9845 86. In 2012, Josh Altman, Matt Altman, and Heather Altman made their " I Sell the Dream" music video to benefit the . In Gabriel, the court found that the government improperly attempted to "bring [defendants'] overt acts within the scope of the original conspiracy by referring to them as examples of 'lulling' activity designed to help continue the fraud, rather than to obstruct its detection," notwithstanding particularized allegations in the indictment which described the defendants' overt acts to prevent discovery of the full extent and nature of the fraudulent scheme. If that property cant be easily forfeited for instance, if a house has been resold theyll have to give up other assets. As one of the franchise's original cast members, Fredrik was a huge part of Million Dollar Listing's success. As alleged, these defendants fraudulently obtained homes at depressed prices at the expense of a taxpayer-funded program designed to assist borrowers seeking the American Dream of home ownership, Acting U.S. Attorney Seth DuCharme said. Its hard, when you like a person, to consider him a crook.. Prosecutors described a Ponzi scheme in which DAlessio used money from new investors to pay off established ones. The defendants allegedly engaged in a scheme of wholesale deception when they provided false, misleading, and incomplete information to lending institutions, homeowners, and the Federal Housing Administration (FHA) causing millions of dollars in damages to the FHA,which typically results in higher premiums being charged to future first-time homeowners, HUD-OIG Special Agent-in-Charge Scaringi said. Lock With regard to Counts Two, Four and Seven, Herskowitz contends that "the Indictment alleges only that [he] wired payoff and/or proceeds funds at the closing after all the arrangements for the sale had been made by others," but does not indicate that "he participated in or even that he was told of the short sale arrangements - instead, the allegations are that he simply showed up at the closing and conducted funds transfers as any closing agent would." 's Mem. Million Dollar Listing follows the lives of three of America's hottest, young, and aggressive real estate magnates in the making as they make a fortune selling multi-million dollar properties in . In turn, HUD paid the lenders claims for FHA insurance from federal funds. The wife of "Million Dollar Listing Los Angeles" agent Matt Altman was arrested for felony domestic violence earlier this month, Page Six has exclusively learned. to Dismiss ("Def. (Def. Date of Arrest or Surrender: 9/9/19. The complaint details 10 times between 2013 and 2016 that the men Iskyo Aronov, RonBorovinsky and Michael Konstantinovskiy preyed on homeowners hoping to avoid foreclosure by setting up fake "short sales" of their homes through a federal program. Two of them also were released on bond, including Michael Herskowitz, a 40-year-old Brooklyn lawyer. The Indictment identifies Herskowitz as "a real estate attorney who assisted the Short-Sale Co-Conspirators in completing certain fraudulent short sale transactions originated by both MIP and Exclusive Homes." In the process, the partners helped fuel the rapid gentrification of brownstone Brooklyn, displacing black and Latino families who in many cases had lived there for decades, and repopulating the area with young, mostly white professionals. If a homeowner obtains approval for a short sale, the lender releases the mortgage after the short sale and submits an FHA insurance claim to HUD to cover the outstanding mortgage balance net of the short sale proceeds, plus approved costs and interest. 's Reply 1-2 (citing Ind. 1178 GATES AVE. INC. 2320 BAEUMONT AVE UNIT 3D LLC. 19 (citing Ind. An official website of the United States government. This Office and our A federal jury in Brooklyn returned a guilty verdict today against Marvin Pippins, also known as Mukk, a member of the Brooklyn-based street gang 5-9 Brims, on counts of racketeering As alleged, Russell turned the demand for cryptocurrency investments into a scheme to defraud numerous investors in order to fund his lifestyle, stated United States Attorney Peace. This allowed them to buy the properties for below-fair market value prices, obtain broker fees, and induce lenders to release the FHA-insured mortgages at a loss. The program requires what's known as an "arm's length transaction," or that the seller and buyer aren't related or affiliated with one another. These allegations alone are sufficient to satisfy Rule 7(c). The act also permits the government to intervene in such actions, as the government has done in this case. 19)), and that although "the [Government will present evidence explaining how [Herskowitz's] conduct is part of the charged