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Monday, May 9, 2016

More on the charges against Steve Croman; buyouts were a 'team sport'



Here are more details about the arrest this morning of landlord Steve Croman via the Attorney General's office...

Attorney General Eric T. Schneiderman today announced that Steven Croman, a major New York City landlord with more than 140 apartment buildings across Manhattan, surrendered on multiple felony charges for his role in an alleged scheme to fraudulently obtain several multi-million dollar refinancing loans between 2012 and 2014.

Croman was also named, along with private investigator Anthony Falconite, in a civil suit filed today by the Attorney General’s office for allegedly engaging in illegal, fraudulent, and deceptive conduct in connection with Croman’s real-estate business. The lawsuit alleges that Croman directs an illegal operation that wields harassment, coercion, and fraud to force rent-regulated tenants out of their apartments and convert their apartments into highly profitable market-rate units.

The lawsuit further alleges that Croman deployed Falconite, a former New York City police officer, to frighten and intimidate rent-regulated tenants into surrendering their apartments.

“My message to unscrupulous landlords is simple: if you put your own profits over your tenants’ legal protections, we will investigate you and prosecute you to the fullest extent of the law,” Attorney General Schneiderman said. “My office will not tolerate anyone who attempts to line their own pockets by gaming the system. No one is above the law – no matter how rich or powerful.”

The criminal and civil cases are the result of independent, parallel investigations during the past two years.

Details on Criminal Charges

Based on an extensive investigation by the Attorney General’s office, Croman allegedly submitted false mortgage documents to New York Community Bank and Capital One Bank, including rent rolls that falsely reflected market rate rents for units that were actually occupied by rent-stabilized tenants. Croman also allegedly inflated the amount of rent charged for certain commercial spaces in his buildings in an effort to show greater rental income. Croman allegedly falsified these rent rolls in order to inflate the annual rental income of his buildings, upon which his refinancing terms are partially based.

All told, over a three-year period, Croman allegedly received more than $45 million in loans under these false pretenses.

A grand jury indicted Croman on 20 felony counts, including seven counts of grand larceny in the 1st degree, seven counts of falsifying business records in the 1st degree, one count of scheme to defraud in the 1st degree, four counts of offering a false instrument for filing in the 1st degree, and one count of criminal tax fraud in the 4th degree.

Croman’s mortgage broker, Barry Swartz, also faces 15 felony counts, including seven counts of grand larceny in the 1st degree, seven counts of falsifying business records in the 1st degree, and one count of scheme to defraud in the 1st degree.

If convicted of all counts, Croman and Swartz could face as much as 25 years in prison. The charges against Croman and Swartz are allegations and they are presumed innocent unless and until proven guilty in a court of law.

The Tenant Protection Unit of New York State Homes and Community Renewal provided the Attorney General’s office with a criminal referral that was pivotal to the process.

Details of Civil Lawsuit

The civil lawsuit, filed in New York Supreme Court in Manhattan and the product of an independent investigation, alleges that Croman used the following illegal tactics to push working-class and low-income tenants out of their homes:

• Harassing tenants into surrendering their apartments—and their rights under the rent-stabilization laws—in exchange for “buyouts,” which are often no more than a few thousand dollars or a few months of free rent.

• Incentivizing his employees and agents to obtain buyouts, at the expense of their other responsibilities. Employees allegedly refer to rent-regulated tenants as “targets” and compete with each other to obtain the most buyouts. In one characteristic exchange, Falconite allegedly wrote to a property manager that obtaining buyouts was a “team sport,” to which the property manager responded, “I know that!! Who’s our next target? We have to start lining them up!!!”

• Pressuring tenants into surrendering their apartments by repeatedly filing baseless lawsuits against them. In internal emails, company employees allegedly acknowledged that such lawsuits would “aggravate” tenants or pressure them to accept buyouts. In some cases, Croman’s employees allegedly created a false record for litigation by refusing to acknowledge receipt of tenants’ rent checks and then suing them for unpaid rent—a deliberate fraud upon the court.

