In the News: NYRR Victim of Real Estate Scheme

The New York Times reports that New York Road Runners was the victim of a real estate scheme in Harlem:

By May 2008, an independent developer agreed to buy Mr. Vargas’s share for $4.8 million, giving him a $1 million down payment.

Five months later, New York Road Runners, the nonprofit organizer of the New York City Marathon, signed a contract to buy the same 60 percent share for $8.5 million.

NYRR never completed the transaction:

The Road Runners never paid Mr. Vargas any money, prosecutors said, but put $1 million into an escrow account. The group also spent about $300,000 in fees for lawyers and other consultants related to the transaction, prosecutors said.

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