Welcome to The Home Equity Theft Reporter, a blog dedicated to informing the consumer public and the legal profession about Home Equity Theft issues. This blog will consist of information describing the various forms of Home Equity Theft and links to news reports & other informational sources from throughout the country about the victims of Home Equity Theft and what government authorities and others are doing about it.
Thursday, June 29, 2017
Notorious NYC Landlord To Get One Year Jail Time, Cough Up $5 Million As Part Of State AG's Use Of Parallel Criminal/Civil Proceedings To Prosecute Owner Of 140+ Apartment Buildings For Allegedly Harassing Rent-Regulated Tenants Out Of Their Homes & Tax Fraud
In New York City, Crain's New York Business reports:
Manhattan landlord Steven Croman will serve a year in jail and cough up $5 million after pleading guilty Tuesday [June 6] in a tenant-harassment and tax-fraud case.
Croman, who owns more than 140 buildings across the city, had a history of purchasing rental properties, quickly moving to force out rent-regulated tenants, then refinancing the loans at more favorable terms. At times he even employed an ex-NYPD officer to intimidate lodgers into moving out. But that shady business is not what did him in.
In several instances, when Croman couldn't actually rid a building of low-paying residents, he would simply lie and tell banks that he had. The more market-rate units his buildings contained—even if only on paper—the better Croman's loan terms would be.
"Steven Croman is a fraudster and a criminal who engaged in a deliberate and illegal scheme to fraudulently obtain bank loans," Attorney General Eric Schneiderman said in a statement announcing the plea.
But Tuesday's guilty plea represents just part of Croman's legal woes. In addition to his Rikers Island sentence and the payment of $5 million in income taxes he failed to withhold from one of his employees, Croman faces a separate civil case brought by Schneiderman that focuses on his alleged harassment of tenants. The attorney general has also penned legislation to make future efforts to prosecute landlords easier.
Schneiderman argues that current tenant-harassment laws make it effectively impossible to bring criminal charges against a landlord, which is why it hasn't happened in the past two decades. In this case, the attorney general's office had to take a circuitous route by pursuing a tax case in criminal court and then filing a separate civil action.
CBC News: Betrayal of Trust (A CBC investigation reveals how lawyers across Canada have misappropriated and mishandled clients money, to the tune of tens of millions of dollars, or sometimes even charging vulnerable people top dollar for shoddy services)
Land Contract/Contract For Deed/Rent-To-Own Rackets
The New York Times: The Housing Trap (In the wake of the housing crisis, low-income families have turned to seller financing to buy homes but these deals can be a money trap)
Beware The Fine Print: Consumers Forced To Sign Away Their Rights To Use Court System
The NY Times: Arbitration Everywhere, Stacking the Deck of Justice(Part 1 in series examining how clauses buried in tens of millions of contracts have deprived Americans of one of their most fundamental constitutional rights: their day in court)
Foreclosure Mills' Abysmal Record In Complying With New NYS Foreclosure Requirements
Justice Deceived: How Large Foreclosure Firms Subvert State Regulations Protecting Homeowners
MFY Legal Services Report On Questionable Practices By Process Servers In Debt Collection Cases
Justice Disserved: A Preliminary Analysis of the Exceptionally
Low Appearance Rate by Defendants in Lawsuits Filed in the Civil Court of the City of New York
Mortgage Mess Redux: Robo-Signers Return (A Reuters investigation finds that many banks are still employing the controversial foreclosure practices that sparked a major outcry last year)
CNN Video: As Foreclosures Mount, Florida Court Turns To 'Rocket Docket'
The Wall Street Journal: A Florida Court's 'Rocket Docket' Blasts Through Foreclosure Cases (2 Questions, 15 Seconds, 45 Days to Get Out; 'What's to Talk About?' Says a Judge)
"Produce The Note" Strategy When Dealing With Missing Promissory Notes In Foreclosure Actions
ABC Video: Fighting Against Foreclosure (Some homeowners have found a new tactic to keep the banks at bay)
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