must settle the matter with the state.

“I don’t know how the taxes didn’t get paid, or if the state is wrong,” Leflkowitz said. “Saxton was just responsible for the ministerial act of filing [the tax return]. I’m sure Ginsburg had their own accountants dealing with that and then they tell Saxton, write the check, here’s the number. He’s not an accountant – he’s a manager of hotels. It wasn’t up to Saxton to calculate the taxes.”