Attorney General James and HCR Commissioner Visnauskas Sue Queens Landlord For Illegally Overcharging Rent-Stabilized Tenants

 

New York Attorney General Letitia James and New York State Homes and Community Renewal (HCR) Commissioner RuthAnne Visnauskas today filed a lawsuit against Zara Realty Holding Corp. (Zara Realty), its principals, and affiliated entities for repeatedly violating rent stabilization laws and overcharging rent-stabilized tenants in Jamaica and Elmhurst, Queens. The lawsuit alleges that Zara Realty illegally took advantage of tenants who paid their rent through New York City Department of Social Services (DSS) housing subsidy programs and brazenly disregarded rent reduction orders issued by HCR’s Office of Rent Administration. Zara Realty would then sue tenants who did not pay these unlawfully inflated rents, putting multiple tenants at risk of eviction. The Office of the Attorney General (OAG) and HCR’s Tenant Protection Unit (TPU) are seeking a court order to stop Zara Realty from charging or collecting illegally inflated rents and force them to refund all tenants who were overcharged.

“While hardworking families are battling an affordable housing crisis and fighting to make ends meet, Zara Realty shamelessly took advantage of vulnerable tenants,” said Attorney General James. “New Yorkers should not have to worry that their landlords are willfully deceiving them just to line their own pockets. Let this be a warning: any landlord who tries to cheat their tenants and evade our rent stabilization laws will be hearing from my office.”

“Our Tenant Protection Unit is fighting for New Yorkers every day by protecting them from predatory landlords who try to illegally overcharge their tenants and defy our State’s rent laws," said HCR Commissioner Visnauskas. “The message from our office and Attorney General James is clear – if landlords fail to abide by the rent laws, if landlords seek fraudulent rent increases, or initiate unlawful evictions – we will not hesitate to take action on behalf of millions of rent-regulated tenants in New York.”

New York City’s rent stabilization laws place limits on how much a landlord can increase rent in a renewal lease or after a vacancy. The lawsuit filed today argues that since at least 2022, Zara Realty ignored the legal limits to exploit tenants who received DSS housing subsidies, charging them the highest possible amount allowable under their program, regardless of the legal rent for their unit as dictated by the Rent Guidelines Board. As a result, OAG and TPU contend that tenants were charged rent increases that were significantly higher than the legal amount.

In addition to violating legal rent increase limits, Zara Realty also ignored rent reduction orders issued by the Office of Rent Administration (ORA). The ORA orders landlords to reduce rent when a landlord fails to provide essential services or maintain the property to required standards. Tenants filed complaints with ORA, which then ordered Zara Realty to reduce and freeze their rents. Despite receiving these rent reduction orders, the lawsuit alleges that Zara Realty continued to overcharge tenants.

The OAG and TPU allege that Zara Realty’s complete disregard for rent stabilization laws forced multiple tenants into financial distress and put them at risk of eviction. In one case cited in the lawsuit, a DSS voucher-holder signed a one-year lease with a company owned by Zara Realty in 2022. The following year, the company increased her rent by eight percent, even though the legal limit for increases was just 3.25 percent. The next year, Zara Realty raised the same tenant’s rent by 44 percent. When the tenant refused to pay, Zara Realty took her to court. Another tenant’s rent had been frozen pursuant to a court order, but Zara Realty continued to overcharge the tenant for a period of two years. When ordered to provide the tenant with a rent credit and stop overcharging him, Zara Realty refused and continued to attempt to collect the inflated rent. When the tenant stopped paying the illegal rent, Zara Realty began eviction proceedings.

With this lawsuit, OAG and HCR are seeking a court order requiring Zara Realty to:

• Stop charging or collecting illegally inflated rents,
• Identify every former and current tenant that was illegally overcharged,
• Refund all illegally collected rent to former and current tenants,
• Pay damages to all former and current tenants, and
• Correct all rent registrations with HCR and issue new leases to tenants.

Attorney General James and HCR previously sued Zara Realty in March 2019 for targeting immigrant middle- and low-income tenants in at least 38 rent-stabilized buildings by charging excessive fees, coercing them into signing improper leases, and illegally raising rents. Litigation is ongoing.

