Raanan Katz, RK Centers Real Estate Get Rich Scheme

Raanan Katz the owner and founder of RK Associates created his "triple net lease scheme" to enrich himself.
In a triple net lease plan, the tenant pays a fixed rent and a significant share of the operating expenses, taxes and insurance associated with the commercial real estate unit.

ALAN KLUGER AND HIS PIECE... OF ART

Raanan Katz Triple Net Scheme involves extensive collection of monies claimed to be towards operating expenses from RK Centers tenants. On tenants request, Ranan Katz and his companies refuse to disclose the actual operating expenses.
Raanan Katz's son and partner Daniel Katz says: "We do not provide these documents to the tenants".
Furthermore, Raanan Katz and his companies have been served with the request for production of proof of operating expenses in several lawsuits with fraud allegations. Yet, these documents have not been seen by the tenants, attorneys, and the court.

In Massachusetts Raanan's refusal to provide proof of repair expenses and lying to the court cost him sentence for criminal contempt in late 70s. However, nothing can stop this man, and his “operating expense” scheme works for his enrichment up to date.
Taking into consideration the fact that Raanan Katz and his companies have over 6,000,000 square feet of commercial spaces and thousands of tenants, this scheme practicing for decades allows him to claim any amount to be claimed as operating expenses from unsuspected tenants.

RK Associates and Commercial Lease Fraud

"Commercial lease fraud is a term that covers a number of unfair and deceptive trade practices executed by large corporations, private companies, lenders, etc. Consumers who are victimized by lease fraud can suffer significant financial losses.

Perpetrators of commercial lease fraud knowingly deceive tenants in an effort to make more profit. Commercial lease fraud can occur in a number of different ways including, but not limited to:

* Terms of the lease are abused
* Higher costs than originally represented
* Manipulating operating cost
* Excessive early termination penalties
* Transaction deceptions"

RK Associates and Raanan Katz induce tenants to sign commercial lease that allows them financially benefit when a tenant breaches the lease. For example, if a tenant with 5 year lease alleged in breach of the lease on the first year, according to their lease the tenant must pay them instantly the remaining 4 years of the lease. When they lease to the next tenant with the same story they can claim from the new tenant "damages" for the same space for the same period of time. According to the court documents it is not unusual for RK Associates and Raanan Katz to do the following:

* RK Associates led by Raanan Katz can automatically renew commercial leases without tenants consent, even demanding money under expired lease
* RK Associates led by Raanan Katz charge tenants for common area maintenance (CAM) as much as they want without providing accounting documents
* RK Associates led by Raanan Katz can claim double or triple rent as "damages" for the same rental space, for the same period of time from different tenants
* RK Associates led by Raanan Katz can enter the leased premises by changing the lock, take private property without tenants consent and court orders.

"Under federal and state laws, consumers who have been wronged by leasing scams may be eligible to recover damages through a consumer fraud lawsuit. In the event that a group of consumers have been similarly harmed as a result of lease fraud, they may file a class action consumer fraud lawsuit."

Another important point to mention, several lawsuits have been filled against RK Associates and Raanan Katz alleging them in fraud, theft and more.