Tuesday, May 10, 2016
Monday, May 9, 2016
A.G. Schneiderman Announces 20 Felony Charges And Civil Suit Against Major New York City Landlord Steven Croman
Croman, Owner Of 140 Apartment Buildings Throughout Manhattan, Faces 20 Felony Counts, Including Grand Larceny, Criminal Tax Fraud, And Falsifying Business Records; Mortgage Broker Barry Swartz Also Charged
Cases Allege Croman Pushed Rent-Stabilized Tenants From Their Apartments And Obtained Loans Based On False Accountings Of Rent-Stabilized Tenants In His Buildings
Attorney General Eric T. Schneiderman today announced that Steven Croman, a major New York City landlord with more than 140 apartment buildings across Manhattan, surrendered on multiple felony charges for his role in an alleged scheme to fraudulently obtain several multi-million dollar refinancing loans between 2012 and 2014.
Croman was also named, along with private investigator Anthony Falconite, in a civil suit filed today by the Attorney General’s office for allegedly engaging in illegal, fraudulent, and deceptive conduct in connection with Croman’s real-estate business. The lawsuit alleges that Croman directs an illegal operation that wields harassment, coercion, and fraud to force rent-regulated tenants out of their apartments and convert their apartments into highly profitable market-rate units.
The lawsuit further alleges that Croman deployed Falconite, a former New York City police officer, to frighten and intimidate rent-regulated tenants into surrendering their apartments.
“My message to unscrupulous landlords is simple: if you put your own profits over your tenants’ legal protections, we will investigate you and prosecute you to the fullest extent of the law,” Attorney General Schneiderman said. “My office will not tolerate anyone who attempts to line their own pockets by gaming the system. No one is above the law – no matter how rich or powerful.”
Governor Andrew M. Cuomo said, “There was a time when tenant harassment by landlords and their agents was only tackled in housing court. For justice to be served and for tenants to be righteously protected, criminal and civil wrongdoing that harasses rent regulated tenants demands the weight of a prosecutorial solution. When allegations surface that landlords are stalking tenants to compel fraudulent buyouts, we need stronger remedies; this is it and I thank the Attorney General and his office for continuing to work closely with the Tenant Protection Unit to help safeguard the rights of more than one million rent regulated tenants.”
New York State Homes and Community Renewal Commissioner James S. Rubin said, “I thank the Attorney General for his commitment to keeping New York’s rent regulated tenants safe from harassment. The Attorney General’s office and the Governor’s Tenant Protection Unit are here to protect you from extreme harassment and intimidation. We want New York’s over 1 million rent regulated tenants to sleep peacefully at night, knowing the state at every level is protecting them from unsafe construction, fraud, and harassment.
The criminal and civil cases are the result of independent, parallel investigations during the past two years.
The Attorney General’s office thanks New York State Homes and Community Renewal and Governor Cuomo’s Tenant Protection Unit (TPU) for their close cooperation and assistance in the investigation.
Details on Criminal Charges
Based on an extensive investigation by the Attorney General’s office, Croman allegedly submitted false mortgage documents to New York Community Bank and Capital One Bank, including rent rolls that falsely reflected market rate rents for units that were actually occupied by rent-stabilized tenants. Croman also allegedly inflated the amount of rent charged for certain commercial spaces in his buildings in an effort to show greater rental income. Croman allegedly falsified these rent rolls in order to inflate the annual rental income of his buildings, upon which his refinancing terms are partially based.
All told, over a three-year period, Croman allegedly received more than $45 million in loans under these false pretenses.
A grand jury indicted Croman on 20 felony counts, including seven counts of grand larceny in the 1st degree, seven counts of falsifying business records in the 1st degree, one count of scheme to defraud in the 1st degree, four counts of offering a false instrument for filing in the 1st degree, and one count of criminal tax fraud in the 4th degree.
Croman’s mortgage broker, Barry Swartz, also faces 15 felony counts, including seven counts of grand larceny in the 1st degree, seven counts of falsifying business records in the 1st degree, and one count of scheme to defraud in the 1st degree.
If convicted of all counts, Croman and Swartz could face as much as 25 years in prison. The charges against Croman and Swartz are allegations and they are presumed innocent unless and until proven guilty in a court of law.
The Tenant Protection Unit of New York State Homes and Community Renewal provided the Attorney General’s office with a criminal referral that was pivotal to the process.
Details of Civil Lawsuit
The civil lawsuit, filed in New York Supreme Court in Manhattan and the product of an independent investigation, alleges that Croman used the following illegal tactics to push working-class and low-income tenants out of their homes:
- Harassing tenants into surrendering their apartments—and their rights under the rent-stabilization laws—in exchange for “buyouts,” which are often no more than a few thousand dollars or a few months of free rent.
