Overview
- Attorney General Letitia James and the state housing agency filed the joint civil suit on December 1 against Peak Capital Advisors and several principals, including Michael Lohan Jr.
- The complaint alleges that since 2019 the firm bought 31 buildings in Brooklyn and Queens and converted over 150 stabilized units to market rate by falsely claiming qualifying rehabilitations.
- Prosecutors say the buildings were in average or good condition and accuse the defendants of reassigning apartment numbers to obscure regulatory status after renovations.
- A cited example involves 101 Greenpoint Avenue, purchased in 2022, where a gut renovation preceded a reported rent jump for one unit from about $1,300 to $4,800.
- The lawsuit seeks registration of affected units, issuance of rent-stabilized leases, restitution of overcharges, damages, and penalties, with the case now pending in court.