Today nearly 40 tenants across five buildings in East Harlem announced a lawsuit filed by The Legal Aid Society and Legal Services NYC against their landlord, Isaac Kaissirer and his firm Emerald Equities, alleging that the troubled real estate firm has stolen tens of thousands of dollars worth of security deposits and unlawfully commingled them with the landlord’s own operating funds — something the firm has done before.

Tenants rallied on the front stoop of 118 E 103rd Street to say that Emerald Equities must be held accountable for their buildings’ poor condition and for the firm’s failed plan to flip their rent-stabilized building to market-rate apartments by harassing tenants into leaving.

The suit also asserts that the buildings contain so-called rent-impairing violations of living conditions, including a hole in the roof and blocked fire exits, that legally allow tenants to withhold all rent. Dozens of tenants are already withholding rent, since these violations have existed for more than six months.

Emerald has already admitted in bankruptcy court to failing to separate tenant security deposits from their operating funds, as required by law.

“Our clients and all tenants in Emerald Equities buildings deserve to live in safe, dignified housing, and to know that their security deposits will be returned once they decide to move out,” said Sebastian Perez, an attonrey in the Harlem Community Law Office at The Legal Aid Society. “We look forward to fighting in court on behalf of the tenants to hold the landlords accountable for their egregious actions.”