- Incentivizing his employees and agents to obtain buyouts, at the expense of their other responsibilities. Employees allegedly refer to rent-regulated tenants as “targets” and compete with each other to obtain the most buyouts. In one characteristic exchange, Falconite allegedly wrote to a property manager that obtaining buyouts was a “team sport,” to which the property manager responded, “I know that!! Who’s our next target? We have to start lining them up!!!”
- Pressuring tenants into surrendering their apartments by repeatedly filing baseless lawsuits against them. In internal emails, company employees allegedly acknowledged that such lawsuits would “aggravate” tenants or pressure them to accept buyouts. In some cases, Croman’s employees allegedly created a false record for litigation by refusing to acknowledge receipt of tenants’ rent checks and then suing them for unpaid rent—a deliberate fraud upon the court.
The lawsuit also alleges that Falconite, whom Croman allegedly refers to as his “secret weapon,” used deceptive and frightening tactics to intimidate rent-regulated tenants. The lawsuit alleges that Falconite’s text messages with property managers show that he regularly uses false pretenses to gain access to tenants’ apartments, often posing as a repairman or building manager. For example, in text messages to a property manager, Falconite allegedly agreed to use “false pretenses” and pretended he was with the construction department.
The lawsuit alleges that Falconite routinely threatened tenants and improperly accused them of violating their lease. He also allegedly abused his position as a former NYPD officer to threaten and intimidate tenants.
In addition, the lawsuit alleges that Croman, in his rush to flip vacant rent-regulated apartments into high-rent units, presided over a disturbing pattern of illegal and hazardous construction. The lawsuit alleges numerous examples of illegal construction, including the following:
- On at least 175 occasions, Croman’s companies allegedly performed construction without obtaining permits.
- Croman allegedly regularly directed his employees to flout stop-work orders and conceal unlawful construction from Department of Building inspectors.
- Croman allegedly filed false documents with the Department of Buildings on dozens of occasions in an attempt to avoid stricter oversight of his construction projects and elude tenant protection measures.
- Croman and his companies allegedly violated lead-safety laws repeatedly, exposing numerous tenants to lead-contaminated dust. On more than 20 occasions, the Department of Health (DOH) found impermissibly high levels of lead dust in Croman’s buildings, including levels up to 65 times the legal threshold.
- Croman allegedly defied DOH orders to address the lead hazards. On one occasion, after DOH order Croman to stop all work and begin lead-abatement measures, Croman directed his property manager to postpone the lead abatement so that the construction could continue.
Croman’s alleged illegal construction had devastating consequences for tenants. As alleged in the lawsuit, DOH identified lead-dust hazards in the apartment of a tenant who cared for her young grandsons, ages three and nine, both of whom were disabled. The tenant had to move her grandsons out of the apartment because of the dangers posed by the construction and lead dust and was forced to sue Croman to obtain repairs.
In addition, Croman allegedly repeatedly defied court orders to make repairs and address intolerable living conditions. The lawsuit alleges that throughout his portfolio, Croman has been issued hundreds of “hazardous” and “immediately hazardous” violations, which he has failed to correct. The suit further alleges that, on six occasions, the city has sued Croman’s companies for falsely certifying that they corrected violations on his properties.
Since 2012, The Tenant Protection Unit’s enforcement activities have led to the re-registration of over 50,000 improperly deregulated apartments, and the recovery of over $2.5 million dollars in overcharged rent for unsuspecting tenants through settlement agreements and administrative proceedings.
The Office of the Attorney General worked cooperatively with several city agencies, including DOH, DOB and the Department of Housing Preservation and Development during the civil investigation.
BP DIAZ HOSTS VETERANS APPRECIATION BREAKFAST
Bronx Borough President Ruben Diaz Jr. and his Bronx Veterans’ Advisory Council will hosted the annual Bronx Veterans’ Appreciation Day Breakfast today as part of Bronx Week 2016.
“We are grateful for our borough’s veterans and their service to our people and the United States of America. This event is a time to pay tribute to and salute those who continue to give back to our community,” said Borough President Diaz.
The Master of Ceremonies for the event that was held at Maestro's Caterers was Mr. Gary Axelbank of Bronxnet Television fame. The Honorees were Mr. Eric Chester (Bronx Vet Center-Outreach Coordinator), SSG. Luis Hernandez (Recruiter U.S. Marines Bronx), Anthony 'Tony' Salimbene (Bronx Community Board 10), SSG. Zaida Marie Tirado (Retired 29 years of service U.S. Army), and Mr. Herb Young (Bronx Community Board 8)
Above - Mr. Joe Binder WWII Veteran at age 105.
