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Former President of The Lerner Group Pleads Guilty to Stealing Mortgage Payments

Stephanie Abbott —  February 8, 2024 — Leave a comment

Marat Lerner, 41, Brooklyn, New York, the former president of a debt relief services business, pleaded guilty today to one count of wire fraud conspiracy and one count of committing wire fraud while he was on pre-trial release.  Lerner admitted that he lied to his victims and that he stole money that the victims had intended to use to pay off their home mortgages.  

According to court documents and facts presented at the guilty plea proceeding, Lerner was the owner of the “Lerner Group,” a business that claimed to provide debt relief services, including mortgage modifications, principally to the Eastern European immigrant community in Brooklyn.  Many of the victims that the defendant defrauded were already experiencing financial hardship and had specifically sought Lerner’s assistance to help reduce their monthly mortgage payments.  Lerner, in turn, promised that he could help them lower their monthly mortgage payments by working with their mortgage lenders to secure a mortgage loan modification or federal homeowner assistance.  To carry out his fraud, Lerner instructed the victims that he needed access to their bank accounts so that he could directly transmit payments to the mortgage banks on the victims’ behalf, and that the payments would be addressed to either an escrow agent that would hold the funds until their mortgages had been modified, or to entities affiliated with their mortgage lenders.  Lerner further instructed the victims not to contact their mortgage lenders directly and that he would serve as the liaison between the victims and the victims’ lenders.    

In reality, Lerner stole over $2.5 million from the victims – money that the victims had intended to use to pay their mortgages.  Once Lerner gained access to the victims’ bank accounts, Lerner transmitted funds from their accounts to companies and/or bank accounts that he himself controlled.  Lerner kept the majority of the victims’ money, spending it on personal and business expenses, including a BMW, luxury goods, and expensive meals.  To conceal his fraud, Lerner told the victims to disregard notifications from their mortgage lenders regarding delinquent payments and past due balances.  

In January 2023, Lerner was indicted by a federal grand jury in the Eastern District of New York and arrested in connection with the above fraud.  Pursuant to an order of the United States District Court for the Eastern District of New York, Lerner was released on bail and instructed, among other things, not to commit additional crimes.  However, Lerner continued to steal from his victims even after being arrested for the same conduct.  After his arrest in this case, between January 2023 and May 2023, Lerner stole at least $10,000 from his victims.  Lerner’s bail was subsequently revoked. 

As a result of Lerner’s years-long fraud, mortgage lenders have initiated foreclosure proceedings against several of the victims.  As part of his guilty plea, Lerner has agreed to pay approximately $2,554,217.11 in restitution to the victims. 

The proceeding was held before United States District Judge Nicholas G. Garaufis.  When sentenced, Lerner faces a maximum sentence of 50 years’ imprisonment.  Lerner has also agreed to pay $2,554,217.11 in restitution.   He was indicted in January 2023.

Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, New York Field Office (FBI), and Thomas Fattorusso, Special Agent-in-Charge, New York Field Office, Internal Revenue Service – Criminal Investigations (IRS CI), announced the guilty plea.

“As he admitted today, Marat Lerner turned the victims’ American dreams into a nightmare by promising mortgage and debt relief, and instead preyed on their hard-earned life savings for his own personal gain,” stated United States Attorney Peace. “My Office will continue to protect immigrant communities against those who choose to use their positions of trust to defraud and steal from them.”

“Marat Lerner operated as an underground broker in his local community; but instead of completing his end of the bargain by paying their mortgages, he pocketed the money of his unsuspecting victims to live a life of luxury. This wasn’t just a money scam, this fraud affected his own community’s homes and families.  Those who fell prey to Lerner’s deceit defaulted on their mortgage payments, and some fell into foreclosure.  Today’s guilty plea and agreed restitution is just one step towards his victims getting justice, and his sentencing is the next,” stated IRS CI Special Agent-in-Charge Fattorusso.

The government’s case is being handled by the Office’s Business and Securities Fraud Section.   Assistant United States Attorneys Nicholas Axelrod and Genny Ngai are prosecuting the case with assistance from Paralegal Specialist Jacob Menz.

