Left to right: Andrew Cuomo, Rector Square, Yair Levy

New York State Attorney General Andrew Cuomo has opened an
investigation into the collapse of Rector Square, the Battery Park City
condominium conversion led by developer Yair Levy, according to three
officials familiar with the probe. Sources say that Cuomo, whose office regulates condo and co-op
conversions, is issuing subpoenas for financial records related to the
304-unit building, which has been in foreclosure proceedings since
early February after Levy defaulted on a $165 million mortgage with
Anglo Irish Bank. Investigators are looking into a possible diversion of funds during the
conversion, which collapsed after Levy failed to pay millions of
dollars in mortgage payments, construction costs, common charges and
PILOT payments to the Battery Park City Authority. [more]