Landlord Faces Foreclosure Amid Massive Loan Default
New court documents reveal that landlord Bernie Madoff has defaulted on nearly $170 million in loans and is now facing foreclosure on a significant 35 properties in Manhattan.
Stephen Croman, a long-time controversial landlord and convicted fraudster, is again in legal trouble, this time in civil court.
Recent lawsuits filed in Manhattan Supreme Court claim that Croman is delinquent on $168 million worth of real estate loans.
Flagstar Bank, which acquired Croman’s loans during a merger with New York Community Bank last year, alleges that he has missed payments on several properties for months, accruing millions in unpaid dues.
At the time of his arrest in 2016 for submitting falsified documents to secure illegal bank loans, Croman owned an extensive portfolio of 140 buildings.
Described as the “Bernie Madoff of landlords” by then-state Attorney General Eric Schneiderman, Croman was also accused of employing a former NYPD officer to intimidate tenants, pressuring them to vacate their apartments while raising rents for others.
He pleaded guilty to mortgage fraud in 2017 and served a year in jail.
Recently, it was reported that Flagstar is suing Croman for reportedly defaulting on $71.5 million across five buildings. Yet, the situation appears to have escalated, with a total of 20 lawsuits filed this month, raising Croman’s alleged default amount by nearly $100 million.
Among these claims is a $12.4 million loan for a building at 209 East 25th St., where rents can approach $5,500 monthly. Croman is currently two months behind on mortgage payments for this property, accumulating $493,845 in dues, including late fees.
Additionally, Flagstar is seeking full repayment of a $10.37 million mortgage on a property at 346 East 18th Street in Gramercy Park, where rents vary from $7,500 to nearly $10,000 a month.
The filing indicates that Croman also defaulted on the October loan payment for this property, failing to pay $362,332, which includes late fees.
The largest amount he owes is $21.4 million on two buildings located on Christopher Street in the West Village.
The lawsuit states that he ceased payments in August, amassing a total of $1.2 million owed by the end of October.
Earlier this year, it was noted that Croman was already facing multiple foreclosure lawsuits and had defaulted on approximately $45.5 million in debt.
Representatives from Croman’s legal team and Flagstar Bank, which is pursuing the case through an LLC named Orange Owner, have not yet responded to requests for comments.
