The owner of Oheka Castle, the crown jewel of Long Island’s Gold Coast, has filed for bankruptcy — the latest bump in the road in the mansion’s dramatic, century-long history.
Gary Melius, who owns Oheka Castle through his company, Kahn Property Owner, filed for bankruptcy in Central Islip federal court to deal with the $63 million he owes to creditors, according to court documents. Melius filed the Chapter 11 (bankruptcy) petition voluntarily, a spokesperson said in a news release.
The property, which includes Oheka Castle and its surrounding 23 acres in Huntington, also holds $92 million in assets, according to court documents. The bankruptcy filing is a “reorganization process” for Melius, the release said.
“Oheka Castle remains fully operational, and all bookings, hotel accommodations, and events will proceed as planned without disruption,” a spokesperson assured in the release.
Melius has been in foreclosure for a decade, he told Newsday, and was at risk of losing the property this week. He shared that he could no longer keep the banks and lenders “at bay.”
This isn’t the first instance of financial drama for the iconic hotel and wedding venue.
Melius purchased Oheka Castle in 1984. The mansion was in disrepair after being the target of more than 100 documented arson attempts over the prior four years. But in 1988, Melius found himself unable to continue financing the restoration project and sold the property to Japanese businessman Hideki Yokoi for $22.5 million (equivalent to $62.7 million in 2025). When Yokoi and his family couldn’t manage the restoration either, Melius bought the estate back in 1998 and has been its owner ever since.
But, even current bankruptcy aside, ownership of Oheka Castle hasn’t come without hardships. Melius survived an assassination attempt in 2014 in which a masked gunman shot him in the head on Oheka Castle grounds before driving away. The case remains unsolved.
Oheka Castle was originally created by Otto Hermann Kahn in 1914 in response to Jews being denied entry to clubs and golf courses in his hometown of Morristown, New Jersey. More than 100 years later, it has become a staple venue for celebrities and socialites. It has also served as an iconic backdrop for movies, television shows and music videos, including Citizen Kane, Taylor Swift’s music video for her song “Blank Space,” and an episode of HBO’s Succession.
