News From Assemblyman Jeffrey Dinowitz

Dinowitz Urges Transit Revolution from Albany Following Latest Disas

Reiterates call on Cuomo to reinstate $65 million cuts to MTA operating budget

   Yesterday's F train nightmare was just one more reminder that we're operating on borrowed time. Those trapped commuters may have escaped unharmed, but what about the next disaster?

I have repeatedly called on Governor Cuomo to reinstate the $65 million in operating funds he and the MTA decided to cut. We are facing a major transit emergency that could put lives at risk and jeopardize the city's long term economic growth. We need to move beyond the empty rhetoric, cosmetic solutions and budget cuts. What we need is nothing short of a full blown revolution in how New York provides public transportation to 8.5 million people. Our city lives and dies by its buses and subway. It's time Governor Cuomo and the MTA step and give New York the transit system we deserve.

Assemblyman Dinowitz Applauds Kingsbridge Armory’s Long Awaited Release From Limbo

Mayor de Blasio recently announced that the Economic Development Corporation (EDC) will finally release the Armory’s lease to the Kingsbridge National Ice Center LLC (KNIC) once the $108 million loan earmarked for the Armory in the state budget is formalized.

The proposed project, to convert the armory into a massive multi-ice rink complex, stalled after the city placed the armory lease in escrow until KNIC was able to secure funding for the project. In turn, KNIC claimed not holding the lease diminished their chances of successfully securing investment in the project and essentially placed the project on hold.

The project seemed destined to remain in limbo until state leaders including Assemblyman Dinowitz broke project out of limbo by granting the project $108 million loan in the state budget and giving KNIC the push it so desperately needed to get off the ground, secure the lease from the city, and begin development of the project.

Dinowitz was one of the first and most prominent supporters of the plan to develop the Kingsbridge Armory into a community center or sports facility voicing his support in 2011 to the Bronx Overall Economic Development Corporation, urging support for it when the ice skating project was still being contemplated among a number of other proposals.

“I have long believed that the Kingsbridge Armory should be used for the people of the Bronx and I am pleased that this project will finally proceed so that the Bronx can benefit. Having grown up just blocks from the Armory I am very familiar with its amazing potential. The Kingsbridge Armory is the largest in the world and the KNIC will be the largest ever ice rink complex. It will  greatly benefit people all over the Bronx as it can provide recreational and educational opportunities for thousands and thousands of Bronx residents and those beyond our borough. It also has the potential to create new businesses, particularly along Kingsbridge Road, that will bring provide many good to the community. I look forward to this project becoming a reality and to the positive impact it will have on Kingsbridge Heights, the Bronx and beyond,” said Assemblyman Dinowitz

CB 8 Traffic and Transportation Resolution RE: Broadway Corridor - Repost Upon Requests

Traffic and Transportation Committee

Bronx Community Board No. 8

5676 Riverdale Avenue

Bronx, New York 10471

Resolution

Dated: May 25, 2017.         

WHEREAS, Broadway between West 242nd Street and the City Line (“Broadway Corridor”) is a wide street, comprised of at least two northbound lanes and two southbound lanes, with parking on each side; and

WHEREAS, the New York City Department of Transportation (“DOT”) has presented a plan for safety improvements from West 242nd Street to the City Line; and

WHEREAS, DOT cites speeding as an issue along the corridor and states speeding is especially prevalent during off peak hours; and

WHEREAS, DOT cites a number of accidents between 2010 and 2014 on the Broadway Corridor;

WHEREAS, DOT recognizes Broadway as an important bus route for 9 NYC Transit lines, some of which connect to the subway lines; and

WHEREAS, Broadway is also known as U.S. Route 9, a designated truck route; and

WHEREAS, Broadway is the western boundary of Van Cortlandt Park; and

WHEREAS, DOT installed two signalized crossings (traffic lights) on Broadway and West 246th Street and at Broadway at the Tortoise and Hare Statue Park entrance in November 2016; and

WHEREAS, the Committee heard testimony from the public that speeding has been greatly reduced on the Broadway Corridor since the installation of these new traffic lights; and

WHEREAS, DOT has stated that it cannot study the effects of these new traffic lights for at least one year from the date of their installation;

WHEREAS, the Committee heard testimony from the public that lack of parking is an issue on the Broadway Corridor; and

