The Real Deal New York

From the June issue: Almost a decade after a crackdown on building managers and agents who took kickbacks from unscrupulous vendors and service providers, the problem remains as intractable in New York real estate as cockroaches. In 1994, more than 70 agents at several building management companies were indicted for taking kickbacks from building service providers. It was an ugly scandal, with a number of large real estate companies indicted by Manhattan District Attorney Robert Morgenthau. A second round of indictments stung the industry in 1999. But those cases weren’t enough to scare shady managing agents straight. Many in the industry say that kickbacks haven’t ceased, but instead are widespread and difficult to prevent.