NEW YORK (Legal Newsline) — New York Attorney General Eric T. Schneiderman recently reached a settlement with Africa Israel Investments Limited to resolve defect claims for a building it’s been developing in Manhattan.
The publicly traded conglomerate started development of 15 Broad Street close to a decade ago and the construction stalled. As part of the deal with Schneiderman, the developers must finish construction, then surrender control of the building to the condominium owners – resolving defect claims at three condominiums in Manhattan and Brooklyn – and pay $2 million to New York City to compensate for alleged improper receipt of tax benefits.
“Today’s settlement is a warning to property developers in New York State,” Schneiderman said. “Those who collect the enormous profits that flow from offering real estate securities in New York will not be allowed to shirk their obligations to purchasers and the public. My office will not allow developers to walk away from their promises.”
The deal was reached under the Martin Act, New York’s blue-sky law, which gives the state’s attorney general broad enforcement powers to force real estate developers to live up to their legal obligations and promises.