Brooklyn Developer Ezra Unger Banned From Selling Condos: AG

Brooklyn developer and aspiring airline mogul Ezra Unger has been banned from selling condos in New York state for six years.

An investigation by the New York Attorney General’s office found that Unger sold units and collected payments from buyers for a condo project at 427 Marcy Avenue in Williamsburg before the AG approved a condo offering plan for the property. Plans were first filed to develop the site in 2015, and Unger filed for an offering plan in 2021, but it was not approved.

Unger then used buyers’ down payments to pay other expenses, rather than holding the funds in escrow accounts, according to prosecutors. Authorities found he violated the Martin Act, which requires developers to obtain approval before any sale of condos or co-ops and mandates that deposits be held in escrow accounts.

“When New Yorkers hand over their hard-earned savings for a down payment on a home, that money is not a piggy bank for developers to raid,” James said in a statement.

As part of his agreement with the attorney general’s office, Unger agreed to repay a total of $6.72 million to buyers of his 17-unit condo complex in Williamsburg. Buyers can elect to receive a return on their down payments plus interest or use the money to buy their original unit once construction is finished.

Unger has faced legal trouble over the course of the project’s development.

The project’s lender, DW Partners, claimed in a 2021 foreclosure suit that Unger defaulted on a $31 million loan. Unger also faced a lawsuit from nearby bakery owner Aron Lebovits, who alleged he was the true owner of the property.

In January 2023, the property was thrust into bankruptcy, stopping the foreclosure. As part of the bankruptcy, Unger was not permitted to retain any ownership in the property and the property was sold to an entity controlled by Abraham Brach in 2024.

No-fly zone

Unger, who is in his mid-30s and lives in Brooklyn’s Borough Park, has been in talks to buy Arkia, Israel’s second biggest airline, from the Nakash family, according to the Times of Israel. Unger expressed his intention to cease flight operations on Shabbat and Jewish holidays, leading to pushback from Arkia employees, the publication reported.

In news articles in Israel and the U.S., Unger is described as a successful entrepreneur with his real estate generating tens of millions of dollars a month.

But in an August declaration filed with the AG, Unger claimed to be broke. Unger said he does not have enough assets to cover his debts, does not own any real estate and cannot access credit that would allow him to satisfy his debts.

As a result of Unger’s pleas of poverty, the AG’s office suspended a $324,000 penalty imposed against him for selling units without the approval of the AG. The office also suspended $450,000 of a $500,000 penalty against Unger for failing to put buyers’ down payments in escrow accounts.

Unger is not putting his money into the deal, and is instead acting as broker for others in the community who are seeking to bid on the Arkia airline, according to a source familiar with the matter.

“Mr. Unger made sworn representations regarding his finances and, through counsel, has assured us that those representations remain accurate,” a spokesperson for the office said in a statement. “If his sworn statement proves to be false, [the office] may seek to recover the full penalty and pursue further legal action.”

Unger and his attorney did not return requests to comment.