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

Shear Luck: FRED Salon Finds Refuge in the East Village

Another retail victim to report on upper Orchard Street. The FRED.nyc hair salon is now gone. According to signage on the shuttered security gate at 192 Orchard, the five-year-old business recently relocated to the East Village. The move to 40 East Third Street was a long time coming for eponymous owner Fred Connors, who braved […]

Grand Street Guild Files Plans for 15-Story Affordable Housing Tower

New towers are coming to Broome Street on the Lower East Side. Now we have sight of the first newcomer. Back in January of 2018, the Grand Street Guild nonprofit officially announced the imminent construction of two, as-of-right 15-story apartments on its property, plus a parking garage. All 400 of the proposed units are earmarked […]

TongKatsu Replaced by ‘Otaku Katsu’ on Rivington Street

Over on Rivington Street, TongKatsu becomes… …Otaku Katsu. Ben Tong, owner of the former, reportedly reassigned the lease after its shutter to husband-wife team Chef Dimitri Voutsinas and Christine Argao-Voutsinas. Otaku Katsu occupies the same below-grade space at 137 Rivington, and offers a variety of katsu and Japanese sando bentos, in addition to fresh made […]

DOT ‘Street Seat’ Goes Live Outside Dudley’s on Orchard Street

Just in time for the forthcoming return of Dudley’s, Orchard Street now boasts a new row of public seating. Beside another recently installed bike corral. And it’s all part of the city’s Street Seat program. More than a half-dozen tables and chairs are stationed between the corner of Broome down to Cafe Katja. As previously […]

Crowbar-Wielding Attacker Smashes Windows of Roni-Sue’s Chocolates on Forsyth Street [VIDEO]

Earlier this week, we reported on the dangerous conditions plaguing Forsyth Street amidst the city’s work on the subway system. The MTA is currently swapping out the ventilation plant fifteen feet beneath the roadbed along the eastern perimeter of Sara D. Roosevelt Park. Originally built in 1962, this section of the subway was identified as […]