WHEREAS, the Committee heard testimony from the public that they would like DOT to study the possibility of angle parking along Van Cortlandt Park; and

WHEREAS, DOT proposed the addition of parking spots along the Broadway Corridor which could be installed regardless of the plan being implemented; and

WHEREAS, the Committee heard testimony from the public that double parking is an issue on the Broadway Corridor; and

WHEREAS, the Committee heard testimony that the wide 13’ parking lane permits the flow of traffic around double parked vehicles; and

WHEREAS, the Committee heard testimony from the public that if the DOT plan was implemented, which would narrow the traffic lanes, double parking would stop the flow of traffic on Broadway Corridor; and

WHEREAS, the Committee heard testimony from the public that, Van Cortlandt Park, as a renowned cross country and track destination, attracts schools from across the country to sporting events and that during these events, large buses double park along the Broadway Corridor on both sides of the street; and

WHEREAS, the Committee heard testimony from the public that if the DOT plan was implemented, which would narrow the traffic lanes, double parking of these buses at the sporting events would stop the flow of traffic on Broadway Corridor; and

WHEREAS, DOT proposes that the curbside bus stops on the northbound side of the Broadway corridor will be eliminated and replaced with bus bulbs thereby forcing buses to stop in a moving traffic lane to pick up and drop off passengers; and

WHEREAS, the Committee heard testimony from the public that if the DOT plan was implemented, the new bus stops would stop the flow of traffic on Broadway Corridor; and

WHEREAS, the Committee heard testimony that similar changes as those proposed have been implemented in Manhattan and have caused devastating congestion;

WHEREAS, the Committee heard testimony that the proposed protected bike lane may be dangerous to pedestrians entering and exiting the park, especially individuals with baby carriages which enter the bike lane first; and

WHEREAS, the Committee heard testimony that the proposed protected bike lane may be dangerous to motorists exiting their vehicle, particularly with packages, carriages and children on the Northbound lane because of the narrowed lane with oncoming traffic and the bike lane on the other side of the vehicle; and

WHEREAS, the Committee heard testimony that the proposed plan may be dangerous to motorists exiting their vehicle, particularly with packages, carriages and children in the Southbound lane, being reduced to an 8’ width, with oncoming width; and

WHEREAS, the Committee heard testimony that the public would prefer bike lanes in the park and not in the street;

WHEREAS, the narrowing of lanes coupled with double-parked vehicles and buses stopping in traffic lanes will create congestion and gridlock on the Broadway Corridor;

WHEREAS, the Committee heard testimony that if the plan was implemented, the congestion and gridlock will cause vehicles to use alternate streets in North Riverdale such as Post Road, Fieldston Road and Riverdale Avenue;

WHEREAS, the Committee heard testimony that if the plan was implemented, the congestion and gridlock will cause emergency vehicles to be hindered in their vital functions; and

WHEREAS, the Committee heard testimony from the public that the Broadway Corridor has been made dangerous by the failure of DOT to maintain the striping of key crosswalks and intersections; and

WHEREAS, the Committee heard testimony that the businesses on West 242nd street and Broadway rely on the use of the service lane on West 242nd Street and that the proposed plan will hurt their businesses.

THEREFORE:

BE IT RESOLVED that the Committee does not approve the DOT plan as presented but finds that certain elements of the plan may be beneficial; and

BE IT RESOLVED that the Committee appreciates the efforts of Council Member Cohen for bringing safety issues of the Broadway Corridor to the forefront of community discussion; and

BE IT RESOLVED that the Committee recommends the restriping of the intersection at Broadway and Mosholu Avenue so as to narrow the intersection for pedestrian safety; and

BE IT RESOLVED that the Committee recommends that DOT install the additional parking spots identified along the Broadway Corridor; and

BE IT RESOLVED that the Committee recommends that DOT study the possibility of angled parking along Van Cortlandt Park; and

BE IT RESOLVED that the Committee recommends that DOT initiate a study to analyze the effects of the two new traffic lights on Broadway Corridor promptly after the one year period; and

BE IT RESOLVED that should the DOT study of the traffic lights reflect additional measures needed, that DOT reconfigure the timing of the traffic lights in order to slow traffic further; and

BE IT RESOLVED that the Committee recommends additional traffic lights on the Broadway Corridor; and

BE IT RESOLVED that the committee recommends aggressive enforcement of double parked vehicles on the Broadway Corridor;

BE IT RESOLVED that, at the Broadway exit from the southbound Henry Hudson Parkway, DOT study the elimination of the northbound lane on to Broadway, where two pedestrians have been injured, thereby directing all exiting cars to the existing lane controlled by a traffic light, as recommended in the Van Cortlandt Park Master Plan approved by Community Board #8.

