Battery Park City Condo Board Sues Milford Management Over $19M Phishing Scam
A malicious email turns into a costly mistake for Milford Management, resulting in a lawsuit from the condo board.
On July 1, Milford Management, the management company for Liberty Terrace Condominiums, fell victim to a phishing scam, allegedly losing $19 million to fraudsters. The Board of Managers of Liberty Terrace has now filed a lawsuit against Milford, claiming that over $1.3 million of the lost funds belonged to the condo board and were meant to be used for government agency payments.
The lawsuit, filed in New York Supreme Court, alleges that Milford failed to take proper precautions and was negligent in handling the condo board's funds. According to the court documents, Milford received a spoofing email that appeared to be from the Battery Park City Authority, requesting the transfer of funds to a bank account in Hong Kong.
"This is a classic case of gross negligence and failure to take reasonable steps to protect the funds of the Liberty Terrace Condominium Board," said Marc Held, attorney for the condo board.
The lawsuit also claims that Milford attempted to cover up the mistake by withdrawing funds from another account and using them to replace the stolen money. The condo board is seeking damages, interest, and legal fees from Milford Management.
Milford has not yet responded to the lawsuit. However, this is not the first time the company has faced legal trouble. In 2018, Milford was sued by another condo board for allegedly overcharging residents for utilities.
This latest lawsuit highlights the importance of taking proper precautions when handling large sums of money, especially in the real estate industry. With cybercrime on the rise, developers and management companies must be diligent in protecting their clients' funds.
Originally reported by