NEW YORK CITY-In a judgment by a New York State Supreme Court on June 29, developer Yair Levy and his company YL Rector Street, LLC have been permanently banned from selling apartments in New York State, and have been ordered to pay considerable penalties and restitution for illegal and fraudulent business practices.

The decision enjoins Levy and YL Rector Street, LLC from engaging in any business activity related to the offer, sale or advertising of securities, which includes condominium and co-operative apartments, according to the judgment. In addition, the judgment also includes a $7.4 million restitution to the Rector Square Condominium for defrauding residents and homebuyers here.

According to a press statement from the Office of the New York Attorney General last month, the Supreme Court of the State of New York found that Levy and company defrauded the purchasers and tenants of the Battery Park City condo by emptying the condominium’s reserve fund, and by failing to make payments in lieu of taxes (PILOT) to the Battery Park City Authority, a public benefit corporation of the state. The reserve fund included monies to help protect the health and safety of the building’s residents.