AG James Bans Basic Group, Bars Architect for DOB Fraud

New York Attorney General Letitia James dissolved an architecture and construction consulting firm and placed restrictions on a licensed architect for his role in a scheme to skirt Department of Buildings review, the latest entry in her statewide tenant safety enforcement crackdown.

The attorney general’s office reached agreements with a firm called Basic Group that prosecutors say worked with licensed architect Kevin McCray, who had professional certification privileges, to fraudulently submit unreviewed renovation permit applications to the DOB and secure expedited approvals for a Williamsburg building.

Basic Group’s website advertises services including expedited DOB approvals and permits for alterations to new buildings, along with consulting on certificates of occupancy, violation removal and asbestos investigations. The site also lists general contractor work on many Brooklyn buildings, including a $6.6 million development at 7616 Bay Parkway, along with a $6 million renewal and adaptive reuse conversion of a seven-story Manhattan hotel into high-end apartments at 2651 Broadway. A job listing for a licensed engineer position is also posted on Basic’s website.

As part of the settlement, Basic is required to complete its ongoing projects and dissolve by Aug. 26, while owner Wing Huang and McCray are both prevented from doing any business with the agency going forward, under the agreements they reached with the attorney general’s office. If the settlement terms are violated, Huang is on the hook for a $200,000 judgment and McCray would have to pay $100,000.

Prosecutors described a scheme to expedite agency reviews that by design circumvented required oversight. McCray filed 57 jobs associated with Basic, but didn’t prepare or review many of those filings, in accordance with his alleged agreement with Huang, the attorney general’s office said in its announcement.

At the center of the investigation was 191 Bedford Avenue, a residential building that prosecutors say BlueSky Management NY purchased before hiring Basic in 2021 to assist with the drafting and filing of plans for renovations to the residential building it purchased at 191 Bedford Avenue. Property records show that Namdar Group — another Great Neck-based developer and frequent joint venture partner of BlueSky parent company Klosed Properties — is the current owner of 191 Bedford Avenue.

McCray submitted plans to DOB for the renovations BlueSky proposed with his stamp to expedite the approval process, even though Basic had drafted them without his supervision, according to the release.

The plans submitted by McCray also required a Certificate of No Harassment from the Department of Housing Preservation and Development, which Basic failed to obtain, prompting DOB to reject the plans at first. McCray then submitted a second plan in 2023, altering it so the certificate would no longer be required. DOB then approved the renovations, which BlueSky completed based upon the original plan. After McCray submitted a third renovation plan identical to the original, the DOB conducted an audit of 191 Bedford, revealing illegal renovations and the cover-up, the attorney general’s office alleged.

“Basic Group put their impatience above safety and, as a result, put New York tenants at risk,” James said in a statement. “Let this send a clear message to all developers: if you cut corners or take shortcuts, you will no longer do business in New York.”

BlueSky denies knowledge of the alleged scheme, but also has a separate preexisting agreement with the attorney general’s office to either obtain the CONH for 191 Bedford Avenue and other portfolio buildings Basic and McCray worked on, or to provide required affordable housing, according to the announcement.

Neither BlueSky nor Namdar returned a request for comment.

James’ office has brought multiple actions against developers, owners, and management companies across the five boroughs in recent months, including a $700,000 settlement with SME Capital Ventures over alleged neglect and unpaid fees at a Hudson Yards luxury condo building, along with lawsuits against two Brooklyn landlords alleging they failed to properly register regulated units, attempted illegal evictions and harassed tenants.