Steve Croman sells 8-building portfolio

115-117 Avenue A (photo source)

Steve Croman has sold eight buildings in the East Village/Lower East Side for a reported $61.7 million in a deal announced last week. 

According to @TradedNY, Croman's Centennial Properties sold 89 Clinton St., 115 and 117 Avenue A, 186, 188 and 222 Avenue B, 330 E. Sixth St. and 117 First Ave. The buyer: ABJ Properties. 

This was initially listed as a 14-building, $121 million portfolio, per broker Marcus & Millichap.

The Real Deal reported about this assemblage hitting the market this past December. As TRD noted: "Steve Croman is known for rarely — if ever — selling his apartment buildings."

However:

He's the latest in a group of old-line New York landlords who have moved to part ways with their properties in recent months as fallout from the state’s 2019 rent-regulation overhaul has combined with demand from investors eager to get in on the city’s recovery.

But unlike investments that were suddenly strained when state lawmakers limited landlords' ability to raise rents on regulated apartments, the properties Croman is offering are almost entirely free-market.

Croman was released from the Manhattan Correctional Facility in June 2018 after serving eight months of a one-year jail sentence and paid a $5 million tax settlement following separate criminal charges brought by the AG's office for fraudulent refinancing of loans and tax fraud. In a separate civil case, Croman agreed to pay $8 million to the tenants he was accused of bullying out of their rent-regulated apartments.

An independent management company is now reportedly overseeing Croman's residential properties — which, before this deal, included 47 buildings with 617 units in the East Village — for the next five years.

Tenants: Pigeons have made empty apartment a health hazard in this Steve Croman-owned building on 7th Street

Tenants at 127 E. Seventh St. say that a "toxic health hazard" exists in this building owned by convicted felon Steve Croman between Avenue A and First Avenue.

According to the residents, who asked to remain anonymous out of fear of retaliation by the landlord, four rent-regulated apartments remain vacant (since 2019) in the 12-unit building.

One of the residences, apartment 4A, is said to be in deplorable shape. 

Tenants say that someone left a window open inside the apartment. As the photos below show, the apartment is now home to several pigeons... as well as several dead pigeons. The apartment is also "filled with feces, flies and maggots on the dead animals," per the tenants, who have dubbed this space "Croman's Poison Pigeon Coop."

Croman's management company and the New York State Attorney General's office were made aware of these conditions on May 8. However, neither side responded to the conditions, the tenants said. (The tenants also said they were disappointed with the lack of action by the AG's Tenant Monitor, established as part of Croman's settlement with the State.)

Meanwhile, at least one city agency is investigating the conditions in the apartment... which you can see for yourself ... 

Croman was released from jail in June 2018 after serving eight months for mortgage and tax fraud. In a separate civil case with the AG's office, Croman agreed to pay $8 million to the tenants he was accused of bullying out of their rent-regulated apartments. 

Croman agreed to relinquish direct control of his 100-plus rental buildings — including 47 with 617 units in the East Village — for the next five years as part of a settlement agreement. NYC Management — a division of the Besen Group — serves as the property manager for the portfolio. 

According to a published report at The Real Deal in October 2019, "The notorious landlord is back in action and hasn't changed his ways" since his release from behind bars.

Another fire at 204 E. 13th St.

There was another fire reported at 204 E. 13th St. between Second Avenue and Third Avenue. Early Saturday morning, the FDNY responded to a blaze on the third floor at the address...

MAN ALL HANDS 204 E 13 ST, MULTIPLE DWELLING FIRE ON 3RD FLR,

— FDNYalerts (@FDNYAlerts) February 29, 2020

No word on the extent of the damage to the 4-story building (see top photo via a reader) or a cause.

This is the second time in 15 months that a fire broke out at No. 204. Renovations were apparently still in progress in the building following an early morning fire during Thanksgiving weekend 2018.

That fire caused extensive water damage to Bruno Pizza, the retail tenant on the ground floor in the building owned by Steve Croman. Last July, owner Demian Repucci decided that the damage was too much to overcome, and he decided to move on from the business.

Soothr, a Thai noodle bar, was expected to open soon in the space. The most recent apartment rental via Streeteasy is from last May, when a two-bedroom unit on the third floor was listed — then removed — for $5,073.

H/T Jodi!