The lawsuit also alleges that Falconite, whom Croman allegedly refers to as his “secret weapon,” used deceptive and frightening tactics to intimidate rent-regulated tenants. The lawsuit alleges that Falconite’s text messages with property managers show that he regularly uses false pretenses to gain access to tenants’ apartments, often posing as a repairman or building manager. For example, in text messages to a property manager, Falconite allegedly agreed to use “false pretenses” and pretended he was with the construction department.

The lawsuit alleges that Falconite routinely threatened tenants and improperly accused them of violating their lease. He also allegedly abused his position as a former NYPD officer to threaten and intimidate tenants.

In addition, the lawsuit alleges that Croman, in his rush to flip vacant rent-regulated apartments into high-rent units, presided over a disturbing pattern of illegal and hazardous construction. The lawsuit alleges numerous examples of illegal construction, including the following:

• On at least 175 occasions, Croman’s companies allegedly performed construction without obtaining permits.
Croman allegedly regularly directed his employees to flout stop-work orders and conceal unlawful construction from Department of Building inspectors.

• Croman allegedly filed false documents with the Department of Buildings on dozens of occasions in an attempt to avoid stricter oversight of his construction projects and elude tenant protection measures.

• Croman and his companies allegedly violated lead-safety laws repeatedly, exposing numerous tenants to lead-contaminated dust. On more than 20 occasions, the Department of Health (DOH) found impermissibly high levels of lead dust in Croman’s buildings, including levels up to 65 times the legal threshold.

• Croman allegedly defied DOH orders to address the lead hazards. On one occasion, after DOH order Croman to stop all work and begin lead-abatement measures, Croman directed his property manager to postpone the lead abatement so that the construction could continue.

Read the full release here. As previously noted, Croman owns more buildings in the East Village than any other landlord.

Tuesday, March 29, 2016

Report: Landlord Steve Croman owes the city over $1 million in unpaid code violations

Controversial landlord Steve Croman, whose 9300 Realty owns multiple residential buildings in the East Village, reportedly ended 2015 with more than $1 million in unpaid building- and construction-code violations on properties he owns.

This is according to research by the Cooper Square Committee, the East Village-based tenants' rights group. As Crain's reported:

The fines that Croman and his firm, 9300 Realty, had accrued showcase the city's inability to collect about $1.6 billion in quality-of-life fines, known as Environmental Control Board (ECB) violations. The city has few means to ensure the fines are paid, giving some landlords and contractors leeway to continue to rack up infractions.

"The city issues quality-of-life violations when people violate construction safety rules, start construction before or after hours, or have dangerous sidewalk conditions—and nobody seems to care," said City Councilman Ben Kallos. "Many landlords and developers treat [the fines] as a cost of doing business."

A spokesperson for 9300 Realty disputed the $1 million figure. Here's more from them:

A Croman spokesman said that the firm invests in buildings prone to violations. "We invest in older properties with the objective of restoring and holding them for the long term," the spokesman said in a statement. "Due to the age of properties in Manhattan, these buildings usually require substantial upgrade and repair work. We take maintenance of our properties very seriously and continually invest to clear building violations and enhance the quality of life for all of our residents."

Among other things, Croman has been accused of using illegal tactics to force out rent-stabilized tenants. Tenants have also said that Croman hired a former NYPD officer to harass and intimidate them.

And in other Croman-related news making headlines... Steve's son Jake Croman, a member of the University of Michigan’s Tau Kappa Epsilon chapter, has been vilified on the Internet for a video in which he is seen berating an Uber driver in Ann Arbor, Mich., last week.

As Gothamist noted:

Uber driver Artur Zawada started filming Croman and his friends after they began harassing him when he apparently canceled a ride they ordered. "Fuck you Artur, you little faggot fuck," Croman yells. "You wanna kick me off? Kick me off, you little piece of shit. You're an Uber driver! Go fucking drive, you little fuck! Minimum wage faggot! Go fuck yourself!"

He added toward the end, "You're working all night! Guess what? I'm gonna sit on my ass and watch TV. Fuck you!"

