New York Attorney General Cracks Down on Corporate Fraud, Secures Millions
June 1, 2026, 3:37 pm
Attorney General Letitia James continues her forceful campaign against corporate misconduct in New York. Recently, she secured $230,000 from a Fort Greene developer. This developer faced penalties for building fraud, misrepresenting new construction, and endangering residents through neglected foundation repairs. Separately, James obtained a significant $4.5 million settlement from travel booking giant Fareportal. This stemmed from a widespread corporate tax evasion scheme. Fareportal and its affiliates concealed over a million dollars in state corporate taxes. They disguised taxable dividends as inflated management fees. These decisive actions highlight James's commitment. Her office protects consumers, ensures public safety, and upholds tax integrity across the state. These cases demonstrate robust enforcement against fraudulent business practices and tax dodging, affirming that accountability is paramount.
New York Attorney General Letitia James maintains a vigilant stance. Her office actively pursues corporate wrongdoing. Recent enforcement actions highlight this commitment. They target consumer fraud and tax evasion. Millions have been secured for New Yorkers. These efforts ensure business accountability across diverse sectors.
A recent settlement addressed egregious real estate fraud. Attorney General James secured $230,000 from developer Craig Nassi. His company, 135 Carlton Ventures, LLC, operated in Fort Greene, Brooklyn. An extensive investigation revealed significant misconduct. Nassi cut corners during construction. He endangered residents at 135 Carlton Avenue.
The OAG investigation detailed multiple failings. Nassi misrepresented the property. He advertised 135 Carlton Avenue as newly constructed. In reality, it was merely renovated. This deceived prospective buyers. Crucially, Nassi neglected major structural dangers. The building’s foundation posed severe risks. Residents faced an unsafe living environment.
Developer Nassi ignored explicit warnings. New York City Department of Buildings alerts went unheeded. He also skirted DOB regulations. A mandated structural engineer was not hired. Necessary documents were never filed. Residents eventually initiated and paid for urgent repairs themselves. This protected their safety. Legal action followed. The Attorney General sued Nassi and Carlton Ventures. The Martin Act and Executive Law 63(12) violations were cited.
The resolution mandates financial penalties. The settlement includes $200,000 in restitution. This sum goes to the 135 Carlton Board of Managers. It covers the residents' repair costs. An additional $30,734.45 in penalties and fees will be paid. These funds benefit the OAG’s Affordable Housing Fund. This action reaffirms the state's dedication. It protects residents from fraudulent developers.
In a separate, equally significant case, Attorney General James confronted tax evasion. Her office secured $4.5 million from travel booking giant Fareportal, Inc. This included its affiliates: WK Travel, Inc., Jen NY, Inc., and Tripmama, Inc. These companies orchestrated a complex tax scheme. They avoided over a million dollars in state corporate taxes.
The investigation uncovered a deceptive practice. From 2007 to 2012, Fareportal engaged in corporate tax fraud. Companies concealed millions in taxable dividends. They misclassified them as "management fees." These fees went to Magic Travel, LLC. Magic Travel shared the same owner as the travel companies. This was a shell entity. It held personal investments. It had no employees.
These sham fees allowed substantial deductions. Fareportal falsely reduced its taxable profits. This minimized their tax burden. Outside accountants had even warned them. The fees could be classified as dividends. This would result in significant tax liabilities. Yet, the companies persisted. They continued the scheme. Their actions violated the New York False Claims Act.
A whistleblower initiated the probe. Private individuals can file civil actions. They act on the government's behalf. They share in any recovery. This mechanism proved vital. The $4.5 million settlement reflects this. Approximately $1 million goes to the whistleblower. This highlights the importance of public vigilance.
This is not Fareportal’s first encounter with the Attorney General. James previously secured $2.6 million from Fareportal. That case involved "dark pattern" marketing practices. The company manipulated customers. It created false urgency for tickets and rooms. This pattern shows a disregard for ethical business conduct.
Attorney General James consistently targets tax evaders. Her office secured $4.7 million from truck rental companies. They faced charges for a decade-long tax evasion scheme. Strip club executives faced indictment. Their scheme involved criminal tax fraud and bribery. Sotheby's paid over $6 million. It used fraudulent methods for client tax breaks. Cigarette companies paid $50 million. They sold products without state taxes. These cases demonstrate a broad reach. The Attorney General’s office uses all available tools. This ensures fair contributions to public services.