crimes [at trial]," the Indictment is not required to provide the Government's evidence or specify the facts the Government plans to use to establish his guilt, (id.). United States v. Faison, 393 Fed.Appx. UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK. Between 2015 and 2018, they said, he also used other peoples money to fund his luxe lifestyle and to cover millions of dollars in casino gambling losses. Submit your question here. Have an opinion? Email address: drroyofcr@gmail.com. Roslyn Heights, New York, John Marzulli The "Million Dollar Listing Los Angeles" star and celebrity broker, 36, bought a famous manse in the coveted Flats neighborhood of Beverly Hills with an asking price of $9,200,000. The Indictment provides a detailed overview of the MIP and Exclusive Homes Schemes, (see Id. Pursuant to Rule 12(b)(3)(B) of the Federal Rules of Criminal Procedure, a defendant may move to dismiss an indictment for various defects, including "a failure to state an offense." bishop mclaughlin catholic high school calendar; misterio quartz with white cabinets; pet friendly rentals in belgrade, mt; 24 June 2022 ~ how much does scott d henry make on tiktok. An indictment was unsealed today in federal court in Brooklyn charging Iskyo Aronov, Michael Konstantinovskiy, Tomer Dafna, Avraham Tarshish and Michael Herskowitz with conspiracy to commit wire fraud and bank fraud, and related wire fraud counts, in connection with a scheme to defraud mortgage lenders, including the Federal National Mortgage ) or https:// means youve safely connected to the .gov website. The governments case is being handled by Assistant United States Attorney Michael J. Castiglione, with assistance from Affirmative Civil Enforcement Auditor Michael Gambrell. 's Mot.,, Docket Entry No. Tomer Dafna Age: 48 Great Neck, New York. He was successfully renovating apartment buildings on the Upper East Side, as well as homes in blue-chip Westchester and beachfront Hamptons. 498, 506 (S.D.N.Y. United States Attorneys Office (See Ind. Fax Line: 718-254-7508. In addition, artificial devaluation of residential properties will slow the recovery of market values at a time of economic challenge when affordable housing is at a premium., Our daily newsletter is FREE and keeps you up to date with the world of mortgage. A lock ( 1349 and 3551 et seq. (Def. Age: 40 In turn, HUD paid the lenders claims for FHA insurance from federal funds. 19.) 11-CR-31, 2012 WL 463973, at *4 (E.D.N.Y. in Supp. (Indictment ("Ind.") Courts must accept as true the allegations in an indictment for purposes of evaluating a motion to dismiss. 2002)). Before pleading guilty to embezzling $58 million, real estate developer Michael D'Alessio was the portrait of generosity. 183.). As alleged in the complaint, from at least 2013 through 2016, the defendants defrauded HUD by manipulating the short sale process to acquire residential properties from numerous distressed homeowners for below-fair market value prices in non-arms-length transactions. Break up the boys club. 41-42) - for his involvement in specified financial transactions alleged to have been undertaken in furtherance of the MIP and Exclusive Homes Schemes. provisions of the FCA. MICHAEL KONSTANTIOVSKI Roslyn Heights, New York. 718, 723 (2d Cir. Aronov and Konstantinovskiywere also charged in 2019. If a homeowner obtains approval for a short sale, the lender releases the mortgage after the short sale and submits an FHA insurance claim to HUD to cover the outstanding mortgage balance net of the short sale proceeds, plus approved costs and interest. (Ind. The scam in Monday's lawsuit caused millions of dollars in damages to the Federal Housing Administration since the men would file false or. The complaint, unsealed this afternoon by United States District Judge Margo K. Brodie, alleges that Iskyo Aronov, Ron Borovinsky, Michael Konstantinovskiy, and companies that they owned or controlled, engaged in fraudulent short sales of residential properties insured by the Federal Housing Administration (FHA) of the United States Department . (Id. An indictment was unsealed today in federal court in Brooklyn charging Iskyo Aronov, Michael Konstantinovskiy, Tomer Dafna, Avraham Tarshish and Michael Herskowitz . 