Bans Brooklyn developer for six years over misused buyer funds

Brooklyn developer Ezra Unger has been banned from selling condos in New York for six years after New York Attorney General investigators said he misused buyer payments for a Williamsburg project at 427 Marcy Avenue. Prosecutors said Unger sold units and collected down payments before the AG approved the condo offering plan. They allege the down payments were used for other expenses instead of being held in escrow, violating the Martin Act’s requirements for approval and escrow deposits. Unger agreed to repay $6.72 million to buyers of his 17-unit complex, with options including principal plus interest or a right to buy the original unit after construction. The case follows earlier foreclosure and bankruptcy filings, and a reported attempt to buy Israel’s Arkia.