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Mitchell-Lama Conversions and the Martin Act
Can a limited-profit housing company seeking to withdraw from the Mitchell-Lama program avoid supervision by the Attorney General if the withdrawal does not involve any transfer of property or physical exchange of shares? That question reached the Court of Appeals in East Midtown Plaza Housing Co. Inc. v. Cuomo (NYLJ 11/20/12, p. 23, col. 1). The court answered it with a resounding “no,” and simultaneously held that if the company's certificate of incorporation calls for voting on a one-apartment, one-vote basis, the same voting rule applies in determining whether the requisite two-thirds majority has approved withdrawal from the Mitchell-Lama program.
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The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
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The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.