Landlord And Real Estate Agent Cited For Illegal Collection Of Commissions

Attorney General Spitzer today announced an agreement with A&S Property, a New York City based landlord, and S & S Equities, its real estate managing agent, also based in New York City.

A&S Property is the landlord of a rent stabilized apartment building located at 70 Prospect Park South West in Brooklyn. Since at least April of 1999, Susan Sahim, the Chief Executive Officer of S&S, acting as employee and agent of A&S, collected fees from several A&S tenants in excess of the legal regulated rent.

Prospective tenants who inquired about entering into leases for vacant apartments in the Brooklyn building were told by Ms. Sahim that they would have to pay a broker’s fee to S & S Equities. The fees were sometimes designated in invoices and receipts as “commissions” and at other times referred to as payments for "lease preparation, administrative charges and professional services for renting the apartment."

The collection of fees in excess of the regulated rent amount is a violation of the General Business Law, the New York Code of Rules and Regulations, and the Executive Law.

"It is illegal for anyone to demand or receive rent for housing accommodations in excess of the legally prescribed rent." Spitzer said. "This includes collecting fees or commissions by any person who is an agent or employee of the landlord. These laws are on the books to protect tenants from rising housing costs and to insulate them from unconscionable fees."

Under the terms of the agreement, S & S Equities agreed to pay $3,500 in penalties. Additionally, six current and former tenants will receive restitution totaling $7,900.

The case was handled by Assistant Attorney General in Charge of the Nassau Regional Office Juan Merchan under the supervision of Chris Walsh, Assistant Deputy Attorney General for Regional Offices.