New York Attorney General Letitia James announced more than $6 million in restitution and purchase credits for New Yorkers who paid down payments on apartments at a Williamsburg condominium, but who were left without their homes for years.
The settlement involves 425 Marcy Avenue LLC and its principal, Ezra Unger, who sold units at 427 Marcy Ave. before the building’s required offering plan had been accepted for filing by the attorney general’s office. An investigation found that buyers’ down payments were not placed in the required escrow account and were instead used for construction and other expenses.
“When New Yorkers hand over their hard-earned savings for a down payment on a home, that money is not a piggy bank for developers to raid,” said Attorney General James. “This developer broke the law by taking money from families before it was legally allowed to sell these homes, then left them waiting for years with nothing to show for it. My office will continue to hold developers accountable and fight to get New Yorkers their money back.”
The developer entered into contracts for 17 residential units, three commercial units and three residential parking spaces, collecting $6.715 million in residential down payments. Lawsuits and a 2025 bankruptcy proceed followed.
Unger lost his ownership interest in the company during the bankruptcy and the building was ultimately sold to 33 Walton Holdings LLC, the new condominium developer.
The settlement gives affected residential buyers two options. They can receive their original down payments with interest or apply the money as a credit toward purchasing their original units once construction is completed under a new offering plan accepted for filing.
Unger must pay up to $824,000 in penalties and is barred from marketing, offering or selling securities in or from New York for six years.
