Lawsuit accuses Steve Croman of illegally deregulating East Harlem apartments

Croman is serving a one-year jail sentence for mortgage fraud

TRD New York /
Jan.January 09, 2018 10:45 AM

326-340 East 100th Street and Steve Croman

A new lawsuit claims landlord Steve Croman, who is serving jail time for mortgage and tax fraud, illegally deregulated apartments in East Harlem.

The complaint alleges that Croman wrongfully removed nearly 70 percent of the units at 326-340 East 100th Street from New York’s rent stabilization program. At the same time, he was receiving the J-51 tax break, which requires landlords to keep 100 percent of their units rent stabilized.

The proposed class action lawsuit, which was filed in state Supreme Court on Monday by tenant Stuart Davidson Tribbs, alleges that all tenants of the building post-Jan. 8, 2014, are entitled to rent refunds.

“We have not seen a copy of the lawsuit; however, we disagree with the allegations,” a spokesperson for Croman’s firm 9300 Realty told the New York Daily News.

Last month, Croman agreed to pay a record $8 million to tenants he harassed, according to the New York State Attorney General’s office. The agreement settled a civil case that accused Croman of coercing and tricking tenants into leaving their rent-stabilized apartments. Croman is currently serving a one-year jail sentence after pleading guilty to felony charges of grand larceny, tax fraud and a fraud charge stemming from filing a false instrument. The scheme included inflating rent rolls in order to secure bigger mortgages.

In announcing Tribbs lawsuit, the Housing Rights Initiative called on Gov. Andrew Cuomo and the state’s Division of Housing and Community Renewal to audit Croman’s 140-plus building portfolio. [NYDN] — Kathryn Brenzel 

Related Articles

Steve Croman and 566 Hudson Street (Credit: Google Maps, iStock)

Steve Croman sued over illegally deregulating apartments

Steve Croman and 326-340 East 100th Street (Credit: Getty Images and Google Maps)

Lawsuit against landlord Steve Croman receives class action status

Steve Croman to buy West Village literary landmark for $14M: report

Steve Croman to buy West Village literary landmark for $14M: report

From left: 1578 Union Street in Brooklyn, Daniel Melamed (inset) and Eric Schneiderman (Credit: Google Maps, Getty Images, Facebook)

Overzealous investigators went too far in pursuit of Brooklyn landlord, appellate court rules

157 West 57th Street (Credit: iStock)

One57 condo with reduced ask tops a slow week of luxury contracts

Clockwise from top left: 730 Fifth Avenue, Unit #PH21; 730 Fifth Avenue, Unit #18A; The Pierre, Unit #3101; and The Park Imperial, Unit #64

Priciest homes listed last week include $60M pad at Crown Building

250th Issue

The Real Deal celebrates 250 issues

From left: Publisher and founder Amir Korangy, Editor-in-chief Stuart Elliott and VP of Corporate Development Yoav Barilan

TRD’s founders share war stories from over the years