Tenant's Fraud Claim Dismissed

Rent-stabilized tenant complained of rent overcharge. The DRA ruled against tenant, finding no overcharge. Tenant appealed and lost. Tenant claimed that landlord committed fraud by illegally deregulating the apartment, that the DRA should have looked back more than four years because landlord willfully failed to register the apartment for many years prior to the base rent date, and that the DRA incorrectly granted a rent increase for unsubstantiated individual apartment improvements. But tenant's vacancy lease was rent stabilized and included a Rent Stabilization Rider. So landlord didn't deregulate tenant's apartment. And there was no combination of circumstances, fraudulent deregulation scheme, or variance between the registration history and lease history that indicated fraud or warranted piercing the four-year rule. Finally, landlord proved the "1/40th" cost of apartment improvements.

Mellas: DHCR Adm. Rev. Docket No. BT210011RT (12/11/13) [4-pg. doc.]