Seems like old times: The post-prison life of Steve Croman

[60 Avenue B]

ICYMI: The Real Deal recently took a deep dive on the post-prison business life of landlord Steve Croman.

Croman was released from the Manhattan Correctional Facility on June 1, 2018 after serving eight months of a one-year jail sentence and paid a $5 million tax settlement following separate criminal charges brought by the AG's office for fraudulent refinancing of loans and tax fraud. In a separate civil case, Croman agreed to pay $8 million to the tenants he was accused of bullying out of their rent-regulated apartments.

A supposed independent management company is now overseeing Croman's residential properties — including 47 buildings with 617 units in the East Village — for the next five years.

However, per TRD, it's pretty much business as usual for Croman. The piece starts with an anecdote about three NYU students getting the boot from the Croman-owned 60 Avenue B.

To some excerpts:

Croman’s prison stint was widely seen as a turning point in how New York pursues criminal and civil cases against alleged predatory landlords. Since his release, though, little seems to have changed for Croman. The landlord remains a regular presence at his properties, sources say, and is facing a fresh crop of lawsuits accusing him of violating New York rent laws and backing out of deals, among other claims.

As part of a settlement with the state attorney general’s office, he gave temporary control of more than 100 buildings to Michael Besen’s New York City Management last year, and the firm took over the East Village property this past July.

But while Besen’s firm was picked to oversee Croman’s properties until 2023, it’s far from a victory for tenants. In some cases, the properties are managed by former employees of Croman’s 9300 Realty, who jumped over to NYC Management soon after the deal with prosecutors was announced.

“You have individuals who worked in a corrupt culture,” said Sean Madden, the father of one of the NYU students [at 60 Avenue B]. “All they did was trade their business cards … but the business practices didn’t change at all.”

And...

According to a TRD analysis of city records, Croman’s Manhattan properties raked in an estimated $47.5 million in 2018.

The landlord also continues to visit his buildings, giving orders to supers and porters, essentially ignoring the state’s five-year ban on managing his properties, said Cynthia Chaffee, a founder of the Stop Croman Coalition who lives in one of his buildings on East 18th Street.

A spokesperson for New York AG Letitia James told TRD that Croman is allowed to visit the properties but should have “minimal, if any, contact with tenants.”

But Chaffee said tenants have already started meeting with James’ office about the time he spends at his buildings.

“We’ve been stuck with the same property managers and supers that worked for Croman, and then they were hired by NYC Management,” Chaffee said. “We have to deal with these abusive people all the time.”

And...

“He’s ferocious. Nothing has changed,” said one broker who has worked with Croman on deals. “He’s buying [properties] left and right, and it’s not like he’s using a shill or a fake name. His name is right on the contract. This guy isn’t afraid of anything.”

Read the full article here.

2nd acts: Sushi counter for the former Amato Opera on the Bowery

The former Amato Opera building at 319 Bowery may finally have its first (full-time) retail business...



Reps for Kissaki Omakase will appear before CB3's SLA committee on Sept. 16 for a full liquor license for the space...



One of the applicants was an executive chef/partner at Gaijin in Astoria. Plans here call for a sushi counter with proposed hours of noon to midnight Sunday through Thursday, with a 1 a.m. close Friday and Saturday. (Find more details via their online questionnaire.)

In January 2009, Anthony Amato, the company's 88-year-old founder, announced that he had sold the building that was home to the opera since 1964. Amato Opera staged its last performance in May 2009. (Earlier history: The four-story brick building was a cigar factory from 1899 to 1926.)

Steve Croman bought the building in December 2008 for $3.7 million. The retail space had been on and off the market since at least 2012. It was once pitched like this, circa 2012...



The retail listing had originally asked $34,995. A post on @TradedNY noted the 1,800-square-foot space went for $200 per square foot.

No. 319 also features three luxury residences, with monthly rents between $8,995 and $10,995.

Previously on EV Grieve:
Life after the Amato Opera

Costume drama on the Bowery as the Amato Opera empties out

Amato Opera looks to be getting an encore as city OKs residential use

Work permits arrive at the former Amato Opera on the Bowery

Residential rentals at the former Amato Opera on the Bowery start at $10,995

Bruno Pizza won't be reopening after fire upstairs last November

Last Thanksgiving weekend, an early morning fire broke out in the top-floor apartment at 204 E. 13th St. between Second Avenue and Third Avenue. No injuries were reported in the blaze. (A cause has not been publicly revealed.)

