Leasing & tenant law · 10/23/2026
Suit Over Alleged $250K City Lease Bribe Adds NYC, Cushman & Wakefield
Staten Island businessman Mazen Dayem says former DCAS real estate head Jesse Hamilton and Cushman broker Diana Boutross sought a $250K bribe for city lease deals at 850 Third Ave. When he refused, he claims he was cut out. His amended suit adds the city and Cushman, saying both failed to supervise their people, and accuses the building owners of breach of contract.
Reported by Bisnow New YorkRead the original ↗
What happened
Mazen Dayem, a Staten Island businessman, has added New York City and the brokerage Cushman & Wakefield as defendants in his lawsuit over an alleged $250K bribe demand, Bisnow New York reported. He first sued in July. His attorneys filed an amended complaint on Oct. 9. He now seeks up to $52M from Cushman, Cushman Vice Chairman of Brokerage Sales Diana Boutross, Cushman Executive Vice Chairman Gus Field, former city real estate head Jesse Hamilton, the building's owners and the city.
Dayem says he was hired by Madison Capital and Salmar Properties, owners of a 1.3M SF office building at 850 Third Ave. in Sunset Park. His job was to consult on leasing space to city agencies as the owners negotiated with the Department of Citywide Administrative Services (DCAS). He says he was to earn $8M from deals involving the Fire Department of New York (FDNY) and the Department of Homeless Services. He claims that in July 2025 Hamilton told him the FDNY deal could not go ahead unless he paid Hamilton $250K and brought in Boutross as tenant broker. He says he refused, and refused again when Boutross allegedly asked for the fee at a walk-through two weeks later.
The amended complaint says that in February a representative for the owners breached Dayem's contract by dealing directly with Boutross to lease space in the building to the Administration for Children's Services. Dayem alleges the group tried to push him out by setting unreasonably tight deadlines. He also claims the city failed to act on earlier complaints and warnings about Hamilton, and that Cushman did not properly supervise or discipline Boutross and Field. These are allegations in a lawsuit. They have not been proven in court.
Hamilton was earlier indicted by the Manhattan District Attorney on one count of conspiracy. He pleaded not guilty and resigned. DCAS and Cushman did not immediately respond to Bisnow's requests for comment. Boutross did not immediately respond, and Hamilton could not be reached.
Key facts
- Address
- 850 Third Ave., Sunset Park, a 1.3M SF office building
- Building owners
- Madison Capital and Salmar Properties
- Alleged bribe
- $250K
- Lost contract value claimed
- $8M
- Damages sought
- Up to $52M
- Amended complaint filed
- Oct. 9
- Agency involved
- Department of Citywide Administrative Services (DCAS)
- Plaintiff's attorney
- Alex Estis, Rosenberg & Estis
What it means
Landlords
Owners who lease space to city agencies through DCAS may want to review how brokers and consultants are brought into those deals and keep written records of any requests. This case is only at the allegation stage.
Buyers and owners
The suit includes a breach of contract claim against building owners for allegedly dealing directly with a broker instead of their hired consultant. It shows the risk of side dealings when a leasing consultant is under contract.
Caseworkers
The leases at issue involve agency office space, including for the Department of Homeless Services and the Administration for Children's Services. The material does not say this affects any shelter, voucher or client program.
The highlights
- Mazen Dayem now seeks up to $52M in an amended complaint filed Oct. 9.
- The deals involved 850 Third Ave., a 1.3M SF office building in Sunset Park.
- He says he stood to earn $8M advising owners Madison Capital and Salmar Properties.
Why it matters Landlords
Owners leasing space to city agencies through DCAS face scrutiny over who brokers those deals and how they are steered.
What to do: Keep written records of all lease talks with city agencies.
Not known yet
- Whether any lease at 850 Third Ave. with FDNY, DHS or ACS was signed
- How the city, Cushman, Boutross, Field, Hamilton or the owners will respond in court
- How the $52M figure was calculated
- When the court will next act on the case
Background
DCAS manages office space for New York City agencies, including leasing private buildings for agency use. When a lawsuit is amended, the plaintiff can add new defendants and new claims. The claims in a civil complaint are one side's allegations, and defendants get a chance to answer before a judge decides anything. Criminal charges are separate from civil suits, and a person who pleads not guilty is presumed innocent unless convicted.
Summary written by Bulwark from Bisnow New York’s reporting. The original story is at bisnow.com. This is general information, not legal advice.
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Photo: Andre Carrotflower, CC BY-SA 4.0