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
From left: Michael Dell, Alex Rodriguez and Donald Trump along with the Trump Hotel in Washington, D.C. (Getty Images, The Trump Organization, iStock)
Firm that manages Michael Dell’s wealth finances deal for Trump Hotel
Firm that manages Michael Dell’s wealth finances deal for Trump Hotel
Donald Trump, Brett White, and Letitia James with 40 Wall Street (Getty, Cushman & Wakefield, 40 Wall Street, iStock)
Cushman pushes back on subpoena in Trump property probe
Cushman pushes back on subpoena in Trump property probe
A photo illustration of prominent guests  at the Witkoff wedding (via Instagram)
Nuptials Mar-a-Lago style: Donald Trump, Don Peebles, Barry Sternlicht among real estate elite at Witkoff wedding
Nuptials Mar-a-Lago style: Donald Trump, Don Peebles, Barry Sternlicht among real estate elite at Witkoff wedding
Judge Arthur Engoron, Cushman & Wakefield's Brett White, former U.S. president Donald Trump (LinkedIn, Getty Images, Illustration by Kevin Cifuentes for The Real Deal)
Judge says Cushman failed to properly value Trump properties
Judge says Cushman failed to properly value Trump properties
Former president Donald Trump, Cushman & Wakefield's Brett White and Attorney General Letitia James with 40 Wall Street (Getty, Cushman & Wakefield, ChrisRuvolo Public domain via Wikimedia Commons, iStock)
Cushman must play ball in Trump property probe: judge
Cushman must play ball in Trump property probe: judge
From left: Donald Trump, Cushman & Wakefield's Brett White and Letitia James with 40 Wall Street (Getty)
New York AG to Cushman: Comply in Trump probe
New York AG to Cushman: Comply in Trump probe
arrow_forward_ios

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

Loading...