The fire caused extensive water damage to Bruno Pizza on the ground floor. At the time, owner Demian Repucci told me that he was hopeful to get the restaurant up and running again.

Now, nearly eight months later, Repucci has decided that reopening the space wasn't feasible. He shared the news via Instagram earlier this month. Here's part of the message:

It is with a heavy heart that I bring you this news. The plethora of adversity that normally comes with running a restaurant was always made up for with the myriad amazing relationships I developed with you, the restaurant’s friends, neighbors, and pizza lovers. ...

But the water damage to the restaurant that resulted from the fire in the building upstairs has proven to be too much to overcome. After several months trying to figure out how to get the restaurant back on its feet, it seems recovery moved beyond my grasp.

So the difficult decision to close Bruno Pizza had to be made. The writing was on the wall. Or, rather, no longer on the wall (er... window). Thank you to everyone who came in, ate pizza, talked, drank, listened to my crazy stories, ate more pizza, and gave your love and support in spades. I appreciate it so very much.

I’m not sure another restaurant will ever be in my future, but pizza eating certainly will. As well as great conversation. So please do keep in touch.

[Photo from July 1]

Bruno Pizza, which milled its own flour, opened in July 2015. This was the first food establishment for Repucci, a restaurant designer-consultant.

Eater critic Ryan Sutton gave the restaurant's nouveau-Neapolitan pies high marks, with a post headlined "Bruno Is the Best Thing to Happen to Neapolitan Pizza Since Roberta's." Pete Wells at the Times was not so kind, dropping zero stars on the place. Two years after that punishing review (and after Bruno's original chefs left), Repucci offered to return the 0-star review to the Times.

In May 2016, Bruno Pizza won a judgment against a petition of eviction by landlord Steve Croman’s 9300 Realty.

Harassed by Steve Croman? Checks in the mail

We sent the notorious landlord Steven Croman to jail for breaking the law. Now, his tenants are also getting the restitution they deserve after enduring years of harassment. The first round of payments from our unprecedented $8M settlement are in the mail. https://t.co/9EjRwLi1DK pic.twitter.com/r4KBiRxNLt

— NY AG Underwood (@NewYorkStateAG) December 13, 2018

New York AG Barbara Underwood announced yesterday that the first checks are in the mail to eligible current or former tenants of buildings owned by Steve Croman who submitted claims to the Croman Tenant Restitution Fund.

The restitution fund is part of the settlement that arose out of an investigation and lawsuit filed by the AG against Croman for — among other things — harassment, coercion and fraud, to force rent-regulated tenants out of their apartments.

Here's more from the AG's press office:

The consent decree requires Croman to pay $8 million into a Tenant Restitution Fund – the largest-ever monetary settlement with an individual landlord. The $8 million will be divided equally among eligible claimants and distributed to tenants in installments over a 38 to 42-month period. This first round of restitution payments follows Croman’s initial $2 million payment to the fund.

To be eligible for restitution, tenants had to have lived in a rent-stabilized or rent-controlled apartment owned by Croman between July 1, 2011 and December 20, 2017, not including tenants who received a buyout of more than $20,000 (not including any amount that purported to cover rent or arrears).

Following last year’s historic consent decree, in August 2018, the claims administrator hired by the Attorney General mailed claim notices and application forms to current and former rent-stabilized and rent-controlled tenants in Croman’s buildings. Nearly 800 households filed applications for restitution funds. Eligible households will begin receiving checks for $2,425 each, as early as next week, in this first installment from the Croman Tenant Restitution Fund.

Cynthia Chaffee, Croman tenant and cofounder of the Stop Croman Coalition, told me this: "As far as I'm concerned, no amount of money can ever make up for the hell Steve Croman put his tenants through."

In addition to this $8 million Tenant Restitution Fund, the settlement required that a new, independent management company run Croman's residential properties for five years. In June, the AG's office selected Michael Besen’s New York City Management to oversee Croman's real-estate empire, which includes 47 buildings with 617 units in the East Village.

Croman was released from the Manhattan Correctional Facility on June 1 after serving eight months of a one-year jail sentence and paid a $5 million tax settlement following separate criminal charges brought by the AG's office for fraudulent refinancing of loans and tax fraud.