“We applaud Attorney General James and HCR Commissioner Visnauskas for holding these bad actors accountable and for sending a clear message that this type of predatory behavior will not be tolerated,” said DSS Commissioner Molly Wasow Park. “The allegations are particularly appalling since the defendants sought to enrich themselves by taking advantage of subsidies intended to support low-income New Yorkers with a history of housing instability. DSS has taken concrete steps to change rental subsidy processes to prevent bad actors from being able to overcharge tenants in receipt of city-administered rental subsidies in the future. We look forward to further collaboration with the Office of the Attorney General and HCR to ensure vital government resources are protected.”  

This case is the latest action in Attorney General James’ ongoing efforts to protect tenants’ rights and enforce New York’s rent regulation laws. In February of this year, Attorney General James and Commissioner Visnauskas announced the re-regulation of 21 rent stabilized apartments and return of more than $50,000 to tenants who were overcharged. In September 2024, Attorney General James, in partnership with HCR’s TPU, re-regulated 263 illegally deregulated apartments and reduced rents in 43 additional units. In August 2022, Attorney General James secured $4 million from a group of 29 New York City landlords after uncovering an illegal kickback scheme to deregulate hundreds of rent-stabilized apartments in New York City. In January 2022, Attorney General James banned Raphael Toledano from real estate business in New York after he failed to uphold his 2019 $3 million agreement with Attorney General James for harassing tenants and violating rent stabilization laws. In December 2020, Attorney General James also won more than $1 million in rent credits from Madison Realty Capital for aiding and abetting Toledano’s harassment and illegal deregulation.

Corrupt Guatemalan Mayor Extradited to United States on Drug Trafficking Conspiracy Charge

 

Yesterday, Romeo Ramos Cruz, of Guatemala, made his initial appearance in the U.S. District Court for the District of Columbia following his extradition from Guatemala on Aug. 4.

Ramos Cruz, 57, is charged with one count of conspiracy to import more than five kilograms of cocaine into the United States from Guatemala.

According to court documents, from 2022 through 2024, Ramos Cruz served as a key member of a Guatemala-based drug trafficking organization responsible for transporting cocaine intended for U.S. markets. During this time, Ramos Cruz held public office as the mayor of Santa Lucia municipality in Guatemala’s Escuintla Department and is alleged to have exploited his official position to facilitate the organization’s operations. As part of the conspiracy, Ramos Cruz allegedly used his authority and access to coordinate logistics and transportation of cocaine shipments destined for the United States. In one instance, he agreed to help disguise a shipment of cocaine from Venezuela to Guatemala as a delivery of cement. He also prepared a letter on official municipal letterhead intended to help the shipment evade inspection by Guatemalan authorities.

If convicted, Ramos Cruz faces a maximum penalty of life in prison.

Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division, and Special Agent in Charge Reid Davis of the FBI Washington Field Office (WFO) made the announcement.

The FBI WFO led U.S. investigative efforts with assistance from the Drug Enforcement Administration Miami Division and the Immigration and Customs Enforcement Homeland Security Investigations New Orleans Field Office. The Justice Department’s Office of International Affairs working with Guatemalan law enforcement authorities, INTERPOL, and the FBI provided critical assistance in securing the arrest and extradition of Ramos Cruz to the United States.

Trial Attorneys Kirk Handrich and Roger Polack of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case.

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhoods. 

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Two Defendants Charged In Investment Fraud Scheme With Over One Hundred Victims

 

United States Attorney for the Southern District of New York, Jay Clayton; Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Ricky J. Patel; Special Agent in Charge of the New York Regional Office of the Federal Deposit Insurance Corporation’s Office of the Inspector General (“FDIC-OIG”), Patricia Tarasca; and Acting Inspector in Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), Edward Gallashaw, announced the unsealing of an Indictment charging LOURDES ROSALES BANEGAS and RAMON CONCEPCION with stealing more than one million dollars from over one hundred victims through an investment fraud scheme known as “LNJ Funds.”  BANEGAS is also charged with sending proceeds from the scheme to bank accounts in Colombia.  The defendants were arrested and were presented before U.S. Magistrate Judge Robert W. Lehrburger.  