11). Ask anything about Brooklyn. What makes their alleged crimes even more egregious was their artificial devaluation of properties that, when resold or flipped, resulted in large profits, said Special Agent in Charge Christina Scaringi of the US Department of Housing and Urban Developments Office of Inspector General, one of several agencies involved in the investigation. According to the thirty-three-page Indictment, from in or about December of 2012 to January of 2019, Defendants, including Herskowitz, "worked both together and separately to purchase hundreds of properties at fraudulently depressed prices and then resell or 'flip' the properties for large profits." U.S. Attorney's Office, Eastern District of New York, Defendants Allegedly Engaged in a Scheme to Purchase Real Estate at Fraudulently Depressed Short Sale Prices Resulting in Millions of Dollars in False Claims Submitted to HUDs FHA Mortgage Insurance Program, United States Files Civil Fraud Suit Against Three Individuals and Multiple Real Estate Companies Alleging Mortgage Fraud Scheme, Owner of Brooklyn-Based Credit Counseling Business Indicted for Defrauding Clients, , , , Former Owner and Executive at Long Island Mortgage Lender Sentenced to 24 Months' Imprisonment for $8.9 Million Fraud. Million Dollar Listing is meant to represent the top 1% trying to buy and sell houses and for this, the show needs to add some glamor from time to time. 14.) 2019) (defining bank fraud). An eight-count indictment was unsealed today in federal court in Brooklyn charging Marat Lerner, president of the Lerner Group, with conspiracy to commit wire fraud, wire fraud, and money laundering , [Marat Lerner], Lerner Group, With todays 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. Thu 30 December 2021 15:38. 41 Woodbine St., a flipped house in the Bed-Stuy neighborhood of Brooklyn. 's Mot. Together with our partners in law enforcement, we have disrupted a scheme to defraud Fannie Mae and Freddie Mac. In addition, the artificial devaluation of residential properties will slow the recovery of market values at a time of economic challenge when affordable housing is at a premium, stated HUD-OIG Special Agent-in-Charge Scaringi. The Court denies the motion to dismiss because the Indictment tracks the statutory language of the charged crimes and provides sufficient notice of Herskowitz's alleged criminal conduct. The individual defendants used various corporate entities to further their scheme. 's Mot. This case is distinguishable from United States v. Gabriel, in which the court granted defendants' motion to dismiss one of three conspiracy counts charged in the indictment as barred by the statute of limitations. DAlessio was ordered to pay $58,090,047 in restitution and must forfeit all holdings purchased with funds from the scam. Email us at exclusive@the-sun.com or call 212 416 4552. When "Million Dollar Listing New York" returns to Bravo on May 6 for Season 9, the show's first female broker, Kirsten Jordan, will join the series, TheWrap has learned. 2015) ("At trial, the [government must prove that [the] [d]efendant knowingly and willfully became a member of the conspiracy. David Noel Kelley 1095 Ave. of the Americas Dechert LLP, Three Bryant Park New York, NY 10036 . The US government is going after three New York men who allegedly purchased homes at depressed prices at the expense of a taxpayer-funded program, the United States Attorney for the Eastern District of New York announced. A lock ( Jan. 18, 2017))). Prosecutors this week said Aronov and his team, which controlled every aspect of the short-selling process, traded on false, misleading and incomplete information, lying to the government and to lenders like Fannie Mae and Freddie Mac, failing to disclose unauthorized payments and their business relationships. (quoting De La Pava, 268 F.3d at 162)). Share sensitive information only on official, secure websites. 1021 B HOLDINGS LLC. Herskowitzs attorney declined to comment for this story, citing the ongoing case. Middle Village, New York, MICHAEL KONSTANTIOVSKI Title 18, United States Code, Section 1343 imposes criminal liability on any party who "having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, transmits or causes to be transmitted by means of wire in interstate or foreign commerce, any writings for the purpose of executing such scheme or artifice." It is not the first legal action taken against at least two of the men, who once had their business featured on the reality TV show Million Dollar Listing New York. According to court documents, DAlessios internet search history from this time included the phrase which country is the best to hide money from US.. And those deals looked solid by association. The partners negotiated with banks to let the property go for far less than market rate, a process known as short selling. People reported that Tutor was parting with her seven-bedroom, ten-bathroom home in L.A.'s posh Brentwood neighborhood and was asking an eye-popping $23.9 million. (Id. The Government opposes the motion. Aronov appeared in court in Miami and his bond was set at $500,000, according to court papers. See Stringer, 730 F.3d at 124 ("An indictment 'need not be perfect, and common sense and reason are more important than technicalities.'" This Office is committed to protecting the integrity of the FHA insurance program from those who try to enrich themselves through predatory mortgage fraud schemes.. Assistant United States Attorney Shannon C. Jones . 