Federal jury convicts Brooklyn business owner of real estate fraud

November 22, 2024 Brooklyn Eagle Staff

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DOWNTOWN BROOKLYN — A FEDERAL JURY IN BROOKLYN CONVICTED A BROOKLYN BUSINESS OWNER on Thursday, Nov. 21, of a multi-million dollar real estate fraud scheme. The verdict, followed by a 12-day trial before Chief United States District Judge Margo K. Brodie, convicts Avraham Tarshish of conspiracy to commit wire fraud and bank fraud, and related wire fraud counts, in connection with a scheme to defraud mortgage loan holders, including the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac). The defendant was an employee of My Ideal Property Inc. and an owner of Exclusive Homes Realty Group, Inc., Exclusive Homes NY, LLC and Homeowners Solutions Group LTD, Queens- and Brooklyn-based companies formed to buy and sell real property. As proven at trial, between March 2013 and November 2018, the defendant and others conspired to defraud mortgage lenders, misleading them into approving short sale transactions at fraudulently depressed prices. In a short sale, with the approval of the mortgage lender or servicer, a mortgage loan borrower sells his or her property for less than the outstanding balance of the mortgage loan. The defendant and his co-conspirators took steps to preclude other prospective purchasers from making higher offers for properties by failing to market properties as required by the lenders; placed fraudulent liens on properties; and further depressed the properties’ values by removing toilets and plumbing, and causing other forms of property damage.

When sentenced, the defendant faces up to 30 years in prison. Another co-defendant, 45-year-old Michael Herskowitz of Brooklyn, had pleaded guilty earlier this year.

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