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CON MEN & CORPORATION PLEAD GUILTY IN DEED FRAUD SCHEME

Stephanie Abbott —  December 27, 2023 — Leave a comment

Russell Carbone, 69, Queens, New York, and Terrell Hill, 40, Long Island, New York, pleaded guilty to a wide-ranging scheme to steal residential properties by filing forged deeds with city officials.

Carbone and Hill, pleaded guilty to scheme to defraud in the first degree and six counts of offering a false instrument for filing in the first degree. RC Couture Realty Inc., a corporation run by Carbone and his wife, Galyna Couture, 61, pleaded guilty to criminal possession of stolen property in the first degree and six counts of offering a false instrument for filing in the first degree.

Carbone and Hill worked together to target homes where the owners died and their heirs had not taken title to them. To help find the properties, Hill, a landscaper, would alert Carbone, a disbarred attorney, to homes that appeared abandoned. Most turned out to have gone into foreclosure.

As part of the plea, the court voided deeds to seven homes in Queens and two in Nassau County, New York so they could be returned to their rightful owners.

In addition to forfeiting the ill-gotten deeds, Carbone will pay $56,960 in restitution. The money represents rent payments he collected after illegally taking over properties and leasing them out. The money will go to the heirs of the legitimate property owners. Carbone’s license as a notary was also revoked.

R.C. Couture Realty must pay a $100,000 fine.

Hill is also expected to face up to three years in prison when he is sentenced on January 30, 2024.

The Queens homes stolen were located on 116th Road, 115th Avenue, 148th Street and 192nd Street in Jamaica; on 131st Avenue in Laurelton Gardens; and on 104th Avenue and 192nd Street in St. Albans.

In Nassau County, the homes were on Pinebrook Avenue in West Hempstead and Advent Street in Westbury.

In some instances, the deeds were transferred more than once among the defendants and entities connected to them, resulting in 14 deeds for nine homes.

In two additional cases that were part of the charged scheme to defraud, Carbone and Hill had already agreed to relinquish deeds to the legitimate owners.

And in another case, the duo had already sold a home on 148th Street in Jamaica to a third party. The District Attorney’s office will file a motion to apply a state statute and restore that deed to its rightful owner, sparing the victim the time and expense of additional legal proceedings in civil court.

According to the charges and plea agreements:

  • Between November 8, 2019, and February 14, 2023, Hill and Carbone forged signatures on property records to transfer to themselves the ownership of multiple properties.
  • The signatures were notarized with fraudulent notary stamps that Hill ordered from Amazon in the names of actual notaries. Carbone also used his own, legitimate notary stamp on some documents.
  • The fraudulent documents were filed with the New York City Department of Finance.

In the case of the home on 116th Road in Jamaica, Hill called a Bronx woman in November 2019 about possibly selling the house, which she had inherited with her brother. Following the phone conversation, Hill introduced the victim to his “business partner,” Carbone, who met the woman at a local coffee shop to discuss the sale. The woman declined the purchase offer.

A deed transferring title to the property was filed nonetheless on March 12, 2021, indicating that RC Couture Realty, Inc. and Terrell Hill each owned a 48% interest in the property and the victim and her sibling each owned a 1% share.

Hill and Carbone forged the siblings’ signatures on the deed transfer documents, which were stamped with a fraudulent notary stamp and Carbone’s legitimate stamp.

The actual notary told investigators that the stamp was not hers. Hill’s Amazon records showed he ordered a notary stamp with this notary’s information and had it shipped to his home in West Hempstead.

In another case, a 2021 deed transfer for a home on Sutter Avenue in Jamaica included the purported signature of an heir to the property’s original owner. The document said the home was transferred to Carbone and Hill with the heir retaining 1% ownership.

The heir said he did not sign the document. The notary whose stamp is on the paperwork also said he did not sign, nor stamp, the document. Hill’s Amazon records showed another purchase shipped to his home in West Hempstead for a notary stamp with this notary’s information as well.

A nephew of the property’s original owner was living in the home and Carbone wrote to him, portraying himself as the new owner trying to “make a deal” to get him to leave. Carbone then started eviction proceedings against him.

Facing a civil lawsuit, Hill and Carbone agreed to void the deed, returning the home to the rightful owner.