Previously on EV Grieve:
AG's office: Steve Croman agrees to pay $8 million to the tenants he harassed

Convicted felon Steve Croman featured on CNBC's 'American Greed' tonight

"American Greed" — CNBC's true crime series that "examines the dark side of the American Dream" — features disgraced landlord Steve Croman in an episode that airs tonight at 10.

Croman's segment, titled "Lousy Landlord," will be on the second half of the episode. (Watch the trailer here.)



Croman was released from the Manhattan Correctional Facility on June 1 after serving eight months of a one-year jail sentence and paid a $5 million tax settlement following criminal charges brought by the AG's office for fraudulent refinancing of loans and tax fraud.

In a separate civil case, Croman agreed to pay $8 million to the tenants he was accused of bullying out of their rent-regulated apartments.

An independent management company is now overseeing Croman's residential properties — including 47 buildings with 617 units in the East Village — for the next five years.

AG announces details on how Croman tenants can receive restitution for harassment

Here’s what Croman tenants should know to apply for restitution: pic.twitter.com/Ic3rjMmoQN

— NY AG Underwood (@NewYorkStateAG) August 7, 2018

New York Attorney General Barbara D. Underwood yesterday announced that tenants who live or formerly lived in buildings owned by Steve Croman may now apply for restitution, as part of the $8 million settlement deal reached last December.

Here's part of the release from the AG's office:

The settlement arose out of an investigation and lawsuit filed by the Attorney General’s office against Croman for engaging in illegal conduct — including harassment, coercion, and fraud — in order to force rent-regulated tenants out of their apartments and convert their apartments into highly profitable market-rate units.

“This office has zero tolerance for predatory landlords who seek to line their pockets at the expense of their tenants’ wellbeing,” said Attorney General Underwood. “Now, Croman tenants will finally get the restitution and protections they deserve as a result of this unprecedented settlement — the largest-ever with an individual landlord. We will continue to do everything in our power to ensure landlords play by the rules, and pursue them to the fullest extent of the law when they don’t.”

The consent decree requires Croman to pay $8 million into a Tenant Restitution Fund – the largest-ever monetary settlement with an individual landlord. Tenants are eligible for restitution if they are or were a tenant in a rent-stabilized or rent-controlled apartment owned by Croman between July 1, 2011 and the date of the agreement (December 20, 2017); they received a buyout of less than $20,000, not including any amount that purported to cover rent or arrears; and no other tenant in their apartment received money from the restitution fund. Several hundred current and former tenants are potentially eligible to apply for these restitution funds.

This week, JND Legal Administration, the claims administrator, mailed claim notices and forms to current and former rent-stabilized and rent-controlled tenants in Croman’s buildings. Those forms and additional information are also available at www.cromanrestitutionfund.com.

The $8 million will be divided equally among eligible claimants and distributed to tenants in installments over a period of 38 to 42 months, with the first installment coming as soon as the claims administrator processes all of the first-round claim forms.

In addition to this $8 million Tenant Restitution Fund, the settlement requires that a new, independent management company run Croman's residential properties for five years. In June, the AG's office selected Michael Besen’s New York City Management to oversee Croman's real-estate empire, which includes 47 buildings with 617 units in the East Village.

Croman was released from the Manhattan Correctional Facility on June 1 after serving eight months of a one-year jail sentence and paid a $5 million tax settlement following separate criminal charges brought by the AG's office for fraudulent refinancing of loans and tax fraud.

Previously on EV Grieve:
AG's office: Steve Croman agrees to pay $8 million to the tenants he harassed

Ben Shaoul's former Liberty Toye sales office is now for rent on Avenue B

The former sales office for Ben Shaoul's Liberty Toye condoplex is now for rent at 44 Avenue B between Third Street and Fourth Street.

According to the listing at Steve Croman's 9300 Realty, the asking rent on the 1,500-square-foot space is $9,995 per month. The listing notes that this is "one of the hottest areas in NYC" and "Food Use is okay."

Before Shaoul's Toye team took over the long-vacant space last fall... the address was a laundromat.

Shaoul's Magnum Real Estate reportedly sold the nursing home-turned-residential building at Fifth Street and Avenue B for $85 million. (There isn't isn't any sign of this transaction yet in public records.)


[Photo from November]

Legal documents arrived on No. 44's front door earlier this summer stating that Shaoul owed the $9,300 base rent for March through June ... for a total of $41,345.91.

