By Bill Parry
The Kushner Companies, formerly run by White House senior adviser Jared Kushner, has been subpoenaed by federal prosecutors for information on the purchase of three buildings in Astoria in 2015 and the filing of city documents claiming they had no rent-regulated tenants, even though there were hundreds at the time, according to the Wall Street Journal.
Last month, the City Council announced it would launch a probe into the real estate venture headed by Kushner that allegedly falsified documents on rent-stabilized tenants in buildings at 21-80 30th St., 23-05 30th Ave. and 23-15 30th Ave. as well as numerous other locations around the city.
On top of the inquiry from the Brooklyn U.S. attorney’s office, state Attorney General Eric Schneiderman’s office said it, too, was looking into the allegations.
Kushner Companies issued a statement saying it has “nothing to hide and is cooperating fully with all legitimate requests for information, including this subpoena.”
Last month, the company claimed all its government filings were handled by a third party subject to independent review.
Current and former tenants in the three buildings told the Associated Press, which broke the story last month, that they saw rents double and they were “subjected to extensive construction, with banging, drilling, dust and leaking water they believe were part of a targeted harassment to get them to leave and clear the way for higher-paying renters.”
A review by the Housing Rights Initiative shows Kushner Companies eventually sold all three Astoria buildings for $60 million, 50 percent more than what the company paid for the three properties.
“Falsifying records in order to increase profits while taking advantage of hardworking Astorians is despicable,” City Councilman Costa Constantinides (D-Astoria) said last month. “Our rent regulation laws protect New Yorkers from tenant harassment and intimidation, including exorbitant rent increases. Kushner Companies’ blatant disregard for our regulations simply to make a profit demonstrates a disrespect for our community and our residents who have called this neighborhood home for years.”
Constantinides said he would pay close attention to the findings of the City Council.
“Our office will research the possibility of strengthening these regulations by increasing penalties and opening up possible additional remedies for tenants,” Costantinides said. “I will work with Council Oversight & Investigations Committee Chair Ritchie Torres as he examines this flagrant violation of the law.”
Reach reporter Bill Parry by e-mail at bparr
