Bad landlords v. cockroaches: Which is harder to get rid of in NYC?

Earlier this month, one of New York City’s most notorious landlords — a man branded the “Bernie Madoff of landlords” (so you know he’s an upstanding character ) — was slapped with a fistful of new lawsuits claiming he’s defaulted on nearly $170 million in loans.

That man is Steve Croman, and that’s a big default .

According to 20 separate foreclosure filings, Croman stopped making payments on more than 30 Manhattan buildings, including large loans tied to properties in Kips Bay, Gramercy, and the West Village.

The lender, Orange Owner LLC, alleges that Croman is months behind on mortgage payments, owes millions in late fees, and has entirely ceased payments on some buildings since the summer .

This follows earlier reports in 2025 of an additional $45 million in foreclosure actions, suggesting a rapidly unraveling portfolio for one of the city’s most infamous real estate figures .

Who is Steve Croman?

A longtime Manhattan landlord, Croman’s reputation was cemented nearly a decade ago when he was convicted of mortgage fraud, served a year on Rikers Island, and entered into a sweeping consent decree with the Attorney General. That agreement forced him to hand over control of more than 100 of his buildings to an independent, AG-approved management company for five years.

This oversight period — involving strict reporting to the AG and a court-appointed monitor — ended in 2023.

At his peak, Croman controlled roughly 140 buildings. His business model, according to prosecutors and tenant advocates, leaned heavily on harassment tactics to force out rent-regulated tenants. He even hired a former NYPD officer to intimidate residents, clearing the way for dramatic rent hikes .

Bad landlords, unfortunately, are nothing new in NYC.

A few other greatest hits include:

• Manhattan: Hakimian Organization (Harlem), Kushner Companies (East Village), Raphael Toledano (East Village)

• Bronx: Frank Palazzolo (Highbridge), Ved Parkash (Fordham), Sam Suzuki (Tremont)

• Queens: LeFrak Organization (Corona)

But Steve Croman hits close to home, i.e., 10002

In March 2025, tenants at 159 Stanton Street on the Lower East Side filed a contempt of court motion alleging that Croman violated a 2017 court agreement meant to protect them after earlier hazardous construction nearly destabilized the building .

The accusations include:

Unpermitted construction work in vacant units
Workers removing structural supports installed under DOB supervision
Multiple DOB violations for unsafe electrical, plumbing & construction work
Windows left open in vacant units — welcoming intruders and weather
Pest infestations, filthy stairwells, dead vermin
Leaks causing cabinets to fall off walls
Years of ignored safety hazards

In September 2024, the Department of Buildings issued a full stop-work order and 18 violations for unsafe, unpermitted construction at 159 Stanton.

This was followed by:

• A commissioner’s order violation in October

• 8 more violations during a January 2025 inspection

• The tenants’ March 2025 contempt motion, citing all of the above as ongoing, dangerous violations of the 2017 agreement.

Tenants argue this has all happened despite years of litigation, criminal charges, and public scrutiny — proof, they say, that the danger is both ongoing and systemic .

We should be outraged and incredulous — but somehow this behavior now feels disturbingly aligned with what’s become permissible.

The bottom line: If Croman defaults on 159 Stanton, the lender would likely take control first—often through a court-appointed receiver—to stabilize the building while foreclosure proceeds .

After that, it could be sold at auction or transferred to a new owner. One who — for the tenants’ sake — will treat them like human beings, with honesty and integrity .

Sources: Crains New York, NY Post, Commercial Observer, CooperSquare.org, NYC MGMT