New York Paralegal Blog

NEW YORK - Attorney General Eric T. Schneiderman today announced a favorable decision in his case against YL Rector Street, LLC and Yair Levy. The Supreme Court in New York County ruled that the developer of the Rector Square Condominium in Battery Park City defrauded purchasers of approximately $7.4 million by failing to finance and maintain a legally-required reserve fund to ensure the health and safety of residents. “Yair Levy treated the Rector Square Condominium as his personal ATM, using the millions of dollars intended for residents for his own purposes, even while the building conditions deteriorated,” Attorney General Schneiderman said. “This kind of misconduct will not be tolerated and I will continue to hold those who defraud tenants and owners accountable.” The case was initiated in June 2010 after an investigation by then-Attorney General Cuomo’s office revealed that Levy promised Rector Square Condominium tenants and owners that the legally-required reserve fund woul...

Lawsuit Seeks $7.4 Million in Restitution and to Bar Developer from Future Sales NEW YORK, NY (June 9, 2010) - Attorney General Andrew M. Cuomo today filed a lawsuit charging the developers of the Rector Square Condominium in Battery Park City with defrauding purchasers out of approximately $7.4 million by raiding a reserve fund meant to ensure the health and safety of residents and instead using the money for personal and unrelated business purposes. The Attorney General’s investigation revealed that while developers YL Rector Street, LLC and its principal, Yair Levy, had promised tenants and owners that the reserve fund would be set aside for making repairs, improvements and replacements necessary for their health and safety, they instead depleted the fund leaving residents with a mere $70. A review of the Condominium’s financial records uncovered that Levy misused millions of dollars of the residents’ money for personal and general business expenses, including making credit card...