Extortion in an eviction case - advise needed.

Hi All, I am new to the forum, having recently aquired a building in Brooklyn.   It is a four-family brick.  I am living in the top floor.   I am now in the throes of clearing the other units of long term tenants so I can repair, renovate and rerent them.   I have been in the process for a while, with an attorney, and all proper notices served.  There are no leases and no stabilization or control.   Back story: I initially had offered new leases at about halfway between market and current rent, but they were not accepted.    I then offered $5k to each tenant, in addition to three months of free rent, to move.   They unified and came back with a counter of $10k and 5-6 months of free rent.    I couldn’t and wouldn’t do this, so I decided we would negotiate in conference with an officer of the court.  At that point, all stopped paying rent (last august). The first court appearance was last week, and I am satisfied with the result.  It was a judge who was moderating our negotiation, and I ended up giving the tenants five months free rent, for now, with one month paid, and their required moving in 60 days.   I also received a money judgement so I can then attempt to recover two months of the arrears.    The next date is set for Tuesday and the boyfriend of the tenant in question approched me on the street in front of the building yesterday.   He told me that he thought I had renegged on a deal.  I said we never had a deal.   He said if I didn’t pay his girlfriend 7k, and the first tenant 7k as well, he would call “every city agency he can” (and as a builder himself, he say he knows the drill) and report what he says are multiple violations in the building, in addition to reporting to the bulding department that I removed a wall in my apartment without a permit.   (i did).   He claims that I removed a bearing wall, and put the tenants in jeapardy.   I removed only the drywall from a bearing wall, but none of the supporting posts or studs.    He also said he knows how to and would pull out all the tricks to stay in the apartment as long as possible (though he doesn’t really live there, and I happen to know that his “girlfriend” is really his mistress)   He said for the $14k they would go away in a couple of months, quietly. My lawyer says this is a no-brainer.   He says “trust me and let me do my job”.   Take the tenant to court, don’t trust anything the boyfriend says, assume that he will make the calls to the building department anyway, and possibly continue the demands once an initial payment was made.     I am leaning toward follwoing his advice, though part of me is tempted to just pay the guy off and hope to be done with it.    If I don’t, I will most likely face a $5,000 fine for work without a permit.  (I did appply for a permit, which is slated to be examined this week, but I didn’t wait for it to begin some light demo)   The rest of the violations that he is talking about are things about the building that I inherited (loose steps, improper wiring, etc…) that I am planning to fix as soon as I take possesion of the apartments and begin the work in them.   I don’t know how the building department will see violations that I inherited but am planning to fix asap. My fear is that he will be vindictive and continue to prompt the building department to harrase me for the entire renovation process and beyond, not to mention being an unpleasent presence in my home.    Does anyone have any sage advice?    I don’t have much time to make a desicion.    Thanks all.