BE IT RESOLVED, that DOT conduct a separate and distinct study of the area between Manhattan College Parkway and West 242nd Street in order to analyze the entire activity of this important transportation and commercial Hub;

BE IT RESOLVED that DOT move the bus stop on the west side of Broadway between Manhattan College Parkway and West 242nd Street from its current spot to a new location further north to alleviate some of the issues at this Hub;

BE IT RESOLVED that DOT consider the possibility of a traffic circle at Broadway and Manhattan College Parkway to alleviate some of the issues at the Hub; and

BE IT RESOLVED that DOT investigate the installation of unprotected, designated bike lanes on the northbound and southbound side of Broadway.

BE IT RESOLVED DOT initiate a study of alternatives for bike lanes along the Broadway Corridor, including the installation of unprotected, designated bike lanes on the northbound and southbound side of Broadway, in and out of the park, and present this study to this committee in a separate and distinct proposal from the safety plan presented herein.

In Favor: Sylvia Alexander; Margaret Donato; Myra Joyce (Community Committee Member); Joseph O’Brien; Dan Padernacht; Georgia Santiago

Opposed: Eric Bell

Abstain: Daniella Fuchs

Croton Filter Plant - June Croton FMC Meeting

 

The Croton Facility Monitoring Committee will meet on Monday, June 19, 2017 at 6:30pm at the DEP Croton office, 3660 Jerome Ave Bx 10467.

The proposed agenda will be forwarded in advance.

MAYOR DE BLASIO ANNOUNCES ALL-TIME RECORD NUMBER OF TELEVISION SHOWS SHOOTING IN NEW YORK CITY

56 television series filmed in NYC during the 2016-17 season, an increase of 8 percent over last year – creating thousands of jobs and bringing millions of dollars in spending to local economy

  Mayor de Blasio and Mayor’s Office of Media and Entertainment Commissioner Julie Menin announced a record-breaking 56 episodic television series filmed in New York City during the 2016-17 season. The new high, up from 52 last year, reaffirms the City’s status as the premier location for the episodic television production industry. The number of television shows shot in the city has been setting records every year for the last seven seasons, thanks to the proliferation of networks and platforms commissioning scripted content, including streaming services like Netflix, Hulu and Amazon.

“We are experiencing a new golden age of television. The industry is enjoying a period of substantial expansion – not only to different audiences, but new platforms. And our City is doing an excellent job of getting its share of this growth,” said Mayor Bill de Blasio. “Production activity is spreading out to all five boroughs, and with it, more and more good-paying jobs for New Yorkers.” 

“We are thrilled that, once again, New York City has broken a new record in the number of television series shooting here,” said Media and Entertainment Commissioner Julie Menin. “New York is the greatest backdrop in the world, and the diversity of the city’s locations is unparalleled as is its skilled workforce. This increase in production provides enormous revenue to the city’s small businesses, and as well as thousands of well-paying jobs, something we can all celebrate.”

Every television show that shoots in the five boroughs brings tangible economic benefits to the City’s neighborhoods in the form of increased spending at local businesses and hundreds of well-paying jobs. The city’s soundstages are in high demand, and York Studios is breaking ground on a new 350,000 facility in the Bronx, in part to keep pace with all of the demand.

The number of pilots filmed throughout the five boroughs also rose, to 17 pilots in the 2016-2017 season (including network, cable and digital) up from 15 last year, an increase of 14 percent. The increase is all the more notable since the total number of network pilots has reportedly declined and the industry has moved away from the traditional pilot commissioning process.

Among the award-winning shows filmed in New York City are Mr. Robot, Billions, and The Americans. A number of prestigious projects have already announced they will film in New York in the 2017-18 season, including Succession with HBO, Maniac, a Netflix series which is the first Paramount TV project for shoot in New York, and Ray Donovan, the hit Showtime drama about a Hollywood fixer, which relocated from Los Angeles.

