He’s also been ordered to finish work on his incomplete NYC projects
Controversial developer Shaya Boymelgreen is finally being brought to task. New York Attorney General Eric Schneiderman’s office has entered into an agreement with the developer that now requires him to remedy construction issues at the six buildings he developed in New York City, and address the building violations at each of those properties as well, the New York Times reports.
Those properties include the 38-story condo at 20 Pine Street in the Financial District, and the 23-story condo at 85 Adams Street in Dumbo, Brooklyn. Residents at Boymelgreen’s properties had been complaining since 2007 about the shoddy work and had even filed lawsuits that year, according to the Times.
This latest settlement prevents the developer "from participating in the offer or sale of securities, including condos, for two years." If he doesn’t meet the requirements of the settlement, he will be permanently banned from selling apartments in the city, as will his associates.
"Today’s settlement should serve as a lesson to other developers who choose to ignore and break the rules," Schneiderman said in a statement. "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."
Boymelgreen initially began working in asbestos abatement after he immigrated here in the 1960s from Israel. He began working in real estate in the early 2000s after partnering with billionaire Lev Leviev. Under their company Africa Israel Investments, they undertook several real estate projects including the ones mentioned above. Boymelgreen and Leviev had a falling out in 2007, and the financial crisis thereafter further plunged Boymelgreen into chaos. Earlier this year the Attorney General’s office reached a separate settlement with that company to fix problems at 20 Pine Street, 15 Broad Street, and 85 Adams Street.
At 15 Broad Street for instance, Boymelgreen and Africa Israel made $360 million in sales, but never completed construction on the project. Boymelgreen has apparently settled with the condo boards of 15 Broad Street and 20 Pine Street for undisclosed sums, according to the Times. A lawyer who represents 85 Adams and two other Boymelgreen properties told the Times that he hoped the troubles would be sorted through mediation.