district attorney's office accused Brenner of trying to submit a falsified certificate, worth $250,000, at a Westchester bank in an attempt to receive a loan for the hotel. The Shelton Towers' manager, convicted forger William M. Singer, was detained in connection with the case. Brenner, Singer, and their former secretary Norma M. Bucher all pleaded guilty to conspiracy and fraud charges in early 1960; Singer and Bucher were sentenced to between 18 and 24 months in prison, while Brenner was sentenced to between four and seven years. The S. T. Hotel Corporation (which held the Shelton Towers' lease) decided to sublet the hotel in December 1959 to Max Klein's Shelton East Corporation, which planned to renovate the hotel. By the 1960s, according to the New York City Landmarks Preservation Commission (LPC), the hotel "was increasingly regarded as passé". Wellington Associates, led by Sol Goldman and Alex DiLorenzo Jr., bought the hotel in the 1960s. Wellington Associates received a $2.3 million first mortgage loan for the hotel in 1965 and a $1.5 million second mortgage the following year. Goldman and DiLorenzo received a $12.5 million, five-year mortgage loan for the Shelton and two nearby plots in 1968. The hotel's swimming pool and gym, operated by Shelton Health Clubs, saw 2,000 customers per day by the late 1960s. During this time period, the hotel housed Basin Street East, a notable nightclub. Proposed redevelopment Skyscraper plan By October 1965, Goldman and DiLorenzo had acquired five smaller structures and a parking lot on the same block, with plans to redevelop the site. Goldman and DiLorenzo eventually acquired the entire block, covering . The partners had initially leased on the west side of the block, including the Shelton's site, to Stanley Stahl. Stahl planned to replace all buildings on the block with a skyscraper occupied by a large corporation. Telephone company GTE initially agreed to lease space in the new skyscraper, but it ultimately opted to move to Connecticut instead. Tishman Realty and Construction took over the lease, with plans to develop to build a structure. Tishman, Arlen Properties, and Bahamian fund Gramco International created a joint venture in 1970 to construct the Third Avenue skyscraper, as well as a 44-story building at 1166 Avenue of the Americas, for a combined $200 million. Citadel Management Co. took over as the hotel's landlord in 1971. Stahl announced in May 1971 that the hotel would no longer