“Bad Ass” developer faces $18M suit from Bronx buyers

TRD New York /
Dec.December 23, 2013 12:00 PM

A developer that operated under a LLC called the Bad Ass Group was hit with an $18 million class action lawsuit over an alleged scam involving low-quality homes.

A group of 12 Bronx homeowners alleged in New York State Supreme Court that they were hurried into purchasing homes that were poorly constructed. Soon after moving in, they said they encountered black mold, leaky roofs, broken boilers and plumbing problems. The eight individuals named in the suit — including real estate agents and architects — failed to obtain permanent certificates of occupancy for the properties, and referred the complaining homeowners to lawyers who were tied to the scheme, according to the plaintiffs, the New York Daily News reported.

The homeowners seek damages for alleged offenses such as fraud, conspiracy, negligence, breach of contract and attorney malpractice. They also accused the city Department of Buildings of being negligent in issuing temporary approvals before the homes underwent inspection.

Johanny De La Cruz paid $670,000 for a three-family house in Soundview, Bronx, in 2006, while Martha Diaz paid $618,000 for a two-family home elsewhere in the borough in 2006, according to the suit.

State Senator Jeff Klein of Riverdale plans to hold an open house next month to offer legal aid to other victims of the alleged scam, the Daily News said. [NYDN]Mark Maurer


Related Articles

arrow_forward_ios
1065-1075 Gerard Avenue in the Bronx 

Prana pays Related $36M in Bronx multifamily play

Prana pays Related $36M in Bronx multifamily play
448 East 143rd Street in the Bronx (Credit: Google Maps)

Private developer’s NYCHA project in Mott Haven lands $79M in financing

Private developer’s NYCHA project in Mott Haven lands $79M in financing
1159 and 1184 River Avenue with Maddd Equities' Jorge Madruga (left) and Joy Construction's Eli Weiss (right) (Credit: Google Maps)

Maddd Equities, Joy Construction score $64M for massive Bronx project

Maddd Equities, Joy Construction score $64M for massive Bronx project
1323 Boston Road, Jeff Fox (Credit: Google Maps)

Foxy Management plans another Bronx senior housing project

Foxy Management plans another Bronx senior housing project
An aerial of 700 Atlantic Avenue with Greenland USA CEO Hu Gang (Credit: Google Maps; Gang via CGCC)

Greenland plans 41-story resi tower at Pacific Park

Greenland plans 41-story resi tower at Pacific Park
RXR Realty's Scott Rechler and 2413 Third Avenue in the Bronx (Credit: Getty Images; Google Maps)

RXR planning 200-unit South Bronx project

RXR planning 200-unit South Bronx project
DOB Commissioner Melanie E. La Rocca (Credit: iStock)

City tweaks affordable housing construction rules to comply with state guidelines

City tweaks affordable housing construction rules to comply with state guidelines
Governor Andrew Cuomo (Credit: Cuomo by  (Photos by John Lamparski/NurPhoto; Newsday RM via Getty Images)

State allows more construction, but raises questions on housing

State allows more construction, but raises questions on housing
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...