Consumer warning: Real estate fraud schemes target Dominicans

April 17, 2024 Robert Abruzzese, Courthouse Editor

U.S. Rep. Adriano Espaillat collaborates with Attorney General Letitia James to alert New Yorkers about real estate scams specifically targeting the Dominican community, urging vigilance and due diligence in property investments. Wikimedia photo by Annemarie Meltzer

Share this:

Attorney General Letitia James and U.S. Rep. Adriano Espaillat issued a warning to New Yorkers about real estate scams targeting the Dominican community following charges against businessman Emmanuel Rivera Ledesma. Rivera Ledesma was accused of defrauding nearly 150 people through his company, InDisArq, by offering fraudulent real estate deals in the Dominican Republic and the U.S.

The scam involved advertisements for nonexistent properties or properties sold to multiple buyers, from which Rivera Ledesma collected millions in deposits. The schemes primarily targeted Dominicans residing in the U.S., affecting about 24 New Yorkers directly.

Victims are urged to report their experiences to the Office of the Attorney General (OAG), which will coordinate with Dominican authorities handling the prosecution.

“New Yorkers should always be suspicious of speculative real estate deals where they are asked to buy property sight unseen,” said Attorney General James. “Purchasing real estate abroad can be complicated and expensive, and individuals should take precautions to ensure they are working with legitimate brokers. I thank Congressman Espaillat for notifying my office of this issue, and am proud to work with him to ensure the victims of this scam get justice.”

The Attorney General and Congressman Espaillat recommended several precautions for potential investors to avoid falling victim to real estate scams:

Use Google, the Better Business Bureau and social media searches to verify the legitimacy of the real estate opportunity.
Personally inspect the real estate premises and project site to assess the feasibility and current status of the project.
Visit the business’ physical offices to confirm its operational status.
Speak with previous and current clients of the entity or individuals offering the investment to unearth any potential issues.
Consult with trusted legal professionals to verify property ownership, understand legal documents and terms, and conduct background checks on the entities involved.
Keep all records of communications, documents and financial transactions related to the investment.
Avoid cash transactions, and remain cautious of deals that seem too good to be true.