The New York Attorney General’s Office has launched a fraud lawsuit against a former operations head at a Manhattan real estate firm, alleging that he and other employees orchestrated a scheme to illegally deregulate hundreds of rent-stabilized apartments in order to reap larger profits on the free market.

The lawsuit, filed in Manhattan Supreme Court, also says that the former operations head, David Drumheller, and a former employee of the same real estate firm not named as a defendant, together hauled in $1.2 million in kickbacks from contractors used in the scheme.

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