NYC landlord stole millions from tenants of
Westchester Trump Tower: suit

Frank Palazzolo, the condo board treasurer, is accused of siphoning off $8.7M

New York /
Nov.November 30, 2016 10:15 AM

The condo board at Trump Tower in Westchester is suing its longtime treasurer, accusing him of using the building’s funds as his own “personal piggy bank.”

In a civil racketeering lawsuit filed with the Manhattan federal court on Monday, New York City landlord Frank Palazzolo is accused of stealing up to $8.7 million from the Westchester Trump Tower in White Plains over several years. According to the suit, the condo board says the building has been left “in a precarious financial position — unable to pay for basic service and exposed to significant litigation risk,” the New York Post reported. Palazzolo’s wife is named as a co-defendant.

Palazzolo — who runs several companies out of the Palazzolo Plaza in Scarsdale — is also accused of collecting more than $200,000 in utility payments from tenants, and then leaving the residents to pick up the tab. According to court documents, the condo board says Palazzolo moved money from the condo’s accounts into accounts that he controlled and that he used fake documents to cover his tracks. Palazzolo paid people to help him with the scheme, according to the suit, and a number of condo board members have been named as co-defendants.

The board alleges that Palazzolo used the money to make real estate investments, including buying three foreclosed units at Trump Tower in Westchester.

In 2010, two dozen Bronx tenants sued Palazzolo’s company Semper Fi Management 4, alleging there had been more than 1,000 building code violations at three separate rental buildings in the borough.

The Trump Tower at City Center has Trump branding, but is not owned, developed or sold by Donald Trump. [NYP]Miriam Hall


Related Articles

arrow_forward_ios
Make Greenland Great Again? Trump wants to buy Arctic territory
Make Greenland Great Again? Trump wants to buy Arctic territory
Make Greenland Great Again? Trump wants to buy Arctic territory
Hamptons’ priciest summer rental to host MAGA extravaganza next month
Hamptons’ priciest summer rental to host MAGA extravaganza next month
Hamptons’ priciest summer rental to host MAGA extravaganza next month
555 California Street with Steve Roth and Donald Trump (VNO, Getty/Patrick McMullan, Getty)
What tenants pay at Vornado and Trump’s 555 California Street
What tenants pay at Vornado and Trump’s 555 California Street
Images of the Gateway Program and Pete Buttigieg (Photos via GDC, Getty, iStock)
Gateway tunnel lurches ahead with federal approval
Gateway tunnel lurches ahead with federal approval
Manhattan District Attorney Cy Vance and Donald Trump (Getty)
Manhattan DA convenes grand jury in Trump probe
Manhattan DA convenes grand jury in Trump probe
Donald Trump, New York Attorney General Letitia James, Manhattan District Attorney Cy Vance (Getty)
Tish James joins Cy Vance’s criminal probe of Trump Org
Tish James joins Cy Vance’s criminal probe of Trump Org
Eric and Lara Trump with 502 Bald Eagle Drive in Jupiter (Getty, Google Maps)
More Trumps buy in South Florida: Eric, Lara paid $3M for Jupiter home
More Trumps buy in South Florida: Eric, Lara paid $3M for Jupiter home
Donald Trump and 40 Wall Street (iStock, Sterlfilms/Wikimedia)
40 Wall’s valuation chop means tax savings for Trump Org
40 Wall’s valuation chop means tax savings for Trump Org
arrow_forward_ios

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

Loading...