Chetrit Brothers Arrested, Could Face Tougher Criminal Penalties Under New Legislation

Two members of one of New York City's most prominent real estate families have been indicted, and they are being held up as the poster children for new legislation aimed at increasing penalties for tenant harassment.

Joseph and Meyer Chetrit have been charged with two counts of harassment of tenants in rent-regulated units in a felony case that carries a maximum sentence of four years in prison.

If new legislation, unveiled at a press conference Thursday morning, is passed and the brothers are found guilty, their punishment could be much greater.

Manhattan District Attorney Alvin Bragg, state Sen. Brian Kavanagh and Assemblymember Micah Lasher introduced a proposal to create a new felony charge of aggravated harassment of tenants in rent-regulated units for previously convicted perpetrators, even if it is across multiple properties.

The new charge would be a Class D felony, meaning those found guilty could face up to seven years in prison. 

“The housing affordability crisis in New York City is a public safety issue,” Bragg said at the conference. “It exacerbates power asymmetries between landlords and tenants, and in various parts of our practice, where substantial power asymmetries exist, criminal activity often follows.”

The case against the Chetrits was first made public Sept. 30, when Meyer Chetrit was indicted. At the time, the DA’s office didn’t name Joseph Chetrit in its announcement but said that there was another “indicted unarraigned co-defendant” in the case.

The city alleges that the two, who head the Chetrit Group, “engaged in a sustained pattern of harassment of two rent-regulated tenants living in a Manhattan property they own located at 117-119 West 26th Street in Chelsea.”

Steven Metcalf, an attorney representing Joseph Chetrit, didn't immediately respond to a request for comment.

The indictment followed shortly after the city sued the Chetrits over their failure to maintain the Hotel Carter, creating what they deemed to be a public nuisance. The brothers have also been accused of defaulting on hundreds of millions of dollars of loans, which has already led to at least one foreclosure.

The issues have spiraled following the death of their brother, Jacob Chetrit, in January. He led his own firm, the Chetrit Organization, alongside the fourth Chetrit sibling, Juda.

In the latest criminal case, the DA argues that two tenants have lived in the Chelsea building, which was supposed to be converted from commercial loft to code-compliant residential use, for nearly five decades. In 2005, the Chetrits purchased the building but allegedly never completed the conversion process.

Instead, they have kept the building largely vacant and in increasingly uninhabitable conditions, according to the DA’s office.

The tenants, who are in their mid-70s, have frequently lived without heat, including for months at a time in the winter, prosecutors said. The building’s elevator has also allegedly been broken for years, the roof has deteriorated and an apartment’s ceiling has collapsed. 

In 2023, a portion of the building’s unoccupied commercial space allegedly caved in, prompting the Department of Buildings to issue a partial vacate order, which didn't apply to the residential units. Still, shortly after the incident, notices were posted throughout the building threatening residents with arrest if they refused to abandon their homes, according to the DA.

The DA claims that the Chetrits engaged in tenant harassment in order to demolish, redevelop or sell the property. 

Kavanagh, who is widely seen as an opponent to the real estate community, noted that there were previously much easier ways to remove tenants and deregulate rent-stabilized apartments. The senator championed the Housing Stability and Tenant Protection Act of 2019, which closed a variety of loopholes that allowed landlords to increase rents.

Since the legislation was passed, the values of rent-stabilized properties have plummeted, causing landlords to fall behind on what are now inflated mortgages and growing maintenance costs.

“Most landlords are following the law. They’re doing the right thing. Being a landlord is a hard job,” Kavanaugh said. “Unfortunately, there are landlords in the city that often systematically go after their tenants and try to push them out of their homes and often use grotesque and illegal means.”

Lasher, who said he once lived in a building owned by infamous landlord Steve Croman, said the sponsors hope the legislation will pass in the coming session. 

At its height, Croman’s firm, Centennial Properties, owned more than 100 multifamily buildings. He spent eight months on Rikers Island and had to pay $5M after being convicted of multiple counts of mortgage fraud and tax evasion.

He also agreed to pay a $514K settlement after the state accused him of defrauding renters.