Sponsor-Controlled Board Schemes to Buy a Super’s Apartment from … Sponsor!
June 30th, 2014
The vast majority of condominium developers, we’re sure, aren’t looking to do anything shady with the buildings they put up. Yet sometimes when a developer (a.k.a. a “sponsor” in this context) still controls the board of a new condo, well, things happen. And according to the website of the law firm Adam Leitman Bailey, P.C, what happened at one Manhattan condominium is that the current board found that the earlier, sponsor-controlled board had signed a mortgage to buy a superintendent’s apartment — under terms the law firm calls “outrageously usurious.” They also call it “novel fraud.” Gee, guys, don’t hold back — tell us what you really think!