Report: AG selects management firm to oversee Steve Croman's real-estate holdings

The State Attorney General has reportedly selected Michael Besen’s New York City Management to oversee Steve Croman's real-estate empire, which includes 47 buildings with 617 units in the East Village.

As the Commercial Observer first reported yesterday, New York City Management, a division of Besen & Associates, will operate Croman’s Manhattan portfolio for five years.

Part of Croman's settlement agreement included identifying an independent property management company for his residential properties, overseen by 9300 Realty.

Per the Observer:

The AG selected NYC Management after rejecting two other companies that Croman proposed, [an AG] spokeswoman indicated. She didn’t know the date NYC Management was selected, but said tenants were notified of the decision in April.

During the period when NYC Management is running the buildings, Croman may only have “incidental interaction with tenants of the subject properties,” as per a December 2017 consent decree.

According to a media advisory from the AG's office last December:

The independent management company will oversee operations and institute new policies at the Croman properties to ensure full compliance with the law and correction of all past violations. It will also post a comprehensive set of Tenants Rights in every building it manages.

The monitor will provide quarterly reports to the Attorney General, which will include at minimum any complaints received from tenants and actions taken; the total number of rent-regulated apartments that became deregulated during the reporting period, the reason for deregulation, and all supporting documents; and the monitor’s assessment as to whether Croman has complied with the consent decree.

Croman recently spent eight months in jail for mortgage fraud. His civil case ended in December when he agreed to pay $8 million to the tenants he was accused of bullying out of their rent-regulated apartments.

Last month, residents in two LES buildings that Croman owns said that maintenance issues and neglect of the properties had gotten worse while he was in prison, as The Lo-Down reported.

Besen will take control of the Croman properties on July 1, per the Observer.

Perhaps Besen will collect the back rent that Ben Shaoul owes Croman on Avenue B.

Ben Shaoul owes Steve Croman some back rent on Avenue B

In recent months, 44 Avenue B was in use as a sales office for Liberty Toye, Ben Shaoul's condo conversion a few blocks away at Fifth Street.

In early May, The Real Deal reported that Shaoul was in contract to sell the former nursing home for $85 million. The Liberty Toye sales office was vacated around that time.

Now, as several EVG readers have pointed out, there are legal documents taped to the empty storefront between Third Street and Fourth Street ... stating that Shaoul's Magnum Real Estate Group owes the rent dating back to March...





The Five Day Notice from the landlord, Steve Croman's 9300 Realty, shows that Shaoul owes the $9,300 base rent for March through June ... for a total of $41,345.91...



Shaoul has until Friday to pay or "surrender up the possession of said premises to the Landlord," the recently-released-from-prison Croman.

Shaoul and Croman are among the downtown landlords that elected officials, tenant advocates and residents often cite as the most aggressive in harassing tenants, as multiple published reports have noted through the years (here ... here ... here ... and here, as examples).

In 2012, Shaoul reportedly paid $25 million for the 240-bed Cabrini Nursing Center — which provided health care for low-income elderly residents in the East Village — and eventually closed it down for use as a residential building.

No word on who the new buyer is for 62 Avenue B.

Steve Croman released from prison today

Public records show that landlord Steve Croman was released from prison today, two days before originally scheduled. He ended up serving eight months of a one-year jail sentence after pleading guilty to various fraud charges.



In June 2017, Croman pleaded guilty to three felonies for fraudulently refinancing loans and committing tax fraud. He was expected to serve up to a year in prison and pay a $5 million tax settlement, per the Attorney General's office at the time.

Croman served his jail sentence at the Manhattan Detention Complex, aka the Tombs. Last October, the AG's office announced that Croman was "transferred to Rikers Island for one year jail sentence."

Public records at the time showed that Croman (in the system last October as Steven Crowman) was expected to be released on June 3 ...


[Screengrab from October]

One Croman watcher alleged that he was set free two days earlier than expected to avoid a media throng.

And as The Lo-Down recently reported, residents of a Croman-owned building on Ridge Street claim that he has been "playing the same games with tenants that he did before he was incarcerated." As a resident said, "The only thing that’s changed is that Croman is markedly more aggressive than before. We’re all shocked that nothing’s changed for the better in our case."

Croman's real-estate portfolio via 9300 Realty includes 47 buildings with 617 units in the East Village.

