Long Island developers banned from selling condos

NEW YORK (Legal Newsline) - New York Attorney General Eric Schneiderman announced a court order on Wednesday against two Long Island developers and their company that permanently banned them from selling condos.

Richard Mohring, Jr., his wife, Deborah Mohring, and their company, R&D Willis Avenue LLC, developed and sold apartments in the Cambridge Park Condominium on Long Island. They allegedly promised purchasers they would repair a retaining wall on the property, but failed to fix the wall, putting the lives of the condominium residents in danger.

Schneiderman filed a lawsuit against the Mohrings in 2011, alleging they failed to repair the retaining wall, failed to obtain the necessary certificates of occupancy for close to half the residents and pocketed the proceeds of unit sales. In 2012, the Morhings allegedly defied court orders requiring that they repair the retaining wall and pay restitution. Richard Mohring was arrested on contempt of court charges.

Only after Richard Mohring was arrested did the Mohrings pay $215,000 in restitution to the victims.

Schneiderman then sought the payment of civil penalties and costs and to bar the Mohrings from future condominium sales. A court order entered on Monday required the Mohrings to pay $81,500 in civil penalties and $2,000 in costs. It also permanently enjoined the developers from selling condos and from engaging in any fraudulent, deceptive or illegal act in connection with any business or activity.

"By their deceptive and evasive conduct, Richard and Deborah Mohring put the residents of the Cambridge Park Condominium at risk," Schneiderman said. "This office will continue to take action against real estate developers, like the Mohrings, who cheat homebuyers."