Below - Mr. Herb Young one of the Honorees.
Above and Below - BP Diaz made it a point to thank as many of the veterans that he could.
Above - The NYC Joint Services Color Guard begin their march to the front of the room.
Below - On stage, Belinda Barnes of the Bronx VA Medical Center Belts out the National Anthem, as the Color Guard stands at attention.
BP Diaz Hosts Centenarian Luncheon to Start Bronx Week
Bronx Borough President welcomed the 42 people in the room last Thursday at Villa Barone who have had their 100th birthday or more. The oldest person in the room was 108. There were several others who were 98 or 99 years old also in the audience. BP Diaz's Director of Senior Services Ms. Larcenia Walton is at his side holding all the Citations with the names and ages of the Centenarians.
Above - Master of Ceremony Dr. Bob Lee has the crowd dancing up a storm.
Below - Even one of the centenarians got up and danced to the beat.
Above - The centenarian dancer tells of her fountain of youth as BP Diaz holds her citation.
Below - 99 year old Beatrice Castiglia-Carullo and Founder of RAIN Senior Services holds her citation with BP Diaz on one side, and Deputy BP Greene on the other.
Above - Dr. Bob Lee and Deputy BP Greene chat with Irvin Ladimer who at 100 is the oldest active Bronx Community Board member.
Below - The highlight of the event however were the jokes as said by 105 year old Mr. Joe Binder, as you see all around him laughing.
PRESIDENT Signs ENGEL Bill to Stop ISIS from Looting Antiquities
New Law Cracks Down on Funding Source for ISIS While Protecting Syria’s Cultural Heritage
Representative Eliot L. Engel, Ranking Member of the House Committee on Foreign Affairs, today welcomed the President’s signature into law of Rep. Engel’s legislation to crack down on the sale of artifacts looted by ISIS from cultural sites in Syria. The Protect and Preserve International Cultural Property Act would contribute to the comprehensive policy of degrading and destroying ISIS without risking American lives or costing American taxpayers.
The new law imposes tough new import restrictions on antiquities that are trafficked out of Syria, bringing U.S. policy in line with a UN Security Council Resolution that called on governments to deny funding to ISIS by preventing trade in Iraqi and Syrian cultural property.
“As part of America’s effort to degrade and destroy ISIS, we need to do all we can to cut off resources for this terrorist group. Today, we’re putting a new tool to use. My legislation will crack down on the trafficking of looted Syrian artifacts, which has put millions of dollars in the hands of ISIS extremists,” said Rep. Engel. “This legislation has earned support from lawmakers of both parties and in both Houses, as well as numerous cultural heritage preservation groups. I want to thank the President for signaling his support as well, and for signing this bill into law.”
On June 1, 2015, Representative Engel’s legislation unanimously passed the House. The Senate approved a slightly modified version of the legislation on April 13, which the House passed by voice vote on April 26.
The law imposes new import restrictions on cultural artifacts removed from Syria. Similar restrictions were enacted in 2004 with respect to Iraqi antiquities. The law provides exceptions to allow artifacts to enter the United States for temporary protection and restoration. Restrictions will remain in effect until the crisis in Syria is resolved and America is able to work with a future Syrian government to protect cultural property from trafficking under a bilateral agreement, in accordance with America’s national interests.
Additionally, the law expresses support for a new interagency coordinating body to enhance cooperation among the government agencies, including the Departments of Defense and Homeland Security, already working on cultural preservation issues. It also takes steps to enhance Congressional oversight of this issue.
Representative Engel introduced the Protect and Preserve International Cultural Property Act along with Rep. Ed Royce (R-CA), Chairman of the House Committee on Foreign Affairs; Rep. William R. Keating (D-MA), Ranking Member of the Subcommittee on Terrorism, Nonproliferation, and Trade; and Rep. Christopher H. Smith (R-NJ), Chair of the Subcommittee on Africa, Global Health, Global Human Rights, and International Organizations.
Cultural Events at JASA Van Cortlandt Senior Center in late May and early June
I. Celebrate May/June Birthdays on Wed. May 25th, 2016 with the Meetles, a classic rock tribute band, at JASA Van Cortlandt Senior Center at 1:00 PM. They will perform music of the 60’s and 70’s by the Beetles, Simon & Garfunkel and more. The Meetles have been playing in the New York City subway systems under the MUNY: Music Under New York-MTA Arts for Transit program. Comprised of musicians who've spent years mastering the music of The Beatles and Classic Rock songs from the 1960s and 1970s, and performing in various bands over the years, the MEETLES feature Eric on drums, Naomi on bass and vocal, Rob on rhythm guitar, keys and vocal, Maggie on rhythm guitar and vocal, Eric on rhythm/lead guitar & vocal and Barry on rhythm/lead guitar and harmonica.
