Deed Changing is a Nasty Business, but Allure did it…

joel-landau-45-rivington-street

 

The Wall Street Journal Reported on April 5, 2016

New York Attorney General Opens Probe Into Manhattan Deed Change

Schneiderman’s office sends out subpoenas to players in deal

The New York state attorney general’s office is investigating the series of
transactions that led to the sale of a Manhattan health-care facility to a
residential developer, the office said Tuesday.
Subpoenas from the office were sent out last week to several players involved in
the deal, a spokesman for Attorney General Eric Schneiderman said. The
subpoenas were from the Medicaid Fraud Control Unit, according to people
familiar with the matter.
In November, a city agency removed deed restrictions on Rivington House that
limited the building’s use to a not-for-profit residential health-care facility.
Months later, the building’s owner, the Allure Group, sold the property to a
developer for $116 million, making what appears to be a $72 million profit.
Mr. Schneiderman’s probe adds to the legal scrutiny surrounding the deed
changes that has bedeviled Mayor Bill de Blasio’s administration for weeks. The
city’s Department of Investigation and the city comptroller’s office have already
begun inquiries into the matter.
City officials have accused Allure, a for-profit nursing care provider, of
misleading the city about its plans for the building. Allure has denied
wrongdoing.
Allure, which paid the city $16 million to lift the deed restrictions, was among
those served with subpoenas. A spokeswoman for the firm said it would
cooperate with all investigations.
Also served was James Capalino, a lobbyist who has raised money for Mr. de
Blasio and who worked for two owners of Rivington House, said a person
familiar with the matter. Mr. Capalino declined to comment through a
spokeswoman.
Karen Hinton, a spokeswoman for the mayor, said the city welcomes any
investigation.

To read the rest of the article, please go to the Wall Street Journal, here.

For more information on this article,
Write to Josh Dawsey at JOSHUA.DAWSEY@dowjones.comand Rebecca Davis
O’Brien at Rebecca.OBrien@wsj.com

 

 

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6 thoughts on “Deed Changing is a Nasty Business, but Allure did it…

  1. Nothing different from when title is conveyed for a property under fraud. Title is reversed and the parties (and title company) fight it out. The one thing that doesn’t happen is, the transaction is not allowed to stand just because it closed.

    What lying and cheating scumbags these guys are. Young snots who never worked an honest day in their lives and who think the world is their oyster for them to lie cheat and steal.

    What’s amazing is that someone who steals $500 from a bank will get 3-5 years in state prison but someone stealing $72 million, well????

    Like

  2. Under NY law deed changing is not irrevocable. If fraud can be proved – which seems the case here – the deed restriction will be reimposed upon the property and Allure will have to answer to Slate for returning their funds.

    Liked by 1 person

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