Full Breakdown
Michael Lohan Jr. Sued for Allegedly Illegally Deregulating Rent-Stabilized Apartments
12/11/2025, 8:29:52 PM
Allegations of Real Estate Fraud
Michael Lohan Jr., the younger brother of actress Lindsay Lohan, is facing a lawsuit filed by New York Attorney General Letitia James. The lawsuit accuses Lohan and associates from Peak Capital Advisors of illegally deregulating over 150 rent-stabilized apartments in Brooklyn and Queens. The alleged scheme involved ousting tenants from these apartments to convert the buildings into luxury lofts, which were then marketed to young professionals at rents exceeding $6,500 per month. The lawsuit claims that Peak Capital Advisors acquired 31 buildings since 2019 in neighborhoods such as Greenpoint and Williamsburg, targeting areas with "significant upside potential" amid gentrification.
Details of the Allegations
According to the lawsuit, Lohan and his co-defendants exploited a legal exemption intended for the rehabilitation of severely deteriorated buildings. However, the suit contends that the properties were in average or good condition when acquired, thus failing to meet the legal criteria for deregulation. The lawsuit further alleges that after renovations, the defendants attempted to obscure the illegal rent practices by reassigning apartment numbers, complicating regulatory oversight.
Official Statements & Responses
Attorney General Letitia James emphasized the serious implications of the alleged actions, stating, “It is no secret that New York City is already battling an affordable housing crisis, and yet Peak and its operators still chose to line their own pockets at New Yorkers’ expense.” The lawsuit seeks the return of overcharged rents, treble damages, and enforcement of the rent-stabilized status for the affected units. James warned that her office would take aggressive action against corporate developers and landlords who violate housing laws.
Criticism & Opposition
The lawsuit has drawn attention to the broader issue of affordable housing in New York City, with critics highlighting the detrimental impact of such alleged real estate practices on the availability of affordable housing. The New York State Homes and Community Renewal (HCR) Commissioner RuthAnne Visnauskas noted that the investigation revealed that none of the Peak properties met the legal requirements for deregulation, reinforcing the need for stringent oversight in the real estate sector.
Key Figures Involved
Alongside Michael Lohan Jr., the lawsuit names several other individuals associated with Peak Capital Advisors, including Juan David Gomez, Alex Rabin, Amnay Labou, Bryan Anderson, Alex Kaskel, and Alex Mendik. The lawsuit was filed following a joint investigation by the Attorney General's office and HCR's Tenant Protection Unit, which uncovered the alleged fraudulent activities.
What's Next
The legal proceedings will focus on the claims made in the lawsuit, with potential outcomes including the restoration of rent-stabilized status to the affected apartments and financial restitution for tenants. The case serves as a critical reminder of the ongoing challenges related to housing affordability in New York City and the legal responsibilities of real estate developers.
