No Overcharge and No Evidence of Fraud

Rent-stabilized tenant complained of rent overcharge. The DRA ruled against tenant, finding that tenant paid $1,100 per month at all times without any increase from the base rent date. Tenant appealed and lost. Tenant claimed that prior to the base date, landlord fraudulently inflated the apartment's rent. Therefore, the DHCR should look beyond the four-year time limit. But the DHCR pointed out that evidence of fraud, not just a claim of fraud, was needed to look beyond the four-year base date. Such evidence would include a combination of circumstances that point to other violations of the Rent Stabilization Law and Code, a fraudulent deregulation scheme, and a variance in the registration history from the lease history. No such factors were present in this case. 

Valentino: DHCR Adm. Rev. Docket No. ZG410017RT (11/12/13) [3-pg. doc.]