In the process, defendants made a host of material misrepresentations in critical transaction documents. 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. ) or https:// means youve safely connected to the .gov website. 18 U.S.C. These payments by HUD were artificially inflated as a result of the defendants fraudulent conduct. Joining full-time, real estate broker Fredrik Eklund of 'Million Dollar Listing New York' strives to juggle bi-coastal life while bringing his unstoppable energy to the Los Angeles real estate market. 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. 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. The act also permits the government to intervene in such actions, as the government has done in this case. 19-CR-408 (SJ) New York Citys most populous borough, Brooklyn, is home to nearly 2.6 million residents. After the sale is approved, HUD covers the outstanding mortgage balance,plus approved costs and interest, using federal funds. Queens men allegedly defraud mortgage lenders out of millions The partners negotiated with banks to let the property go for far less than market rate, a process known as short selling. The Government opposes the motion. Accordingly, the Court denies Herskowitz's motion to dismiss Counts Two, Four, Six, and Seven. The Cast Of Bravo's 'Million Dollar Listing' Ranked By Net Worth After the approved short sale, HUD covers the outstanding mortgage balance not covered by sale proceeds using federal funds. 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. While . Steve Gold Wiki: Net Worth, Age, Real Estate & Facts to Know Id. ("Counts Three through Seven"). 1992) ("[Precision and proper notice to the defendant cannot be sacrificed for the sake of brevity, but common sense must control, and '[a]n indictment must be read to include facts which are necessarily implied by the specific allegations made.'" In turn, HUD paid the lenders claims for FHA insurance from federal funds. 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.". Updated Jun 15, 2022 at 12:02am. 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. 1996))). Free and open company data on Florida (US) company VC FL FUND LLC (company number L21000114994) Pursuant to 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. There was one unusual aspect: DAlessio paid investors standard annual returns of 15 to 18% but personally guaranteed the dividends. . The Indictment alleges that Herskowitz engaged in conspiracies to defraud lenders and certain borrowers (collectively, the "Short Sale Victims") "by providing them with false, misleading, and incomplete information to induce them to execute short sales at fraudulently depressed prices, causing losses to the lenders and, at times, the borrowers" (the "Short Sale Schemes"). In furtherance of the Exclusive Homes Scheme, Herskowitz "wired $239, 483.88 to the [mortgage loan] servicer in connection" with the short sale transaction to purchase 177 Lewis Avenue. But that can be a long road, and one more difficult if borrowers were deep in debt. The four other men were arraigned in Brooklyn. 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. 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.). AG2 . The "New York" version made its debut in 2012 and ran for nine seasons. Million Dollar Listing Los Angeles Season 14 Cast Changes - Heavy.com Their Home Was In Foreclosure. 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. 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"). 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. (Ind. 1-3.) 2013) (quoting United States v. De La Pava, 268 F.3d 157, 162 (2d Cir. United States Attorneys Office An indictment was unsealed today in federal court in Brooklyn charging Iskyo Aronov, Michael Konstantinovskiy, Tomer Dafna, Avraham Tarshish and Michael Herskowitz . (Gov't Opp'n 10.) The series is a spinoff of "Million Dollar Listing Los Angeles," which premiered on Bravo in 2006. PDF FOR IMMEDIATE RELEASE September 10, 2019 (718) 254-6323 PRESS RELEASE 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. of Def. According to court documents, one couple lost $100,000 that was earmarked to aid an ill relative. Getty Josh Altman of "Million Dollar Listing" poses at a showing. 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. Million Dollar Listing News, Pictures, and Videos - E! Online As Tutor . 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 Bond recommendation/set: Iskyo Aronov (1) $500,000.00 w/10% w/Nebbia. 1083 LAFAYETTE AVE. LLC. 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. Two of them also were released on bond, including Michael Herskowitz, a 40-year-old Brooklyn lawyer. Finally, the Court rejects Herskowitz's argument that Count One should be dismissed because he is not consistently identified as "one of those involved in the MIP Scheme." 