‘Bernie Madoff of landlords’ defaults on ritzy NYC building featured in hit sitcom ‘The Nanny’: suit
Picture the storied Upper East Side address at 7 E. 75th St. as a front‑line witness to a new legal battle. A Manhattan court paper now alleges that “Bernie Madoff of landlords” Steven Croman has fallen behind on the debt that secures the former “The Nanny” mansion, threatening a foreclosure that could unseat the landmark property.
Croman’s moniker stuck after a string of earlier fraud cases, and he has reportedly defaulted on millions of dollars in mortgages tied to the 1901‑built Beaux‑Arts tower that once became the backdrop for Fran Drescher’s soap‑opera‑style sitcom. Court filings disclose an $8.22 million lien on the 7 E. 75th St. building alone—only one of nearly $200 million in defaulted claims across his portfolio.
The lawsuits point to a staggering $22.15 million owed on five Manhattan sites, a figure that, according to the documents, is part of a larger debt that tops out at more than $190 million spread over 40 properties. The 7 E. 75th St. structure, a French‑style three‑story treasure mere steps from Central Park, was snapped up by Croman for $14.5 million in 2008. Its façade has since become a cultural touchstone, serving as the fictional Sheffield residence in the 1990s hit “The Nanny,” which saw Drescher’s character, a wry, Queens‑born caretaker, moving the household drama into the spotlight.
Unlike the cozy lofts highlighted on the show, the real‑estate unit at 7 E. 75th St. is currently listed in the market as an 850‑square‑foot three‑bedroom apartment going for $11,800 a month. Croman, a man with a history that includes a 2017 guilty plea for mortgage fraud and a stint behind bars on Rikers Island, applied for a $9.8 million loan on the property in 2014 but stopped meeting nearly $80,000 in monthly payments by August of that year, according to the suit.
The complaint, filed in Manhattan Supreme Court by the current loan holder, Orange Owner LLC, repeats a pattern: Croman halted payments on several other properties in August. At 309 W. 97th St., the suit claims a $188,156 default after missed $36,000 monthly payments, with a remaining $3.55 million debt unsatisfied. Meanwhile, at 228‑230 E. 32nd St., a monthly charge of more than $41,000 left the lender with a $199,000 shortfall plus fees in November; the total balance remains at $3.92 million. In the East Village, the two sites at 44 E. 1st St. and 158 Ave. C add a combined $6.46 million debt.
Croman was once dubbed “the Bernie Madoff of landlords” by former New York state Attorney General Eric Schneiderman. That label highlights not just his financial misconduct but also allegations that he used a former NYPD officer to pressure tenants into vacating units—thereby enabling him to spike rents for unsuspecting New‑Yorkers. The infamous Ponzi mastermind, Bernie Madoff, is remembered for orchestrating the biggest fraud in U.S. history, a legacy that the current lawsuit draws an odd parallel to in its focus on Croman’s alleged schemes.
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