As The Real Deal first reported...
Edward Croman is reportedly seeking to dissolve the family partnership that owns 64 Manhattan multifamily buildings, alleging in a lawsuit filed on July 7 that his son, Steven, engaged in "rampant fraudulent mismanagement."
Edward claims that Steven withheld rental income and proceeds from six property sales in 2022, refused to repay loans that Edward made to the properties, and attempted to strip his rights from operating agreements to refinance over $130 million in loans.
"Unfortunately, Edward cannot choose his children, and Steven happens to be a known fraudster who has turned his illegality against his father," the suit states.
Additionally, Steve Croman is facing six foreclosure suits due to reported failures to pay insurance and water bills.
From a separate Real Deal article:
Capital One loaned entities connected to Croman $30.9 million across six mortgages tied to the properties between 2013 and 2016, according to legal complaints filed this week. The total principal outstanding on those loans totals about $23.9 million.
Four of the foreclosure suits involve East Village buildings: 411 E. 12th St., 321 E. 10th St., 343-345 E. Fifth St., and 309 E. Eighth St.
Steve 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.
At the time, 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.
However, the jail time and fines reportedly didn't do much to break his Cromanating habits. According to a published report in 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.
Previously on EV Grieve:
