Art Capital sues Croman for backing out of fine art-backed loan Lender alleges the now-jailed landlord refused to close, breached contract
Steve Croman and 12-14 East 72nd Street (Credit: Google Maps)
Art Capital, a financial firm specializing in art-backed loans, is suing jailed landlord Steve Croman and his wife Harriet for allegedly backing out of a $50 million loan Croman sought following his guilty plea to mortgage and tax fraud charges in June.
According to the complaint, Croman signed a term sheet for a $50 million loan backed by his Upper East Side Mansion and 38 pieces of fine art. The term sheet included exclusivity and payment of expenses provisions and the Cromans wired a $50,000 deposit, the suit says. Croman sought the loan, according to Art Capital s filing, because he needed to pay off debt to New York Community Bank and CitiBank, who are named defendants in the suit.
But Croman never closed on the loan and wanted different terms, the suit states. One of his attorneys, Andrew Albstein, informed Art Capital earlier this month, with Croman now in jail, that they would not be pursuing the上海千花社区