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. Million Dollar Listing's Fredrik Eklund QUITS show after fans called 's Mot. 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. Age: 32 We've received your submission. iskyo aronov million dollar listing patton development company. The "groupings" are: (1) "[f]rom approximately December [of] 2012 through December [of] 2016, [Aronov, Konstantinovskiy and Tarshish], together with others, worked on fraudulent short sales coordinated by [Aronov] where the primary beneficiaries of the Short Sale Scheme were the owners of MIP," and (2) "[f]rom approximately January [of] 2014 through January [of] 2019, [Aronov, Tarshish, Dafna and Herskowitz], together with others, worked on fraudulent short sales where the primary beneficiaries of the Short Sale Scheme were [Dafna and Tarshish]." UNITED STATES OF AMERICA, v. ISKYO ARONOV, MICHAEL KONSTANTINOVSKIY, TOMER DAFNA, AVRAHAM TARSHISH, and MICHAEL HERSKOWITZ, Defendants. Borovinsky identified himself as a co-founder with Aronov of My Ideal Property. P. 7(c)(1); United States v. Dupree, 870 F.3d 62, 70 (2d Cir. Fed. Historical queries, urban legends, clarification on rumors let us do the research for you! Heather's Instagram is filled with beautiful homes in the LA area that range from $1.6 million to well over $15 million. Looking for work in Brooklyn with a Two of them also were released on bond, including Michael Herskowitz, a 40-year-old Brooklyn lawyer. (Def. And those deals looked solid by association. provisions of the FCA. Tracy Tutor Re-Creates Josh Altman's I Sell the Dream Music Video 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. Realtors List thanks to the incredible $237 million he made in sales this year. The complaint alleges that the defendants Iskyo Aronov, Ron Borovinsky and Michael Konstantinovskiy ran a wide-ranging mortgage scheme to defraud the Federal Housing Administration (FHA) of the US Department of Housing and Urban Development (HUD). 19 (citing Ind. R. Crim. Id. Love Brooklyn? ("Counts Three through Seven"). 's Mem. Contact Lukas Vrbka at tom.gara+lukasvrbka@buzzfeed.com. Accordingly, the Court denies Herskowitz's motion to dismiss Counts Two, Four, Six, and Seven. 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. 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. 2002)). 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. Million Dollar Listing Los Angeles has undergone a cast shakeup. Official websites use .gov 2005))); Coffey, 361 F.Supp.2d at 111 ("[T]he validity of an indictment is tested by its allegations, not by whether the Government can prove its case." 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. 15-CV-611, 2017 WL 237651, at *5 (S.D.N.Y. 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 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. "[C]ommon sense and reason are more important than technicalities" and the indictment "need not be perfect." 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. USA v. Aronov (1:19-mj-03447), Florida Southern District Court 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. After the sale is approved, HUD covers the outstanding mortgage balance,plus approved costs and interest, using federal funds. U. S. Files Civil Fraud Suit Alleging Mortgage Fraud Scheme January 4 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." Lock Queens Village, New York, Michael Herskowitz He was sentenced to six years in federal prison and will begin serving time by June 5. This Office will continue working with our law enforcement partners to vigorously prosecute those who commit mortgage fraud and enrich themselves at the expense of the financial institutions and government programs that insure or guarantee the loans. Mr. Donoghue thanked the United States Department of Homeland Security, Homeland Security Investigations, New York Field Office (HSI), the HSI El Dorado Financial Crimes Task Force and the Internal Revenue Service, Criminal Investigation, New York, for their assistance in the ongoing investigation. 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. 1S8C HOLDINGS LLC. 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 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. 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." Michael Herskowitz Age: 40 Brooklyn, New York For starters, Million Dollar Listing LA star Josh Flagg made the Hollywood Reporter 's Top 30 L.A. 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. 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. 183.). 175 VERNON AVE. INC. 308 LINDE ST. LLC. 