NEW YORK (AP) — New York City has reached a $1 million settlement with a hotel operator it claimed had offered illegal short-term rooms in residential buildings.
The city last year filed a lawsuit against Smart Apartments LLC and Toshi Inc., and its principal executive, Robert "Toshi" K.Y. Chan.
The Wall Street Journal says the settlement creates a restitution fund to help defrauded tourists.
Tourists can seek reimbursement for security deposits or rental payments that weren't refunded between May 1, 2011 and Monday.
According to the settlement, neither Smart Apartments nor Chan admitted wrongdoing or liability. It says they wanted to "resolve the issues existing between them and the city."
Last year, the company said the suit "apparently was directed" at situations that allegedly occurred in the past.
Information from: The Wall Street Journal, http://www.wsj.com