The Real Deal New York

Michael Besen’s company will manage Steve Croman’s portfolio

Besen’s New York City Management will run Croman’s buildings for five years
June 19, 2018 06:08PM

Steven Croman

Steve Croman may be out of jail, but he is still years away from being able to run his properties again.

The New York state Attorney General’s office has selected Michael Besen’s New York City Management to operate Croman’s portfolio of more than 100 buildings as of July 1, according to the Commercial Observer. The company will run the properties for five years.

Croman had proposed two other companies instead of NYC Management, but the state rejected them. He will only be allowed to have “incidental” interactions with his tenants while Besen’s company is running the buildings.

Croman reached a settlement with the state last year over harassment of his tenants. The agreement required him to find an independent company to manage his residential properties and pay his tenants a record $8 million in restitution.

A monitor will also oversee Croman’s compliance with the settlement for seven years, and Croman is required to pay for both the monitor and NYC Management.

The notorious landlord pleaded guilty last June to tax fraud and was sentenced to one year in jail and a $5 million fine. He was released on June 1 after serving eight months.

Besen recently accused his business partner Amit Doshi of setting up a secret account to use almost $1.5 million of company money for personal investments and trying to steal a Jackson Heights property that the two co-owned. He has filed a court summons seeking injunctive relief and up to $10 million in damages. [CO] – Eddie Small