Shaya Boymelgreen and 20 Pine Street

The developers of 20 Pine Street, led by Africa Israel USA, have settled a probe by Attorney General Eric Schneiderman for allegedly covering up construction defects at the troubled condominium, but are facing a new $20 million lawsuit from unit owners over the same charges, The Real Deal has learned.

Jesheyanu “Shaya” Boymelgreen and Tamir Kazaz, president of AFI USA, signed an agreement to pay $144,000 in fines to the state and allow prospective buyers to rescind their contracts. The developers failed to disclose a Rand Engineering report listing $5.6 million in defects, ranging from cracking throughout the building, mold in the sauna, damaged heating systems and other problems, according to documents filed with the AG. [more]

From left: 57-59 Maspeth Avenue, New York State Attorney General Eric Schneiderman

New York Attorney General Eric Schneiderman is seeking nearly $1.4 million from the developer of a 17-unit Williamsburg condominium project that is allegedly “rife with construction defects,” including leaks, faulty windows and the use of flammable material on the roof, according to court documents obtained by The Real Deal.
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New York state Attorney General Eric Schneiderman

New York State Attorney General Eric Schneiderman is backing off on his requirement that developers make offering plans available digitally, according to Crain’s. Six months ago, Schneiderman announced that offering plans — information disclosed to buyers that outlines rules and procedures at a new condominium or co-op — were required to be available digitally. [more]

New York AG Eric Schneiderman

The mortgage settlement will provide $15 million for foreclosure prevention and other related services, according to a statement from the New York attorney general’s office today.

The allocation will provide up to $9 million for the state’s foreclosure prevention services program, which was set to expire April 1, and up to $6 million for community-based housing organizations, the statement said. [more]

Steven Baum

Vilified foreclosure attorney Steven Baum, and his Buffalo-based firm, Steven J. Baum P.C., have reached a settlement with the office of New York Attorney General Eric Schneiderman, the New York Law Journal reported.

Baum, his managing partner Brian Kumiega, the Baum firm and affiliated company Pillar Processing will pay $4 million and have agreed not to handle foreclosure cases for lenders and servicers for two years. [more]

From left: President Barack Obama and Attorney General Eric Schneiderman

The $26 billion settlement reached today between numerous state attorneys general and the country’s five largest mortgage servicers will afford New York State a $136 million settlement, according to a statement from New York Attorney General Eric Schneiderman’s office today. New York’s settlement is the largest per underwater borrower of any state in the nation, and the fourth highest dollar amount of any settlement nationwide, the statement said. [more]

New York Attorney General Eric Schneiderman

When Eric Schneiderman took over as New York attorney general, he learned that banks wanted “as broad of a release as possible that grants them immunity from all of their alleged misconduct… [including] things that created the bubble in the housing market and brought about the crash,” he told City & State magazine. And when the newly appointed attorney general sat down with federal agencies, he realized there was a lot that could be done if their offices collaborated, and they began talking about the possibilities of a joint investigation. [more]

The Apthorp, at 2211 Broadway

Irish Bank Resolution, which changed its name from Anglo Irish Bank in July 2011, has decided not to sell a portion of its U.S. loans due to fears of lawsuits from U.S. customers, whose consent would have been required in order to sell their performing loans, an article in Irish Times said.

The bank will maintain an office in Boston to manage the $1 billion in U.S. loans that it retained, the paper said. [more]

From left: former Attorney General Andrew Cuomo, 80 Riverside Boulevard and Gary Barnett, president of Extell Development

After nearly three years of litigation in multiple venues, a state Supreme Court judge ruled last week that former Attorney General Andrew Cuomo was correct in his 2010 order for the return of $16 million in disputed escrow deposits at the Rushmore condominium.

Justice Anil Singh, in a 15-page decision, ordered co-developers Carlyle Realty Partners and Extell Development, to return the deposits to 40 buyers at the 80 Riverside Boulevard tower. [more]