Hardly cheering news. The Real Deal (via the Daily News) reports on the return of banned developer Shiraz Sanjana, now back in action at the corner of Sixth & 21st.
The developer, banned from condo sales in 2013, picked up a development site in South Slope, Brooklyn, with plans to build a condo on the property, the New York Daily News reported.
Sanjana bought the one-story site at 695-705 Sixth Avenue from Yeshiva Machzikel Hadas for $9.9 million. Plans were filed for the site in April by an LLC for a three-story, 32-unit, 34,623-square foot residential building designed by Karl Fischer, according to New York YIMBY.
Along with his partner Joseph Scarpinito, Sanjana was banned from developing condos and co-ops by the New York Attorney General’s Office, which accused them of making false filings to the office, and of extensive construction problems at their eight-story condo development at 161 East 110th Street.
Sanjana’s 16-month ban expired in April.
I've been watching the murky goings-on at 695 Sixth for a while, but had no idea about the sale price, which was not recorded on ACRIS, and I was not aware of Sanjana's history. Here's a little intro to our new developer neighbor.
In the course of the investigation, it became clear that Scarpinito and Sanjana have participated in an elaborate ruse intended to defraud homebuyers – a ruse that was facilitated by their lawyer, Gruber. Scarpinito, Sanjana and Gruber submitted at least nine false filings to the Real Estate Finance Bureau in their attempt to skirt their obligations to deliver completed apartments to homebuyers and conceal the developers’ identities. They concealed their identities to avoid disclosing Scarpinito’s fraud conviction, as is required by law. The fraud was also an attempt to walk away with $3.2 million of purchasers’ deposit monies, and pin all liability on Scarpinito’s 83 year-old mother, Nancy Scarpinito, who was listed as the sole individual controlling the developer of the Mirada in filings with the bureau. (Attorney General's Office)
Demo plans at 695 were filed in June, and new building plans are still to be approved.