I

SUPREME COURT OF THE STATE OF NEW YORK

COUNTY OF KINGS: CRIMINAL TERM, PART 19

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THE PEOPLE OF THE STATE OF NEW YORK
- against 1.

2.
3.
4.
5.
6.
7.

JOEL ISRAEL,
AMROM ISRAEL, also known as
AARON ISRAEL,
JBI MANAGEMENT INC.,
LINDEN VENTURES LLC,
324 CENTRAL A VENUE LLC,
SALM OR REAL TY LLC, and
SALMOR REALTY 2 LLC,

PLEA AGREEMENT
Indictment Number 1753/2014

Defendants.

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PLEA AGREEMENT
This is the Plea agreement in the disposition of Indictment Number 1753/2014
(the "Indictment") between the Kings County District Attorney's Office, hereinafter "KCDA,"
and Joel Israel and Amrom Israel, also known as Aaron Israel (the "individual defendants"), and
JBI Management Inc., Linden Ventures LLC, 324 Central Realty LLC (also known as 324
Central Avenue LLC), Salmor Realty LLC and Salmor Realty 2 LLC (the "corporation
defendants").
1.

2.
This memorandum constitutes the entire agreement between the individual
defendants, the corporation defendants and the KCDA under the Indictment. This agreement
supersedes any prior promises, agreements or conditions between the pcties. No promises,
agreements or conditions have been entered into other than those set forth in this agreement. No
modification, deletion or addition to this agreement will be valid or binding on either party
unless put into writing and signed by both parties. This agreement will become effective
immediately when signed by all the signatories listed below, subject to its endorsement by the
Court.

3.

The Plea and Related Terms:

a.
The individual defendants and the corporation defendants agree to plead guilty to
one count of Scheme to Defraud in the First Degree, a violation of New York Penal Law
190.65(1)(b), a class E felony, as charged in Count One of the Indictment. Each of the
defendants also shall plead guilty to the counts of Unlawful Eviction, a violation of New
York City Administrative Code 26-521, an unclassified misdemeanor, with which they
are charged in the Indictment.
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b.
The allocutions of each of the defendants shall incorporate the facts alleged in
the Introduction section of the Indictment and shall further be in the form as provided in
paragraph 3(e), below.
c.
The individual defendants and the corporation defendants have been advised of,
and understand, the nature of the charges against them, the elements of the offenses with
which they are charged, and the range of permissible sentences.
d.
By pleading guilty, each defendant is giving up the following rights, which each
defendant has discussed with that defendant's attorney:
1)
Each defendant understands that by pleading guilty that defendant is giving
up that defendant's right to a trial by a 12-personjury drawn from a broad crosssection of the community.
2)
Each defendant understands that by pleading guilty that defendant is giving
up that defendant's right to have the People produce witnesses to testify against
that defendant.
3)
Each defendant understands that by pleading guilty that defendant is giving
up that defendant's right to have that defendant's attorney cross-examine any
witnesses who may testify against that defendant.
4)
Each defendant understands that by pleading guilty that defendant is giving
up that defendant's right to have that defendant's attorney produce witnesses to
testify for that defendant.
5)
Each defendant understands that by pleading guilty that defendant is giving
up that defendant's right to remain silent and the right to either testify or not
testify at trial.
6)
Each defendant understands that by pleading guilty that defendant is giving
up that defendant's right to have the People prove that defendant's guilt beyond a
reasonable doubt by a unanimous verdict of 12 jurors at trial.
7)
Each defendant understands that by pleading guilty, if that defendant has a
defense to the charges, that defendant is giving up the right to present that defense
at trial.
8)
Each defendant understands that by pleading guilty that defendant is giving
up that defendant's right to claim that the police or KCDA did anything illegal in
regards to this charge, and the right to a hearing to determine if that conduct was,
in fact, illegal.
9)
Further, in consideration for and as part of the plea agreement in this matter,
each defendant hereby waives and relinquishes that defendant's right to appeal
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from any judgment of conviction, and from any proceedings herein that may
result from this prosecution. Each defendant has been advised of the right to
appeal, the right to be represented by an attorney on appeal, and the right to have
an attorney assigned on appeal if that defendant cannot afford one. All defendants
understand and intend that this agreement will be a complete and final disposition
of the matter. Each defendant makes this waiver knowingly and voluntarily after
having been fully advised of that defendant's rights by the Court and having had a
full and fair opportunity to discuss these matters with that defendant's attorney.
10) The individual defendants certify that they are United States Citizens and
that this plea shall not subject the defendants to immigration proceedings.
11) Both the individual and the corporation defendants hereby agree to enter a
plea of guilty in accordance with the terms of the plea offer that has been made,
having consulted with their attorneys and having been advised of all of the rights
listed above.
12) At the time of the plea, each of the corporation defendants shall provide an
executed instrument that states that the corporation is represented by Kevin J.
Keating, Esq., and that he has authority to sign this agreement and bind the
corporation.
13) The individual defendants have been advised and acknowledge that their
failure to appear at any required court appearance is a violation of this agreement,
and the case will move forward in their absence and they may be sentenced up to
the maximum term of imprisonment authorized by law.
e.
Upon the defendants' guilty pleas, both the individual and the corporation
defendants will allocute under oath and admit as follows:
That Joel and Amrom (Aaron) Israel and their companies, JBI Management Inc., Linden
Ventures LLC, 324 Central Realty LLC (also known as 324 Central Avenue LLC),
Salmor Realty LLC, and Salmor Realty 2 LLC owned or controlled many rent stabilized
buildings in Northern Brooklyn (Kings County). That Joel and Amrom (Aaron) Israel
owned, managed, operated, or were high managerial agents of the corporation
defendants.
The defendants had knowledge of the rent stabilization laws that governed their buildings
and as such were aware that their tenants were entitled to receive required services, to
have their leases renewed, to have limitations on the amount of rent they paid and to not
be evicted except on grounds required by law. Regarding at least five of their buildings,
the defendants schemed to harass tenants, evict tenants and deny the tenants their
property rights. The purpose of this scheme was to remove the rent stabilized tenants
from their apartments in order to make a greater profit by renting the apartments at
market rate. The individual and the corporation defendants engaged in this scheme in the
following buildings in the following ways:
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98 Linden Street in Bushwick:

Joel Israel gained control of this building in January 2013 by purchasing

the building in the name of Linden Ventures LLC. JBI Management Inc., of
which Amrom Israel was an employee, managed the building.

Joel and Amrom Israel visited apartments 1L and 1R, where the Calero
and Crespo families resided in May 2013. The defendants told both families that
their kitchens and bathrooms were going to be renovated and promised that this
work would be done in three weeks. The defendants also issued a letter advising
both families of these renovations and that the work would likely be done within
three weeks.

The individual defendants demolished the kitchens and bathrooms in both

apartments on June 4, 2013, and failed to return within the three week time period
to fix anything. The individual defendants then told the tenants that they had to
move out. The tenants refused and sued the defendants in civil court.

Both families lived in the apartments for 17 months without kitchens,

bathrooms or running water. Rats, mice and other vermin began entering their
apartments from the holes left behind after the demolition. During this 17 month
period, the families were forced to use another apartment for cooking and for
sanitary facilities.

The individual defendants also hired individuals to further intimidate the

tenants into leaving the building. These individuals did this by walking around
with intimidating pit bull dogs, sledge hammers and bats, having loud parties at
night and inviting people in to use drugs in the public hallways of the building.

The defendants engaged in this pattern of harassment to force the rent

stabilized tenants out of the building and replace them with market rate tenants.

324 Central Avenue in Bushwick

JBI Management Inc. and 324 Central Realty LLC, both of which were
owned by Joel Israel, owned and controlled the building at 324 Central A venue.
Amrom Israel was an employee of JBI Management Inc.

Silveria Hormiga (and her 4 young children), who resided in apartment

3A. Ms. Hormiga signed a new lease with the defendants in September 2013.
Afterward, the defendants began major construction throughout the rest of the
building. The construction in the building caused building-wide problems with

heating and electricity. The defendants told Ms. Hormiga to pay a reduced rent in
December 2013, January 2014 and February 2014 due to these problems.

The defendants hired individuals to further intimidate the tenants by

patrolling the halls with bats and pit bull dogs.

\l)L-

The defendants obtained an eviction warrant from Housing Court for Ms.

~
~ {vl
Hormiga by representing that she was not paying her rent, and upon a petition that
------~--=JJ..
~ ffi~epresented that Ms. Hormiga had been provided notice of it. On February
OP 11 1)-1 .nl q
27, 2014
that Ms. Hormiga did not have actual notice, the defendants

had the New York City Marshal Service remove her belongings from the
apartment. The defendants also destroyed the kitchen and bathroom, rendering
those rooms unusable.

Zayomara and Antonio Lopez resided in apartment 2L, a rent stabilized

apartment. After the defendants began the construction in the building and the
Lopez family lost heat and electricity, they stopped paying their rent. The Lopez
family was already several months behind with their rent at the time of the court
hearing in November of 2013, but Mr. Lopez maintains that he tried to pay rent to
the landlord but the landlord would not accept it and instead told him to move out
of the apartment. The defendants obtained an eviction warrant against the Lopez
family and removed their belongings in January of 2014.