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. The Brooklyn Daily Eagle and brooklyneagle.com cover Brooklyn 24/7 online and five days a week in print with the motto, All Brooklyn All the Time. With a history dating back to 1841, the Eagle is New York Citys only daily devoted exclusively to Brooklyn. 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. After the approved short sale, HUD covers the outstanding mortgage balance not covered by sale proceeds using federal funds. 'Million Dollar Listing' star Josh Flagg scores $9M home after But that can be a long road, and one more difficult if borrowers were deep in debt. P. 12(b)(3)(B); United States v. Aleynikov, 676 F.3d 71, 75-76 (2d Cir. The home. Families with children account for 61% of New York Citys unhoused people, or 34,456 of 56,334 total, according to thedaily census. 's Reply") 2, Docket Entry No. Box 235000, Montgomery, AL 36123-5000 Contact Lisa Riordan Seville at tom.gara+lisariordanseville@buzzfeed.com. Five real estate professionals indicted on mortgage fraud charges 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. 139.) Have a question about Government Services? The governments complaint intervenes in a lawsuit originally brought by under the qui tam provisions of the FCA. 41 Woodbine St., a flipped house in the Bed-Stuy neighborhood of Brooklyn. Herskowitz is charged in five counts of a seven count Indictment - Count One (the MIP Scheme), Count Two (the Exclusive Homes Scheme), (see Id. Its hard, when you like a person, to consider him a crook.. 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. 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. 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. United States v. Ghayth, 709 Fed.Appx. 74, 78 (2d Cir. 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. Brooklyn mortgage scam inflicts million-dollar damages to the FHA The US Attorneys Office for the Eastern District of New York charged the men with conspiracy to commit wire fraud and bank fraud. As one of the franchise's original cast members, Fredrik was a huge part of Million Dollar Listing's success. (Ind. Bond recommendation/set: Iskyo Aronov (1) $500,000.00 w/10% w/Nebbia. Herskowitz argues that because the factual allegations in the Indictment make clear that "he was not one of those [Defendants] involved in the MIP Scheme," (Def. New York state also passed legislation this year meant to better protect homeowners who had been the target of predatory investment or fraud. In the process, defendants made a host of material misrepresentations in critical transaction documents. Many of the affected mortgage loans were insured by the Federal Housing Administration, or owned or guaranteed by Fannie Mae or Freddie Mac. I figured he knows what hes doing.. Million Dollar Listing is an American reality television series franchise on the Bravo network. 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. Have an opinion? He paid a $281,000 settlement in the Florida case and pleaded guilty to a disorderly conduct violation in the second. 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. How Million Dollar Listing Sparked Tracy Tutor's Divorce - E! Online In a complaint unsealed today, Aronov, Borovinsky, Konstantinovskiy, and companies that . In 2012, Josh Altman, Matt Altman, and Heather Altman made their " I Sell the Dream" music video to benefit the . of Def. Million Dollar Listing - Wikipedia ("Counts One and Two"), and substantive counts of wire fraud related to specific transactions in violation of 18 U.S.C. 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! Miami, Florida, Michael Konstantinovskiy (also known as Michael Kay) 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 locked padlock Can He?" "In turn, HUD paid the lenders claims for FHA insurance from federal funds. Aronov The scam in Monday's lawsuit caused millions of dollars in damages to the Federal Housing Administration since the men would file false or. Then, with the original owners gone, the partners performed fast gut renovations, installing modern fixtures and marble counters, and resold the homes for north of a million dollars. Transcript may be viewed at . VC FL FUND LLC :: Florida (US) :: OpenCorporates See Wey, 2017 WL 237651, at *5 ("An indictment does not 'have to specify evidence or details of how the offense was committed.'" 2000)). A pal of DAlessios told The Post that the developer, now 53, paid his driver to chauffeur a friend, who was too injured to fly, from Colorado to New York. 12, 14.) 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. Email address: drroyofcr@gmail.com. 