UPPER WEST SIDE — The developer behind a "fraudulent" condo conversion must stop construction on the landmarked Upper West Side building, after illegally pushing rent-regulated tenants out without giving them a chance to buy their apartments, the state attorney general's office said.
A New York Supreme Court judge signed an order Monday halting Newcastle Realty Services LLC's conversion of the 44-unit rental building at 101 W. 78th St. into condos, so that New York Attorney General Eric Schneiderman can continue investigating the developer for fraud, documents show.
Newcastle Realty Services initially claimed to Schneiderman's office that it would convert the building to 43 condos without doing major construction, but later the company quietly filed plans to do major renovations and combine the apartments into 24 larger units, according to the AG's office.
The development company, led by Margaret Streicker Porres, also pushed tenants to accept buyout offers before they'd had sufficient time to review the conversion plan and did not offer them the chance to buy their apartments, which is illegal, Schneiderman said in a statement.
Newcastle also did not let Schneiderman's office know it was offering tenants buyouts, which is illegal as well, the AG said.
“In attempting to clear the building of tenants to make a conversion easier and more lucrative, these developers violated the law and stripped tenants of their rights," Schneiderman said in a statement.
Schneiderman will investigate Newcastle for fraud and will also probe whether any of the tenants were forced out through harassment.
The order signed Monday by Hon. Marcy Friedman calls for Streicker Porres to testify later this month, demands all documents relating to Newcastle's plans and halts the conversion process, including construction, condo sales and any further removal of tenants.
Newcastle did not immediately return a request for comment.
The developer purchased the building for $85 million in late 2012, and only about 10 tenants remain, according to Schneiderman's office.