1349 and 3551 et seq. P. 12(b)(3)(B); United States v. Aleynikov, 676 F.3d 71, 75-76 (2d Cir. He was taking care of everybody. In early 2018, 14 individuals and four companies filed civil suits accusing DAlessio of fleecing them. 2.6 1491. The fraud meant the men not only got the properties at below-market value, but were given broker fees and "induced lenders to release the FHA-insured mortgages at a loss.". Josh Altman, coming through with some major info on the upcoming season 14 of Bravo hit show . Follow Eddie to the Hillside Dog Park i, Lovely weather (4 degrees above normal) brought, DUMBO Thursday afternoon at 3 p.m. is the d, Its hard to imagine an elevated cocktail bar, Click here for the latest Coronavirus news, GOV. Main Office Another got swindled out of a $500,000 college fund. 465. This is a massive fraud, said attorney Tab Rosenfeld, who represented some of the parties. Before pleading guilty to embezzling $58 million, real estate developer Michael DAlessio was the portrait of generosity. I asked DAlessio about it and he said that everything is always for sale, the insider said. As a result, the Second Circuit "ha[s] consistently upheld indictments that do little more than to track the language of the statute charged and state the time and place (in approximate terms) of the alleged crime." Submit it as a letter to the editor using this form! This Office is committed to protecting the integrity of the FHA insurance program from those who try to enrich themselves through predatory mortgage fraud schemes.. 1995); see also United States v. Gatto, 295 F.Supp.3d 336, 349-50 (S.D.N.Y. ISKYO ARONOV (also known as "Isaac Aronov") Age: 32 Miami, Florida Michael Konstantinovskiy (also known as "Michael Kay") Age: 33 Rego Park, Queens Tomer Dafna Age: 48 Great Neck, New York Avraham Tarshish (also known as "Avi Tarshish") Age: 40 Queens Village, New York Michael Herskowitz Age: 40 Brooklyn, New York E.D.N.Y. The Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG) is committed to holding accountable those who waste, steal, or abuse the resources of the Government-Sponsored Enterprises regulated by FHFA. See, e.g., United States v. Aronov, No. BROOKLYN, NY Nine homes in Brooklyn were wrapped up in a massive mortgage scam that has prompted a civil suit from the U.S. government, prosecutors announced this week. Court Reporter/Transcriber David R. Roy, Telephone number (718) 613-2609. R. Crim. I couldnt figure out how he made money, said the insider. The "New York" version made its debut in 2012 and ran for nine seasons. Ryan Serhant recently spent a whopping $2.6 million in renovations on his new family townhouse in Brooklyn. 31(a), 31(e).) 2017) (alteration in original) (quoting United States v. Pirro, 212 F.3d 86, 92 (2d Cir. People who commit Ponzi schemes lead you to think theyre your best friend before stabbing you in the back, said one real estate professional who got scammed by DAlessio. Docket No. (citing United States v. Wey, No. If you have experience and are savvy digitally, let us know about your interest in any of the following categories: creation of content and data for digital or print journalism promotion, sales and sponsorship packaging, management of a beat for environment, urban sustainability, real estate & business, food and drink, arts & entertainment, civic issues & politics, or hyperlocal neighborhood happenings. MDLNY's Luis D. Ortiz Accuses Ex Nikita Singh of Trying to "Destroy His Life" and "Maliciously" Taking Daughter Away as She Responds. Avraham Tarshish (also known as "Avi Tarshish") Age: 40 Queens Village, New York. 2018) ("[A] court cannot test the sufficiency of the government's evidence on a Rule 12(b) motion."). 1344 (1990); see also United States v. Calderon, 944 F.3d 72, 91 (2d Cir. HUD, in turn, pays the lenders claim from federal funds. on Sept. 19. We've received your submission. 754, 757 (2d Cir. The four other men were arraigned in Brooklyn. HOCHUL FACES NEW NOMINATION AFTER HISTORIC REJECTION, RULING ALLOWS SOME POT DISPENSARY LICENSES IN NY TO GO AHEAD, 1-STORY PRODUCE MARKET TO BE DEMOLISHED IN BROOKLYN HEIGHTS. 