Former Duane Reade execs convicted of fraud

TRD New York /
Jun.June 08, 2010 11:43 PM

Two former chief officers of Duane Reade have been convicted of fraud after a two-month long trial, in which one of the city’s biggest retail brokerage firms, Winick Realty Group, played a central role, according to the United States Attorney of the Southern District of New York. Former CEO Anthony Cuti and one-time CFO William Tennant were both convicted of conspiracy and securities fraud, in connection with a five-year-long scheme to falsely increase income and lower expenses, while misleading investors. Tennant got a $2.8 million stock gain in 2001 after working on fraudulent real estate transactions, Bloomberg news said.

The case involved several fraudulent real estate deals, through which the two men made millions, prosecutors said. Two of the city’s leading retail brokers, Cory Zelnik, former president of Winick Realty, and Jeff Winick, CEO of the firm, had been involved in a handful of those deals, acting as landlord and broker, although neither was charged in the case.

As The Real Deal reported in April, prosecutors identified WInick as an unindicted co-conspirator, while Zelnik cut an immunity deal with prosecutors in exchange for his testimony, in order to avoid prosecution. Late last month, the state Department of State announced that it was opening an investigation into both brokers, related to a questionable $100,000 commission they received.

Cuti’s sentencing is set for Nov. 15, while Tennant’s is slated for Dec. 6.


Related Articles

Ex-Barneys CEO Daniella Vitale (Credit: Getty Images, Google Maps)

Barneys’ lights still on, but workers left in dark

Faith Hope Consolo (Credit: Getty Images, iStock)

The real story behind Faith Hope Consolo’s glamorous life

Bed Bath & Beyond (Credit: Getty Images)

Bed Bath & Beyond is selling its real estate to private equity

Holiday spending was up this year — especially online (Credit: iStock)

Unsettling news for landlords: Online retailers killed it this holiday season

Moinian Group CEO Joseph Moinian, and a street view of the new Best Buy location (535 Fifth Avenue, at left) and the old one (529 Fifth Avenue, at right) 

Best Buy signs lease for new store at 535 Fifth

From top: 29 Nassau Avenue, 8973 Bay Parkway and 94 9th Street (Credit: Google Maps)

The 10 biggest Brooklyn retail leases of 2019

ICSC’s annual New York show will feature twice as much programming as in years past.

Here’s what to expect at ICSC’s 2019 NYC event

Federal Realty Investment Trust CEO Donald C. Wood and Georgetowne Shopping Center (Credit: Google Maps)

Fairway-anchored Bergen Beach shopping center sells for $85M