In furtherance of the scheme to-defraud the tenants of 324 Central Avenue,

the defendants submitted a PWl Plan Work Application to the New York City
Department of Buildings ("DOB"), which certified at the time of construction that
the building would not be occupied and that the building was not subject to the
rent stabilization law, both of which were false statements. This application was
required by the DOB before it would issue a work permit allowing the building
owner to perform construction. As a result, none of the tenants in the building
were protected from ongoing construction by a Tenant Protection Plan, which was
required by the New York City Building Code because the defendants falsely
represented to the DOB that the building would be unoccupied.

The defendants engaged in this pattern of harassment to force the rent

stabilized tenants out of the building and replace them with market rate tenants.

300 Nassau Avenue in Greenpoint:

The individual defendants along with JBI Management Inc., Salmor

Realty LLC and Salmor Realty 2 LLC controlled and managed 300 Nassau
Avenue.

In March 2013, the defendants commenced demolition on the second floor

of the building even though tenants still occupied apartments on the first and third
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floors. As a result of this demolition, the tenants lost heat in October 2013. The
Navarro family and the Palomino.family resided on the first floor and Catalina
Hidalgo along with her newborn twins and her partner resided on the third floor.

In the fall of 2013, Joel Israel approached Ms. Hidalgo and offered her
$50,000 to vacate her apartment. Ms. Hidalgo declined the offer.

In furtherance of their scheme to defraud the tenants, the individual

defendants hired individuals to further intimidate the tenants into leaving the
building.

In furtherance of their scheme to defraud the tenants, the individual

defendants paid a sum of money to an individual for information on how to vacate
a building and to cause damage to the building in an effort to obtain a building
wide vacate so that the remaining tenants would leave. On December 12, 2014,
unknown individuals, did, in fact, vandalize the building's utilities rendering the
building uninhabitable and resulting in a building-wide vacate order.

In furtherance of their scheme to defraud the tenants, on July 6, 2012, Joel

Israel filed a PWl Plan Work Application with the DOB which stated that the
building would not be occupied during the "gut renovation." During this same
time, the tenants on the first and third floors continued to reside in the building.
None of the tenants in the building were protected from on-going construction by
a Tenant Protection Plan which was required by the New York City Department
of Buildings because the defendants falsely represented to the DOB that the
building would be unoccupied.

The defendants engaged in this pattern of harassment to force the rent

stabilized tenants out of the building and replace them with market rate tenants.

15 Humboldt Street in Williamsburg:

The individual defendants along with JBI Management Inc., and Salmor
Realty LLC owned and controlled 15 Humboldt Street since at least 2010.

The individual defendants offered money to the rent stabilized tenants who
resided at 15 Humboldt Street. When Zaida Paris Mendez, a tenant, refused to
leave her apartment, the defendants obtained an eviction warrant and without
notice to Ms. Mendez, had a New York City Marshal remove her belongings and
demolished her apartment the same day so she could not return.

The defendants began demolition and construction on the building when

tenants were still residing in the building.


On or about August 31, 2010, the defendants caused a PW 1 Plan Work
Application to be filed with the DOB, which sought permission for renovation of
the four floors and the cellar. The Application falsely stated that none of the units
would be occupied during construction and that the building was not subject to
the rent stabilization law. These were false statements as the building had at least
two rent stabilized apartments and there were people residing in the building at
the time of the construction. As a result, none of the tenants remaining were
protected by a Tenant Protection Plan as required by the DOB.

The defendants succeeded in removing every rent stabilized tenant from

the building following the renovation and replaced every rent stabilized tenant
with market rate tenants.

The defendants also began using the cellar and a first floor unit as an
illegal rooming house where occupants would rent one of 15 beds for one- or twonight stays.

The defendants engaged in this pattern of conduct to force the rent

stabilized tenants out of the building and replace them with market rate tenants.

Current tenants pay over $4000 for apartments in this building.

386 Woodbine Street in Bushwick:

In the fall of 2013, the individual defendants along with 386 Woodbine
Holding LLC took over ownership of this building. John Ryan Brooks resided in
apartment 3L, which was a rent stabilized apartment. Mr. Brooks had been living
in this apartment since 2012.

The individual defendants went to visit Mr. Brooks in 2013 and told him
that they wanted him to vacate his apartment. Mr. Brooks refused and told the
defendants that he would be staying until the end of his lease. The individual
defendants then asked Mr. Brooks for access to his apartment to make necessary
repairs. Mr. Brooks granted the defendants access and the defendants built a wall
in the middle of his kitchen and a wall blocking access to his front door,
effectively preventing Mr. Brooks from gaining access to his apartment.

