NY AG Probe, Lawsuits Mount For Brooklyn Developer Louis Greco

Louis Greco’s problems are catching up with him.

The Second Development Services founder is facing lawsuits, bankruptcies and even an investigation from the New York Attorney General, Bisnow reported. The troubles stirred up by the residential and commercial developer — who still has four projects in the pipeline — add to a common pattern among New York City players that manage to evade enforcement.

Residents of a six-story condo building at 475 Washington Avenue in Clinton Hill have filed four lawsuits against Greco, accusing him of fraud, self-dealing and a failure to deliver on promises. The AG’s office is investigating the building, which Silver Point Capital recently foreclosed on after a $35 million loan default.

Greco claims to have developed more than 100 projects, a number nearly rivaled by the dozens of lawsuits he’s faced in recent years. Greco’s debts to creditors reach into the tens of millions of dollars as he allegedly failed to pay workers and resolve violations.

Projects he’s worked on include 1 Grand Army Plaza in Prospect Park — a development that resulted in a lawsuit that cost Greco $5 million, which he failed to pay initially — and a six-unit condo building at 22 Bond Street in Manhattan.

Another project he worked on was 156-160 17th Street in Brooklyn’s South Slope. A stop-work on the nine-story charter school project was issued by the Department of Buildings in September 2023, two years after SDS allegedly damaged the adjacent building, forcing two tenants to evacuate. Work never resumed.

In 2014, he filed plans for an 11-unit building at 63 Columbia Street in Cobble Hill. Two years ago, the project — still not completed — was appraised for well below Greco’s projected sellout, leading his lender to foreclose, only for him to put the condo project in bankruptcy first. Three lawsuits have been filed regarding the building, which is still being constructed after the court approved a reorganization plan, according to Greco.

In 2019, Greco settled with the AG’s office following accusations that he failed to disclose that he was a principal sponsor at 11 different condo developments, spanning 600 units in Brooklyn and Manhattan. The settlement cost Greco $100,000.

Last year, Greco’s wife filed for bankruptcy after she was sued over a personal guarantee tied to the developer’s debts, writing in an affidavit that “many of my husband’s recent projects have failed.”

Greco admitted as much to Bisnow, claiming his problems started during the pandemic. But problems date back earlier than that, such as when lenders cut his funding in 2018, according to a deposition he gave in January.

All four of the developer’s underway projects, including the charter school development, have been subject to litigation; Greco claims the projects are in different stages of workouts.

— Holden Walter-Warner