"They kept asking, 'What will be the price? What will be the price?' I knew Gaddafi was having trouble finding housing in New York City and I was through with dealing with them. Finally I just said, 'Well, if you send Megrahi back to Scotland, maybe we can work something out.' They hung up and that pretty much ended it," said Haber who has a degree in international studies from Columbia University.
The Libyans won't officially comment on where Gaddafi plans on staying once he arrives in New York Tuesday.
One rumor had him staying at The Pierre overlooking Central Park, but the hotel denied it.
"[Gaddafi] is not and never planned to stay at The Pierre," said hotel spokeswoman Sheila Donnelly Theroux.
Gaddafi isn't the only world leader who has had trouble finding a place to stay for this week's world summit. Mahmoud Ahmadinejad of Iran, had a difficult time finding a spot to hang up a favorite khaki-colored sports coat
When he arrived in New York in 2007 to address the General Assembly and students at Columbia University, Iran's Ahmadinejad, was met with protests.
In 2007, he was considered a pariah who denied the Holocaust, called for the destruction of Israel and pursued an internationally condemned nuclear weapons program.
When he arrives in the city today, the Iranian president will be an even greater outcast, and his reception in New York reflects his current standing worldwide.
Following an allegedly botched and rigged presidential election in June, Ahmadinejad has suppressed protests at home, while renewing his rhetoric about the Holocaust and according to some, continuing efforts to develop nuclear weapons.
The Iranian president, as it turns out, will stay near the U.N. at InterContinental The Barclay, a fact that the hotel is not exactly advertising. The accommodations for the Iranians were first revealed by the protest group United Against Nuclear Iran, and sources have confirmed the account to ABC News.
But the hotel officials refuse to confirm or deny Ahmadinejad will be staying with them. "InterContinental Hotels & Resorts is fully committed to the safety, comfort and well-being of its guests and associates. In the interest of guest privacy, we are not at liberty to reveal or discuss the details of guests or groups staying at any of our properties. This is a hotel and brand policy," said spokeswoman Caroline Counihan.
The UANI has been unable to get the InterContinental to give Ahmadinejad the boot, but several other New York hotels that were planning on allowing Ahmadinejad to hold dinners, abandoned the president after being targeted by the group.
The Helmsley Hotel and catering hall Gotham Hall both cancelled receptions that Ahmadinejad planned on holding in New York.
"As soon as Helmsley corporate management learned of the possibility of either the Iranian mission or President Ahmadinejad holding a function at the New York Helmsley Hotel, they immediately ordered the cancellation of that function," said Helmsley spokesman Howard Rubenstein in a statement.
"Neither the Iranian mission nor President Ahmadinejad is welcome at any Helmsley facility. The Helmsley organization is grateful to United Against Nuclear Iran for bringing this matter to its attention so that appropriate action could be taken," he said.
UANI on Monday wrote a letter to Essex House, another New York hotel, asking that it, too, cancel a reception Ahmadinejad is reportedly planning there.
The Iranian mission would not comment on Ahmadinejad's plans while in New York.
Both Gaddafi and Ahmadinejad can expect a particularly cool reception from Obama as well.
At a recent press conference, Susan Rice, the U.S. ambassador to the U.N., said Obama had no plans to interact with either of the men.
"With respect to the Iranian leader, I don't think there's much likelihood that there will be an interaction. There's no obvious venue in which that would occur, and certainly we have no meetings or anything of the sort planned," she said.
"And with respect to Gaddafi, Libya holds a seat at present on the United Nations Security Council, and Libya will be present at the Security Council summit."