The defendants told Mr. Brooks that they wanted him and the rest of the
rent stabilized tenants out of the building because they had big plans to rent to
market rate tenants.
f.

The entry of all of the pleas of guilty described in this paragraph 3 by all
of the defendants, shall, upon the acceptance of the pleas by the Court, constitute a
disposition of the entire Indictment.

g.

Upon acceptance by the Court of each of the defendants' pleas of guilty in

the form set forth above, the Court shall fix a date approximately six months from the
date of the pleas for pronouncing sentence upon the defendants. The sentences shall
be as described in paragraph 5, below (the "Promised Sentences").

4.
The defendants must perform and comply with the following conditions ~n order to
receive the promised sentences as agreed to in paragraph 5. Any failure to perform or comply
with the following conditions is a violation of this agreement. The defendants are jointly and
severally liable for completing the following:
a. Restitution. The defendants shall pay restitution to tenants who were the victims of
the crimes to which the defendants have pied guilty. The amount of restitution for
each tenant will be the product of the number of months the tenant was functionally
displaced or constructively or actually evicted multiplied by the rent-stabilized
monthly rent the tenant would have been obligated to pay had they not been
functionally displaced or constructively or actually evicted (for those displaced
tenants who remain at present displaced, the number of months includes the six
months immediately following the date ofthis agreement). The defendants shall be
entitled to a setoff from the below-noted restitution sums in an amount equal to any
payments made to the listed tenants in furtherance of court ordered settlement
agreements. The defendants may be entitled to an additional set off based upon any
verifiable information provided by the defendants to the KCDA; KCDA will
undertake to review such information and, in KDCA's discretion, decide whether any
such information warrants an additional setoff from the below noted sums.
1.

The defendants shall pay restitution to the following tenants:

1. Michele Crespo, 98 Linden St., Apartment IL - $I2,828

2. Noelia Calero, 98 Linden St., Apartment IR- $13,458.65

3. Silveria Hormiga, 324 Central Avenue, Apartment. 3L -$40,386.45
4. Catalina Hidalgo 300 Nassau Avenue Apartment 3L--$2I,945
5. Juan Carlos Palomino and Rebecca Palomino, 300 Nassau Avenue,
Apartment IL --$33,363
6. Rosita Navarro, 300 Nassau Avenue, Apartment IR--$27,536.52
7. Zaida Mendez Paris, I5 Humboldt Street-Apartment 4L -$68,250
8. Zayomara and Antonio Lopez, 324 Central Avenue, Apartment
2L-- $30,330
IL

Each of the defendants agrees that all of these restitution amounts are, by a
preponderance of the evidence, comprised of the defendants' fruits of the
offenses to which they have pied guilty, or reparation for actual losses to
the tenants caused by the commission of the offenses or both.
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111.

Each of the defendants further agrees that all payments of restitution

pursuant to this Plea Agreement do not preclude, prevent or in any way
impair any of the tenants from further asserting their rights against the
defendants pursuant to any and all applicable civil laws.

b. Settlement of issues with TPU. Each of the defendants shall settle all issues or
claims raised by the New York State Division of Housing and Community Renewal,
and its Tenant Protection Unit (collectively, the "TPU"). The elements of the
required comprehensive settlement agreement are more fully and completely set forth
in Appendix A, attached hereto, but elements of such settlement shall include, among
others:
i.
The defendants shall provide an independent Monitor, subject to
the initial and continuing approval ofTPU and the KCDA, to oversee the
defendants' rent-stabilized and/or rent-controlled properties and to ensure that the
defendants comply with the rent-stabilization and rent-control laws and codes.
ii.
The defendants shall fund a "Tenant Compensation Monetary
Fund" of $100,000, which will be administered by the Monitor, with approval by
TPU in its sole discretion, to pay any and all rent-regulated tenants for
documented expenses incurred by the tenants and caused by the defendants, and
for such other harms as set forth in Appendix A, attached hereto; such payments
not being subject to any set-off by the restitution payments made pursuant to this
Plea Agreement except to the extent the payments are for rent paid by a tenant
during the tenant's period of displacement.
111.
The defendants shall comply with TPU requirements concerning
repairs, training, record-keeping, and reporting.

iv.
The defendants shall continue to comply with the settlement with
TPU during the term of probation for the individual defendants or the term of
conditional discharge for the corporation defendants. Any failure to comply with
the settlement shall be deemed a violation of probation or the conditional
discharge and shall result in re-sentencing.

c. Settlement of issues with HPD. Each of the defendants shall settle all outstanding
issues raised by the New York City Department of Housing, Preservation and
Development ("HPD"). The required settlement is more fully and completely set
forth in Appendix B, attached hereto, but an element of such settlement shall include
that the defendants are to provide an independent agent, subject to the initial and
continuing approval ofHPD and the KCDA, to manage the building at 300 Nassau
Avenue.

i.
All compensation, costs and expenses of such agent to be borne by
the defendants.
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11.