Lunch served at 12:15 PM: Beef & vegetable stew or turkey salad, yellow rice, zucchini w/onions, orange and dessert.
Recommended Senior Meal Contribution: $2.25 and Senior Event Donation: $1.00 Non-senior Meal Fee: $5.00 and Event Fee: $2.00
Contact JASA Van Cortlandt Senior Center office at 718-549-4700 for advancemeal reservations.
II. Iyov and Shlomit Jindo will present about the Makuya, a Japanese Zionist Christian group, on Friday, May 27th at 1:00 PM in belated celebration of Yom Ha’Atzmaut, Israel Independence Day. Iyov is a Bible scholar whose grandfather Prof. Abraham Ikuro Teshima founded the Makuya movement in 1948. He established excellent relations with many Israeli leaders which led to the building of the Makuya Center in Jerusalem in 1988. Shlomit will sing classic Israeli songs followed by a brief lecture and film presentation. Lunch served at 12:15 PM:Spanish style roast chicken or gefilte fish loaf, brown rice w/beans, broccoli soufflé, pear and refreshments. Recommended Senior Meal Contribution: $2.25 and Senior Event Donation: $1.00 Non-senior Meal Fee: $5.00 and Event Fee: $2.00
Contact JASA Van Cortlandt Senior Center office at 718-549-4700 for advance meal reservations by Wed. May 25th.
III. “A Time to Dance,” a sparkling one-woman show written and performed by Libby Skala on Sunday, June 5th at JASA Van Cortlandt Senior Center at 2:15 PM. Libby Skala interweaves storytelling, music and dance to portray the dazzling 100 years of her great aunt Elizabeth "Lisl" Polk who transcends poverty, artistic repression and the rise of Hitler through the love of dance to become a renowned dance therapy pioneer. Arriving in 1902 Vienna, Lisl survives a premature birth, two world wars, immigration to New York, 9/11, and dances the Macarena on her hundredth birthday. She survives by never allowing severe disappointments to cloud the vibrancy and beauty of life. “Funny. Captivating. Charming.” –
The New York Times
Lunch Menu: salmon w/dill sauce or chicken breast, fusili pasta w/parsley, zucchini Provencal, French bread, fruit. Lunch served at 1:15 PM. Refreshments will be served. Recommended senior meal contribution: $2.50 & event donation: $2.00 Non-Senior meal fee: $5.00, event fee: $3.00 Call the senior center office at 718-549-4700 by Wed. 6/1 for advance meal reservations.
All meals at JASA Van Cortlandt Senior Center are catered by Mauzone(kosher) Meal Service. We offer a daily alternate choice of main dish. Call the senior center office to request the alternative meal option from 9:30 – 10:30 AM. Refreshments are served at all special events.
Sunday, May 8, 2016
Attorney General Eric T. Schneiderman - Spearheading Reforms in the Ticket Industry, and more
Spearheading Reforms in the Ticket Industry
As part of an ongoing investigation into ticket reselling, the Attorney General sent letters to StubHub, Ticketmaster, Vivid Seats, and TicketNetwork urging them to adopt more consumer friendly practices. He called on the companies to do more to curb the use of illegal "bots" and take steps to discourage speculative ticket sales, as well as other measures. Read the CNN Money article here.
Art Collectors Failing to Pay Taxes
The Attorney General reached a settlement with NYC art collector Aby Rosen for failing to pay sales and use taxes on $80 million worth of artwork he bought or commissioned since 2002. Rosen will pay $7 million following the Attorney General’s investigation into the use of resale certificates. Read the NYT story on it here.
His office also reached an agreement with art sales executive Victoria Gelfand for failing to pay New York sales and use tax on more than 30 works of art purchased by her companies. Her companies will pay $210,000 in both sales and use tax to New York State.
Recovering Funds for New York
A joint settlement was announced with the federal government and a coalition of states and the Olympus Corporation of America for paying illegal kickbacks to healthcare providers. Olympus will pay $306 million, with the New York Medicaid Program receiving over $7.7 million in damages. Read the Times Union piece here.
Tracking Data Breaches Across New York
The Attorney General’s office reported an over 40% increase in data breach notifications involving New Yorkers this year in comparison to 2015. His office has now provided companies with the ability to file notice electronically via this web submission form to meet the increased volume and provide efficiency in reporting. Read the Crain’s New York Business article here.