Overall, New York City’s filmed entertainment industry contributes nearly $9 billion to the local economy and creates 130,000 full-time, well-paying jobs.

Pilots filmed in New York City during the 2016-17 season include:

Start Up, ABC

Salamander, ABC

Deception, ABC

Untitled Paul William Davies Project, ABC

The Marvelous Mrs. Maisel, Amazon

Untitled Jenny Lumet Project, CBS

Live from Everywhere, Comedy Central

Issues, Freeform

Succession, HBO

Luncheonette, JAX Media

Redliners, NBC

Salvation, NBC

Drama High, NBC

Happy, Syfy

Mating, Showtime

Civil, TNT

The Tap, USA

Shalom Lamm Pleads Guilty In White Plains Federal Court To Conspiracy To Corrupt The Electoral Process In Bloomingburg

   Joon H. Kim, the Acting United States Attorney for the Southern District of New York, today announced that SHALOM LAMM pled guilty to conspiracy to corrupt the electoral process, in connection with an election in Bloomingburg, New York. LAMM pled guilty earlier today before United States District Judge Vincent Briccetti in White Plains federal court.

Acting Manhattan U.S. Attorney Joon H. Kim said: “As he has now admitted, Shalom Lamm conspired to advance his real estate development project by corrupting the democratic process, specifically by falsely registering voters. The integrity of our electoral process must be inviolate at every level; our democracy depends on it.”

According to the allegations contained in the Indictment, as well as statements made in related court filings and proceedings:

Starting in 2006, SHALOM LAMM, a real estate developer, sought to build and sell real estate in Bloomingburg, New York. From these real estate development projects, LAMM and others hoped for and anticipated making hundreds of millions of dollars. But by late 2013, the first of their real estate developments had met local opposition, and still remained under construction and uninhabitable. When met with resistance, rather than seek to advance their real estate development project through legitimate means, LAMM and others instead decided to corrupt the democratic electoral process in Bloomingburg by falsely registering voters and paying bribes for voters who would help elect public officials favorable to their project.

Specifically, in advance of an election in March 2014 for Mayor of Bloomingburg and other local officials, LAMM and others, and people working on their behalf, developed and worked on a plan to falsely register numerous people who were not entitled to register and vote in Bloomingburg because they actually lived elsewhere. Those people included some who never intended to live in Bloomingburg, some who had never kept a home in Bloomingburg, and indeed, some who had never set foot in Bloomingburg in their lives. LAMM and others took steps to cover up their scheme to register voters who did not actually live in Bloomingburg by, among other things, creating and back-dating false leases and placing items like toothbrushes and toothpaste in unoccupied apartments to make it seem as if the falsely registered voters lived there.

LAMM and others also bribed potential voters by offering payments, subsidies, and other items of value to get non-residents of Bloomingburg to register unlawfully and vote there.

LAMM, 57, of Bloomingburg, New York, pled guilty to one count of conspiracy to corrupt the electoral process, which carries a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

LAMM's sentencing is scheduled for September 28, 2017, at 10:00 a.m.

Co-defendant Kenneth Nakdimen pled guilty on May 25, 2017, to one count of conspiracy to corrupt the electoral process. His sentencing is scheduled for September 7, 2017, at 2:00 p.m.

Mr. Kim praised the outstanding investigative work of the FBI-Hudson Valley White Collar Crime Task Force, the Sullivan County District Attorney’s Office, the Sullivan County Sherriff’s Office, the Orange County Sheriff’s Office, the Orange County District Attorney’s Office, the Internal Revenue Service, and the United States Postal Inspection Service. Mr. Kim also thanked the Department of Justice’s Public Integrity Section, Election Crimes Branch, for its assistance in the case.

The charges contained in the Indictment are merely accusations, and the remaining charged defendant is presumed innocent unless and until proven guilty.

Two Bloods Gang Member Brothers Sentenced In Manhattan Federal Court, One For Committing A 2005 Murder

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that brothers BURNELL SCOTT, a/k/a “B.U.,” and BURCHANTI SCOTT, a/k/a “Napp,” were sentenced in Manhattan federal court today. BURCHANTI SCOTT was sentenced to 11 years in prison for distributing heroin, while BURNELL SCOTT was sentenced to 25 years in prison in connection with the 2005 drug-related murder of Kason Pinnick, a/k/a “Marijuana” (“Pinnick”) in Paterson, New Jersey. U.S. District Judge Laura Taylor Swain imposed both sentences.