This requirement shall be unaffected by any transfer of title of the

building.
m.
The defendants shall continue to comply with the settlement with
HPD during the term of probation for the individual defendants or the term of
conditional discharge for the corporation defendants. Any failure to comply
with the settlement shall be deemed a violation of probation or the
conditional discharge and shall result in re-sentencing.

The Promised Sentences. If, at the time of sentencing, the defendants have fulfilled the
5.
conditions described in paragraph 4, above, the KCDA shall consent to the imposition of the
following sentences:
a.
Upon each of the individual defendants' plea to the crime of Scheme to Defraud
in the First Degree, each defendant shall be sentenced to a period of probation for five
years. The conditions of each individual defendant's probation shall include:
1.

A requirement that the each defendant perform five hundred (500) hours
of services ("community service") pursuant to P.L. 65.10 (2) (h), the
community service to be determined by the New York City Department
of Probation; and

11.

As a condition of probation, the individual defendants must comply with

any and all agreements made pursuant to or contemplated by this Plea
Agreement between any of the defendants and TPU or any of the
defendants and HPD. Any failure to comply shall be deemed a violation
of probation and shall subject the defendants to being re-sentenced.

b.
Each of the corporation defendants shall be sentenced to a period of conditional
discharge of three years, with the conditions that the defendants comply with the terms of
this Plea Agreement as well as of the settlements with TPU and HPD. Any violation of
these conditions shall be deemed a violation of the conditional discharge and shall subject
the corporation defendants to being re-sentenced to pay the maximum permissible fines.
6.
The defendants understand and agree that if, as determined by the Court, any individual
defendant or corporation defendant materially violates this agreement in any respect, or commits
another crime or crimes, or both, then:
a.
That individual defendant will not be released from his guilty pleas entered
pursuant to paragraph 3, above, but KCDA will be released from all of its obligations
under this Plea Agreement as to that defendant;
b.
KCDA will request that the Court sentence that individual defendant to an
indeterminate term of imprisonment of 1 113 to 4 years pursuant to his guilty plea to
Scheme to Defraud in the First Degree, a violation of New York Penal Law
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190.65(l)(b), and KCDA and each defendant by this agreement contemplates and expects
that the Court will impose such sentence;
c.
KCDA may prosecute that individual defendant for any additional crime he has
committed, as authorized by law, and is not limited by any term ohhis Plea Agreement;
and
d.
Nothing in this agreement prevents KCDA from prosecuting that individual
defendant for bail jumping as provided for under Article 215 of the New York State
Penal Code.
7.
The individual and the corporation defendants understand these rights, and the terms and
conditions of this plea agreement, which each individual defendant has read completely. Each
defendant's plea of guilty or pleas of guilty are given freely, voluntarily and knowingly. Neither
individual defendant is under the influence of alcohol, drugs or medication, nor is there any other
mental or physical impairment which prevents them from understanding these proceedings here
or from entering this plea knowingly, intelligently and voluntarily. The defendants' minds are
clear and their judgment is sound.
8.
This Agreement is contingent on this Court's acceptance of its terms and conditions. In the
event this Court rejects the terms and conditions, KCDA shall not waive any statutory or
constitutional right they may have that would preclude a subsequent trial. It is expressly
acknowledged, however, that effective as of November 29, 2016, the defendants, by their attorneys,

11

have tolled the continued expiration of the statute of limitations. And, effective as of the date of
signing of this Agreement, the Defendants hereby waive all time limitations, including those under
C.P.L. 30.20 and 30.30.
Dated: Brooklyn, New.York
November 29, 2016
ERIC GONZALEZ
Acting District Attorney,
Kings County

/J:g 1v 1Jti

By:
Gavin W. Mte;,Counsel to the Frauds Bureau

--&J ,__-/

By: ......-:c
sarr(antha Magnani, Senior Assistant District Attorney

I have read the entire agreement and discussed it with my attorney. I understand all of its tenns, am
entering into it knowingly and voluntarily, and have signed it in the presence of my counsel.

Joel Israel

Attorney for Defendant Joel Israel

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/
Linden Ventures LLC
By: Kevin J. Keating, Esq.

