14 charged for separate
construction schemes, NYC
building inspectors included
New York Construction Report staff writer
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2 – WINTER 2018 — New York Construction Report
The New York City Department of
Investigation and Acting Brooklyn Dis-
trict Attorney Eric Gonzalez have
charged 14 individuals, including two
inspectors from New York City Depart-
ment of Buildings, for construction
fraud in three separate schemes.

Others charged on Oct. 25 included
property managers and developers, a
private asbestos inspector and a
plumber. In a two-year probe conducted by
the DOI, authorities alleged that city
building inspectors Hiram Beza and
Dean Mulzac were receiving pay-offs
in the form of cash or gifts. The two
allegedly issued rubber stamp paperwork for inspections they never
performed from six property managers who were also charged.

Investigations revealed that Beza accepted payoffs in the form of
home renovations from contractors whose projects he illegally ap-
proved. In one case, a contractor built him a new kitchen to pass in-
spection. Mulzac, on the other hand, took a pair of earrings for his
girlfriend worth $100 from a property owner who owned a jewelry store,
the acting DA asserted.

“These investigations are a testament to our continuing commitment
to keep people safe as developers too often are willing to take short-
cuts at the risk of public safety to rapidly get their properties to market,”
said Gonzalez.

He also said that he will continue working with the DOI to ensure
that nobody “sells the safety of the people of Brooklyn” for their per-
sonal benefit.

Beza and Mulzac were both charged with third degree bribe receiv-
ing, classified as a class D felony, official misconduct, and a class A
misdemeanor. Beza was also charged with offering a false instrument
for filing in the first degree which is a class E felony.

Property managers and developers charged in connection with the
scheme, said to have been run by Mulzac and Beza are: Ruben Badalov
of Queens, Yoel Blum of Spring Valley, Zev Chaskelson of Brooklyn,
Yakhiel Firgiyev of Queens, Matan Hacohen of Bellerose, and Amritpal
Sandhu of Cedarhurst.

Badalov, Blum, Chaskelson, Hacohen and Sandhu were charged with
third degree bribery, classified as a class D felony. Chaskelson, Firgiyev
and Hacohen were also charged with giving unlawful gratuities which is
a class A misdemeanor. Additionally, Firgiyev was charged with reward
official misconduct in the second degree, a class E felony.

All of the individuals allegedly involved in the city building inspection
scheme were arrested Oct.25. If convicted, those charged with a class
D felony will face seven years imprisonment, a class E felony four years
imprisonment, and a class A misdemeanor one year imprisonment.




NYC construction posts record high;
midtown leading with 13k permits
New York Construction Report staff writer
New data from the Department
of Buildings show that New York
City construction has reached a
record high with 88,838 permits is-
sued over Q1 to Q3 of 2017, sur-
passing the previous high in the
spring and summer of 2016.

On Nov. 15, the department pub-
lished a report titled NYC Construc-
tion Dashboard with graphics and
maps reflecting the number of per-
mits issued for new buildings, dem-
olitions and renovations in different
areas of the city.

According to buildings commis-
sioner Rick Chandler, the report is a
part of the department’s moderniza-
tion efforts. It also intends to help
inspectors identify which areas have
the most issues or injuries.

The data indicates most of the
construction activity in 2017 has
been happening in Midtown below
Central Park, with 13,098 permits is-
sued in the first three quarters.

The numbers were confirmed by
locals who have witnessed an influx
of new high-rise residential build-
ings in their neighborhood. “We see
there is construction on every
block,” said Layla Law-Gisikio, chair
of Manhattan Community Board 5’s
Landmarks Committee and Central
Park Sunshine Task Force.

The Upper East side follows suit
with the second highest record,
6,832 construction permits issued
over Q1 to Q3 2017. Ben Kallos, the
area’s councilman, also verified the
data saying that he receives daily
complaints about overdevelopment.

He worries the city is not ready for
overpopulation brought on by rapid
construction of new buildings.

“They don’t have the school
seats we need for the people living
here and moving here,” Kallos said.

DOB data also includes statistics
from 2016 revealing Queens, Brook-
lyn and Staten Island as the areas
posting the highest level of con-
struction activity.

Midtown Manhattan has posted
the highest number of construction
permits issued from Q1 to Q3 of
2017 (Wikimedia Commons,
http://commons.wikimedia.org) Many privately-owned public
spaces in NYC still violate rules,
reveals comptroller report
New York Construction Report staff writer
New York City comptroller Scott
Stringer is calling on the Depart-
ment of Buildings (DOB) to review
privately-owned public spaces
(POPS) after his latest audit re-
101 Barclay is one of the sites violat-
vealed that many of these develop-
ing existing regulations on POPS
ments still violated rules, and
(NYC Comptroller Office)
restricted entry to the public.

This is Stringer’s second audit for 2017. His first report, which was
published in April 2017, found that out of the 333 POPS in the city, 182
were non-compliant. In his second audit, he took a sample of 32 POPS
from the 182 non-compliant group and results showed that 32 are still
breaking laws.

“New Yorkers are getting cheated out of public resources and the de-
velopers are getting benefits and giving back nothing in return,” he said.

The city comptroller’s latest report stated that it submitted the initial
audit to the DOB, but the agency declined to implement POPS regula-
tions or fine non-compliant building owners. The DOB responded that
they will only perform inspections when an individual complaint is made
about a specific site.

“DOB’s disregard of the facts, its denial of documented evidence, and
its ineffective monitoring procedures enable building owners to break
their agreements,” Stringer said. “This is utterly preventable.”
“We will be conducting regular inspections of all POPS in the city,” the
DOB responded, through a statement to Curbed New York on Nov. 22.

In the 32 sites surveyed, the report noted that some sites restricted
public access using a fence, barricade or signs indicating “for private use
only.” There were also some sites where restaurants occupied the POPS
with outdoor seating.

Stringer is currently asking the DOB to prioritize the 182 non-compliant
sites in their inspection, and that the agency conduct strict monitoring of
violators. New York Construction Report — WINTER 2018 – 3