A building planned for a controversial conversion into a Crown Heights homeless shelter was used in a scheme to defraud investors out of more than $20 million, according to a lawsuit.
The building at 1173 Bergen St. has been earmarked by Mayor Bill de Blasio to shelter 104 homeless seniors.
In the suit filed in federal court by a group of investors, owners Chaskiel Strulovitch and Yechiel Oberlander of CSN Partners are accused of promising big payouts to backers who funded real estate buys across Brooklyn, including the Bergen Street property.
But instead, they used the funds to develop other properties for their "personal enrichment," the suit claims.
The proposed homeless shelter is already the focus of a separate court fight involving a group of neighbors who want to block the city's plans for the shelter. They will be back in court on Wednesday and have submitted the federal lawsuit as an exhibit aimed at highlighting what they say are shady deals.