Unearthing Corruption in New York City’s Construction Sector

Published March 1, 2024

The recent scandal involving CHESAKL Enterprises Inc. has brought to light a distressing pattern of fraud and negligence within New York City’s construction industry. Multiple lawsuits and legal battles have exposed the company’s reckless disregard for safety regulations, ethical standards, and legal obligations, resulting in a trail of devastation for workers, tenants, and property owners alike.

One such instance involved a lawsuit filed by Yury Grobshteyn, the owner of a seven-story apartment complex in Brooklyn, whose property suffered severe structural damage due to CHESAKL Enterprises Inc.’s botched construction work on an adjacent site. Despite claims of professionalism and expertise, the company violated building code regulations, operated without a license, and caused significant harm to neighboring buildings. Grobshteyn’s plight highlights the dire consequences of unchecked misconduct within the construction sector.

The problem began when CHESAKL Enterprises Inc., a company specializing in complex engineering projects, began construction work next door to the apartment complex. Despite their claims of being professionals in the construction industry, the company failed to adhere to the building code regulations that are in place in New York City. The result was a range of unresolved problems for the tenants and residents of the apartment complex.

The website of CHESAKL Enterprises describes the company as one that specializes in working with steel materials, requiring highly skilled steelworkers and innovative process equipment. However, this description did not prevent the company from violating building code regulations, operating without a license, and even causing damage to neighboring buildings during illegal activities. These actions led to a two-year legal battle, construction stoppages, and compensation payments made by the company to affected tenants.

Unfortunately for Grobshteyn, the subcontractor was not licensed to enter his property and was negligent in clearing the land on the property line between Grobshteyn’s complex and the new building under construction. As a result, Grobshteyn’s building and attached structures suffered significant and severe structural damage, including visible cracks in the walls and sagging ceilings. Such structural integrity failures can lead to accidents and even building collapse, posing a serious threat to the safety of tenants and passersby.

In a troubling turn of events, property owner Yury Grobshteyn has been unable to sell his Brooklyn apartment complex due to alleged fictitious damage caused to the building. Despite several attempts to sell, the proposed transactions have been deemed unreasonable and rejected, resulting in a loss of rental income and financial hardship for Grobshteyn. Adding fuel to the fire, Grobshteyn has accused the building’s owner of attempting to extort him through false damage claims. The Yury Grobshteyn case has been one of the longest-running court proceedings in recent memory. The case involved an unscrupulous subcontractor, CHESAKL Enterprises, which caused significant material damage to the participants and brought construction in the area to a grinding halt.

Similarly, a lawsuit brought by PRESTIGE AUTOMOTIVE CENTER INC. uncovered CHESAKL Enterprises Inc.’s attempts to unlawfully evict tenants and demolish buildings without regard for legal contracts and regulations. This blatant disregard for the law left tenants and property owners vulnerable to exploitation and financial ruin. Be that as it may, during legal proceedings, CHESAKL Enterprises Inc. and individual associated with the company like the Panuta brothers engaged in deceptive practices by imposing a bad-faith $2 million lien to exert leverage. Despite attempts at intimidation, the court deemed CHESAKL’s actions unjustifiable and removed the lien, exposing the company’s habitual disregard for the law and lack of integrity. This misuse of legal mechanisms further exacerbates the challenges faced by those affected by the company’s malfeasance.

As legal proceedings continue and investigations unfold, authorities must take decisive action to hold accountable those engaged in fraudulent and unethical behavior. By addressing systemic failures and enforcing stringent measures, the construction industry can transition towards a safer, more transparent future for all involved.

CDN Newswire