Slumlord Steve Croman Begins Year-Long Jail Sentence On Rikers Island

MANHATTAN, NY — The notorious landlord Steve Croman began a year-long jail sentence on Rikers Island on Tuesday.

Croman, who’s been dubbed the “Bernie Madoff of landlords,” is among the most infamous New York City property owners. He is possibly the first landlord to serve jail time for an illegal refinancing scheme, Attorney General Eric Schneiderman’s office said.

“Steven Croman thought he was above the law. But today, he begins a sentence in Rikers Island for perpetrating an elaborate scheme that was intended to push out rent-stabilized tenants,” Schneiderman said in a statement. “The measures Mr. Croman took to boost his own bottom line – while blatantly disregarding the wellbeing of his tenants – are shocking.”

Croman agreed to a plea deal in June, pleading guilty to grand larceny and falsifying business records. Schneiderman’s office says that the tax fraud was one part of a larger program he used to push out rent-stabilized tenants, so that he could increase the rent once their units were empty. Croman hasn’t faced criminal charges in connection with the alleged harassment of his tenants, but is facing a civil lawsuit from Schneiderman on those allegations.

Croman’s year-long jail sentence on Rikers begins Tuesday. He was also required to pay a $5 million settlement as part of his plea deal. Prosecutors said Croman paid $3 million of that $5 million total last month. (For more information on this and other neighborhood stories, subscribe to Patch to receive daily newsletters and breaking news alerts.)

Image credit: Attorney General Eric Schneiderman on Twitter