In a statement to BuzzFeed, Jake Croman said, in part: "What you don’t see in the video is that the driver had made a number of offensive anti-Semitic remarks that provoked my response. I am not proud of my reaction to his discrimination and I regret my choice of words."

The Uber driver denied the accusations.

Someone quickly created "the public warning website about the world famous Michigan/New York City douchebag Jake Croman."

Jake Croman's LinkedIn profile notes that he is an associate for his father's real-estate firm.

Previously on EV Grieve:
Report: Steve Croman facing another lawsuit from East 8th Street residents

Report: East 8th Street residents sue landlord Steve Croman, allege intimidation, harassment

Watch a lot of people speak out against Steve Croman and 9300 Realty

Report: State Attorney General launches Steve Croman investigation

Tenant advocacy group names Icon Realty and Steven Croman among NYC's worst landlords

Image from May 2015

Friday, December 23, 2016

A Croman Christmas



The following is from a group of tenants who rent from Steve Croman's 9300 Realty... several of whom say they do not currently have heat or hot water in their apartments... via the EVG inbox and with apologies to Dr. Seuss...

You're a mean one, Steve Croman
You really are a heel,
You're as cuddly as a cactus, you're as charming as an eel, Steve Croman,
You're a bad banana with a greasy black peel!

You're a monster, Steve Croman,
Your heart's an empty hole,
Your brain is full of spiders, you have garlic in your soul, Steve Croman,
I wouldn't touch you with a thirty-nine-and-a-half foot pole!

You're a foul one, Steve Croman,
You have termites in your smile,
You have all the tender sweetness of a seasick crocodile, Steve Croman,
Given a choice between the two of you'd take the seasick crocodile!

You're a rotter, Steve Croman,
You're the king of sinful sots,
Your heart's a dead tomato splotched with moldy purple spots, Steve Croman,
You're a three decker sauerkraut and toadstool sandwich with arsenic sauce!

You nauseate me, Steve Croman,
With a nauseous super "naus!",
You're a crooked dirty jockey and you drive a crooked hoss, Steve Croman,
Your soul is an appalling dump heap overflowing with the most disgraceful
assortment of rubbish imaginable mangled up in tangled up knots!

You're a foul one, Steve Croman,
You're a nasty wasty skunk,
Your heart is full of unwashed socks, your soul is full of gunk, Steve Croman,
The three words that best describe you are as follows, and I quote,
"Stink, stank, stunk"!

In May, Croman was arrested and charged in criminal court with multiple felonies, including grand larceny, criminal tax fraud and falsifying business records. State Attorney General Eric Schneiderman is also suing Croman in civil court.

Last week, tenants at 159 Stanton St. filed a lawsuit in housing court against Croman.

Per The Lo-Down: "According to the tenant association, residents have been forced to endure collapsing ceilings, dust and debris, mold, rats and floods. The lawsuit also alleges that poor security has led to numerous burglaries."

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

Tuesday, October 3, 2017

[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.”

Thursday, December 21, 2017

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



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...

Friday, December 14, 2018

Harassed by Steve Croman? Checks in the mail


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

Monday, May 9, 2016

[Updating] Steve Croman hit with 20 felony charges; faces 25 years in prison

Controversial landlord Steve Croman, whose 9300 Realty owns multiple residential buildings in the East Village, "was busted" this morning, according to the Post.

The precise charges against Steven Croman weren’t yet clear, but the state attorney general’s office is expected to file a Manhattan civil suit today accusing him of unlawfully deploying a former NYPD cop to harass and coerce rent-stabilized tenants into vacating their apartments, said a source close to the investigation.

State Attorney General Eric Schneiderman is expected to announce the charges against Croman this afternoon.

Updated 10:45 a.m.

The Daily News reports that Croman has been arrested.

And the Daily News was first with the report.


Updated 12:45

Here is The New York Times with the details:

Mr. Croman’s business came to embody in many ways how rent regulations have eroded in the city, putting housing out of reach for more and more New Yorkers. He was able to deregulate most of his rent-stabilized apartments within just a few years of buying the buildings, enabling him to reap much higher rents.

