Peak Capital’s Rent Stabilization Scam: AG James, HCR Commissioner Sue for Illicit Deregulation

New York – In a landmark move against housing law violations, New York Attorney General Letitia James and HCR Commissioner RuthAnne Visnauskas have filed a scathing lawsuit against Peak Capital Advisors, LLC, and its operators for their sinister exploitation of rent-stabilized apartments.

According to the complaint, Peak Capital, through its executives Juan David Gomez, Alex Rabin, Amnay Labou, Michael Lohan, Bryan Anderson, Alex Kaskel, and Alex Mendik, has systematically deregulated at least 159 rent-stabilized units across 31 buildings in Brooklyn and Queens. This brazen act of deception not only violated New York City’s rent stabilization laws but also exploited the trust of tenants, investors, and state housing regulators.

The lawsuit seeks to reclaim overcharged rents, impose treble damages on the affected tenants, enforce the units’ rent-stabilized status, impose penalties for law violations, and appoint an independent administrator to audit Peak Capital’s entire portfolio for any further illegal activities.

Attorney General James minced no words in her statement, ‘It is no secret that New York City is battling a housing crisis, yet Peak and its operators chose to profit at the expense of New Yorkers. This lawsuit serves as a stark warning: my office will not tolerate corporate developers and bad landlords who seek to cheat our housing laws.’

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas echoed this sentiment, ‘Our investigation revealed that none of Peak’s properties met the legal requirements for deregulation. We are committed to returning these buildings to their proper status under rent stabilization law and stopping unlawful profiteering in its tracks.’

The joint investigation by the Office of the Attorney General and HCR’s Tenant Protection Unit exposed a deliberate scheme by Peak Capital to exploit a ‘substantial rehabilitation’ exemption meant for seriously deteriorated buildings. However, Peak’s renovations were intended solely to boost profits, not to improve housing conditions as the law dictates.

Records indicate that Peak targeted gentrifying neighborhoods and sought out buildings with ‘significant upside potential,’ disregarding their existing habitable condition. This flagrant disregard for the law underscores the need for a thorough audit of Peak’s operations and the protection of New York City residents’ rights to affordable housing.

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