Insider Deals and Civil War Erupt Over Manhattan Co-op in Low-Income Neighborhood of East Harlem
Low-income co-op in East Harlem sparks controversy as insiders profit from insider deals and manipulation.
Despite the belief that Manhattan is unaffordable, Ayana Green found a StreetEasy listing for a two-bedroom co-op in East Harlem listed at only $450,000 with maintenance charges of $585 a month. However, her excitement was dampened when the seller's broker urged her to use Midtown-based mortgage provider GuardHill Financial, citing a "heavy preference."
Green was told that if she didn't use GuardHill, there would be a different process and it would take longer to close on the apartment. Suspicious of this arrangement, Green did her research and found that GuardHill had a history of working with the co-op's board members, leading to concerns of insider deals and manipulation.
The co-op, located in a low-income neighborhood of East Harlem, has become a battleground for civil war as residents and board members clash over these questionable deals. Board member Judith Grossman has been accused of using her position to benefit her own interests, as she has a close relationship with GuardHill's CEO, Danette Rodriguez. Grossman has also been accused of pushing for high-priced renovations and hiring family members as contractors.
"It's just not right. People who live in this community can't afford to live here anymore," said Green, who is now part of a lawsuit against the co-op's board and the alleged insider deals.
The controversy has also caught the attention of New York City's Department of Housing Preservation and Development, which is investigating the allegations of misconduct and corruption.
Originally reported by