Dubious Duo Accused Of Developing Crappy Condos Reach Settlement With NY AG; Allegations Include Use Of Falsified Documents To Dupe Building Inspectors, Improper Scoring Of Property Tax Breaks, Theft Of Condo Buyers' Escrow Money Earmarked For Code Compliance

In New York City, Gothamist reports:

• Companies owned by luxury developers and accused serial fraudsters Shaya Boymelgreen and Lev Leviev will continue to be allowed to do business in New York under the terms of a settlement announced [last week] by state Attorney General Eric Schneiderman.
  
  The investigation focused on three luxury condo projects in the Financial District and DUMBO where, according to Schneiderman, they built shoddily, falsified documents to get building inspectors' okay, stole condo buyers' money that was meant to bring the buildings up to code, and resisted attempts to get them to pay up and relinquish control.
  
  According to the terms of the settlement, Leviev's company Africa Israel must finally fix up 15 Broad Street, which overlooks the New York Stock Exchange, as well as 20 Pine Street a block away, and 85 Adams Street, at the foot of the Manhattan Bridge. (Leviev and Boymelgreen ended their business partnership in 2007.)
  
  Africa Israel must also hand over the buildings to the condo boards, pay a $2 million fine for improperly collecting tax breaks on the Broad Street building and neighboring 23 Wall Street, and put an undisclosed settlement in escrow for bilked condo buyers.
  
  Schneiderman filed no criminal charges in the cases, and though he has the power to restrain the company from doing business, he instead reserved that punishment for if it breaks the terms of the settlement.
  
  'Today’s settlement is a warning to property developers in New York state," he said in a statement. "Those who collect the enormous profits that flow from offering real estate securities in New York will not be allowed to shirk their obligations to purchasers and the public. My office will not allow developers to walk away from their promises."

For more, see Luxury Developer Accused Of Ripping Off NYC Condo Buyers Is Forced To Pay Up.

For the New York Attorney General press release, see A.G. Schneiderman Announces Major Settlement with Africa Israel over Condominium Development Practices (Developer To Complete Construction Of A Stalled Project And Resolve Construction Defect Claims Involving Three Condominiums; Control Of Condominium Board Handed Over To The Unit Owners; Restitution Of $2 Million To The City Of New York For Misuse Of 421-G Tax Benefits).