SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF WESTCHESTER ------------------------------------------------------------------------XCT REALTY HOLDINGS AND MANAGEMENT INC. Index No.:on behalf of the taxpayers of the State of New Yorkk and the Cities of Mount Vernon and Peekskill

Plaintiff,

-against- VERIFIED COMPLAINT

Hon.TERRANCE RAYNOR,

Defendant. Jury Trial Demanded --------------------------------------------------------------------------X

Plaintiff, CT REALTY HOLDINGS AND MANAGEMENT, INC., by and through its

attorneys the Law Offices of David Carlebach, on behalf of the taxpayers of the taxpayers of the

State of New York and the Cities of Mount Vernon, and Peekskill, as and for its Complaint

against Terrance Raynor, respectfully states as follows:

NATURE OF THE ACTION

1. This action is brought by Plaintiff, CT REALTY HOLDINGS AND MANAGEMENT,

INC., on behalf of the taxpayers of the State of New York and the Cities of Mount

Vernon and Peekskill to recover not less than $26,772.00 in STAR exemption tax relief,

fraudulently and falsely obtained by Defendant, TERRANCE RAYNOR, pursuant to

General Municipal Law § 51, as well as the common law theories on unjust enrichment.

THE PARTIES

2. CT REALTY HOLDINGS AND MANAGEMENT, INC. ("Plaintiff') is a corporation

duly formed under the laws of the State of New York and has its principal place of

business at 181 Stevens Avenue, Mount Vernon, New York. Plaintiff owns real property

assessed at more than $1,000.00 in the State of New York, City of Mount Vernon, New

York, and has been liable to pay taxes on such property at all times relevant to the instant

complaint.

3. TERRANCE RAYNOR was at all times relevant to this action a resident of Mount

Vernon, New York as well as Peekskill, New York.

4. TERRANCE RAYNOR is the former Mount Vernon Police Captain, Commanding

Officer of its Special Operations Division and Chief of the Mount Vernon Police Force.

5. TERRANCE RAYNOR, is presently the Chief Investigator for the District Attorney’s

Office of the County of Westchester headed by the District Attorney, Janet DiFiore, who

was recently appointed by Governor Cuomo to serve as Chairwoman of the New York

State Joint Commission on Public Ethics.

6. Ironically, in the Cuomo Administration’s 2011-12 budget is a plan to audit homeowners

to "discover and eliminate fraud" in the STAR program. Specifically, to find those who

own two homes and get the STAR exemption on both, even though they are supposed to

get just one.

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FACTUAL ALLEGATIONS

7. The New York State School Tax Relief Program (STAR) provides homeowners with

partial exemptions from school property taxes pursuant to various provisions of New

York State Real Property law. A homeowner who earns less than $500,000 and owns and

lives in his home, is generally eligible for the STAR exemption.

8. In order to qualify for a STAR exemption, the taxpayer must fill out an application

promulgated by New York State known as Form No. RP-425.

9. Form No. RP-425 requires a signed certification as to its truth and contains a cautionary

provision stating that a misrepresentation on the form bars the party from participating in

the STAR program in the future and may result in criminal prosecution.

10. In that regard, New York State Penal Law § 175.35, provides that the offering of a

written instrument for filing with the intent to defraud the state or any political

subdivision thereof, is a Class E Felony.

11. Similarly, under the New York State Tax Code § Sections 1801-7 there are a range of

felony criminal offense with respect to any act taken to defraud or evade a tax.

12. The certification of the Form No. RP-425 requires further that the taxpayer aver that

he/she understands that it is their obligation to notify the assessor if they relocate to

another primary residence.

13. Attached hereto as Exhibit A is an RP-425 form filed by Defendant for a property located

at 130 Claremont Avenue, Mt. Vernon, New York (the “Mount Vernon Property”), dated

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and certified on February, 26, 1998, in which the Defendant avers that the Mount Vernon

Property is his primary residence.

14. Attached hereto as Exhibit B is an RP-425 Form for a property located at 35 Buena Vista

Avenue, Peekskill, New York (the “Peekskill Property”), dated and certified on April 4,

2005, in which the Defendant avers that the Peekskill Property is his primary residence.

15. Defendant never advised the tax assessor, as required, that he had relocated and was

therefore no longer eligible for STAR on the Mount Vernon Property, but instead

continued to fraudulently benefit from a STAR exemption on both properties.

16. The proof is in the pudding. A FOIL request was made by the Westchester Guardian on

March 3, 2011, to obtain the records with respect to Defendant’s Peekskill Property

STAR exemption.

17. Thereafter, A FOIL request was made by the Westchester Guardian newspaper on June

7, 2012, to obtain the records with respect to Defendant’s Mount Vernon Property STAR

exemption. A response to the June 7, 2012, FOIL request was sent back to the

Westchester Guardian using the very same June 7, 2012, letter sent by the Westchester

Guardian, except that a handwritten notation had been added to it that “Star cancelled

4/11".

18. Apparently, as soon as the first FOIL request went out, Defendant was internally

informed that such a request had been made. Defendant, realizing that Plaintiff was on to

his fraud and that his hand had been caught in the proverbial cookie jar, then tried to

cover up his illegal conduct by immediately canceling his Mount Vernon Property STAR

exemption. Copies of the FOIL requests are attached hereto as Exhibit C.

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AS AND FOR A FIRST CAUSE OF ACTION

19. Repeats and realleges all of the allegations contained in paragraphs "1" through "16".

20. Defendant committed fraud on the taxpayers of the State of New York and the Cities of

Mount Vernon and Peekskill by falsely certifying that he was a primary resident of both

the City of Mount Vernon and the City of Peekskill at the same time, in order to illegally

obtain a STAR exemption in both cities at the same time.

21. As a result of the fraud committed by Defendant he became ineligible to receive STAR

exemption benefits in either city.

22. As a result of the fraud committed by Defendant, the State of New York and the Cities of

Mount Vernon and Peekskill have been collectively damaged in the amount of not less

than $26,772.00, the collective amount of STAR exemption tax relief illegally obtained

by Defendant.

AS AND FOR A SECOND CAUSE OF ACTION

23. Repeats and realleges all of the allegations contained in paragraphs "1" through "20".

24. Defendant was unjustly enriched by retaining the benefit of the illegal STAR exemption

tax relief at the expense of the taxpayers of State of New York and the Cities of Mount

Vernon, and Peekskill.

25. As a result thereof the State of New York and the Cities of Mount Vernon and Peekskill

have been collectively damaged in the amount of not less than $26,772.00, the collective

amount of STAR exemption tax relief illegally obtained by Defendant.

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