(Source: Crains New York By Amanda Fung) – The state Attorney General Eric Schneiderman office announced Wednesday that beleaguered developer Yair Levy has been permanently banned from doing business in New York.

The Supreme Court of New York ruled that Mr. Levy and his firm are barred from “engaging in any business activity relating to the advertisement, offer or sale of securities–which includes condominium and co-operative apartments–in or from the state of New York,” effective immediately.

The court also found that Mr. Levy defrauded buyers and tenants at Rector Square, Mr. Levy’s failed Battery Park City condo conversion, by emptying the condominium’s reserve fund. Under the judgment, Mr. Levy is ordered to pay Rector Square a sum of $7.4 million in damages or restitution, as well as $360,000 in civil penalties for illegal and fraudulent practices.

Source: Crains New York By Amanda Fung

June 29, 2011 3:35 p.m.

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