Croman Tenants Have Until Nov. 4 to Collect from $8M Restitution Fund

NEW YORK CITY—New York Attorney General Barbara D. Underwood is reminding former and current tenants of landlord Steven Croman they may be eligible for restitution. Participants must file claims by Nov. 4, 2018. More information and claim forms are available online at www.cromanrestitutionfund.com.

The settlement resulted from the attorney general office’s investigation and May 2016 lawsuit. The prosecutors accused Croman of illegally forcing tenants out of their apartments so he could convert their homes into market-rate units. The lawsuit alleged Croman employed Anthony Falconite, a former New York City police officer, to frighten and intimidate rent-regulated tenants into leaving their apartments.

The consent decree required Croman to pay $8 million into a Tenant Restitution Fund. Underwood says it is the office’s largest monetary settlement with an individual landlord.

“Again and again, Steve Croman acted as though he was above the law. My office secured an unprecedented $8 million settlement for Croman’s illegal tenant harassment, coercion and fraud,” says Attorney General Underwood. The total settlement fund will be divided equally among eligible claimants and distributed to tenants in installments over a period of 38 to 42 months.

Tenants are 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 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.

In addition to the $8 million restitution, the settlement required an independent management company with no ties to Croman to run more than 100 Croman residential properties for five years. Earlier this year, the attorney general’s office approved New York City Management for this job, and the company took over operations of the buildings on July 1, 2018.

In addition, the settlement required seven years of independent monitoring for compliance with the consent decree, providing reports to the attorney general. Underwood’s office states this is the longest monitorship required in any tenant harassment case.

In October 2017, Croman was sentenced to a year in jail and paid a separate $5 million tax settlement. The Villager reported that Croman served time for eight months in the Lower Manhattan detention complex known as “The Tombs” and was released this past June.