Owner to Pay $8M in Tenant-Harassment Suit

Attorney General Schneiderman recently announced that Steve Croman, a major multifamily owner who is serving a prison sentence for mortgage fraud, agreed to pay $8 million in restitution to tenants he harassed. An independent manager will run more than 100 of Croman’s properties, and Croman will also have to pay for a court-appointed monitor who will ensure compliance.

The agreement is the largest-ever settlement with an individual landlord in New York, according to the Attorney General. It puts an end to a sprawling civil case brought by the AG in which Croman was accused of leading an operation that harassed and tricked tenants into giving up their rent-stabilized apartments.

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.

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.