Developer of The Mill Project in Yonkers Alleges Fraudulent Invoices by Elevator Contractor

The developer of The Mill retail and housing complex in Yonkers filed a complaint in Westchester Supreme Court claiming that a Bronx-based company hired to install elevators submitted fake invoices. Managing Partner of The Mill, Rishi Nangalia, seeks over $600,000 from Ali Santiago and Magnum Elevator LLC, for a job originally contracted for $194,712.

Located at 222 Lake Avenue, The Mill stands within the “Alexander Smith Carpet Mills Historic District.” This area dates back to the 1800’s where Yonkers was an industrial stronghold utilizing the nearby Saw Mill river.

The renovation

In 2019, Nangalia’s 222 Lake Partners corporation purchased the 55,000 square foot warehouse at 222 Lake Ave for $2.7 million. The restoration plan involved repairing fire damage to a deteriorated structure, updating plumbing and electrical systems, and installing new elevators. The developer aimed to convert the spacious manufacturing interiors–featuring high ceilings and large windows–into retail space, offices, and loft apartments.

The developers contracted Magnum Elevator to both remove the old elevators and install new ones. The founder of Magnum Elevator, Ali Santiago, agreed to the original project sum of $194,712.

As per the complaint, the developer paid Magnum a $97,000 deposit. However, Nangalia alleges that the vendor failed to pay for supplies or hire subcontractors. Instead, Magnum submitted fictitious invoices in an effort to deceive the developer into believing that subcontractors had been paid.

Nangalia, along with construction manager, Integrated Project Delivery Partners Inc., assert that they were put “at a severe disadvantage” by the alleged fraudulent activity. They claim it hindered the completion of the elevator project and subsequent rental income from potential tenants. Consequently, the developer engaged another firm to complete the work at a substantial additional expense.

Nangalia, 222 Lake Partners, and Integrated Project Delivery Partners are seeking compensation of $300,000 for fraud, $200,000 for misrepresentation of work, $97,000 for the deposit, and $30,000 for legal fees. They are being represented by Yonkers attorney Jacqueline N. Boone in this case.

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