Acting U.S. Attorney Joon H. Kim said: “As they admitted in their guilty pleas, Burnell and Burchanti Scott, brothers and longtime members of the Bloods street gang, distributed heroin and used violence to protect their drug distribution territory. Burnell Scott in fact shot and killed Kason Pinnick over a territorial dispute in Paterson, New Jersey. Today, each brother was sentenced to the lengthy prison term their crimes merit.”

BURCHANTI SCOTT previously pled guilty to participating in a conspiracy to distribute and possess with the intent to distribute more than 100 grams of heroin.

BURNELL SCOTT previously pled guilty to participating in a conspiracy to distribute and possess with the intent to distribute more than one kilogram of heroin.

According to the indictments and the felony information previously filed in Manhattan federal court, and public information:

BURNELL SCOTT, a long-time member of the G-Shine set of the Bloods street gang, was arrested on October 30, 2013, in Paterson, New Jersey. On February 24, 2016, SCOTT pled guilty to participating in a conspiracy to distribute and possess with the intent to distribute more than one kilogram of heroin, from 2005 through 2014. SCOTT admitted that, as part of the charged narcotics distribution offense, he and his co-conspirators were engaged in an ongoing dispute concerning, inter alia, drug distribution territory in Paterson. In connection with that ongoing dispute, on or about September 28, 2005, SCOTT encountered Pinnick in the vicinity of Twelfth Avenue and East 23rd Street, in Paterson. SCOTT pulled out a firearm, and discharged multiple rounds at Pinnick at point-blank range, striking Pinnick in the head, and killing him.

BURCHANTI SCOTT, the brother of BURNELL SCOTT and a high-ranking member of the Fruit Town Brims set of the Bloods street gang, who used violence or the threat of violence to protect his drug distribution territory, was writted into federal custody on March 18, 2014, from the New Jersey Department of Corrections, where he was incarcerated. On August 17, 2016, BURCHANTI SCOTT pled guilty to participating in a conspiracy to distribute and possess with the intent to distribute more than 100 grams of heroin, from 2012 through 2014. 

Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation (“FBI”) Safe Streets Task Force, Newark Division, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Clifton Police Department, and the New Jersey State Police.

A.G. Schneiderman Announces Take Down Of New York City Insurance Fraud Ring

Investigation Charges Six-Person Ring With Stealing Over $120k From Auto Insurance Carriers 

If Convicted, Alleged Ringleader Carlington Haye Faces 5 To 15 Years In Prison; Other Defendants Could Face 2 1/3 To 7 Years

Schneiderman: When A Few People Organize To Commit Insurance Fraud, All New York Consumers Pay The Cost 

  Attorney General Eric T. Schneiderman today announced a 42-count indictment, charging six individuals for their participation in an auto insurance fraud scheme in which the defendants allegedly cheated insurance carriers out of over $120,000 by submitting fake property damage claims for high-end vehicles. Four of the charged defendants, including ringleader Carlington Haye, were arrested and arraigned today in Kings County Supreme Court.          

“When a few people organize to commit insurance fraud, all New York consumers pay the cost,” said Attorney General Schneiderman. “My office remains committed to rooting out fraud of any kind and this is no exception.”

According to the Attorney General’s indictment, between January 2014 and September 2015, members of this insurance fraud ring allegedly conspired to submit 11 fake property damage claims, which included multiple false misrepresentations, including the manner in which car accidents and purported damages occurred.  The defendants also allegedly resubmitted claims for the same vehicles with preexisting damages multiple times. In order to maximize insurance payments, the defendants utilized high-end vehicles, including a Lexus, BMW, Audi, Mercedes, and Bentley. The defendants received payments ranging from $5,000 to over $20,000 for their property damage claims.

In addition, prosecutors allege that in three of the charged claims, the defendants used the stolen identity of a United States serviceman.  As a result of their alleged conspiracy, the defendants fraudulently obtained a total of over $120,000 in insurance payments for their counterfeit claims and cashed insurance checks at two Pay-O-Matic check cashing branches in Kings County, New York. 