Queens District Attorney Melinda Katz made the announcement.

District Attorney Katz said: “When I started the Housing and Worker Protection Bureau three years ago, I promised to protect homeowners from predatory real estate scams that often target vulnerable neighborhoods. Since then, we have undone the criminal handiwork of scammers and con artists and pioneered the use of a state statute to return stolen properties to their rightful owners. With the conclusion of this prosecution, the largest we have undertaken so far, our office will have restored a total of 14 homes to their rightful owners.”

Assistant District Attorney Rachel Stein, Chief of the Real Estate Theft Unit, in the District Attorney’s Housing and Worker Protection Bureau prosecuted the case under the supervision of Assistant District Attorneys William Jorgenson, Bureau Chief, and Christina Hanophy, Deputy Bureau Chief, and under the overall supervision of Executive Assistant District Attorney for Investigations Gerard A. Brave.

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MAN SENTENCED FOR STEALING WIDOW’S HOME BY POSING AS HER SON

Stephanie Abbott —  November 22, 2023 — Leave a comment

Christopher Williams, 43, Brooklyn, New York was sentenced for stealing the home of an elderly widow by posing as her son, then selling the property and cashing in more than $200,000.

According to the charges:

  • In August 2021, Barbara Matthews received a notification that a new deed, mortgage and other documents had been filed without her knowledge with the New York City Department of Finance for a property she inherited after her father’s death in 2011. The home, on Dunlop Avenue in Jamaica, had been empty for several years as Matthews planned to renovate it.
  • An investigation was opened and revealed that Williams had submitted several documents to falsely represent himself as the sole owner of the property. The documents included phony birth certificates and death certificates identifying Matthews as her mother.
  • After claiming ownership of the property, Williams sold it for $270,000.
  • After closing, the defendant received a sale proceeds check for $214,535.64. Williams took the check to a Bronx check cashing establishment and received $209,665.69 in cash.

Williams pleaded guilty in August to identity theft in the first degree and offering a false instrument for filing in the second degree.

Williams was sentenced yesterday by Queens Supreme Court Justice Leigh K. Cheng to a term of two to four years in prison. Justice Cheng also granted a motion filed by the Queens District Attorney’s office, which applied a state statue to argue for immediately restoring the stolen property’s deed to its rightful owner, sparing the victim the time and expense of additional legal proceedings in civil court. District Attorney Katz’s office was the first to ever use the 2019 law earlier this year, successfully returning a St. Albans home to a disabled veteran and his family.

Queens District Attorney Melinda Katz made the announcement.

District Attorney Katz said: “We will not allow criminals to scheme and scam their way into other people’s properties and we will use every tool available to ensure that victims are made whole. In communities targeted by deed fraudsters, many people do not have the means to hire an attorney to file a civil suit and litigate against deep-pocketed mortgage companies, banks and title insurers. Our use of this new tactic allows us to provide victims with one-stop justice.”

Assistant District Attorney Myongjae M. Yi, Section Chief of the District Attorney’s Major Economic Crimes Bureau, prosecuted the case under the supervision of Assistant District Attorneys Rachel Stein, Chief of the Real Estate Theft Unit in the Housing and Worker Protection Bureau, William Jorgenson, Bureau Chief, and Christina Hanophy, Deputy Bureau Chief, and under the overall supervision of Executive Assistant District Attorney for Investigations Gerard A. Brave.

 

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Man Indicted for Stealing $925,000 Through Deed Fraud

Stephanie Abbott —  October 13, 2023 — Leave a comment

Salome Vega, 46, of Hempstead, New York., was arraigned today on an indictment in which he is charged with grand larceny for allegedly fraudulently transferring the titles of a property in Brooklyn and a property in the Bronx, New York (where Lindbergh baby kidnapper Bruno Richard Hauptmann once resided) and selling them for a total of approximately $925,000. It is alleged the defendant went to elaborate lengths to perpetrate the two separate frauds, including using a variety of fraudulent documents and, in one case, had someone else impersonate a deceased Bronx homeowner at a closing. The defendant also allegedly attempted to steal nearly $300,000 in COVID-19 tax relief payments.