Previously on EV Grieve:
AG's office: Steve Croman agrees to pay $8 million to the tenants he harassed

Report: Steve Croman's post-jail plans include welcome-home party in the Greek Islands

Richard Johnson at the New York Post reported yesterday that currently incarcerated landlord Steve Croman "will celebrate his freedom next month in the Greek Islands."

An unnamed source told Johnson that Croman's wife Harriet "is planning a big welcome-home party in Greece." Another source said it was a "small family gathering." (The Croman brief by Johnson is not online.)

Last June, Croman pleaded guilty to three felonies for fraudulently refinancing loans and committing tax fraud. He was to serve up to a year in prison and pay a $5 million tax settlement, per the AG's office.

Croman is currently serving his jail sentence at the Manhattan Detention Complex, aka the Tombs, for mortgage fraud. Last October, the AG's office announced that Croman was "transferred to Rikers Island for one year jail sentence." (BoweryBoogie first reported that Croman was in the Manhattan Detention Complex.)

Public records show that Croman (in the system last October as Steven Crowman) is expected to be released on June 3 ...


[Screengrab from October]

Croman's real-estate portfolio via 9300 Realty includes 47 buildings with 617 units in the East Village.

Previously on EV Grieve:
AG's office: Steve Croman agrees to pay $8 million to the tenants he harassed

Residential rentals at the former Amato Opera on the Bowery start at $10,995

The residential conversion of the former Amato Opera House at 319 Bowery has finally reached a conclusion (the work permits arrived here in October 2014).

Listings for the three units arrived on the market yesterday, with an April 15 occupancy. Two of the apartments are going for $10,995 while the three-bedroom unit on the upper level is seeking $14,995.

Here's the description for the largest of the units, that one for $14,995:

Brand new, gut-renovated 3 bedroom unit with two balconies and gorgeous private roof deck in a fantastic location with Central Air. This beautiful apartment features stainless steel appliances in a custom chef's kitchen, dishwasher, washer & dryer, built in Miele Espresso Maker, and two marble bathrooms. Apartment is accented by recessed pinpoint halogen lighting, wide plank oak flooring, and exposed brick, and beautiful fireplace.

Available for April 15th occupancy. Former Amato Opera House,jJust a short walk to the F or 6 train and close to the M9, M21, and M14 1st Avenue SelectBus Service. Steps from some of the city's best restaurants and nightlife, including Bowery Electric and Blue & Cream.

And a few photos (via Streeteasy)...









The retail listing is still active, now at $28,995, which is down from the previous $34,995 ask.

Steve Croman's 9300 Realty is the landlord here, having picked up the property between Second Street and First Street in December 2008 for $3.7 million. (Croman is currently serving a jail sentence.)

In January 2009, Anthony Amato, the company's 88-year-old founder, announced that he had sold the building that the Opera had called home since 1964. The company closed in May 2009. Amato died in December 2011.

The four-story brick building was a cigar factory from 1899 to 1926.

Previously on EV Grieve:
Life after the Amato Opera

Costume drama on the Bowery as the Amato Opera empties out

Ruin of the Bowery nearly complete: Last season for the Amato Opera

Amato Opera looks to be getting an encore as city OKs residential use

Work permits arrive at the former Amato Opera on the Bowery

A new tenant for 117 1st Ave.

[Photo by Steven]

Someone has removed the for rent sign from the front window at 117 First Ave. between Seventh Street and St. Mark's Place.

The space, previously home to Village Kids Footwear, was seeking $8,995, per the listing at Steve Croman's 9300 Realty...



Not sure yet who the tenant will be... If you had to bet based on current neighborhood retail trends, then something involving desserts or noodles or vape-beer-cigars would be a safe wager.

Meanwhile, directly across the Avenue, a for rent sign hangs in the former International Bar window ...



The sign has been up for nearly five weeks, though there isn't an online listing for the space just yet...



The International closed on Nov. 22, and merged with its sister bar the Coat Yard at Sixth Street...

AG's office: Steve Croman agrees to pay $8 million to the tenants he harassed

Today, we are forcing notorious NYC landlord Steve Croman to pay $8 million in restitution to his tenants—the largest-ever settlement with an individual landlord. https://t.co/p7zQSdEfa0 pic.twitter.com/gViuoiMFg8

— Eric Schneiderman (@AGSchneiderman) December 20, 2017

Steve Croman's civil case came to an end yesterday as he agreed to pay $8 million to the tenants he was accused of bullying out of their rent-regulated apartments.