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APPENDIX A
(to the Plea Agreement dated l l/29/16 re Indict. No. 1753/2014 [Kings County])

Elements of Settlement Agreement between the TPU and JBI

Below are elements of the settlement agreement between the TPU and JBI that will be
incorporated into a multi-paged comprehensive settlement agreement signed by both the TPU
and JBI.

"JBI" means JBI Management Inc.; Linden Ventures, LLC; 324 Central Realty, LLC; Salmor
Realty, LLC; Salmor Realty 2, LLC; 386 Holdings LLC; Joel Israel 1; Aaron Israel 2 ; Mordechai
Ehrenreich3 ; and entities affiliated with these companies, and all owners, officers, employees and
agents of these entities.
I.

Policies, Procedures and Training

1. JBI will develop, distribute and train staff on policies and procedures that include
elements in Appendix I of the Settlement Agreement with the Tenant Protection Unit
("TPU") of the New York State Division of Housing and Community Renewal
("DHCR") .
2. Within twenty-one (21) calendar days of the effective date of the settlement
agreement, JBI shall provide the TPU with written policies for review.
3. JBI will assure all employees sign a certificate of completion after the training. JBI
will be held liable for the various pecuniary penalties provided for in the settlement
agreement if JBI or any of their employees violate the terms of the settlement
agreement.
4. JBI will distribute the policies and procedures to all current and future employers as
well as all rent regulated apartments with a cover letter from the TPU.

II.

Repairs
1. JBI will repair all outstanding Housing and Maintenance Code violations in all
apartments within thirty (30) calendar days of the Effective Date, except for Class C
violations which shall be completed within ten (10) calendar days.
2. All contractors, sub-contractors, plumbers, electricians, construction workers, and JBI
Employees who will do any repair, construction, or service work in any JBI Building
shall be properly licensed and certified as required by law.

Also known as Joely Israel, Yoley Israel, Yoe! Israel, Jay Israel, Jay Isra, Joel Isra, and Joe Isra, among others
Also known as Amrom Israel and Aaron Isra
3
Also known as Martin Ehrenreicb.
2

3. If JBI needs to perform any necessary extensive repair or rehabilitation work in any
apartment occupied by a Resident that is likely to significantly affect the Residents'
use or enjoyment of their apartment, JBI will provide notice to the Monitor of the
need for repair as soon as the need for repair becomes apparent but not less than three
(3) calendar days before notifying the Resident of the need for repair. JBI shall
provide such Residents alternate housing arrangements until the construction work
has been completed. Prior to commencing repairs JBI must: get written consent for
the repairs from the Resident, settle alternative housing arrangements with the
Resident, provide for the preservation of the Resident's tenancy rights in writing, and
send a written agreement between the Resident and JBI for repairs and alternate
housing to the Monitor within five (5) calendar days of execution.
III.

Record Keeping and Reporting to the TPU

1. Prior to the signing of the Settlement Agreement, JBI shall provide TPU with an
affidavit listing all residential property located in New York City in which JBI, its
principles, directors, owners, officers, employees, assigns, "d/b/a" companies,
subsidiaries, affiliates and other business entities, have any financial interest in
whatsoever.
2. JBI shall maintain documents concerning surrenders, relocations, repairs, court
proceedings, leases etc. for the duration of this Settlement agreement.
3. Within fourteen (14) calendar days after receiving a request from the TPU, JBI shall
provide the TPU and the Monitor with any records or documents reasonably related
to this Settlement Agreement and JBI's compliance with the rent-regulation laws.
4. JBI shall notify the TPU and the Monitor within fourteen (14) calendar days if they
sell or acquire any ownership, investment, equity or other interest, including passive
interest in a residential building. JBI shall notify the TPU and the Monitor of such
sale, acquisition or ownership interest regardless of whether JBI has the ability to
participate, direct or control in any way the management, financial matters or decision
making in the residential building. The notification shall include the building
address, ownership information and the exact nature of JBI' s role in the building
along with a signed affidavit stating JBI's relationship with the owner or purchaser of
the building and if JBI participates in the management or decision making i~ the
building.
5. If JBI fails to notify the TPU and the Monitor, as is required in section III (4) herein,
and/or fails to provide the affidavit, JBI shall pay a penalty of $25,000 to the TPU for
each violation.
6. JBI will file all missing and required initial and annual apartment and building
registrations within (60) sixty calendar days of the effective date of the Agreement
and will provide copies of these registrations to the TPU.
7. Within thirty (30) calendar days of the Effective Date, JBI must issue renewal leases,
with the same terms, conditions and at the prior rent levels, to all Rent-Regulated
tenants whose leases have expired and are otherwise entitled to one.
2

8. JBI shall provide Quarterly written status reports to the TPU every ninety (90)
calendar days. These status reports are in addition to the Monitoring reports that will
be submitted by the Monitor.
9. JBI will pay to the TPU one thousand dollars ($1,000) for Reports that are more than
seven (7) calendar days late. The penalty is assessed for the initial 7 day period and
for each subsequent 7 day period that the Report is late.
10. JBI will notify the TPU within one (1) calendar day if a vacate order is lifted by any
government entity which permits re-occupancy or the filing of an application to
remove a 7A administrator.
IV.