1349 and 3551 et seq. 14.) See, e.g., United States v. Aronov, No. MARGO K. BRODIE, UNITED STATES DISTRICT JUDGE. The individual defendants used various corporate entities to further their scheme. Ryan Serhant is Leaving Million Dollar Listing New York as - People The indictment comes amid a larger crackdown on predatory real estate investment targeting New Yorkers who remain in foreclosure, dubbed an epidemic of fraud by an investigative grand jury last year. Johanna Altman, 40, was. Three Stars Are Now Leaving 'Million Dollar Listing: LA,' Three Others Roslyn Heights, New York, John Marzulli The governments complaint intervenes in a lawsuit originally brought by under thequi tam provisions of the FCA. 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." United States v. Faison, 393 Fed.Appx. Fax Line: 718-254-7508. 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. Copyright 1996-2023 KM Business Information US, Inc. Is the shift to a buyer's market underway? (Id. That may be a good thing for the borrowers, said Catherine Isobe, senior staff attorney at Brooklyn Legal Services, who has worked on foreclosure cases for years. We are proud to have partnered with the U.S. Attorneys Office for the Eastern District of New York in this case, said RobertManchak,special agent-in-charge, Federal Housing Finance Agency, Office of Inspector General. ), The Indictment was unsealed by order dated September 12, 2019. Lock 18-25), and alleges that "[d]uring different and sometimes overlapping periods of time, various groupings of [Defendants] worked together in the [Short Sale Schemes], (id. 's Reply in Supp. Stringer, 730 F.3d at 124 (quoting Hamling v. United States, 418 U.S. 87, 117 (1974)); see also Dupree, 870 F.3d at 70 ("An indictment that does not set out all of the essential elements of the offense charged is defective." Aronov and Konstantinovskiywere also charged in 2019. Million Dollar Listing Los Angeles has undergone a cast shakeup. The individual defendants used various corporate entities in furtherance of the fraudulent scheme. 's Mot.,, Docket Entry No. As one of the franchise's original cast members, Fredrik was a huge part of Million Dollar Listing's success. He hosted friends at his $13 million home in Water Mill, LI, to play. Million Dollar Listing 's Matt Altman Spotted Out With Wife After Her Domestic Violence Arrest August 18, 2022 Wife of Million Dollar Listing 's Matt Altman Arrested and Charged with Domestic. (Id. 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. 271 Cadman Plaza East In early 2018, 14 individuals and four companies filed civil suits accusing DAlessio of fleecing them. He also owns the largest collection of Billy Haines' furniture in the world. 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. Konstantinovskiy worked as an agent for My Ideal Property, where he allegedly conspired with others to fraudulently obtain properties. According to court documents, DAlessios internet search history from this time included the phrase which country is the best to hide money from US.. 1 pgs Minute Order for proceedings held before Magistrate Judge Edwin G. Torres: Initial Appearance in Rule 5 (c) (3)/Rule 40 Proceedings as to Iskyo Aronov held on 9/10/2019. (citing Costello v. United States, 350 U.S. 359, 363 (1956))). [1] R. Crim. How an NYC developer stole $58M from his wealthy clients - New York Post If 25 (emphasis added)). While Brooklyn has become the epitome of cool and hip in recent years, for those that were born here, raised families here and improved communities over the years, Brooklyn has never been uncool. These allegations alone are sufficient to satisfy Rule 7(c). 1344 (1990); see also United States v. Calderon, 944 F.3d 72, 91 (2d Cir. Million Dollar Listing - YouTube 14.) Great Neck, New York, Avraham Tarshish (also known as Avi Tarshish) 186), the "conclusory, boilerplate allegations" in the Indictment implicating him in the short sale transactions associated with the MIP Scheme "need not be accepted as true, and may not sustain the charges where the detailed factual allegations are to the contrary," (Def. 183.). In October 2020, the mother of two sold a waterfront property in Laguna Beach for $14.25 million. 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. 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. It seemed like the interest payments would mitigate profits.. Do you have a story for The US Sun team? 725 MANAGEMENT LLC. These payments by HUD were artificially inflated as a result of the defendants fraudulent conduct," officials said. 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 Government argues that the Indictment is sufficient to put Herskowitz on notice as to the crimes charged in conjunction with his alleged involvement in the Exclusive Homes Scheme, including that he "wired funds to [the loan servicer in order to] complete three of the fraudulent short sale examples described in the Indictment," and "that the loan servicer, in violation of the short sale conditions it had imposed, was not told of the actual purchase price or the amounts paid to the Short Sale Co-Conspirators."
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