Steve Croman Forced to Pay $8M Settlement in Tenant Harassment Lawsuit

Posted on: December 21st, 2017 at 5:00 am by

Steve Croman

Yesterday afternoon, Attorney General Eric Schneiderman announced a settlement in the civil case against controversial landlord Steven Croman for “engaging in illegal conduct, including harassment, coercion, and fraud, to force rent-regulated tenants out of their apartments and convert their apartments into highly profitable market-rate units.”

The consent decree requires Croman to fork over $8 million into a Tenant Restitution Fund – the largest-ever monetary settlement with an individual landlord. Moreover, the settlement forces an independent management company, without ties to Croman, to run more than 100 Croman residential properties around the city for the next five years.

Details of who can claim a piece of the proverbial pie…

Eligible tenants will be able to apply for restitution; the Office of the Attorney General (OAG) will announce details of a claims process early next year. Tenants will be eligible for restitution if they are or were a tenant in a rent-stabilized or rent-controlled apartment owned by Croman between July 1, 2011 and the date of the agreement (December 20, 2017); they received a buyout of less than $20,000, not including any amount that purported to cover rent or arrears; and no other tenant in their apartment received money from the restitution fund.

Croman is currently serving one year on Riker’s Island, and paid a separate $5 million settlement as a result of criminal charges brought by Schneiderman.

Croman shining light at a tenant to prevent filming

“New Yorkers are already struggling with high rents,” Schneiderman stated in a press release. “We have zero tolerance for those who try to boost their bottom line by disregarding the welfare of their tenants. My office will continue to ensure that all landlords play by the rules, and aggressively pursue anyone who doesn’t to the fullest extent of the law.”

This latest is clear indication that Croman is the example for the other bad actors out there.

Below is the full consent decree:

Consent Decree With Landlord Steve Croman by BoweryBoogie on Scribd

Recent Stories

10-Story ODA Condo Tops out on Chrystie Street

One of two ODA-designed condo towers along Chrystie just reached the top. The construction at 165 Chrystie Street topped out within the last couple weeks, boasting the token visuals of vertical completion. Flags. Not one, two, or three, but four national flags. A veritable United Nations forum with America, Russia, China, and Israel. Reaching this […]

Disarmed: Partner Dispute Leads to Shutter of Suffolk Arms

Suffolk Arms mysteriously shuttered during the first week of April due to “renovations” and “mechanical upgrades.” Sounds convincing … not. Apparently, the closure is related to a dispute between co-owners Giuseppe González and well-regarded bartender Ruben Rodriguez. The former allegedly sought the ouster of the latter this past winter. However, according to a report in […]

More on that Norfolk Street ‘Animal House’

Shenanigans at the so-called “Animal House” on Norfolk Street are under police scrutiny. But the landlord apparently isn’t playing ball. To recap… For the better part of the last year, rowdy residents of 180-182 Norfolk Street have reportedly been partying like crazy, without regard for the surroundings. Neighbors continue to tell us that the get-togethers […]

Commissioner Overseeing Office of Nightlife Hosts Open Discussion on LES Tomorrow Night

When Mayor de Blasio first announced the Office of Nightlife last year, battle-hardened residents around the Lower East Side weren’t particularly pleased. Was this new bureau just a boon to the industry at the expense of communities? How effective would a liaison be? The appointment of former Sutra owner Ariel Palitz to “Night Mayor” likewise […]

‘Kodawari’ Coffee Shop Starts Grinding at 100 Forsyth Street

Gentrification 101: When upscaling a building on the Lower East Side, install a trendy coffee shop on the ground floor. Maybe even add a little gallery art as flare. That seems to be the narrative at 100 Forsyth Street, too, an address plagued with retail problems in recent years, likely due to ongoing renovations. Something […]