Here's the official release from the Attorney General's office:

New York Attorney General Eric T. Schneiderman announced an unprecedented settlement with Steven Croman ... for engaging in illegal conduct, including harassment, coercion, and fraud, to force rent-regulated tenants out of their apartments and convert their apartments into highly profitable market-rate units.

The consent decree requires Croman to pay $8 million into a Tenant Restitution Fund – the largest-ever monetary settlement with an individual landlord. The settlement also requires over 100 Croman residential properties to be run by a new, independent management company with no ties to Croman, for five years – the longest-ever term for independent management in OAG history. Moreover, the settlement requires seven years of a monitor who will oversee compliance with the terms of the consent decree and provide regular reporting to the Attorney General – the longest-ever monitorship required in any tenant harassment case.

Croman is currently serving one year in jail and paid a separate $5 million settlement as a result of criminal charges brought by Attorney General Schneiderman.

Eligible tenants will be able to apply for restitution; the Office of the Attorney General (OAG) will announce details of a claims process early next year. Tenants will be eligible for restitution if they are or were a tenant in a rent-stabilized or rent-controlled apartment owned by Croman between July 1, 2011 and the date of the agreement (Dec. 20, 2017); they received a buyout of less than $20,000, not including any amount that purported to cover rent or arrears; and no other tenant in their apartment received money from the restitution fund.

The Attorney General’s office will approve both the independent management company and the monitor. The independent management company will oversee operations and institute new policies at the Croman properties to ensure full compliance with the law and correction of all past violations. It will also post a comprehensive set of Tenants Rights in every building it manages.

The monitor will provide quarterly reports to the Attorney General, which will include at minimum any complaints received from tenants and actions taken; the total number of rent-regulated apartments that became deregulated during the reporting period, the reason for deregulation, and all supporting documents; and the monitor’s assessment as to whether Croman has complied with the consent decree.

The consent decree also ensures that Anthony Falconite – another defendant in the Attorney General’s lawsuit whom Croman allegedly referred to as his “secret weapon” in intimidating rent-regulated tenants – will have no interaction with any Croman tenants.

Croman is currently in jail (though not at Rikers as originally billed via the AG's office) for mortgage fraud. Back in June, he pleaded guilty to three felonies for fraudulently refinancing loans and committing tax fraud and will serve up to a year in prison and pay a $5 million tax settlement. Public records show that Croman (in the system as Steven Crowman) is currently at the Manhattan Detention Center (aka the Tombs).

Croman's real-estate portfolio via 9300 Realty includes 47 buildings with 617 units in the East Village.

Meanwhile, a Croman tenant shared the holiday card that 9300 Realty sent out last week...

[Updated] Steve Croman due back in court today to start jail time

Landlord Steve Croman is expected in court this morning to begin his one-year sentence at Rikers Island.

He was originally expected to be sentenced on Sept. 19. However, Judge Jill Konvisor postponed that so Croman could observe the Jewish Holidays with his family.

Per the Post back on Sept. 19:

Steve Croman​ ... ​handed over a $3 million check in Manhattan Supreme Court on Tuesday and a judge agreed to put off his surrender to jail until after the holidays.

The move lets Croman celebrate Rosh Hoshanah and Yom Kippur at home, not behind bars, ​after he copped to charges of ​grand larceny, tax fraud and filing a false instrument​.​

Konvisor​ ​agreed​ to Croman attorney Benjamin Brafman​’s ​request, ​but warned ​his stone-faced client to return to court Oct. 3, when he’ll be sent to jail for a year.

In plea deal announced this past June, Croman pleaded guilty to three felonies for fraudulently refinancing loans and committing tax fraud and will serve up to a year at Rikers and pay a $5 million tax settlement. He was charged in May 2016 with 20 felonies.

According to published reports, Croman avoided facing between three and 11 years in prison when he pleaded guilty back in June.

The Attorney General's office still has a pending civil case against Croman accusing him of forcing tenants from their rent-controlled apartments. His next court date for the civil case is now scheduled for Nov. 13.

Croman's real-estate portfolio includes 47 buildings with 617 units in the East Village.

Members of the the Stop Croman Coalition will be present at the sentencing, set for 9 a.m. at the New York City Criminal Court, 100 Centre St., Room 1333 (13th Floor).

Photo from June

Updated 1:30 p.m.

