It alleges that Herskowitz: (1) "knowingly and intentionally conspire [d]" to "defraud the Short Sale Victims, which included financial institutions, and to obtain money and property from them by means of one or more materially false and fraudulent pretenses, representations and promises," and in executing the scheme, "cause[d] to be transmitted by means of wire communication in interstate and foreign commerce writings, signs, signals, pictures and sounds, contrary to Title 18, United States Code, Section 1343"; and (2) conspired "to defraud one or more financial institutions, and to obtain moneys, funds, credits and other property owned by such financial institutions, by means of one or more materially false and fraudulent pretenses contrary to Title 18, United States Code, Section 1344." 2012) ("[A] federal indictment can be challenged on the ground that it fails to allege a crime within the terms of the applicable statute." Share sensitive information only on official, secure websites. 's Reply") 2, Docket Entry No. Under the FCA, private citizens with knowledge of fraud against the government can bring a lawsuit on behalf of the United States and share in the recovery. These five individuals allegedly engaged in a scheme of wholesale deception when they provided false, misleading, and incomplete information to lending institutions, borrowers, 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, stated HUD-OIG Special Agent-in-Charge Scaringi. ("Gov't Opp'n"), Docket Entry No. We already knew that one longtime cast member was leaving the show and now two more. ("Counts One and . In support of his motion to dismiss the Indictment, Herskowitz argues that it provides constitutionally insufficient notice of the conduct for which the Government seeks to hold him criminally liable. The four other men were arraigned in Brooklyn. 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. 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. 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. 2001)); Faison, 393 Fed.Appx. [DAlessio] is a guy who got too big for his own britches., In an email published by Westchester County Business, DAlessio claimed: There was absolutely no fraud committed. The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. 8. Under the FCA, private citizens with knowledge of fraud against the government can bring a lawsuit on behalf of the United States and share in the recovery. He considers his cars as his most prized possessions. RON BOROVINSKY Hollis Hills, New York. (Id. The governments complaint intervenes in a lawsuit originally brought by under thequi tam provisions of the FCA. The individual defendants used various corporate entities in furtherance of the fraudulent scheme. Email address: drroyofcr@gmail.com. The suit is brought pursuant to the False Claims Act (FCA) and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). Aronov appeared in court in Miami and his bond was set at $500,000, according to court papers. In its opposition, the Government argues that "the Indictment is more than sufficient to put Herskowitz on notice as to those charged crimes" and "to the extent that Herskowitz complains about the quantity of evidence set forth in the Indictment, there is simply no requirement that an Indictment set forth the government's evidence, explain how it will prove the charges or allege all the specific facts that show that the defendant is guilty of the charged crimes." '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. Fraudsters targeted homeowners hoping to avoid foreclosure. As a result, defendants not only acquired the properties for below-fair market value prices, but obtained broker fees in the transactions and induced lenders to release the FHA-insured mortgages at a loss. ff 32, 32(f)). Johanna Altman, 40, was. 1970), cert, denied, 402 U.S. 953 (1971)), and there is no express contradiction between the Indictment's broader allegations regarding Herskowitz's involvement in the MIP Scheme and the factual allegations in support of this larger claim. As Tutor . Million Dollar Listing is an American reality television series franchise on the Bravo network. The partners negotiated with banks to let the property go for far less than market rate, a process known as short selling. 1021 B HOLDINGS LLC. Queens Village, New York, Michael Herskowitz They allegedly manipulated the short sale at an arms length transaction, in which they would pay the homeowner to sign over their deeds, hire a fake agent to market the properties, and then sell it to one of their shell companies. Join Facebook to connect with Isaac Aronov and others you may know. UNITED STATES OF AMERICA, v. ISKYO ARONOV, MICHAEL KONSTANTINOVSKIY, TOMER DAFNA, AVRAHAM TARSHISH, and MICHAEL HERSKOWITZ, Defendants. Many of the affected mortgage loans were insured by the Federal Housing Administration, or owned or guaranteed by Fannie Mae or Freddie Mac. ) or https:// means youve safely connected to the .gov website. (Id. Many of these homes were located in economically challenged areas of New York where affordable housing is at a premium.. 18.) The scheme, which centered on the neighborhood of Bedford-Stuyvesant, was first laid out in a BuzzFeed News investigation. Celine Byford. 