According to the investigation, on August 6, 2019, the defendant allegedly sold the title to 1279 East 222nd Street, a two-family house in the Bronx, New York. At the closing, which was held at an office in Midwood, Brooklyn, the defendant had someone impersonate the property’s deceased owner when the defendant fraudulently sold the house to a buyer for $250,000. Bruno Richard Hauptmann, who was convicted of kidnapping Charles Lindbergh Jr., once resided in that East 222nd Street house.

Furthermore, according to the investigation, six days later, on August 12, 2019, the defendant opened a business checking account for an entity with the same name as the decedent. On the same day, he allegedly deposited a $242,828 check from the sale of 1279 East 222nd Street into the account. Over the next two months, the defendant allegedly emptied the account.

The title transfer was subsequently vacated by the Bronx County Public Administrator when it was discovered that the property owner of 1279 East 222nd Street died on April 26, 2019, approximately four months before the closing.

Furthermore, according to the investigation, in February 2023, the defendant fraudulently sold 431-435 Autumn Avenue, which includes a two-family house attached to a vacant lot in East New York, Brooklyn, for $675,000. It is alleged the defendant did this by pretending to be the CEO of Merit Homes Inc., which owned the property. The defendant was not associated with Merit Homes Inc., nor was he authorized to sell the property. According to the investigation, the defendant, at the closing, requested that funds from the sale be made payable to him personally in amounts of $100,000, $200,000, $300,000, and $33,772 (the remainder of the funds went to closing costs). The defendant proceeded to cash the payments at various check cashing stores in Queens and Long Island.

It is also alleged that the defendant opened a fraudulent business account for a surveillance company on February 9, 2023. The following day, on February 10, 2023, the defendant, according to the investigation, caused a COVID-19 tax relief check from the IRS for $297,368.51 intended for the company to be deposited into this account at a TD Bank branch in Bay Ridge, Brooklyn. An alert bank employee spotted the fraud and froze the account before any funds could be withdrawn.

The defendant was arraigned today before Brooklyn Supreme Court Justice Danny Chun on an indictment in which he was charged with two counts of second-degree grand larceny, second-degree criminal impersonation, and second-degree attempted grand-larceny. The defendant was ordered to return to court on December 6, 2023.

Brooklyn District Attorney Eric Gonzalez made the anoouncement.

District Attorney Gonzalez said, “This defendant allegedly filled his pockets with the ill-gotten gains of two separate real estate transactions in which he stole – then sold – the titles to two New York City properties while also attempting to steal hundreds of thousands of dollars in COVID-19 tax relief funds. We will now seek to hold the defendant accountable and will continue to vigorously investigate and prosecute deed fraud.”

The District Attorney thanked the KCDA Detective Investigators for their assistance on this case.

The case is being prosecuted by Senior Assistant District Attorney Sergey Marts, of the District Attorney’s Frauds Bureau, and Assistant District Attorney Frank Longobardi, Chief of the District Attorney’s Construction Crimes and Labor Fraud Unit, under the supervision of Assistant District Attorney Richard Farrell, Chief of the District Attorney’s Real Estate Fraud Unit and Assistant District Attorney Gregory Pavlides, Chief of the Frauds Bureau, and the overall supervision of Assistant District Attorney Michel Spanakos, Deputy Chief of the Investigations Division and Assistant District Attorney Patricia McNeill, Chief of the Investigations Division.

 

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Owner of Credit Counseling Business Indicted for Mortgage Loan Modification Scheme

Stephanie Abbott —  January 18, 2023 — Leave a comment

Marat Lerner, 40, Brooklyn, New York , president of the Lerner Group, has been indicted for conspiracy to commit wire fraud, wire fraud, and money laundering in connection with a scheme to steal from clients of his mortgage loan modification business.

The indictment alleges that, in or about and between August 2016 and January 2021, Lerner, together with others, operated the Lerner Group.  The Lerner Group promised clients it could help them modify their mortgages by reducing their monthly mortgage payments and their outstanding mortgage balances.  Lerner used his access to his clients’ banking information to create checks that appeared to be monthly mortgage payments to a purported escrow agent called Testoni & Villa and to his clients’ mortgage banks.  But in truth, Lerner secretly controlled Testoni & Villa, and instead of holding the money in escrow, or transferring it to the mortgage banks, Lerner deposited the checks in an account that he controlled, and which he used for a variety of personal expenses, including luxury goods and expensive meals and a BMW automobile.  In total, Lerner misappropriated at least $550,000 from his clients.

Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charges.

“The defendant preyed on immigrants burdened by mortgage debt in the Russian community in Brooklyn, stealing their American dream through a scheme built on false promises to help them keep their homes, but in truth, he took advantage of their trust to enrich himself,” stated United States Attorney Peace.  “This Office has prioritized protecting vulnerable members of our district and we encourage them to come forward and put their trust in us to seek justice for them.”

Mr. Peace expressed his appreciation to the U.S. Customs and Border Protection and the New York City Police Department for their assistance in this matter.

“The defendant, as we allege today, funded his own lavish lifestyle by operating a lengthy scam exploiting his victims’ trust and fears in order to steal their money rather than fulfill his promise to modify their mortgages,” stated FBI Assistant Director-in-Charge Driscoll.  “The FBI will continue to make sure any individual willing to cheat and deceive clients out of their hard-earned money will face the consequences in the criminal justice system.  We urge any additional victims of Mr. Lerner’s scheme to contact us at 1-800-CALL-FBI or online at www.iC3.gov.”

If you were a Lerner Group client and would like to file a complaint, please visit www.iC3.gov.  Please reference “Lerner Group” or “Marat Lerner” in your complaint.

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted, Lerner faces up to 20 years in prison.

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorney Nick M. Axelrod is in charge of the prosecution.

 

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Former Owner & Executive at Long Island Mortgage Lender Sentenced

Stephanie Abbott —  August 30, 2022 — Leave a comment

Edward E. Bohm, 44, Smithtown, New York, formerly the President of Sales and part-owner of mortgage lender Vanguard Funding, LLC (Vanguard), based in Garden City, New York was sentenced today to 24 months’ imprisonment in connection with the diversion of more than $8.9 million of warehouse loans that Vanguard had fraudulently obtained purportedly to fund home mortgages and mortgage refinancing.

Between August 2015 and March 2017, Bohm and his co-conspirators at Vanguard engaged in a scheme in which they obtained more than $8.9 million in short-term loans, referred to as warehouse loans, by falsely representing that the loan proceeds would fund specific mortgages, or refinance specific mortgages, for Vanguard clients.  Instead, Bohm and his co-conspirators diverted the funds to pay personal expenses and compensation, and to pay off loans they had previously obtained through false loan applications.

Bohm is the third defendant to be sentenced in connection with this scheme.  On February 6, 2019, Vanguard Senior Vice President and Chief Financial Officer Edward J. Sypher, Jr., was sentenced to 18 months’ imprisonment and restitution in the amount of $3,488,615.42 following his conviction on conspiracy to commit wire and bank fraud charges.  On February 26, 2019, Vanguard Chief Operating Officer Matthew T. Voss was sentenced to 24 months’ imprisonment and $3,488,615.42 restitution following his conviction on conspiracy to commit wire and bank fraud charges.

Bohm was also ordered to pay $3,488,615.42 in restitution and $1,500,000 in criminal forfeiture.  In February 2019, Bohm pleaded guilty to conspiring to commit wire and bank fraud.

Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Adrienne A. Harris, Superintendent, New York State Department of Financial Services (DFS), announced the sentence.

“With today’s sentence, Edward Bohm has been deservedly punished for his role in a fraudulent scheme that deceived banks that trusted and relied upon him as a business partner.  Bohm diverted the loan proceeds to, among other things, pay tens of thousands of dollars in monthly personal credit card expenses and finance the luxury house in which he lived,” stated United States Attorney Peace.  “This Office, together with our law enforcement partners, will vigorously investigate and prosecute those who commit fraud to advance their own financial interests at the expense of businesses and residents of our district.”

“Edward Bohm and his associates at Vanguard Funding defrauded the financial institutions that provide critical residential mortgage funding, helping themselves to the short-term loans they falsely claimed were on behalf of consumers,” stated DFS Superintendent Harris.  “As New York’s financial services regulator, I am proud of DFS’s mortgage banking examiners and criminal investigators who assisted in the investigation that brought Bohm to justice, and who will continue to root out fraud on behalf of all New Yorkers.”

