Was There a Fraudulent Scheme to Deregulate Tenant's Apartment?

Tenant complained of rent overcharge and claimed landlord engaged in a fraudulent scheme to deregulate her apartment. The DRA ruled for tenant in part, finding a rent overcharge of $15,790, including interest, based on landlord's failure to register the apartment between 2010 and 2015. However, landlord owed no refund to tenant because tenant hadn't paid rent between June 2013 and December 2014, and owed landlord $49,590. The DRA found no reason to look beyond the base rent date four years prior to the filing of tenant's complaint.

Tenant appealed and still claimed fraud. Tenant pointed out that the apartment was rent controlled in 2001, that landlord didn't file a report of vacancy decontrol, and that this prevented tenant from filing a fair market rent appeal. The DHCR ruled against tenant, who filed an Article 78 court appeal. The court reversed the DHCR's decision and sent the case back for further consideration of whether there was fraud. The DHCR then ruled that the case should be sent back to the DRA for further consideration.

Knowles: DHCR Adm. Rev. Docket no. GU410003RP (10/2/18) [3-pg. doc.]