New York Attorney General Letitia James and New York State Homes and Community Renewal (HCR) Commissioner RuthAnne Visnauskas have filed a lawsuit against Peak Capital Advisors, LLC, a real estate developer in New York City. The suit also names operators Juan David Gomez, Alex Rabin, Amnay Labou, Michael Lohan, Bryan Anderson, Alex Kaskel, and Alex Mendik. They are accused of illegally deregulating at least 159 rent-stabilized apartments across 31 buildings in Brooklyn and Queens.
According to the lawsuit, Peak Capital Advisors allegedly misrepresented the status of these apartments to tenants, investors, lenders, and state housing regulators. The complaint seeks to recover overcharged rents plus treble damages for tenants affected by the alleged violations. Additionally, it asks for enforcement of rent stabilization for the units involved, penalties for legal violations, and the appointment of an independent administrator to review Peak’s entire property portfolio for illegal activity.
“It is no secret that New York City is already battling an affordable housing crisis, and yet Peak and its operators still chose to line their own pockets at New Yorkers’ expense,” said Attorney General James. “As these bad actors illegally raked in profits, affordable housing in New York grew even more scarce, and that is unacceptable. Let this lawsuit be a warning: when corporate developers and bad landlords try to cheat housing laws, my office will always take aggressive action to stop them.”
“HCR’s Tenant Protection Unit, in partnership with the Office of the Attorney General, conducted an extensive investigation resulting in a lawsuit against Peak Capital Advisors for improperly deregulating dozens of buildings in New York City,” said HCR Commissioner RuthAnne Visnauskas. “The investigation showed that none of these Peak properties met legal requirements for deregulation. We look forward to returning these buildings to their proper status under the rent stabilization law. HCR’s Tenant Protection Unit and the Office of the Attorney General will not allow unlawful profiteering and deregulation.”
A joint investigation by the Attorney General’s Office (OAG) and HCR’s Tenant Protection Unit found that since 2019 Peak acquired multiple buildings that were subject to rent stabilization rules but then claimed exemptions from those regulations under what is known as “substantial rehabilitation.” This exemption only applies if a building was seriously deteriorated before renovation and underwent full system replacement. The agencies determined none of Peak’s properties qualified because they were not substandard or seriously deteriorated prior to being renovated.
Investigators allege that Peak targeted buildings in gentrifying neighborhoods such as Sunnyside, Astoria, Long Island City, and Greenpoint based on their potential for higher rental income rather than compliance with rent regulation laws. The company reportedly marketed apartments at higher rents specifically aimed at young professionals.
Further findings indicate that after renovations were completed on these properties—which records show were already in average or good condition—Peak reassigned apartment numbers so tracking lawful rents became difficult for both tenants and regulators. The company also provided misleading projections about potential rental income to investors and lenders which would not have been allowed under rent stabilization laws.
When asked by HCR to provide records justifying deregulation claims through subpoenas, Peak allegedly hired a consultant who prepared 31 fraudulent affidavits asserting falsely that all building systems had been substandard before renovations began. Additionally, new tenants were made to sign leases stating their apartments were no longer covered by rent stabilization despite this not being legally accurate.
Attorney General James’s office requests court orders requiring reregulation of all affected units; payment of treble damages where tenants were overcharged; forfeiture of profits gained from illegal activity; as well as penalties for violating consumer protection statutes.
The OAG expressed appreciation toward members of the Tenant Harassment Prevention Task Force—including HCR’s TPU—the New York City Department of Buildings; Housing Preservation & Development; and Law Department—for collaborative efforts on behalf of city renters.
This case is being handled by Senior Enforcement Counsel Rachel Hannaford and Special Assistant Attorney General Stephanie Cunningham under supervision from Housing Protection Unit Chief Brent Meltzer within the Division for Social Justice led by Chief Deputy Attorney General Meghan Faux.