On Monday morning, though, his fortunes took a different turn. Mr. Croman, 49, turned himself in around 7 a.m. at the First Precinct in Lower Manhattan. He was charged with 20 felonies, including grand larceny, criminal tax fraud, falsifying business records and a scheme to defraud, relating to accusations he inflated his rental income to secure more than $45 million in bank loans. He faces up to 25 years in prison. His mortgage broker, Barry Swartz, 53, was charged with 15 felonies.

The New York State attorney general’s office, which investigated Mr. Croman for almost two years, also sued Mr. Croman on Monday, seeking to force him to give up his real-estate business and pay millions of dollars in restitution to tenants and penalties.

Updated 3:45

The folks at Bruno Pizza on East 13th Street between Second Avenue and Third Avenue have a Croman-related special tonight...

Toast karma! Free glass of rose tonight if u mention @nytimes Steve Croman article ow.ly/8dCh3003had

A photo posted by Bruno (@brunopizzanyc) on


Previously on EV Grieve:
Report: Steve Croman facing another lawsuit from East 8th Street residents

Report: East 8th Street residents sue landlord Steve Croman, allege intimidation, harassment

Watch a lot of people speak out against Steve Croman and 9300 Realty

Report: State Attorney General launches Steve Croman investigation

Tenant advocacy group names Icon Realty and Steven Croman among NYC's worst landlords

Wednesday, October 23, 2019

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.

Wednesday, May 17, 2017

Sen. Hoylman calls for immediate stay on all Steve Croman-initiated tenant cases

Despite being charged with 20 felonies last May, Steve Croman's tenants have alleged that their landlord continues to harass them.

Per a December 2016 article in The Villager:

“He’s still not giving heat and hot water, still not backing off from the rotten things he would do, like jacking up rent and not returning leases to people,” said Cynthia Chaffee, a longtime Croman residential tenant. “He’s still doing it and nothing’s changed. He’s stillusing the courts to harass his tenants.”

Also last December, tenants of 159 Stanton St. sued Croman in housing court, saying he was subjecting them to unsafe conditions and harassment. In February, the Department of Buildings issued a partial vacate order on the building, with the residents of two apartments forced to relocate until unsafe conditions were rectified, as The Lo-Down reported.

Now Sen. Brad Hoylman is releasing the results of a review of eviction cases filed by Croman against tenants in the Senator's district and throughout Manhattan. Hoylman is calling for an immediate stay on all Croman-initiated tenant cases.

According to Hoylman’s review, at least eight active cases are proceeding against tenants.

"Croman’s M.O., as the Attorney General alleges in the criminal complaint, is to harass tenants by filing baseless lawsuits against them. The court should stay all of the cases where Croman is suing tenants until these serious allegations are addressed. Otherwise, these tenants, many of whom are not represented by legal counsel, risk irreparable harm, including losing their homes," Hoylman said in a statement. "The bottom line is that Croman is running a criminal enterprise. Justice demands his cases against tenants be stayed."

Two East Village buildings are in the list of cases proceeding: 229 First Ave. and 309 E. Eighth St.

Croman's real-estate empire includes 47 buildings with 617 units in the East Village. As previously noted, Croman owns more buildings in the East Village than any other landlord.

State Attorney General Eric Schneiderman announced the charges against Croman in May 2016, including 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.

His criminal case has been adjourned and bail continued five times now, according to the Croman Tenants Alliance. His civil court date is June 5.

The New York Post reported earlier this month that Croman was nearing a plea deal that would see him serve eight months of jail time and pay a fine up to $10 million.

Tuesday, September 19, 2017

[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.

------

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

-----

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

Wednesday, June 20, 2018

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.

Wednesday, August 8, 2018

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


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

Monday, May 1, 2017

Updated: Steve Croman's next Criminal Court date is tomorrow morning

Steve Croman, who is charged with 20 felonies and a civil suit accusing him of forcing tenants from their rent-controlled apartments, is due back in court tomorrow morning (Tuesday, May 2).