The government’s case is being prosecuted by Assistant United States Attorney Whitman G.S. Knapp, with assistance from Special Agent Martin Sullivan of the Office’s Business and Securities Fraud Section.  Assistant United States Attorney Madeline O’Connor of the Office’s Asset Recovery Section is handling forfeiture matters.

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Man Indicted for Alleged Title Theft

Stephanie Abbott —  January 4, 2022 — Leave a comment

James Effiwatt, 64, Brooklyn, New York has been arraigned on an indictment in which he is charged with grand larceny and burglary for allegedly filing a fake deed to transfer ownership of his landlord’s $759,000 rental property to a trust in the defendant’s name.

According to the investigation, on January 15, 2021, Effiwatt allegedly recorded a deed to a three-story house at 36 Hubbard Place, Brooklyn, New York that transferred the title of the property from the owner, Hubbard Estates LLC, to an entity called the “Ayonkladd Trust,” of which the defendant was the trustee. The deed was allegedly signed by Effiwatt as a grantor despite the fact that the defendant is not a member or trustee of Hubbard Estates LLC. The building has an assessed value of $759,000. The property has been owned by the legitimate owner, a 49-year-old woman, since 2015.

The investigation revealed that Effiwatt is a former tenant of 36 Hubbard Place who lived in the third-floor attic apartment for several years beginning in August 2015. Effiwatt allegedly stopped paying rent in the summer of 2017 and was eventually ordered to vacate the property in October 2019 by city housing officials over housing code violations. However, it is alleged that Effiwatt subsequently moved back into the attic apartment where he has remained since. Additionally, beginning in March 2021, Effiwatt allegedly approached several other tenants of the property and demanded they pay him rent. Effiwatt also allegedly approached a real estate broker and discussed selling the property for six or seven hundred thousand dollars.

Brooklyn District Attorney Eric Gonzalez today made the announcement.

District Attorney Gonzalez said, “This defendant allegedly filed a fake deed in an unlawful attempt to take ownership of his landlord’s property. Title theft is a serious crime that deprives hard-working people of the single most important asset any American can hope to own. As real estate values continue to rise dramatically in Brooklyn, I remain committed to protecting homeowners across the borough from fraudsters who would steal their security and investment in the future.”

The defendant was arraigned today before Brooklyn Supreme Court Justice Danny Chun on an indictment in which he is charged with one count of second-degree burglary, one count of second-degree grand larceny and two counts of fourth-degree attempted grand larceny. The defendant was ordered held on bail of $25,000 bond or $10,000 cash and to return to court on February 15, 2022.

The case is being prosecuted by Assistant District Attorney Francis Longobardi, Special Counsel to the District Attorney’s Real Estate Frauds Unit, under the supervision of Assistant District Attorney Richard Farrell, Unit Chief, Assistant District Attorney Gregory Pavlides, Chief of the Frauds Bureau, Assistant District Attorney Michel Spanakos, Deputy Chief of the Investigations Division and the overall supervision of Assistant District Attorney Patricia McNeill, Chief of the Investigations Division.

 

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Woman Charged With Scheme To Steal The Home Of An Elderly Veteran

Stephanie Abbott —  December 10, 2021 — Leave a comment

Jasmine Morgan, 32, Queens, New York has been charged today with grand larceny, identity theft and other crimes. The defendant allegedly posed as the granddaughter of an elderly veteran to fraudulently transfer a property deed into her name and then collected more than $134,000 when she sold the home in March 2020.

According to the charges, around February 6, 2020, the defendant claimed to be the granddaughter of a deceased Queens, New York homeowner and offered to facilitate the sale of his home on 198th Street in St. Albans, Queens, New York. Morgan and an unapprehended other – who posed as the homeowner – agreed to a sale price of $300,000 with a buyer and subsequently entered into a contract. Morgan allegedly accepted a $5,000 down payment and provided identification and a death certificate for the dead grandfather and an uncle.

On March 6, 2020, the defendant again purported herself to be the heir to the deceased homeowner’s estate when she appeared at a law firm in Queens for the closing with an unapprehended other, who again posed as the homeowner. The deed transfer for the property was confirmed by the lawyer, who gave the defendant a check for just over $134,000.