14.) years' imprisonment and a $1 million fine. Each show chronicles the professional and personal lives of real estate agents based in a major American city as they sell high-end properties, giving viewers an inside look at the world of high-priced real estate. A .gov website belongs to an official government organization in the United States. (Order dated Sept. 12, 2019, Docket Entry No. 498, 506 (S.D.N.Y. 2010) (quoting United States v. LaSpina, 299 F.3d 165, 177 (2d Cir. The five men are charged with conspiracy to commit wire and bank fraud for allegedly misleading mortgage companies into approving short sales at fraudulently depressed prices . f 12. (Gov't Opp'n 10.) Bedford Would Lose 41 Parking Spots In New Protected Bike Lane Plan, Bed-Stuy Fire That Killed Mom, 2 Girls Started In Kitchen: FDNY, Take better care of your bones Join HSS for a new webinar on 5/3, Office Share Near Grand Central- 1 to 4 days a week. \ 19), and specifically alleges that Herskowitz was involved in the purchase of 1219 Jefferson Avenue and 2403 Dean Street, (id. Amid the lingering effects of the mortgage crisis, Iskyo Isaac Aronov and his four partners located homeowners in rapidly gentrifying neighborhoods who owed more than they could pay. Assistant United States Attorney Shannon C. Jones . I couldnt figure out how he made money, said the insider. The Short Sale Schemes "originated at [My Ideal Property ('MIP')] under the direction of [Aronov] with the assistance of [Konstantinovskiy and Tarshish], Short-Sale Co-Conspirators 1, 2 and 3, and others" (the "MIP Scheme") and the scheme was later replicated by Tarshish and Dafna "at Exclusive Homes with the assistance of Short-Sale Co-Conspirator 2 and others" (the "Exclusive Homes Scheme"). 74, 78 (2d Cir. MICHAEL KONSTANTIOVSKI Roslyn Heights, New York. 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. 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. MARGO K. BRODIE, UNITED STATES DISTRICT JUDGE. (Indictment ("Ind.") Eagle file photo, News for those who live, work and play in Brooklyn and beyond, May 1 | 1996). I felt bad for him, said the real estate pro. This season of Bravo's "Million Dollar Listing New York" premiers May 6, and it is going to show 43-year-old Eklund under more stress than ever as he brokers New York real estate sales from . (quoting United States v. Silverman, 430 F.2d 106, 111 (2d Cir. The partners negotiated with banks to let the property go for far less than market rate, a process known as short selling. 's Mem. 175-1.) Indictments must contain both "a plain, concise, and definite written statement of the essential facts constituting the offense charged" and a "citation of the statute, rule, regulation, or other provision of law that the defendant is alleged to have violated." The L.A.-based realtors have been brutally fighting with one another for 10 seasons on Million Dollar Listing Los Angeles, but after years of watching their arguments disrupt parties, cause. 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. Bohm Eastern District of New York
183.). In the mortgage scam, the men, under a company called My Ideal Property Group, manipulated the short sale so they were controlling almost every step of the process, prosecutors said. ), The Indictment specifies seven "select transactions" that Defendants and the Short Sale Co-Conspirators executed as part of the Short Sale Schemes, involving properties located at: 175 Vernon Avenue, Brooklyn, New York; 1219 Jefferson Avenue, Brooklyn, New York; 1319 Jefferson Avenue, Brooklyn, New York; 1055 Herkimer Street, Brooklyn, New York; 177 Lewis Avenue, Brooklyn, New York; 2403 Dean Street, Brooklyn, New York; and 65 Glen Street, Brooklyn, New York. 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. The suit is brought pursuant to the False Claims Act (FCA) and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). Returning for season 13 are powerhouse agents: Josh Flagg, Josh Altman, Tracy Tutor, James Harris and David Parnes. Submit it as a letter to the editor using this form! A .gov website belongs to an official government organization in the United States. 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.". The homes sold through the scam include nine in Brooklyn including three in Bed-Stuy and two in Bushwick and one in Queens Village, documents show. As alleged, the defendants defrauded mortgage loan holders out of millions of dollars, with taxpayers saddled with much of the loss, Richard P. Donoghue, United States attorney for the Eastern District of New York, announced. Since 2006, the Bravo reality show Million Dollar Listing has been showing viewers the ups and downs of realtors who work with wealthy clients in Los Angeles. Four men including two from Queens were indicted Tuesday for conspiracy to commit wire fraud and bank fraud in connection to an alleged scheme to defraud mortgage lenders. See which Bravo real estate agents are returning for more high-stakes drama in the newly released season 14 trailer. 16 (citing United States v. Gabriel, 920 F.Supp. He paid a $281,000 settlement in the Florida case and pleaded guilty to a disorderly conduct violation in the second. 