Landlord Who Harassed East Village Tenants Banned For 5 Years

EAST VILLAGE, NY — A notorious landlord who owns buildings across New York City, including a large swath in the East Village, has been banned from making any real estate deals for at least the next five years, New York Attorney General Letitia James announced on Monday.

The ban comes after Raphael Toledano "repeatedly violated" a 2019 agreement to stop harassing New York City tenants and stop engaging in illegal real estate practices.

The 2019 agreement also came with a $3 million fine Toledano had to pay.

"Toledano harassed tenants in the East Village through coercive buyouts and illegal construction practices, and failed to provide his rent-regulated tenants with utilities, repairs, and other necessary services," reads a release from James' office.

Liam Reilly, a housing organizer at Cooper Square Committee, which is a tenant advocacy organization based in Lower Manhattan, said the settlement was the result of tenant organizing.

"This settlement is a welcome result of years of committed organizing by Tenants Taking Control (formerly known as the Toledano Tenants’ Coalition), who have been steadfast in their demands for safe conditions and basic dignity in their homes since Madison Realty Capital financed Toledano’s descent upon the East Village over 5 years ago," Reilly said in the release.

Tenants Taking Control is a community organization founded specifically by East Village residents in the fight against Toledano's tactics.

James' provided the following reasons for Toledano's five-year ban:

• Failing to disclose his real estate business activities to the independent monitor, or to get the monitor’s approval for further deals;
• Diverting funds from a reserve account established by the agreement;
• Failing to make penalty payments (other than initial payments totaling $520,000); and
• Failing to maintain his properties in a manner that complied with applicable laws and protected tenants’ rights, health, and safety.

“New York tenants can breathe more easily knowing that Rafi Toledano is no longer in the real estate business,” Attorney General James said in the news release. “Through his deceptive and illegal actions, Toledano caused incredible pain and suffering to hundreds of vulnerable families, who are still feeling the effects of his harassment today."

After the five-year ban, Toledano still needs to petition the court for reentrance into the New York real estate market.

You can read more about the ban on the NY Attorney General website.