$4M recovered after AG Letitia James uncovers kickback scheme
Buildings were in Flatbush, Brighton Beach; Costs inflated to decontrol apartments
New York State Attorney General Letitia James on Tuesday announced she has secured $4 million from a group of 29 New York City landlords after uncovering an illegal kickback scheme by the management companies they employed to deregulate hundreds of rent-stabilized apartments in New York City.
The Office of the Attorney General (OAG) reached a settlement with 29 LLCs (the owners) affiliated with Sentinel Real Estate Corporation for wrongdoing committed by employees at the now-defunct property management firms the owners used: Newcastle Realty Services, LLC (Newcastle) and Highcastle Management, LLC (Highcastle).
Most of the buildings were either in Upper Manhattan or in Brooklyn, mainly in Flatbush and Brighton Beach.