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. Tyler Whitman of "Million Dollar Listing: New York" has experienced quite the transformation during his time on the hit reality series. He was successfully renovating apartment buildings on the Upper East Side, as well as homes in blue-chip Westchester and beachfront Hamptons. Copyright 1996-2023 KM Business Information US, Inc. Is the shift to a buyer's market underway? 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. 27-33. 28, 28(d), 32, 32(f)), in addition to 177 Lewis Avenue, (id. We already knew that one longtime cast member was leaving the show and now two more. The United States filed a civil complaint against three New York men accused of running a years-long mortgage scheme that defrauded the government's housing agencies, the United States Attorney for the Eastern District of New York announced. (Def. The scheme, which centered on the neighborhood of Bedford-Stuyvesant, was first laid out in a BuzzFeed News investigation. 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. From "Mayor Adams wants to reassess New York's right to shelter. The individual defendants used various corporate entities in furtherance of the fraudulent scheme. f 42.). Still, at least one investor has sympathy. If 25).) Meet the full cast for Bravo's Million Dollar Listing Los - MEAWW (Id. Aronov was arrested in Florida, and will appear this afternoon for a removal hearing at the federal courthouse in Miami. Aronov appeared in court in Miami and his bond was set at $500,000, according to court papers. (citing United States v. Messina, No. The complaint, unsealed Tuesday afternoon by U.S. 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 of Housing and Urban Development (HUD). On today's episode of Just the Sip, Million Dollar Listing Los Angeles star Tracy Tutor revealed how her reality TV career indirectly played a part in her divorce from Jason Maltas. In May 2018, he filed Chapter 7 bankruptcy, sending eight of his properties into foreclosure. 'Million Dollar Listing' agent's wife arrested for domestic violence 11). In support, Herskowitz argues that although he is charged in Counts One, Four and Seven as related to the MIP Scheme, the Indictment does not allege that he "participated in the actual arrangements for either the 1219 Jefferson [Avenue] 2403 Dean [Street] sales, which the Indictment makes clear were done exclusively by co-Defendants Tarshish, Dafha and Aronov." But the checks arrived like clockwork even as it seemed too good to be true. 2001)); Faison, 393 Fed.Appx. The New York Post reported last month that his firm scored its first (multi) million-dollar listing: 355 Ocean Boulevard, the largest single-family oceanfront property in Miami. 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." Jan. 18, 2017))). 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. Aronov was the founder, CEO and president of defendants My Ideal Property Inc., My Ideal Property Group LLC and MIP Management Inc., and also controlled other affiliated corporate entities that he allegedly established to help him fraudulently acquire residential properties, according to the complaint. (quoting De La Pava, 268 F.3d at 162)). 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. United States v. Faison, 393 Fed.Appx. 1.1 196. U. S. Files Civil Fraud Suit Alleging Mortgage Fraud Scheme 19-CR-0408,, Full title:UNITED STATES OF AMERICA, v. ISKYO ARONOV, MICHAEL KONSTANTINOVSKIY, TOMER, Court:UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK. \ 19), and specifically alleges that Herskowitz was involved in the purchase of 1219 Jefferson Avenue and 2403 Dean Street, (id. He considers his cars as his most prized possessions. (718) 254-6323. (first citing United States v. Williams, 453 Fed.Appx. 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 of Housing and Urban Development (HUD). ISKYO ARONOV (also known as Isaac Aronov) (citing Costello v. United States, 350 U.S. 359, 363 (1956))). 25). Fed. 718, 723 (2d Cir. The act also permits the government to intervene in such actions, as the government has done in this case. 11-CR-31, 2012 WL 463973, at *4 (E.D.N.Y. 's Mem. The buildings were on blocks where all my rich friends lived, recalled one insider who lost $200,000. Many of these homes were located in economically challenged areas of New York where affordable housing is at a premium.. (Id. See, e.g., United States v. Aronov, No. 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. Many fans have already claimed that they won't be tuning into the show now that he is gone. 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. 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