My question involves landlord-tenant law in the State of: NY

My ex-roomate lived in the apartment for 3 years and I moved in for 11 months with a verbal agreement providing 1st months rent and one month security. Two months before the end of the lease we decided to remain roommates and either move to a new apartment or stay where we were. After searching we could not find anything so we decided to stay. One week before the end of the month we find out that our apartment had already been rented to someone else because she sent in the papers a month ago stating we were not going to renew. I guess she assumed we could change our minds at the last minute!?!?! I was not aware she had sent these papers in as well. We searched around NYC trying like crazy to find a place in our price range and time frame but could not. I could not take the stress anymore so I found a place on my own.

She is stating that she will not return my security because I "screwed her last minute" and she has to use that security to survive on in a new place. So basically, she has taken my security for an apartment the neither of us live in and put it towards her new apartment. Am I entitled to my security return even though we had a verbal agreement and I was not listed on the lease as tenent or occupant?