…While almost all of the fraudulent conveyances took place, Charles J. Hynes presided as the District Attorney of Kings County. But victims claimed he was dismissive of their allegations. “We went to him, I even made an appointment,” said Yolanda Rodriguez, regarding DA Hynes. “He told me he wasn’t sure how wide of a scale it was, but that if I could round up more victims, he would take another look.” With her lawyer, Ms. Rodrigeuz made another appointment with additional victims, and returned. The meeting was curt and her lawyer was forbidden from attending. “I came with her, and they wouldn’t even allow me into the meeting,” said Jomo Thomas, who represented Ms. Rodriguez. “They wouldn’t hear from someone who investigated these cases and could explain the legal intricacies.”…
Above: Former Brooklyn DA Charles J. Hynes
The Brooklyn Brief has long exposé on real estate fraud in Brooklyn. The companies mentioned appear to be haredi-owned. The victims are poor non-Jews. And former Brooklyn DA Charles J. Hynes appeared to have protected the alleged haredi scammers.
This is New York, people, it all its seemy, disgusting 'glory.'
Here's an extended excerpt:
…The Perpetrators: Common Addresses, and Business Names, in Borough Park
Despite different twists in the victims’ stories, at the outset, the fraud involves a common scheme. Indeed, records indicate several similarly-worded companies involved in the transactions sharing common addresses in Borough Park.
1334 58th Street, between 13th and New Utrecht Avenues, is the home of CNBB Realty Group Corp. CNB Realty Group LLC, and CNW Funding, Inc., companies whose names appear on documents involved in the transactions. This residential condominium, with no first floor retail space, is also home to the Brooklyn branch of The Money Depot, Inc. (headquartered in Spring Valley), and Zahler, Inc., a Kosher vitamin company (which has another address on the border of Borough Park, Kensington and Midwood). It should be noted, however, that these additional entities (Money Depot and Zahler) do not appear on any of the documents involved in the alleged fraudulent activities. Another address for at least some of these companies is 6014 11th Avenue, at 61st Street, which is the executive office building for Telco Stores.
In the accounts profiled in this story, the “second shell” or “third shell” entities that are eventually “sold” the properties in subsequent transitions after the initial fraud takes place (USA Realty & Services Plus Corp., LPKM Realty Enterprises, and KPLM Realty Enterprises) all listed their headquarters as 5308 13th Avenue, Suite 248, a nondescript unit above a cellular phone store with no signage or indications of any offices or business activity.
This unit is also reportedly home to Williamsbug Realty & Services Group, Inc., Brooklyn Realty & Services Group Inc., Brooklyn Realty Enterprises Corp., Brooklyn Realty III Corp., Brooklyn Realty Managment Group Inc., and Brooklyn Realty Plus Group Corp. (though these entities, again, do not appear in any of the paperwork for the transactions mentioned in this story). The location is just blocks from the 58th Street condo that serves as headquarters to the other companies mentioned previously.
More companies sharing the same management as the entities involved in the fraud spread beyond the borough. At least one listing for a property (in Coney Island) owned and managed by CNB Realty lists a manager who is also named as the manager for a range of other real estate companies in East Flatbush. Thes other companies, with names like Big Brooklyn Rehab and Dream Home Realty, list their headquarters in Ozone Park. And other entities, like 1334 ADR LLC, list a headquarters in Monroe, NY.
‘Bargain and Sale’ Deeds, But Key Documents Missing
While the documents involved in the transactions may appear legitimate upon presentation, a closer analysis reveals certain signs commonly associated with fraudulent real property conveyances, according to attorney Jomo Thomas.
“The fact that the companies never use a title insurance company is a smoking gun,” attorney Thomas said. “The alleged transfer documents aren’t claiming a property transfer with an existing lien. By not acknowledging the existing mortgage, it’s assumed that the mortgage is either satisfied or should be satisfied with the sale. But there’s no title insurance company that guarantees that, which is fishy.”
The lack of other crucial closing settlement statements, like those indicating a satisfaction of the existing mortgage, or a conveyance of the property free from encumbrances and ECB violations, indicates trouble.
“They’re trying to make it look like a bargain and sale deed, but they can’t call it that because that’s not what it is,” Thomas said. “But if they admitted that there’s an existing mortgage, they would trigger tax consequences and recording fees, which they’re trying to avoid. They’re trying to leave as little on record as possible.”
Finally, the same notary public is used on almost every single filed document, often with dates when the victims can prove they were out of town.…
When the banks finally moved to foreclose after several years without receiving mortgage payments, the scammers utilized several unique quirks of the Brooklyn court system to stall litigtion, allowing them to collect rent for several more years before they eventually vanished. Brooklyn Housing Court, overloaded with foreclosure case inventory, was quick to allow adjournments, slowing any process to a crawl. Even when a matter did come before them, adjudicators known as “referees” governed over mandatory settlement conferences where they were more interested in finding a palatable if unglamorous compromise between litigants’ stated positions rather than investigating the underlying facts of a matter. Most victims in the scam were not taken seriously anyway–unable to afford legal fees, they often asserted their own defense and failed to bring an action for fraud.…
Corporations and LLCs were allowed to scribble illegible signatures on deeds without printing their names, listing only the entity’s name in print and an office phone number (without an address). The result is that the new “owners” of the properties can have lawyers appear for them in Court, but those behind the “corporate veil” can elude being tracked down.
While almost all of the fraudulent conveyances took place, Charles J. Hynes presided as the District Attorney of Kings County. But victims claimed he was dismissive of their allegations.
“We went to him, I even made an appointment,” said Yolanda Rodriguez, regarding DA Hynes. “He told me he wasn’t sure how wide of a scale it was, but that if I could round up more victims, he would take another look.”
With her lawyer, Ms. Rodrigeuz made another appointment with additional victims, and returned. The meeting was curt and her lawyer was forbidden from attending.
“I came with her, and they wouldn’t even allow me into the meeting,” said Jomo Thomas, who represented Ms. Rodriguez. “They wouldn’t hear from someone who investigated these cases and could explain the legal intricacies.”
The sum of the meeting, according to those who attended, was the DA Hynes did not find the case significant enough to investigate. He suggested the alternative of civil court as a remedy, they said.…