New York State Attorney General Letitia James recently filed a suit against a group of real estate speculators accused of illegally deregulating at least 150 apartments in Brooklyn and Queens. One speculator’s name in particular stands out, that of Michael Lohan, brother to Lindsay.
Hell Gate reports that James and Homes and Community Renewal (HCR), filed a suit against Peak Capital Advisors on December 1.
“The lawsuit alleges that, since 2019, Peak has bought 31 buildings, including in Greenpoint, Astoria, Sunnyside, and Long Island City, and converted more than 150 rent-stabilized apartments in those buildings to market-rate units by falsely claiming they qualified for deregulation under the ‘substantial rehabilitation’ exemption in state housing law.”
One of the buildings in question is 101 Greenpoint Avenue. Hell Gate reports that Peak purchased the building for about $3.2 million in 2022 and proceeded with a gut renovation, even though the building was already in good condition. Through this renovation, they were able to justify jacking up the rents (one unit went from about $1,300 to $4,800, according to StreetEasy). They also allegedly changed apartment numbers to cover their tracks.
According to the filing, Peak owns or has owned buildings at 101 and 131 Greenpoint Avenue, 94 Milton Street, 311 Eckford Street, 586 Manhattan Avenue, 515 Graham Avenue, 250 North 6th Street, 251 North 8th Street, and 724 Metropolitan Avenue.
Michael Lohan, perhaps known best for his cameo in The Parent Trap as the only boy at an all-girls summer camp, is listed in the suit as a principal and head of investor relations. His other defendants include Juan David Gomez, Alex Rabin, Amnay Labou, Bryan Anderson, Alex Kaskel, and Alex Mendik (not to mention a litany of LLCs).
It seems Michael Lohan might have inherited his father’s penchant for financial malfeasance. If you’re in my rough age bracket, you might recall the woes of one Michael Lohan Senior—immortalized through the song “Confessions of a Broken Heart (Daughter to Father)”—as the embattled patriarch who has spent decades cycling in and out of jail for stock fraud, a DWI, and an illegal kickback scheme at a Florida rehab, among other charges.
If the suit is successful, Peak will likely be forced to pay millions of dollars in damages.