The Attorney General’s 42-count indictment, unsealed today in Kings County Supreme Court, charges the defendants with Insurance Fraud in the Second Degree (a class C felony), Insurance Fraud in the Third Degree (a class D felony), Identity Theft in First Degree (a class D felony), Grand Larceny in the Third Degree (a class D felony), Falsifying Business Records in the First Degree (a class E felony), Scheme to Defraud in the First Degree (a class E felony) and Conspiracy in the Fifth Degree (a class A misdemeanor).  The following six defendants are charged with multiple felonies:

• Carlington Haye, age 35, of Kings County, New York  
• Mkada Beach, age 36, of Kings County, New York
• Omari Brown., age 22, of Kings County, New York
• Keon Cole, age 33, of Kings County, New York
• Dexter Karl, age 27, of Kings County, New York
• Theresa King, age 26, of Kings County, New York 

Defendants Carlington Haye, Mkada Beach, Omari Brown and Theresa King were arraigned today in Kings County Supreme Court before the Justice Danny Chun. Defendant Haye was remanded into custody pending a bail application; bail was set in the amount of $50,000 bond or $25,000 cash for defendant King; and defendants Beach and Brown were released on their own recognizance. 

If convicted of the top count charged, ringleader Carlington Haye will face up to 5 to 15 years in prison, and the remaining defendants face up to 2 1/3 to 7 years in prison.

The charges against the defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty in a court of law. 

These arrests are the culmination of a long-term investigation conducted by Attorney General Schneiderman's Automobile Insurance Fraud Unit. The Attorney General thanks the National Insurance Crime Bureau, New York State Department of Financial Services, New York State Department of Motor Vehicles, New York City Police Department, New York City Department of Finance Office of the City Register, and the Florida Highway Safety and Motor Vehicles for their invaluable assistance in this case.  The Attorney General also thanks State Farm Insurance Co., GEICO Insurance Co., Nationwide Insurance Co., United Services Automobile Association, and Progressive Insurance for their valuable assistance. 

A.G. Schneiderman Announces Guilty Plea Of Major NYC Landlord Steven Croman

Croman To Serve One Year In Rikers, Pay $5 Million Tax Settlement – Marking Significant Precedent In Effort To Combat Landlords Who Base Their Business Model On Displacement Of Rent-Stabilized Tenants

Criminal Case Revolves Around Croman’s Efforts To Obtain Loans Based On False Accountings Of Rent-Stabilized Tenants In His Buildings

Schneiderman: Now Croman Will Serve A Year In Rikers – And Unscrupulous Landlords Are On Notice 

  Attorney General Eric T. Schneiderman today announced the guilty plea of Steven Croman, a major New York City landlord with more than 140 apartment buildings across Manhattan, for fraudulently refinancing loans and committing tax fraud. Under the terms of his plea, Croman would serve one year of jail time on Rikers Island and pay a $5 million tax settlement – marking a significant precedent in the effort to combat landlords who base their business model on the displacement of rent-stabilized tenants.

Rarely, if ever, has a landlord been sentenced to serve time in jail for engaging in these practices. The jail time and multi-million settlement announced today send a strong message to landlords that the Attorney General will pursue anyone who engages in these types of practices to the fullest extent of the law.                                     

“Steven Croman is a fraudster and a criminal who engaged in a deliberate and illegal scheme to fraudulently obtain bank loans,” Attorney General Schneiderman said. “He went to outrageous lengths to boost his bottom line – including falsely listing rent-stabilized units at market rates when his efforts to displace those renters had failed. Now Mr. Croman faces a year in Rikers and a $5 million settlement – and unscrupulous landlords are on notice that we’ll pursue them to the fullest extent of the law.”

Croman entered into the guilty plea before State Supreme Court Justice Jill Konviser, to Grand Larceny in the Third Degree (a class D felony), and Falsifying Business Records in the First Degree and Criminal Tax Fraud in the Fourth Degree (both class E felonies). Croman fraudulently obtained several multi-million-dollar refinancing loans between 2012 and 2014, and committed tax fraud in 2011 by failing to withhold appropriate NY State payroll tax from certain Croman Real Estate employee paychecks. In addition to serving jail time, Croman also must pay a $5 million tax settlement to the State Department of Taxation and Finance. Croman will be sentenced on September 19, 2017.

A year-long investigation by the Attorney General’s office found that Croman purchased buildings with rent-stabilized units and, immediately after purchase, began the process of displacing rent-stabilized tenants while simultaneously attempting to refinance the initial mortgage.