“As alleged, Lourdes Rosales Banegas and Ramon Concepcion defrauded over one hundred victims through false promises about high and safe returns on their investments,” said U.S. Attorney Jay Clayton.  “But Banegas and Concepcion selfishly spent their victims’ money on themselves.  Our office is committed to bringing those who prey on Main Street investors to justice.” 

“As alleged, the defendants fleeced over a hundred innocent victims out of millions of dollars through their sham claims of a ‘risk-free’ money-making opportunity,” said HSI Special Agent in Charge Ricky J. Patel.  “Their alleged Ponzi scheme crumbled today, as did any façade of legitimacy behind their purported investment firm, LNJ Funds.  Every day, HSI New York stands alongside our law enforcement partners in utilizing every tool at our disposal to ensure New Yorkers as well as those around the world, and their livelihoods, are protected from criminal opportunists’ intent on filling their pockets by any means necessary."

“The defendants allegedly made false promises as part of an investment scam involving more than 100 victims and enriched themselves while doing so,” said FDIC-OIG Special Agent in Charge Patricia Tarasca.  “Despite assurances that their victims could eventually recover their invested money, this did not prove to be the case.  We are pleased to join our law enforcement partners in bringing the perpetrators of such deceit to justice.” 

“The U.S. Postal Inspection Service will continue to investigate investment schemes such as this and hold those who seek to defraud the American public accountable,” said USPIS Acting Inspector in Charge Edward Gallashaw.  “Before investing, individuals should research all claims and promises of high returns made by investment companies.  Too often, victims are enticed by bold promises and overlook warning signs that something may be off.”

According to allegations in the Indictment:[1] 

BANEGAS and CONCEPCION marketed and operated a supposed investment business they called “LNJ Funds.”  BANEGAS and CONCEPCION told their victims that investments in LNJ Funds provided a guaranteed 20% rate of return every sixty days and that there was no risk of losing money in the investment.  BANEGAS and CONCEPCION claimed that LNJ Funds could offer risk-free investments because it invested money in student loans backed by the federal government.  BANEGAS and CONCEPCION also told their investors that they could withdraw their money from LNJ Funds after a waiting period of approximately 60 to 90 days. 

Contrary to BANEGAS and CONCEPCION’s promises, LNJ Funds did not invest the money that its prospective investors provided.  Instead, BANEGAS and CONCEPCION spent money from their victim-investors on airfare, hotels, retail stores, and personal expenses.  BANEGAS also sent money to several bank accounts in Colombia, including an account in her name, as well as other accounts under her control.  Additionally, at times money from some LNJ Funds investors was paid to other LNJ Funds investors to perpetuate the myth that LNJ Funds was a legitimate business rather than a scam. 

While BANEGAS and CONCEPCION told LNJ Funds investors that they could obtain a return of their invested money after a waiting period, BANEGAS and CONCEPCION did not maintain enough money to repay their investors.  Instead, BANEGAS and CONCEPCION stole and misused the investor money.  Moreover, instead of repaying their investors as promised, BANEGAS, CONCEPCION, and a co-conspirator insulted, ignored, and lied to victims who attempted to withdraw their money from LNJ Funds.

BANEGAS, 43, and CONCEPCION, 43, both of Queens, New York, are each charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. BANEGAS is also charged with three counts of engaging in monetary transactions in property derived from specified unlawful activity, each of which carries a maximum of 10 years in prison. 

The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.         

Mr. Clayton praised the outstanding work of HSI, FDIC-OIG, and USPIS. 

The case is being handled by the Office’s Illicit Finance and Money Laundering Unit.  Assistant U.S. Attorney Christopher Brumwell is in charge of the prosecution, with the assistance of Paralegal Specialist Angelica Cotto.

[1] As the introductory phrase signifies, the entirety of the texts of the Indictment and the descriptions of the Indictment set forth herein constitute only allegations and every fact described should be treated as an allegation.

