I'm not a lawyer, but I don't think there is a 'cooling off' period regarding real estate transactions in New York. Unless you and the broker signed a contract that specifies that there is a cancellation period, once you put down the deposit, you are bound to the terms of the arrangement, just like they are. The fact that they were able to rent the apartment anyway is not a factor, and neither is the fact that they had an apartment rented out that you believe was illegal (it doesn't change the fact that you entered into a contract).
I'm not sure what disclosure forms you're referring to, but I doubt they are relevant, either. The only thing that is really going to be relevant is if you signed a rental agreement - once you've signed the agreement to rent the apartment, you're bound by the terms of that agreement.
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