Monitoring
1. Within thirty (30) calendar days of the execution of the Settlement Agreement, JBI
shall propose a Monitor which shall be subject to the sole approval of TPU and the
Kings County District Attorney's Office ("KCDA"), which shall not be unreasonably
withheld. Upon TPU's and KCDA's approval, JBI shall engage, at its own costs, the
Monitor within two (2) weeks.
2. The Monitor shall remain in place for a period of five (5) years after the Monitor's
engagement date. If JBI is not in material compliance with the Settlement
Agreement, the TPU, in its sole discretion shall extend the monitoring period an
additional year.
3. The TPU shall have the right to require JBI to change the Monitor at any time upon
the TPU determining that the Monitor has been ineffective in monitoring compliance
with the agreement.
4. Within thirty (30) calendar days of the Monitor's engagement date, the Monitor shall
prepare and submit a Monitoring plan outlining how the Monitor will evaluate JBI's
compliance with the Settlement Agreement.
5. The Monitor shall prepare written reports and provide them to TPU, JBI, and KCDA
quarterly. These reports shall be in addition to JBI's reporting duties. The Monitor
shall have access to all information within JBI's possession, custody; or control
necessary to fulfill the responsibilities set forth in the Settlement Agreement.
6. The Monitor shall forward to the TPU any complaints by tenants regarding material
violations of the Settlement Agreement. The Monitor shall investigate these
complaints. If material non-compliance is found resulting in harm to the tenant which
includes but is not limited to forced vacature of their apartment or any action that
significantly affects the tenants use or enjoyment of their apartment, the Monitor shall
direct JBI to pay to the tenant $5,000 plus the amount of economic damages.
7. The Monitor shall meet at least quarterly with a tenant advocacy group that regularly
works with JBI tenants.
8. The Monitor shall have access to all information within JBI's custody to fulfill the
Monitor's responsibilities. The Monitor may interview Residents and Employees as
necessary.

9. The Monitor shall be be notified with regards to all events, submissions and actions
taken by JBI under the terms of this settlement agreement including any submissions
or notifications made to the TPU.
10. Every quarter, the Monitor shall audit all rents that have been set after a vacancy.
The quarterly audit shall include each rent-regulated apartment that was vacated
within that Quarter, or vacant for at least six (6) months prior to that quarter, or was
re-let within that Quarter.
V.

Notice to TPU of Surrender and Relocation Agreements

1. JBI shall not offer, accept or execute any Surrender Agreements until all displaced
persons have been restored to occupancy.
2. All tenant surrender and relocation agreements for the life of the Settlement
agreement are subject to TPU review and the Monitor must sign off on all surrender
and relocation agreements prior to execution.
3. JBI must make all surrender and relocation agreements in writing. The relocation
agreements must state the rent regulated status of the current apartment and the
relocation apartment; the length of relocation and concessions to the tenant if they
cannot return to their apartment.
4. Surrender Agreements and Relocation agreements must inform the tenant in writing
of their ability to consult with an attorney before signing.
5. JBI shall abide by all provisions of New York City Administrative Code 27-2004
(48)(f, f-1, f-2 and f-3) (enacted pursuant to 2015 Local Laws No.'s 81-83).

VI.

Fines and Penalties-Tenant Compensation Monetary Fund

1. The Monitor shall be responsible for administering the Monetary Fund.
2. Within thirty (30) calendar days of the Effective Date, JBI shall deliver a bank check
equivalent to One hundred Thousand Dollars ($100,000) to the escrow account of the
their counsel that will be the Monetary Fund. The Funds will be distributed to the
tenant of record or resident who vacated their apartment due to harassment, a
reduction in services, or other unlawful acts of JBI; or to tenants who experienced
harm due to harassment, a reduction in services, or other unlawful acts of JBI and for
costs and fees associated with this investigation.
3. Within sixty (60) calendar days of the issuance and/or publication of the Notice of
Monetary Fund, individuals claiming to be eligible under the Fund must submit a
sworn written statement to the Monitor showing that they meet the criteria set forth
above. Within thirty (30) calendar days o f receiving sworn statements from potential
claimants, the Monitor shall make preliminary determinations as to whether each
Potential Claimant is eligible to receive payment under the Monetary Fund. The
Monitor may require claimants to submit any additional information or proof that he
or she deems necessary to make these determinations.

