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Landlord Who Bilked Banks out of Millions of Dollars Sued for Harassment

An East Village landlord who was recently arrested for allegedly taking out millions of dollars in loans through fraudulent means is also facing a civil lawsuit filed by New York State Attorney General Eric Schneiderman. According to an article by Crains New York Business, it is alleged that the landlord illegally harassed tenants in the rent-regulated apartments he owned by attempting to have them evicted so he could charge higher rents.

Steven Croman, who owned 140 buildings in Manhattan, obtained $45 million in loans from New York Community Bank and Capital One Bank between 2012 and 2014 by exaggerating the amount of income his properties generated, according to Schneiderman. That allowed him to obtain favorable terms with the banks. In addition to these allegations, the Attorney General’s office claims that Croman racked up over $1 million in unpaid fines he amassed for construction and building code violations. The violations came when Croman instructed construction firms to perform work without a permit as a way to get the tenants to move out. The work also exposed the tenants to lead dust.

According to the lawsuit, Croman and his company 9300 Realty, would buy up apartment buildings with rent-regulated units, then buy out the tenants so he can increase the rents. Those who refused the buyouts were subject to lawsuits. He would also not deposit the tenants’ rent checks then claim they were behind in their rent. He hired a private investigator who — along with some of the 9300 Realty employees — allegedly used intimidation tactics on the tenants to get them to move out.

If you feel that your rights as a lawful tenant have been threatened or violated, contact Tanya Hobson-Williams, P.C. to learn about the protections available to you under New York State Law.

New Changes to Rent Stabilization Law in New York

Tanya Hobson-WilliamsJanuary of this year, Gov. Andrew Cuomo signed into law numerous amendments to the system of rent stabilization in New York State. Both landlord and tenants agree that the new amendments strongly help tenants’ rights, while limiting those of landlords.

Currently, laws impose a four-year limitation on checking rent history, but now regulators will be able to look back more than four years to determine whether there was ‘a fraudulent scheme’ to destabilize the apartment. Tenants can also go directly to the state to request rent reductions because of service complaints, whereas before they were required to first inform the landlord.

Additionally, the state will begin to enforce and keep tabs on whether or not a building has any housing violations, and they will reject a landlord’s request to increase rent if any violations exist. Previously, they state would only look up violations if someone filed a complaint. Landlords will also be required to make “extensive new disclosures” when they increase rents, so there will be more oversight from the state. Continue reading “New Changes to Rent Stabilization Law in New York”