The defendant’s actions allegedly harmed incoming tenants and the state’s interest in providing rent-regulated and affordable housing to New Yorkers.
New York City property manager allegedly accepted kickbacks
Furthermore, AG James alleged that Drumheller and other Newcastle employees received more $1.2 million in kickbacks from contractors who performed renovations for the firm. They recorded the money as expenses for IAIs.
In a statement, the Attorney General said, “Engaging in fraud with respect to renovations is a decades-old, devious practice designed to take advantage of tenants throughout New York.”
“Knocking hundreds of rent-stabilized apartments off the market by illegal schemes is immoral and unacceptable. My office will work to reregulate the units lost to this fraud, and to ensure that individuals like Drumheller are no longer in a position to abuse the rent regulation system,” she added.
AG James is seeking an injunction against Drumheller and JBD Realty Services, disgorgement of all kickbacks and restitution for tenants affected by their conduct. She is also asking the Court to prohibit Drumheller and JBD Realty Services from managing or owning rent-stabilized property in the state.