The Taxpayer Protection Bureau spearheaded the Fareportal investigation. The Real Estate Finance Enforcement Section handled the Fort Greene case. These specialized units actively protect New Yorkers. They safeguard state finances. They ensure integrity in commerce.
These recent enforcement actions send a clear message. New York State demands accountability. Developers must build safely. Businesses must pay their fair share of taxes. Attorney General James's office remains steadfast. It protects consumers. It champions economic justice. It upholds the rule of law. Her office continues to fight fraud and negligence. This benefits all New Yorkers.
New York Attorney General Letitia James maintains a vigilant stance. Her office actively pursues corporate wrongdoing. Recent enforcement actions highlight this commitment. They target consumer fraud and tax evasion. Millions have been secured for New Yorkers. These efforts ensure business accountability across diverse sectors.
A recent settlement addressed egregious real estate fraud. Attorney General James secured $230,000 from developer Craig Nassi. His company, 135 Carlton Ventures, LLC, operated in Fort Greene, Brooklyn. An extensive investigation revealed significant misconduct. Nassi cut corners during construction. He endangered residents at 135 Carlton Avenue.
The OAG investigation detailed multiple failings. Nassi misrepresented the property. He advertised 135 Carlton Avenue as newly constructed. In reality, it was merely renovated. This deceived prospective buyers. Crucially, Nassi neglected major structural dangers. The building’s foundation posed severe risks. Residents faced an unsafe living environment.
Developer Nassi ignored explicit warnings. New York City Department of Buildings alerts went unheeded. He also skirted DOB regulations. A mandated structural engineer was not hired. Necessary documents were never filed. Residents eventually initiated and paid for urgent repairs themselves. This protected their safety. Legal action followed. The Attorney General sued Nassi and Carlton Ventures. The Martin Act and Executive Law 63(12) violations were cited.
The resolution mandates financial penalties. The settlement includes $200,000 in restitution. This sum goes to the 135 Carlton Board of Managers. It covers the residents' repair costs. An additional $30,734.45 in penalties and fees will be paid. These funds benefit the OAG’s Affordable Housing Fund. This action reaffirms the state's dedication. It protects residents from fraudulent developers.
In a separate, equally significant case, Attorney General James confronted tax evasion. Her office secured $4.5 million from travel booking giant Fareportal, Inc. This included its affiliates: WK Travel, Inc., Jen NY, Inc., and Tripmama, Inc. These companies orchestrated a complex tax scheme. They avoided over a million dollars in state corporate taxes.
The investigation uncovered a deceptive practice. From 2007 to 2012, Fareportal engaged in corporate tax fraud. Companies concealed millions in taxable dividends. They misclassified them as "management fees." These fees went to Magic Travel, LLC. Magic Travel shared the same owner as the travel companies. This was a shell entity. It held personal investments. It had no employees.
These sham fees allowed substantial deductions. Fareportal falsely reduced its taxable profits. This minimized their tax burden. Outside accountants had even warned them. The fees could be classified as dividends. This would result in significant tax liabilities. Yet, the companies persisted. They continued the scheme. Their actions violated the New York False Claims Act.
A whistleblower initiated the probe. Private individuals can file civil actions. They act on the government's behalf. They share in any recovery. This mechanism proved vital. The $4.5 million settlement reflects this. Approximately $1 million goes to the whistleblower. This highlights the importance of public vigilance.
This is not Fareportal’s first encounter with the Attorney General. James previously secured $2.6 million from Fareportal. That case involved "dark pattern" marketing practices. The company manipulated customers. It created false urgency for tickets and rooms. This pattern shows a disregard for ethical business conduct.
Attorney General James consistently targets tax evaders. Her office secured $4.7 million from truck rental companies. They faced charges for a decade-long tax evasion scheme. Strip club executives faced indictment. Their scheme involved criminal tax fraud and bribery. Sotheby's paid over $6 million. It used fraudulent methods for client tax breaks. Cigarette companies paid $50 million. They sold products without state taxes. These cases demonstrate a broad reach. The Attorney General’s office uses all available tools. This ensures fair contributions to public services.
The Taxpayer Protection Bureau spearheaded the Fareportal investigation. The Real Estate Finance Enforcement Section handled the Fort Greene case. These specialized units actively protect New Yorkers. They safeguard state finances. They ensure integrity in commerce.
These recent enforcement actions send a clear message. New York State demands accountability. Developers must build safely. Businesses must pay their fair share of taxes. Attorney General James's office remains steadfast. It protects consumers. It champions economic justice. It upholds the rule of law. Her office continues to fight fraud and negligence. This benefits all New Yorkers.