The New York Police Department raided a Midtown East building belonging to William Koeppel after an undercover investigation into a brothel in the property’s commercial space.
Authorities raided the property at 346 East 52nd Street and shut down massage parlor, Beauty Plus, Crain’s reported.
Police in July ran an undercover sting operation at the parlor, where they were offered sexual favors in exchange for money three separate times, according to complaint filed by the city. The probe came two months after an anonymous tip alleged prostitution taking place.
A tenant at the building told the outlet Koeppel combined first-floor apartments before renting them to the massage parlor. Video footage seen by Crain’s showed a tenant informing Koeppel’s wife of the alleged brothel.
The city is seeking to close the ground floor for a year and recover $1,000 per day of alleged brothel operations. A spokesperson for the building condemned the massage parlor, claiming tenants “proven to be engaging in illegal activities will be evicted as quickly as the law permits.”
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Landlord fears his mother gifted him $50M tax liability
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Apartment landlord involved in family fight files for bankruptcy
Commercial
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Landlord seeks $10M from mom over rent overcharge claims
Koeppel has been engaged in a years-long legal fight with his mother and sister regarding the family real estate portfolio. The landlord last month filed a complaint in bankruptcy court, alleging his mother, Roberta, and sister, Alexandra, are responsible for any rent overcharges at nearby 350 East 52nd Street for apartments regulated under the J-51 tax break; tenants filed a class action lawsuit regarding illegal deregulation more than a decade ago.
In August, Koeppel filed for bankruptcy protection to fend off the class-action lawsuit and Wilmington Trust’s effort to foreclose on his $32.1 million mortgage at the 350 East 52nd Street property.
William is also involved in a separate fight pertaining to a portfolio of 13 properties controlled by a trust overseen by his mother and sister. He is suing to have the family members removed as trustees, alleging they allowed the properties to fall into disrepair.
— Holden Walter-Warner