Here's a report from the courtroom via the Daily News:

"Rikers ain’t the Ritz,” declared Justice Jill Konviser, who last month agreed to delay Croman’s sentencing during the High Holy Days of Rosh Hashanah and Yom Kippur, the Day of Atonement.

“I hope that you spend your days thinking about the religious principles that this case was postponed for.”

From DNAinfo:

Tenants of Croman-owned buildings, who had been angered by the delay two weeks earlier, balked at the meager sentence but admitted it was better than nothing.

"I don't think it's enough time — the public needs to be protected from him," said Cynthia Chaffee, a cofounder of Stop Croman Coalition, who lives at 346 E. 18th St.

Chaffee, who says she now suffers from asthma as a result of dust and debris from illegal construction at her building, said the criminal charges have done little to benefit the tenants still living in his buildings.

"Ever since he was arrested he's been as worse as ever," she said. "We didn't have heat, he's dragging people to court still, he's not giving people their leases. I mean, it's business as usual."

And from The Real Deal:

Croman’s lawyer Benjamin Brafman told TRD that under the Department of Corrections’ policy, all inmates receive one-third credit if the sentence is one year or less. “Accordingly, it is anticipated that Mr. Croman will be released after serving 8 months of his one year sentence,” he said.

Updated 7:30 p.m.

Adding a statement from Sen. Brad Hoylman:

“Steven Croman built a criminal enterprise dedicated to making life miserable for tenants in my district and across Manhattan. After years of Croman’s systematic harassment of tenants, I’m elated to see justice finally served. This sends a clear message to landlords: Respect rent-regulated tenants or face the consequences – including jail time. I heartily congratulate Attorney General Schneiderman on this major victory on behalf of all New Yorkers.”

[Updated] Sentencing day for landlord Steve Croman

[Image via the Croman Tenants' Alliance]

Back on June 6, Attorney General Eric T. Schneiderman announced the guilty plea of Steve Croman. The landlord will be sentenced this morning by Justice Jill Konviser as part of that plea deal.

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Updated from The Real Deal:

Steven Croman will get to spend the Jewish holidays at home instead of behind bars.

At a sentencing hearing ... Manhattan State Supreme Court Justice Jill Konviser postponed sentencing for Oct. 3.

Prosecutors in the office of state Attorney General Eric Schneiderman – who dubbed Croman the “Bernie Madoff of landlords” – opposed the motion, but Konviser granted it nonetheless

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Here's the original statement about the plea from the Attorney General's office...

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.”

The AG's office still has a pending civil case against Croman accusing him of forcing tenants from their rent-controlled apartments. His next court date for the civil case is now scheduled for Nov. 13.

Schneiderman first announced the charges against Croman in May 2016. Those charges included multiple felonies for his role in an alleged scheme to fraudulently obtain several multi-million dollar refinancing loans between 2012 and 2014.

The civil lawsuit, filed in New York Supreme Court in Manhattan and the product of an independent investigation, alleges that Croman used, among other things, the illegal tactic of pressuring tenants into surrendering their apartments by repeatedly filing baseless lawsuits against them.

Croman's real-estate portfolio includes 47 buildings with 617 units in the East Village.

Members of the the Stop Croman Coalition will be present at the sentencing, set for 9 a.m. at the New York City Criminal Court, 100 Centre St., Room 1333 (13th Floor).

Previously on EV Grieve:
Following eviction proceedings, Steve Croman's 9300 Realty has a new office

Following eviction proceedings, Steve Croman's 9300 Realty has a new office

Over the weekend, these "We're moving" flyers appeared on some of the East Village properties owned by Steve Croman's 9300 Realty.

As noted, the company has a new office on Broadway as of today.

Not noted is that this move follows eviction proceedings against 9300 at their previous location, 632 Broadway. According to the legal papers filed in public records, Croman and company had until today to get out — or the Marshall would legally take possession of the space...





In June, Croman pleaded guilty to charges of grand larceny, tax fraud, and an additional fraud charge relating to false statements. As part of the deal, he will reportedly spend one year at Rikers. Croman will be sentenced on Sept. 19.

Meanwhile, last week, the civil case related to his tenant harassment tactics was adjourned from Sept. 18 to Nov. 13.



Croman's real-estate portfolio includes 47 buildings with 617 units in the East Village. He owns more buildings in the East Village than any other landlord.