NY AG Slams Manhattan Developer With Suit Alleging He Screwed Buyers By Looting $7.4M From Battery Park City Condo Reserve Fund

From the Office of the New York Attorney General:

• Attorney General Andrew M. Cuomo [] 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 payments and writing checks to himself and relatives.

For the entire New York AG press release, see Attorney General Cuomo Sues NYC Developer For Illegally Raiding Condominium's Reserve Fund (Lawsuit Seeks $7.4 Million in Restitution and to Bar Developer from Future Sales).