“New York tenants can breathe more easily knowing that Rafi Toledano is no longer in the real estate business,” said New York Attorney General Letitia James.
Attorney General James is surely in a celebratory mood after securing a major court victory against the “notorious landlord” Raphael Toledano, effectively banning him from engaging in any real estate activity in New York. The New York Supreme Court bars Toledano from engaging in any real estate activity in New York for at least the next five years, after which he can apply for reentry. The decision came after Toledano repeatedly violated a 2019 agreement with the Office of the Attorney General (OAG) that requires him to stop harassing NYC tenants and engaging in illegal and predatory real estate practices.
“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,” said Attorney General James. “Every New Yorker deserves to live in a safe, decent home free of abuse and fear. Let this serve as a reminder to New York landlords: Any attempt to use illegal, manipulative methods to put profits over people will be met with the full force of my office.”
Specifically, Toledano is guilty of harassing tenants in the East Village through coercive buyouts and illegal construction practices. He also failed to provide tenants with utilities, repairs, and other necessary services. He also engaged in deceptive business practices including repeatedly and persistently misrepresenting himself as a lawyer and advertising apartments with three or four bedrooms when legally the apartment could only have one or two bedrooms.
Toledano was issued a 2019 Consent Order by the Attorney General, mandating that his business be supervised by an independent monitor to prevent further fraud or harassment. While being monitored, Toledano was found violating the terms of the agreement.
A former tenant of Toledano, Liz Haak, explained what it was like being harassed by the predatory landlord: “During his ownership of 22 buildings, Toledano harassed tenants with in-person visits and phone calls urging the acceptance of low-ball buyouts. He succeeded in intimidating almost half of the tenants into vacating their mostly rent-regulated apartments. Toledano engaged sometimes illegally in wanton destruction of habitable apartments, causing elevated levels of lead dust. Some buildings had cooking gas and intercom shutoffs. All tenants experienced a lack of janitorial maintenance services, exterminator services, and warranty of habitability. Our coalition is grateful to Attorney General James for taking action on our complaints.”
As a consequence, Toledano will be required to pay OAG an additional $500,000 from the sale of his current properties to cover past-due penalties.
“Many have unwisely chosen to make a career in New York’s real estate market by engaging in deceptive business practices and taking advantage of unsuspecting renters,” said U.S. Representative Yvette D. Clarke. “This decision by New York Attorney General Letitia James to ban a bad actor from inflicting more harm to tenants is the right one that sends a strong message: New York will hold accountable anyone that engages in illegal conduct that forces people out of their homes for the sake of wealthy stakeholders and real estate tycoons.”
“This action puts New York landlords on notice — we will not tolerate tenant harassment or other illegal behavior,” added State Senator Zellnor Myrie. “I'm grateful to Attorney General Letitia James for safeguarding the rights of tenants.”
