DA says NY mortgage fraud had link to S&M club
Legal News Center
Five people, including a former county legislator and a woman said to be a dominatrix, are facing charges they participated in a $50 million mortgage fraud scheme involving several dozen Hamptons properties over the past seven years.
The frauds involved so-called "straw buyers" — people who received a fee for agreeing to use their name and credit information to obtain mortgages on dozens of properties. Such scams have proliferated around the country in recent years, although rarely in such a high-profile location as Wednesday's bust.
The Hamptons have long been a getaway for the rich and famous, with celebrities and wealthy New Yorkers spending exorbitant amounts of money on mansions and summer rentals. Prosecutors said some of the homes that were rented to vacationers were fraudulently purchased through the mortgage fraud scheme.
The straw buyers either filled out phony loan applications claiming inflated or nonexistent incomes — in one case claiming a salary of nearly $450,000 a year — or said they were employed by corporations controlled by some of the schemers, Spota said.
One of these companies was identified as Arena Studios, Inc. a Manhattan business that at one time provided dominatrix services, the prosecutor said. Another source of straw buyers was a company called Maximum Restraint Films.
Related listings
-
Peter Madoff’s Assets Frozen by Judge in Investor’s Lawsuit
Legal News Center 03/26/2009The brother of convicted Ponzi scheme mastermind Bernard Madoff had his assets frozen by a New York state judge as part of a $2 million lawsuit filed by an investor who lost $470,000 in Madoff’s fraud. New York Supreme Court Justice Stephen Bucaria y...
-
Arizona high court rejects private school vouchers
Legal News Center 03/26/2009The Arizona Supreme Court has ruled that two school voucher programs violate the state's constitution. The vouchers have helped cover the cost of private school for foster children and disabled students. The justices ruled Wednesday that the programs...
-
Lawmakers soften opposition to bonuses
Legal News Center 03/26/2009Lawmakers are softening their stance on denying bonuses to employees of bailed-out financial institutions after President Barack Obama warned them against alienating the industry. Less than a week after pushing through legislation to impose a 90 perc...
New Rochelle, New York Personal Injury Lawyers
If you or a loved one has been injured in an accident, contact Kommer, Bave & Ollman, LLP, in New Rochelle, New York, immediately. We can answer all your questions and work with you to determine if you have the grounds for a personal injury lawsuit. The attorneys at our firm are determined to resolve even the most difficult of cases. We will work closely with you to determine the best course of action to get your claim or case resolved in the most efficient way possible. We will fight for your right to compensation! No one should have to suffer a financial burden from the result of another person’s carelessness. The attorneys at Kommer, Bave & Ollman, LLP will aggressively fight to ensure that justice is served on your behalf.