According to the complaint, the true owner of the home is a 74-year-old veteran who discovered the ruse when he was sued by the person who “bought” the home from Morgan. The victim did not transfer his deed and does not have a granddaughter.

The defendant allegedly cashed the check she received from the lawyer at a Brooklyn check cashing establishment and received cash.

Queens District Attorney Melinda Katz made the announcement.

District Attorney Katz said, “This defendant was ultimately caught in a tangled web of her own making – a paper trail of bogus transactions that revealed a complicated con to steal a man’s home. By posing as a grieving granddaughter, the defendant allegedly duped multiple people into believing she was entitled to a $134,000 payday from the sale of a house to which she had no rightful claim. The victim is a 74-year-old veteran who was left with a mess to unravel.”

Morgan was arraigned on Tuesday before Queens Criminal Court Judge Karen Gopee on a 15-count criminal complaint. The defendant is charged with grand larceny in the second degree, criminal possession of a forged instrument in the second degree, identity theft in the first degree, falsifying business records in the first degree, scheme to defraud in the first degree and offering a false instrument for filing in the second degree. Judge Gopee ordered the defendant to return to Court on January31, 2022. If convicted, Morgan faces up to 15 years in prison.

The investigation was conducted by Detective Marcelo Razzo of the NYPD Special Frauds Squad and Assistant District Attorney Christina Hanophy, Deputy Bureau Chief of the Housing and Worker Protection Bureau of the Queens District Attorney’s Office who is also prosecuting the case under the supervision of Assistant District Attorney William Jorgenson, Bureau Chief, and under the overall supervision of Executive Assistant District Attorney for Investigations Gerard A. Brave.

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Mother & Son Arrested on Charges For Deed Fraud/Squatting Scheme To Steal Home

Stephanie Abbott —  October 15, 2021 — Leave a comment

Tanya M. Howard, 47, Jersey City, NJ and her son Trevon Howard, 26, Far Rockaway, Queens, New York have been charged with burglary, grand larceny and other crimes for allegedly assuming a prior owner’s identity in order to obtain false title papers and take possession of a home in Far Rockaway, Queens, New York. The pair allegedly occupied the home on several occasions through September 2021, despite the rightful owners’ attempts to get them out.

According to the charges, on several occasions in September 2021, the defendant Tanya M. Howard and her son Trevon allegedly forced their way into a house on Beach 15th Street near New Haven Avenue. The home already had two tenants, who were renting from the legitimate owners. As alleged, the female defendant claimed to own the two-story brick house. The Howards moved in with their belongings and appliances and took control of several rooms on the first floor of the home. The renters – including an elderly, disabled individual – were cut off from using parts of the house, including the kitchen and bathrooms.

On September 2, 2021, defendant Tanya M. Howard exploited the similarity between her name and that of the prior owner – Tanya L. Howard – and allegedly filed for a new title in both her and her son’s names with the Department of Finance Business Center in Queens. The true owners of the property purchased the house from Tanya L. Howard in 2019 for $500,000.

On September 18, 2021, the victims – a man and his mother who are the actual owners of the property – discovered the Howards and a third individual inside the house and contacted the police to remove them. When law enforcement arrived, defendant Tanya M. Howard refused to vacate the premises and continued to insist she was the rightful owner of the house. After being arrested, the defendants allegedly returned to the home and barged inside again refusing to cede occupancy.

Then on September 29, 2021, the male homeowner discovered the defendants Tanya M. Howard, her son Trevon Howard and a teenager inside the house again. He called police and the pair were again arrested.

Queens District Attorney Melinda Katz today made the announcement.

District Attorney Katz said, “As alleged, the defendants in this case became tenacious squatters who repeatedly forced their way into a house they did not own and obtained a false deed to steal the property from the rightful owners.”

The pair were arraigned yesterday before Queens Criminal Court Judge Jeffrey Gershuny on a seven-count complaint charging them with burglary in the second degree, grand larceny in the second degree, offering a false instrument for filing in the first degree, three counts of identity theft in the second degree and criminal trespass in the second degree.  Judge Gershuny ordered the defendants to return to Court on December 16, 2021. If convicted, Tanya and Trevon Howard each face up to 15 years in prison.