Van Cortlandt Park Alliance - Your name on the BIG SCREEN

 

It’s almost time for September’s Starlight Cinema – free movies in Van Cortlandt Park! 

 

Wanna be a part of the action? 

Make it a special night in Van Cortlandt Park – BYOB (bring your own blanket), grab some friends, and celebrate with a movie under the stars.

 

Got an anniversary, special occasion, or a birthday? Announce your personal message on the big screen for $150. 

 

Our movies in the park are FREE thanks to local sponsors like Horace Mann School, but we need your support, too! 

 

Do you have a business you’d like to promote? Check out how to purchase a corporate ad for $250.

 

By purchasing an ad or message, you are making it possible for VCPA to extend its reach, because your gift directly supports more FREE park programming. 

 

If you have any questions please contact Dana Settles at dana@vancortlandt.org or 718-601-1460.

 

Happy Summer! 

Team VCPA 

 

P.S. This year, our theme is the 400th birthday of New York City. The films we selected are all set in NYC and include the iconic landmarks, streets, and subway stations you know and love. 

 

Cult favorite The Warriors kicks off our series on Friday, September 5th. Look for Moonstruck, Men In Black, and Spiderman Into the Spiderverse throughout the month. Every movie night starts with live DJed music from WFUV and crafts that match the film. 

 

See you at the movies on September 5, 12, 19, 26. Here’s the full list. 

Our Contact Information
Van Cortlandt Park Alliance
80 Van Cortlandt Park South, Ste. E1
Bronx, NY 10463
718-601-1460
http://vancortlandt.org

MAYOR ADAMS’ STATEMENT AFTER CITY COUNCIL COMMITTEE VOTES UNANIMOUSLY TO ADVANCE MIDTOWN SOUTH MIXED-USE PLAN

 

New York City Mayor Eric Adams today released the following statement after the New York City Council Land Use and Zoning Committees voted unanimously in favor of the Adams administration’s Midtown South Mixed-Use Plan, moving it on to a vote by the full Council: 

 

“To address New York City’s dire housing crisis, we must take bold, transformative steps that build more housing in every neighborhood, including Midtown South. This community has long been a centerpiece of our city, brimming with iconic parks, buildings, and businesses, as well as fantastic transit access. This makes it all the more unbelievable that zoning rules have stopped the creation of new homes throughout the neighborhood; but now, we are going to change that. 

 

“With today’s vote, we’re taking another step forward in helping to create a more dynamic Midtown South where New Yorkers of all income levels can live, work, and play. Not only will this plan deliver thousands of new homes for this central neighborhood, but it also represents a down payment on our vision of 100,000 new homes across all of Manhattan over the next decade. Furthermore, this agreement underscores our commitment to pairing housing with investments in our infrastructure — including the transformation and reconstruction of Broadway and 34th Street busway. 

 

“Our administration is not just talking about our housing crisis; we are taking action to tackle it every single day. We have shattered affordable housing records year after year, passed the first citywide rezoning reform in six decades, and laid out ambitious plans to create more family-friendly neighborhoods across all five boroughs. When you put it all together, our administration has already created, preserved, or planned over 426,000 homes for New Yorkers through our work to date, reinforcing, once again, why we are the most pro-housing administration in city history. 

 

“Thank you to Council Speaker Adams, Land Use Committee Chair Salamanca, Jr., Zoning Subcommittee Chair Riley, and Councilmembers Powers and Bottcher for their support for this ambitious proposal and for working with our administration to build the homes that New Yorkers need. We look forward to a full vote later this month and bringing this ambitious vision for Midtown to life.” 

Air Quality Health Advisory Issued for Lower Hudson Valley, Upper Hudson Valley, Eastern Lake Ontario, Central and Western New York Regions

 

In Effect for Wednesday, Aug. 6, 2025

New York State Department of Environmental Conservation (DEC) Commissioner Amanda Lefton and State Department of Health (DOH) Commissioner Dr. James McDonald are issuing an Air Quality Health Advisory for fine particulate matter on Wednesday, Aug. 6, 2025, for the Lower Hudson Valley, Upper Hudson Valley, Eastern Lake Ontario, and Central and Western New York regions due to the impact of smoke from wildfires in Canada. In addition, there is the potential for visible smoke and hazy skies across the state and New Yorkers may see temporary spikes in smoke-related pollution that reach “unhealthy” levels that affect people with cardiovascular and respiratory concerns, as well as the general public.

