According to the Business Journal (links
here and
here), the New York's Attorney General's Office has accused the Related Group, which owns
50 Biscayne and
Harbour House, of "illegally marketing and selling condos in New York without registering them as securities in that state" in violation of the
Martin Act:
The Martin Act (Article 23-A of the General Business Law) applies to the sale of all types of cooperatively owned real estate. The sale of co-op shares, condo units, or interests in homeowners' associations is subject to the Martin Act, as is the sale of other securities, such as stocks and bonds. The law requires that a complete description of these kinds of real estate interests be fully disclosed in an offering plan. No advertising or sales may take place unless the offering plan or prospectus, containing all the detailed information necessary for a purchaser to make a reasoned judgement about the decision to buy or not to buy, has been accepted for filing by the Attorney General.
From the article:
"The complainants have informed [the AG] that they seek to rescind the purchase agreement they signed," [Lewis Polishook, chief of enforcement for the AG's Real Estate Finance Bureau] wrote. "Because the Harbour House Condominium sale to them was made in violation of New York General Business Law statute 352-e, they are entitled to a rescission. Please allow them to rescind and return all monies they have paid to you."
