A.G. Schneiderman Wins Landmark Case Against NYC Developer Yair Levy, Opening Door To Millions Of Dollars For Defrauded Residents
Attorney General Seeks to Bar Developer From Sales & Award $7.4 Million in Restitution
Levy Raided Condo Reserve Fund & Used Money for Personal & Unrelated Business
Schneiderman: Misconduct Will Not Be Tolerated, We Will Continue to Hold Those Who Defraud Tenants & Owners Accountable
NEW YORK - Attorney General Eric T. Schneiderman today announced a favorable decision in his case against YL Rector Street, LLC and Yair Levy. The Supreme Court in New York County ruled that the developer of the Rector Square Condominium in Battery Park City defrauded purchasers of approximately $7.4 million by failing to finance and maintain a legally-required reserve fund to ensure the health and safety of residents.
“Yair Levy treated the Rector Square Condominium as his personal ATM, using the millions of dollars intended for residents for his own purposes, even while the building conditions deteriorated,” Attorney General Schneiderman said. “This kind of misconduct will not be tolerated and I will continue to hold those who defraud tenants and owners accountable.”
The case was initiated in June 2010 after an investigation by then-Attorney General Cuomo’s office revealed that Levy promised Rector Square Condominium tenants and owners that the legally-required reserve fund would be set aside to make repairs, improvements and other work to maintain their health and safety. Instead, Levy depleted the fund and left residents with just $70.
The decision was handed down by the Honorable Joan B. Lobis in the Supreme Court in New York County. It paves the way to recover $7.4 million in restitution for the residents at the Rector Square Condominium and a permanent bar prohibiting Levy from offering securities for sale in New York State under the Martin Act and Executive Law §63(12).
This case was handled by Assistant Attorneys General Jeffrey R. Rendin, Lewis A. Polishook, and Financial Investigator Percy Corcoran, under the supervision of Executive Deputy Attorney General for Economic Justice Karla G. Sanchez.