28-28(a), 28(d)); and (2) Herskowitz "on behalf of [Aronov], wired approximately $238, 798 to a bank account designated by the [mortgage loan] servicer and approximately $153, 095 to Short Sale Co-Conspirator 2's bank account, both in connection with the short sale transaction" to purchase 2403 Dean Street, (id. A .gov website belongs to an official government organization in the United States. Removal Hearing set for 9/11/2019 10:00 AM in Miami Division . Many fans have already claimed that they won't be tuning into the show now that he is gone. (quoting United States v. Gonzalez, 686 F.3d 122, 127 (2d Cir. 40:26. (citing 132 (f)). As with the MIP Scheme, the Indictment tracks the language of the charged crimes and alleges that Herskowitz conspired to commit wire fraud and bank fraud in violation of Title 18 United States Code, Sections 1343 and 1344, and explicitly alleges that Herskowitz acted "knowingly and intentionally" in conspiring with Defendants in the Exclusive Homes Scheme between January of 2014 and November of 2018. Main Office (Id. Make your practice more effective and efficient with Casetexts legal research suite. (citing Costello v. United States, 350 U.S. 359, 363 (1956))). 'Million Dollar Listing' Agent Has His Own New Listing Steve Gold of the Corcoran Group is selling his fully renovated loft on Wooster Street in SoHo. Before the Court is a motion by defendant Iskyo Aronov (Aronov), pursuant to CPLR 3211(a)(7), for an Order dismissing plaintiff's Complaint on the basis that he cannot be held personally liable for plaintiff's injuries inasmuch as the Property, where plaintiff allegedly fell, [*2]was owned by co-defendant REDF Equities LLC (REDF), a valid New . 128(c)). The father of five picked up tabs at fancy Italian restaurants and doted on his disabled daughter. Many of the affected mortgage loans were insured by the Federal Housing Administration, or owned or guaranteed by Fannie Mae or Freddie Mac. Great Neck, New York, Avraham Tarshish (also known as Avi Tarshish) We are always seeking enthusiastic team members to help enhance and enlarge our content for and about Brooklyn. In December 2021, he opened up in a personal essay with Today about his decision to lose weight. That gave the investors leverage to pay less, because no one else could buy the house but this left some homeowners, like Denise Riera of the Bronx, on the hook for mortgages to homes they no longer owned. An official website of the United States government. See United States v. Velastegui, 199 F.3d 590, 592 n.2 (2d Cir. Dog Owner? Key measures of price and wage growth remain high, report shows. 175-1.) Can He?" Heather Altman has been hit with surgery rumors since Million Dollar Listing Los Angeles returned to our screens. Iskyo Aronov (also known as "Isaac Aronov") Middle Village, New York, Ron Borovinsky, Hollis Hills, New York and Michael Konstantinovskiy, Roslyn Heights, New York have been charged in a wide-ranging mortgage fraud scheme to defraud the government. Herskowitz also argues that the "allegations do not show that his participation in the closings was with any kind of guilty knowledge," and instead the "factual detail in the Indictment negates any inference of even an implicit understanding [of the conspiracy]" by making clear that he "was a closing agent and nothing more, who was used by his co-Defendants rather than being a partner in crime with them." Since 2015, Herskowitz has been implicated in at least two other schemes targeting borrowers in foreclosure in Florida and Queens. Investors had no idea what was going on, although the insider grew more suspicious when he saw a for sale sign outside a building in the East 60s a property he had invested in. Box 235000, Montgomery, AL 36123-5000 If convicted, the defendants each face a maximum of 30 years imprisonment and a $1 million fine. According to the indictment, between December 2012 and January 2019, the defendants conspired to defraud mortgage lenders, misleading them into approving short sale transactions at fraudulently depressed prices. The individual defendants used various corporate entities in furtherance of the fraudulent scheme. U.S. Attorney's Office, Eastern District of New York, Real Estate Professionals Allegedly Conspired to Purchase Real Estate at Fraudulently Depressed Short Sale Prices, Costing Mortgage Loan Holders Millions of Dollars, Five Defendants Indicted in Mortgage Fraud Scheme, Georgia Man Indicted for Scheme to Defraud Elderly Suffolk County Victim of More Than $5 Million, Member of 5-9 Brims Gang Convicted of Brooklyn Murder, Former Investment Banker and Registered Broker Charged with Operating Cryptocurrency Investment Fraud Scheme. The defendants also took steps to preclude other prospective purchasers from making higher offers for properties by failing to market properties as required by the lenders, and by filing fraudulent liens on properties. Herskowitz argues that he "is mentioned only a few times in the body of the Indictment, and even then, mostly by way of conclusory boilerplate allegations," (id.
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