Garland Development, and the company's sole director Yusuf Sarodia, were sentenced in November for the offence of failing to demolish the property in Hoxton.
Previously, the council had served an enforcement notice to tear down the building in August 2011.
However, the owner of the 34 flats has continued to benefit from the illegal property.
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As part of the case, the council made a court application to confiscate money made from the building under the Proceeds of Crime Act.
With one third of the fine going to the council and the rest being split between the court and the treasury, any money received will be reinvested back into services which brought the developer to justice.
Cllr Guy Nicholson said: "Anyone who thinks they have a right to build a property in Hackney without first obtaining planning permission must realise that the Council will take action against those who flout the rules.
"Putting up a building without planning permission is not only breaching planning law but to be quite frank puts at risk the safety of residents and neighbouring properties."
Currently, Garland and Sarodia have yet to demolish the property and the council has threatened further enforcement if action is not taken.
(LM/CD)