Croman tenants are holding a rally outside Manhattan Criminal Court at 100 Centre St. at 8:45 a.m. Afterwards, tenants are going to room 1333 on the 13th floor for the legal proceedings.

It has been nearly one year since State Attorney General Eric Schneiderman announced the charges against Croman. His criminal case has been adjourned and bail continued five times now, according to the Croman Tenants Alliance. (His civil court date is June 5.)



The criminal charges stem from false documents Croman submitted listing rent-regulated units as market-rate apartments and inflating his commercial rental rates to obtain better refinancing. His debt broker, Barry Swartz, was charged with 15 felonies. Croman and Schwartz pleaded not guilty in state Supreme Court last May.

Croman's real-estate empire includes 47 buildings with 617 units in the East Village. As previously noted, Croman owns more buildings in the East Village than any other landlord.

Updated 11:30 a.m.

Richard Johnson at the Post this morning reported that Croman was going to cop a plea that will have him serve eight months behind bars and pay a fine of $5 million to $10 million.

Croman is said to be thrilled he will get off so lightly, and so is his wife, Harriet, who is part of a wealthy clique of Upper East Side moms.

Croman faced up to 25 years in prison on charges of harassing rent-stabilized tenants so he could lease their units at market rates and inflating his rental receipts in order to fraudulently secure $45 million in bank loans.

Wednesday, May 27, 2015

Warning flyers posted about renting from Steve Croman's 9300 Realty



An EVG reader noted a lone flyer warning potential residents of living in a property owned by Steve Croman, aka 9300 Realty, named one of the top-10 worst landlords in NYC last year by The Village Voice.

The reader spotted this on East 11th Street near Avenue B…



The reader noted another flyer posted nearby. (Anyone spot any other Croman flyers around?)

We're not sure who's responsible for the warning… there is the Croman Tenants' Alliance … as well as the Stop Croman Coalition Blog that serve as resources for Croman-related activities.

Previously on EV Grieve:
East Village represented on this list of the city's worst landlords

Report: Steve Croman facing another lawsuit from East 8th Street residents

Report: East 8th Street residents sue landlord Steve Croman, allege intimidation, harassment

Watch a lot of people speak out against Steve Croman and 9300 Realty

Report: State Attorney General launches Steve Croman investigation

Reader report: Someone dumped motor oil in 2 Steve Croman-owned buildings

Tuesday, December 9, 2014

Today in Steve Croman legal news


[State Sen. Brad Hoylman speaking out against Steve Croman at rally in Tompkins Square Park in May]

The Real Deal reports:

• Commercial brokerage Daniel T. Enterprises won a court battle against landlord Steven Croman for non-payment of a commission on a $5.5 million off-market deal for a tenement building at 635 E. Sixth St.

• "TRD has learned that Croman’s longtime legal counsel, Rose and Rose, filed suit in September for more than $720,000 in unpaid legal fees." (In a statement, Croman reps denied these allegations.)

Meanwhile, Croman remains under investigation by state Attorney General Eric Schneiderman for allegedly using illegal tactics to force rent-stabilized tenants out of their units.

Read the whole Real Deal article here.

Previously on EV Grieve:
Report: Steve Croman facing another lawsuit from East 8th Street residents

Report: East 8th Street residents sue landlord Steve Croman, allege intimidation, harassment

Watch a lot of people speak out against Steve Croman and 9300 Realty

Report: State Attorney General launches Steve Croman investigation

Reader report: Someone dumped motor oil in 2 Steve Croman-owned buildings

Tuesday, June 6, 2017

AG announces guilty plea of landlord Steve Croman, who'll serve 1 year at Rikers



This just in 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.”

Per The Real Deal:

Appearing at the courthouse at 100 Centre Street Tuesday morning in a dark blue suit and blue tie, Croman read an allocution in front of state Supreme Court Justice Jill Konsiver admitting details of his scheme directing employees to file documents – including inflated rent rolls – that would allow him to secure bigger mortgages on his multifamily properties.