The criminal referral in the Croman investigation was provided to the Attorney General’s office by the New York State Department of Housing and Community Renewal’s Tenant Protection Unit (TPU).

Governor Andrew M. Cuomo said, “We have zero tolerance for those who seek to use harassment and intimidation to chase tenants out of their homes. ‎The Tenant Protection Unit was created to crack down on these unscrupulous practices and this prosecution sends a clear message that New York stands united and the full force of the law will be used to ensure the rights of renters are respected and protected.”

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “Under Governor Cuomo and Attorney General Schneiderman, we will continue to bring more resources to bear to protect more than two million rent-regulated New Yorkers. The Governor’s Tenant Protection Unit and our partners in law enforcement will vigorously investigate an owner’s questionable business practices that put profits over the safety and security of their tenants. When this happens, tenants suffer; they lose their homes and they lose their communities. I congratulate the AG and the Governor’s Tenant Protection Unit for another job well done in holding an owner liable for his criminal actions.”  

“Attempting to displace families from their homes is criminal and deplorable, and should be punished to the full extent of the law. Seeing one of the city’s most notorious landlords receive jail time as a direct result of his actions sends a powerful message to those who would prey on vulnerable tenants,” said New York City Department of Housing Preservation and Development (HPD) Commissioner Maria Torres-Springer. “We applaud the Attorney General’s hard work and dedication to not only bring corrupt landlords and building owners to justice, but also continuously lay the groundwork for tougher penalties for unacceptable behavior.”

Buildings Commissioner Rick D. Chandler, PE said, “Blatant disregard of the law that puts profits ahead of people’s lives will never be tolerated in our city. DOB was proud to work with the Attorney General to support the successful criminal case against Mr. Croman. With our city and state partner agencies, we look forward to furthering our mission to crack down on crooked building owners.”

Pursuant to the plea agreement and the defendant’s allocution, Croman submitted false documents to banks, including rent rolls that falsely reflected market rate rents for units that were actually occupied by rent-stabilized tenants. Croman also inflated the amount of rent charged for certain commercial spaces in his buildings in an effort to show greater rental income. Croman 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 received more than $45 million in loans under these false pretenses.

Croman also intentionally failed to withhold New York State payroll taxes from bonus payments made to a former Croman Real Estate property manager, who was paid bonuses to get rent stabilized and rent controlled tenants out of Croman apartment buildings.

The Attorney General also has a separate civil lawsuit against Croman for allegedly engaging in harassment of rent-regulated tenants and other illegal, fraudulent, and deceptive conduct in connection with his real-estate business. That case remains ongoing.

Last week, Attorney General Schneiderman formally introduced new legislation aimed at holding the city’s most unscrupulous landlords criminally accountable for Harassment of a Rent Regulated Tenant. Current state law demands prosecutors reach an inexplicably high bar in order to criminally charge landlords with that crime—which is why in the past twenty years, not a single landlord has ever been convicted of the crime of Harassment of a Rent Regulated Tenant. Instead, prosecutors have only been able to bring criminal charges against landlords for other crimes – such as fraudulently refinancing loans and committing tax fraud, as Croman pled guilty to today.

The Attorney General’s legislation would set a more reasonable standard that removes the need to prove physical injury to a tenant, and opens the door to Harassment of a Rent Regulated Tenant prosecutions arising out of more commonplace and insidious tactics, such as turning off heat and hot water, exposing young children to lead dust, and making rent-stabilized buildings deliberately uninhabitable for current tenants and their families. The Attorney General’s legislation is sponsored by State Senator Liz Krueger and Assemblymember Joe Lentol.

The Attorney General has taken a number of other steps to combat tenant harassment and illegal practices by landlords across New York City, including:

• Launching a new team to enhance and streamline the office’s resources to combat tenant harassment, deceptive lending practices, deed theft, bank fraud, and other housing issues facing constituents.
  
  
• Filing additional felony charges against a landlord for committing mortgage fraud.
  
  
• Formed the Tenant Harassment Prevention Task Force with city and state officials.

The Office of the Attorney General thanks our partners at the Department of Buildings, the Department of Housing Preservation and Development, and the Department of Taxation and Finance for their assistance in the investigation and prosecution of this matter.