POTSDAM, N.Y. (Legal Newsline) – New York Attorney General Eric T. Schneiderman announced that Karl H. Schreyer, a St. Lawrence County residential landlord, has agreed to reform his business practices after allegations of mishandling tenant security deposits.
Schreyer does business as KHS Rentals and provides rentals in Potsdam, mostly to students at Clarkson University and SUNY Potsdam. Schreyer allegedly failed to maintain rent security deposits in separate interest-bearing accounts, instead putting them in his personal accounts. This is a violation of New York State law. Additionally, he allegedly failed to return the deposits of more than 60 tenants since 2012.
“Tenants have a right to their own hard-earned money,” Schneiderman said. “Likewise, landlords have an obligation to follow the law and not treat security deposits like personal funds. Landlords who fail to uphold that obligation will be held accountable.”
The state will place a lien on the properties Schreyer owns as a security for the tenant’s deposits.
Assistant Attorney General Alicia M. Lendon and Consumer Frauds Representative Michael Sprague of the Watertown Regional Office handled the case.