The investigation was conducted by Detective Michael Trano of the New York City Sheriff Office.

Assistant District Attorney William Jorgenson, Bureau Chief of the District Attorney’s Housing and Worker Protection Bureau, is prosecuting the case under the overall supervision of Executive Assistant District Attorney for the Investigations Division Gerard Brave.

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Former Unlicensed Mortgage Broker Pleads Guilty to Mortgage Fraud Scheme

Stephanie Abbott —  August 31, 2021 — Leave a comment

Brent Kaufman, 50, Commack, New York, a former unlicensed mortgage broker, pleaded guilty today to criminal information charging him with stealing $4.7 million in mortgage refinancing proceeds that were meant to pay off the existing mortgages of his clients.

According to court filings and facts presented during the plea proceeding, Kaufman worked as an unlicensed mortgage broker and often assisted clients in Queens and Long Island with refinancing their mortgages.  At the closing for a mortgage refinancing, the money from the new mortgage is supposed to be wired to the financial institution that holds the existing mortgage so that it can be paid off. Between 2016 and 2019, Kaufman, together with others, engaged in a scheme to defraud Home Point Financial Corporation, LoanDepot.com LLC and United Wholesale Mortgage and other mortgage lenders (the “Lenders”) by obtaining, and attempting to obtain, monies and funds from the Lenders by means of materially false representations.  Specifically, Kaufman provided incorrect wire routing information to the Lenders for the existing mortgages.  Instead of wiring the funds to the correct financial institution, the funds were instead transferred to bank accounts controlled by Kaufman.  As a result, the existing mortgages were not paid off, leaving the clients with two mortgages on their homes, and Kaufman stole the funds for his own personal use.

During the period of the charged conduct, Kaufman stole more than over $4.7 million, some of which he used to make mortgage payments on the existing mortgages or to eventually pay off those mortgages to avoid detection of his scheme.  When Kaufman stopped paying the existing mortgages, several of his clients’ homes were foreclosed on.  Victims of the scheme ultimately suffered a loss of approximately $2.5 million.

When sentenced, Kaufman faces up to 30 years in prison, as well as forfeiture and a fine of up to $1 million.

Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Robert W. Manchak, Special Agent-in-Charge, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), and Darnell D. Edwards, Acting Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the guilty plea.

“With today’s guilty plea, Kaufman admits to stealing millions of dollars in a brazen mortgage fraud scheme that defrauded numerous lenders and left his homeowner-clients in danger of losing their homes to foreclosure,” stated Acting U.S. Attorney Kasulis.  “This Office is committed to prosecuting defendants like Kaufman who are driven by greed to abuse the trust of innocent homeowners.” Ms. Kasulis expressed her grateful appreciation to the FBI, FHFA-OIG and the USPIS for their outstanding work and assistance in this investigation and prosecution.

“Not only did Kaufman steal his victims’ money, but he also violated their trust, leaving them financially vulnerable and at risk of significant financial complications,” stated FBI Assistant Director-in-Charge Driscoll.  “Collectively, his victims suffered millions of dollars in losses. Today’s guilty plea reminds us of the threat posed by those who prioritize their own financial interests above all else.”

“Brent Kaufman betrayed the trust of unsuspecting homeowners by stealing millions of dollars in mortgage payoffs and failing to repay lenders.  As demonstrated by these charges, FHFA-OIG and its law enforcement partners will investigate and hold accountable those who seek to victimize Fannie Mae and Freddie Mac and misuse the lending process to unjustly enrich themselves,” stated FHFA-OIG Special Agent-in-Charge-Manchak.

“This is a classic case of greed overcoming honest business practices, as Mr. Kaufman took advantage of his access to clients funds to enrich his own lifestyle. His actions left many in financial ruin, holding two mortgages and facing the threat of foreclosure. Law enforcement will always work tirelessly to bring individuals to justice for their crimes against the American public,” stated USPIS Acting Inspector-in-Charge Edwards.

The government’s case is being prosecuted by Assistant United States Attorneys Jonathan Siegel and Laura Mantell.

 

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