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Settlement forbids major NYC developer from real estate offerings

Staff Writer | September 1, 2016
New York Attorney General Eric T. Schneiderman announced a settlement with real estate developers Jeshayahu Boymelgreen, Itzhak Katan, and Domenick Tonacchio and several of their entities.
Eric T. Schneiderman
New York   Numerous violations at the properties
The settlement ends the Attorney General’s investigation of potential Martin Act violations at six condominiums in Manhattan and Brooklyn that were developed by Boymelgreen either in partnership with others or on his own. The agreement also bars Boymelgreen from participating in the offer or sale of securities, including condominiums, in or from New York State for a period of two years.

The Attorney General’s investigation found numerous violations at the properties, including failure to complete construction projects after selling residential units and failure to remedy alleged construction defects.

Should Boymelgreen fail to fulfill his obligations under the settlement, he will be automatically and permanently barred from participating in the offer and sale of securities in or from New York State.

“Today’s settlement should serve as a lesson to other developers who choose to ignore and break the rules,” said Attorney General Schneiderman.

“We will not hesitate to take tough action against unscrupulous individuals who violate the rights of purchasers and tenants. I am pleased that this settlement will return restitution to those who have been harmed by these illegal practices.”

The six properties included in the settlement are:

- The Downtown Condominium at 15 Broad Street in Manhattan;
- The 20 Pine Condominium in Manhattan;
- Beacon Tower at 85 Adams Street in Brooklyn;
- The Novo Condominium at 353 Fourth Avenue in Brooklyn;
- The Crest Condominium at 302 Second Street in Brooklyn;
- The Newswalk Condominium at 535 Dean Street in Brooklyn.