The pollutant of concern is: Fine Particulate Matter 

The advisory will be in effect from 12:00 a.m. until 11:59 p.m.  

The Air Quality Health Advisory regions consist of: Lower Hudson Valley, which includes Dutchess, Orange, Putnam, Ulster, and Sullivan counties; Upper Hudson Valley, which includes Albany, Columbia, Fulton, Greene, Montgomery, Rensselaer, Saratoga, Schenectady, Schoharie, and Washington counties; Eastern Lake Ontario, which includes northern Cayuga, Jefferson, Monroe, Oswego, and Wayne counties; Central New York, which includes Allegany, Broome, southern Cayuga, Chemung, Chenango, Cortland, Delaware, southern Herkimer, Livingston, Madison, Onondaga, Oneida, Ontario, Otsego, Tioga, Tompkins, Schuyler, Seneca, Steuben, and Yates counties; and Western New York, which includes Cattaraugus, Chautauqua, Erie, Genesee, Niagara, Orleans, and Wyoming counties.

DEC and DOH issue Air Quality Health Advisories when DEC meteorologists predict levels of pollution, either ozone or fine particulate matter (PM2.5), are expected to exceed an Air Quality Index (AQI) value of 100. The AQI was created as an easy way to correlate levels of different pollutants to one scale, with a higher AQI value indicating a greater health concern. 

Fine Particulate Matter

Fine particulate matter (PM) consists of tiny solid particles or liquid droplets in the air that are 2.5 microns or less in diameter. PM 2.5 can be made of many different types of particles and often come from processes that involve combustion (e.g., vehicle exhaust, power plants, and fires) and from chemical reactions in the atmosphere.

Exposure can cause short-term health effects, such as irritation to the eyes, nose, and throat, coughing, sneezing, runny nose, and shortness of breath. Exposure to elevated levels of fine particulate matter can also worsen medical conditions such as asthma and heart disease. People with heart or breathing problems, and children and the elderly may be particularly sensitive to PM 2.5.

When outdoor levels are elevated, going indoors may reduce exposure. If there are significant indoor sources of PM 2.5 (tobacco, candle or incense smoke, or fumes from cooking) levels inside may not be lower than outside. Some ways to reduce exposure are to minimize contact with outdoor and indoor sources and avoid strenuous activities in areas where fine particle concentrations are high. Additional information on ozone and PM 2.5 is available on DEC's website and on DOH's website.

Additional information on PM 2.5 is available on DEC's website and on DOH's website (PM 2.5). A new DEC fact sheet about the Air Quality Index is also available on DEC’s website or by PDF download.

To stay up-to-date with announcements from DEC, sign up to receive Air Quality Alerts through DEC Delivers: DEC's Premier Email Service. A toll-free Air Quality Hotline (1-800-535-1345) was also established by DEC to keep New Yorkers informed of the latest air quality situation.

Bronx Borough President Vanessa L. Gibson - We Are Investing in the Future of the Bronx

 

Dear Neighbor,

We are investing in the future of our borough by committing funding to key priorities that will uplift and empower our communities and create a lasting impact for future generations of Bronxites. These investments include:

• Ensuring our students have access to the latest classroom technology
• Supporting our cultural institutions so they can continue to grow and expand
• Combating illegal dumping in our neighborhoods
• Reimagining the Kingsbridge Armory into a hub of opportunity and promise
• Equipping our hospitals with cutting-edge technology to deliver high-quality, patient-centered care
• Funding for a Bronx STEAM Center that will provide our scholars with pathways to careers in science and mathematics
• Advancing housing development

And much more!

Our investments reflect our shared vision for moving our borough forward and ensuring our communities have the necessary resources to thrive—and we are not done yet! We will continue to advocate for even more funding to combat years of inequities and disinvestment in our communities, because it's not just what our residents want—it`s also what they deserve.