1999); United States v. Raniere, 384 F.Supp.3d 282, 292 n.l (E.D.N.Y. It is on the. See, e.g., United States v. Aronov, No. (citing United States v. Wey, No. MARGO K. BRODIE, UNITED STATES DISTRICT JUDGE, On April 29, 2019, a grand jury returned an indictment against Defendants Iskyo Aronov, Michael Konstantinovskiy, Tomer Dafna, Avraham Tarshish, and Michael Herskowitz, charging them with conspiracy to commit wire and bank fraud in violation of 18 U.S.C. 1; Grand Jury Investigation Covering Mem., annexed to Ind. 18 U.S.C. ISKYO ARONOV (also known as Isaac Aronov) 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 . (Ind. In April, the developer pleaded guilty to wire fraud in connection with his three-year scheme to rip off investors in luxury real estate projects. ISKYO ARONOV (also known as "Isaac Aronov") Middle Village, New York. 27-33. On Monday, Fredrik Eklund of Douglas Elliman announced on Instagram that he was leaving Bravo 's Million Dollar Listing New York and Million Dollar Listing Los Angeles after 11 seasons.. 's Mot. (quoting United States v. Gonzalez, 686 F.3d 122, 127 (2d Cir. Konstantinovskiy worked as an agent for My Ideal Property, where he allegedly conspired with others to fraudulently obtain properties. 11-CR-31, 2012 WL 463973, at *4 (E.D.N.Y. New York state also passed legislation this year meant to better protect homeowners who had been the target of predatory investment or fraud. They would pay homeowners to sign over their deeds, hire a fake "agent" to pretend to market the properties and then sell it to one of their own shell companies, according to court documents. A locked padlock Between 2013 and 2016, Aronov and his co-conspirators engaged in the short sales of nine homes in Brooklyn (three in Bed-Stuy and two in Bushwick) and one in Queens Village acquiring the properties at depressed prices through HUDs pre-foreclosure sale program. Rule 12(b)(3)(B) of the Federal Rules of Criminal Procedure. The Bravo reality star, 43, has been renting in LA since relocating from the East Coast in 2018; Richard P. Donoghue, United States Attorney for the Eastern District of New York, Robert Manchak, Special Agent-in-Charge, Federal Housing Finance Agency, Office of Inspector General, Northeast Region (FHFA-OIG), and Christina Scaringi, Special Agent-in-Charge, U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Region (HUD-OIG), announced the charges. 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. Her work has appeared on NBC News shows, NBCNews.com, The Guardian, The Nation and Vice, among other outlets. 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." Accordingly, the Court finds that the Indictment is constitutionally sufficient and further finds that the inconsistency identified by Herskowitz is not sufficient to warrant dismissal of Count One, nor the related substantive counts of wire fraud charged in Counts Four and Seven. at 11 (citing Ind. However, both Million Dollar Listing series don't appear to be slowing down any time soon. Michael Konstantinovskiy (also known as "Michael Kay") Age: 33 Rego Park, Queens. The father of five picked up tabs at fancy Italian restaurants and doted on his disabled daughter. In turn, HUD paid the lenders claims for FHA insurance from federal funds. 's Mot.,, Docket Entry No. 's Mem. Under the program, homeowners with defaulted, FHA-insured mortgagescan sell their properties in a short sale for less than the mortgages balance if the sale is fair for the market value. The United States has filed a civil complaint in federal court in Brooklyn seeking damages and penalties against three individuals and several companies alleged to have engaged in a wide-ranging mortgage fraud scheme to defraud the government. From "Mayor Adams wants to reassess New York's right to shelter. 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. (Gov't Opp'n 11.). Five years ago, there seemed to be no reason for investors to doubt DAlessio. What makes their alleged crimes even more egregious was their artificial devaluation of properties that, when resold or flipped, resulted in large profits. Between 2013 and 2016, Aronov and his co-conspirators engaged in the "short sales" of nine homes in Brooklyn (three in Bed-Stuy and two in Bushwick) and one in Queens Village - acquiring the. Realtors List thanks to the incredible $237 million he made in sales this year. 9845 86. Contact Lisa Riordan Seville at tom.gara+lisariordanseville@buzzfeed.com. In May 2018, he filed Chapter 7 bankruptcy, sending eight of his properties into foreclosure. The proceeds from the short sale, less approved closing costs, are applied to the outstanding mortgage loan balance owed to the lender, who typically agrees to forgive the borrowers remaining mortgage loan balance. 2019) ("[T]he court must assume that the [i]ndictment's allegations are true for the purposes of a motion to dismiss.'" Then in late 2017, investors received emails from DAlessio, claiming that rising development costs and a rocky real estate market meant there would be no payments for the time being. Just a case of disgruntled seasoned real-estate investors with big damaged egos.. In a complaint unsealed today, Aronov, Borovinsky, Konstantinovskiy, and companies that . Bravo's Million Dollar Listing L.A. cast slams Netflix's Selling Sunset for being 'more dating and less real estate' We pay for your stories! He hosted friends at his $13 million home in Water Mill, LI, to play. Aronov wt al, 1:19-cr-00408 Brought to you by the RECAP Initiative and Free Law Project, a non-profit dedicated to creating high quality open legal information. He was taking care of everybody. 10:01:36. Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, Christina Scaringi, Special Agent-in-Charge, U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Region (HUD-OIG), and Robert Manchak, Special Agent-in-Charge, Federal Housing Finance Agency, Office of Inspector General, Northeast Region (FHFA-OIG), announced the filing. Under the federal program, homeowners with defaulted mortgages that are insured by the Federal Housing Administration can sell their properties in a "short sale" for less than the balance of the mortgage if the sale is for fair market value. He was successfully renovating apartment buildings on the Upper East Side, as well as homes in blue-chip Westchester and beachfront Hamptons. Further, with respect to 1219 Jefferson Avenue, "the only mention of [him] is that he participated in the closing by wiring the loan payoff amount to the servicer's bank account," (id. 2002)). But the checks arrived like clockwork even as it seemed too good to be true. Submit your question here. 1.1 196. 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, stated Acting U.S. Attorney Seth DuCharme. 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 United States v. Velastegui, 199 F.3d 590, 592 n.2 (2d Cir. Courts must accept as true the allegations in an indictment for purposes of evaluating a motion to dismiss. The governments case is being handled by Assistant United States Attorney Michael J. Castiglione, with assistance from Affirmative Civil Enforcement Auditor Michael Gambrell. Do you have a story for The US Sun team? The Government opposes the motion. Konstantinovskiy worked as an agent for My Ideal Property where he allegedly conspired with others to fraudulently obtain properties. Amid the lingering effects of the mortgage crisis, Iskyo "Isaac" Aronov and his four partners located homeowners in rapidly gentrifying neighborhoods who owed more than they could pay. 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." See Raniere, 384 F.Supp.3d at 300 ("[Arguments which concern the sufficiency and/or truth of the allegations in the [c]omplaint, raise factual questions not appropriate for decision on a pretrial motion to dismiss." 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. Collectively & continuously publishing for more than 400 years. The Indictment further alleges that Herskowitz "assisted the Short-Sale Co-Conspirators in completing certain fraudulent short sale transactions originated by both MIP and Exclusive Homes," (id. (Def. 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. 2013) (quoting United States v. De La Pava, 268 F.3d 157, 162 (2d Cir. Aronov Insurance also offers personal insurance lines that include coverage for home, renter, auto and life. The asking price is $9.995 million.. 1349 and 3551 et seq. Official websites use .gov These payments by HUD were artificially inflated as a result of the defendants fraudulent conduct. 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. And for the first time . (Def. ), In addition, the Indictment makes certain specific allegations regarding Herskowitz's involvement in the short sale transactions to purchase certain properties associated with both the MIP and Exclusive Homes Schemes as follows: (1) "on or about July 23, 2014, [Herskowitz] wired approximately $252, 755 to the [mortgage loan] servicer's bank account to satisfy the short sale payoff amount due" in connection with the short sale transaction to purchase 1219 Jefferson Avenue, (id. HUD, in turn, pays the lenders claim from federal funds. Under HUDs Pre-Foreclosure Sale Program, qualifying homeowners with defaulted, FHA-insured mortgages may sell their properties in a short sale for less than the balance of the mortgage if the sale is for the fair market value of the property. Not only does the Indictment provide specific factual allegations in support of Herskowitz's involvement in the MIP Scheme through his assistance with the purchase of 1219 Jefferson Avenue and 2403 Dean Street as discussed above, (see Ind. See Stringer, 730 F.3d at 124 ("An indictment 'need not be perfect, and common sense and reason are more important than technicalities.'" ADVERTISEMENT. P. 12(b)(3)(B); United States v. Aleynikov, 676 F.3d 71, 75-76 (2d Cir. Then It Was Sold On Reality TV. 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. flexible schedule? 2015) ("At trial, the [government must prove that [the] [d]efendant knowingly and willfully became a member of the conspiracy. 18. of Def. 9, 14.) He's not only handsome, but he's also one of the most successful brokers in New York. A locked padlock He hung up on me.. Age: 48 https://brooklyneagle.com/articles/2021/01/06/feds-file-civil-suit-in-brooklyn-in-mortgage-fraud-case/, U.S. District Judge Margo K. Brodie of the Eastern District of New York. However, the Indictment also contains specific factual allegations regarding Herskowitz's involvement in the short sale transactions to purchase 1219 Jefferson Avenue and 2403 Dean Street, (see Id. Break up the boys club. UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK. Docket No. Tracy Tutor from Million Dollar Listing Los Angeles broke the fourth wall when she was seen telling a cameraman to capture a shot of her stiletto heel as she exited her car. 1S8C HOLDINGS LLC. 1178 GATES AVE. INC. 2320 BAEUMONT AVE UNIT 3D LLC. 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.
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