4. Claimants that are found eligible and receive payments from the Monetary fund are
not precluded from filing their own personal injury or tort actions against JBI.
5. The Monitor shall submit to the TPU its preliminary determination findings.
6. The Monitor must receive prior approval from the TPU before communicating its
final determination findings to the applicable Claimant.
7. The Monitor's determination shall be binding and may not be challenged by the
Claimant nor by JBI.
8. The escrow account controller/agent shall pay tenants their award within ten (10)
calendar days upon receipt of the release from tenants.
9. TPU may make any other protocols or procedures TPU deems necessary to determine
eligibility and distribution of funds. The Monitor shall have access to all information
under JBI's control that The Monitor deems necessary to evaluate a claim for
compensation.
VII. Scope of Settlement Agreement
1. The agreement shall expire five (5) years after the Effective Date, except in the event
that there is material non-compliance that results in an extention of the settlement
agreement for an additional year.
2. This agreement binds JBI and their principles, directors, beneficial owners, officers,
Employees, assigns, "d/b/a" companies, subsidiaries, affiliates and any other business
entity and any such individuals JBI may hereafter form or control.
3. This agreement applies to all presently owned and managed JBI Buildings as well as
all of their future owned and or managed properties.
4. TPU may seek to enforce this agreement through civil action in state court.
5. Any material breach of this settlement agreement by JBI will be filed as a violation of
probation with the New York City Department of Probation.
6. JBI agrees to provide to TPU and KCDA all documentation and information
necessary for the TPU and KCDA to verify compliance with this Settlement
Agreement.
7. Any documentation provided to the TPU during the term of this settlement agreement
shall also be sent to the Monitor.
8. If a court determines that JBI materially breached this agreement, JBI shall pay to
DHCR the costs associated with obtaining that determination and of enforcing this
agreement, including legal fees, expenses, costs and such other and further reflief as
may be deemed just and proper.
9. JBI acknowledges it is unlawful to retaliate against any Resident because that person
has made a complaint or assisted with an investigation or proceeding by the TPU or
DHCR. Any such retaliation is a material breach of this agreement and a violation of
the RSC and will result in a penalty of $25,000 per incident to be paid by JBI to the
TPU.
10. JBI agrees that any other violation of this settlement agreement included but not
limited to the denial of essential services such as failure to make repairs, provide heat,

hot and cold water and the filing of frivolous lawsuits against tenants, will result in a
penalty of $50,000 to be paid by JBI to the TPU for each violation.

APPENDIXB
(to the Plea Agreement dated 11/29/16 re Indict. No. 1753/2014 [Kings County])

If an order is issued by a court of competent jurisdiction discharging the 7-A Administrator for
300 Nassau Avenue who was appointed pursuant to Article 7-A of the Real Property Actions
and Proceedings Act, Defendant(s) Joel and Aaron Israel shall ensure that an independent
managing agent who has previously been screened and approved by both the New York City
Department of Housing Preservation and Development ("DHPD") and the Kings County District
Attorney's Office ("KCDA") has been hired and that such managing agent immediately take
over the daily operation and maintenance of that building. Defendant(s) must provide to DHPD
and KCDA any information concerning the managing agent that DHPD and KCDA request as
part of the screening process, including that individual's social security number and a list of
other buildings that are owned or managed by the proposed managing agent. Defendant( s) shall
ensure that the managing agent maintain the building in a code compliant manner so as to
provide the occupants with decent, safe and stable housing.

In the event that the managing agent is to be replaced, the defendants must provide to DHPD and
KCDA at least 30 days in advance the identity of the proposed replacement and provide any
information that DHPD and KCDA request as part of the screening process, including that
individual's social security number and a list of other buildings that are owned or managed by
that proposed managing agent. Defendants must obtain DHPD and KCDA approval prior to that
individual commencing work as the managing agent at the building. In the event that a new
manager is required immediately, defendants must inform DHPD and KCDA at least 15 days
thereafter and seek DHPD and KCDA approval in the same manner as set forth above.
Defendants must ensure that a responsible managing agent approved by DHPD operate and
maintain 300 Nassau Avenue for at least 5 years after the discharge of the building from 7-A
Administration.
Defendants must ensure that a current Multiple Dwelling Registration has been properly filed
with DHPD at all times.