“I knew the documents were false,” he said.

His sentencing is scheduled for Sept. 19

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 June 22, the 10th time it has been adjourned, according to the Cromans' Tenant Alliance.

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 empire includes 47 buildings with 617 units in the East Village. As previously noted, Croman owns more buildings in the East Village than any other landlord.

Friday, June 1, 2018

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

Monday, May 14, 2018

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

Friday, October 14, 2016

Being Steve Croman

BloombergBusinessweek files a long read on landlord/developer Steve Croman this week titled "Out With the Poor, In With the Rich: The Landlord’s Guide to Gentrifying NYC."

He is under criminal indictment for mortgage fraud in a probe launched by New York State Attorney General Eric Schneiderman.

In addition, a civil suit alleges that Croman "directs an illegal operation that wields harassment, coercion, and fraud to force rent-regulated tenants out of their apartments and convert their apartments into highly profitable market-rate units."

Croman's criminal case was adjourned until Nov. 29 ... while the civil case begins on Nov. 1.

Croman's real-estate empire includes 47 buildings with 617 units in the East Village. As previously noted, Croman owns more buildings in the East Village than any other landlord.

The Bloomberg piece contains plenty of horror stories from past and present Croman tenants.

“He would remove the washing machines. He tried to close the front door, make everybody go through the basement. He got rid of the super, then had a part-time super who did nothing.”

Even his new market-rate tenants suffer, such as this NYU student:

Sophia offers me a brief tour of her formerly stabilized apartment, telling me that she and her two roommates pay $5,200 a month. The place has been renovated—wine fridge, exposed brick—but in a cheapo, Ikea way. “We just had someone in here fixing our shower,” she says. “We have a dishwasher that’s been broken since we’ve moved in here. Our dryer is, like, total shit. You have to dry things, like, 84 times.” She pauses. “The joke is: Everything is pretty, but nothing actually works.”

And a few more passages:

Sending one landlord to jail won’t turn New York City into a communitarian paradise, of course, but the attorney general’s case against Croman suggests the state is at least eager for gentrification to proceed legally. The city has maintained rent freezes on one-year leases for stabilized apartments for the past few years. Mayor Bill de Blasio has called for the repeal of decontrol loopholes (though the state is unlikely to accede), and has overhauled the zoning code so that many new residential buildings must set aside units for low-income tenants.

But such measures will do nothing to address the seemingly inexhaustible demand from privileged undergrads and Qatari emirs for well-appointed New York apartments. There are those, too, who argue that rent control isn’t worth fighting for—that it artificially suppresses housing supply and creates opportunities for bad actors such as Croman to exploit.

One lawyer who represented tenants in a lawsuit against Croman speculates that the landlord will spend time in prison: “I’m thinking he’s probably going to be living upstate somewhere. They really want to make an example out of him.”

Read the full piece here.

Wednesday, June 22, 2016

Report: Steve Croman case pushed back to September


[Photo via a Croman tenant]

Landlord Steve Croman appeared in Manhattan Supreme Court yesterday. Croman, who owns more buildings in the East Village than any other landlord, was hit last month with a 20-count indictment on charges including grand larceny and filing false documents.

As The Lo-Down reported, Supreme Court Justice Jill Konviser adjourned the hearing until Sept. 20. Croman's high-powered defense lawyer, Ben Brafman, said that they were close on a plea deal, according to the Post.

A handful of Croman tenants were on hand to greet their landlord at the courthouse.

Per The Lo-Down:

Tamalyn Miller, a Croman Tenant at 521 East 5th St., said that even though Croman’s case was pushed back, she’s happy. “The court case may go on and on,” she said, but Croman’s reputation is forever tarnished. “When we were going through this in 2009, 2010, nobody would listen to us,” she added.

Meanwhile, across the street yesterday, The Lo-Down reported that another controversial East Village landlord, Raphael Toledano, was in New York City Housing Court for civil and criminal contempt. He reportedly was there after failing to pay a settlement to tenants at 444 E 13th St.