From the March issue: A crackdown on kickbacks in the 1990s forced New York’s residential management industry to clean up its act. Several recent cases involving managing agents, however, are raising eyebrows about corruption in the industry again. In August, Queens firm Charter Management abruptly went out of business after the district attorney began an investigation into whether the company had improperly commingled and stolen clients’ funds. A few months later, building manager Mark Modano pleaded guilty to charges of stealing over $1.3 million from the operating accounts of six clients. The Manhattan District Attorney, according to published reports, is also investigating Downtown Properties owner Richard Bassik, who has been accused of embezzling nearly $2 million from buildings he managed. [more]
