{"id":3261,"date":"2023-09-15T07:42:32","date_gmt":"2023-09-15T11:42:32","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=3261"},"modified":"2024-04-25T23:17:33","modified_gmt":"2024-04-26T03:17:33","slug":"deed-theft-crackdown-new-yorks-on-a-roll","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/deed-theft-crackdown-new-yorks-on-a-roll\/","title":{"rendered":"Deed Theft Crackdown: New York\u2019s on a Roll"},"content":{"rendered":"\n
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New York State Attorney General Letitia James is championing a cause near and dear to our hearts: safe and secure deeds.<\/p>\n\n\n\n

On the last day of July 2023, the A.G. announced an indictment of a Long Island resident for deed theft. Joseph Makhani faces two counts of criminal possession of stolen property and one count of fraud.<\/p>\n\n\n\n

Makhani allegedly filed forged deeds and related documents in order to take two Harlem brownstones. Makhani\u2019s state tax returns indicate that he got these homes for $10 a piece. The actual, combined value of the two buildings? More than $4.7 million.<\/p>\n\n\n\n

This isn\u2019t just about property value. Lives were upended. As A.G. James declared, \u201cThe fear and confusion unleashed on New Yorkers when they learn their homes have been stolen out from under them is something no one should have to endure…\u201d<\/p>\n\n\n\n\n\n\n\n

Shell Game: Using Companies to Hold Ill-Gotten Deeds<\/h2>\n\n\n\n

Over the past decade, New York City residents have reported hundreds of fake deeds each year, mostly in Brooklyn and Queens. These \u201cbad deeds\u201d are notoriously difficult to undo. One reason? Quick resales to third parties. Another, related complication is the way swindlers use shell companies to take ownership of the properties.  <\/p>\n\n\n\n

Makhani faces charges of stealing the two brownstones more than a decade ago, using shell companies to shield his ill-gotten gains.<\/p>\n\n\n\n

Brownstone #1: 107 W. 118th Street<\/strong><\/p>\n\n\n\n

Makhani has managed to take out multiple loans on this brownstone. He converted it into rentals, and has rented four units out \u2014 at $3K+ monthly per unit \u2014 for the past seven years. Makhani has assertively defended his position in court, saying his company has controlled this building continuously for more than a decade.<\/p>\n\n\n\n

Before that, the deed belonged to Veronica Palmer, a former New York police officer who bought the property for $85,000 in 1985. After losing the deed, an elderly Veronica Palmer was seen collecting cans in the streets and wound up in a homeless shelter, The New York Post<\/em> reported.<\/p>\n\n\n\n

You\u2019ll recall that Makhani claimed for tax purposes to have bought this building for $10. In a mortgage application, though, Makhani falsely claimed to have bought it for $975,000.<\/p>\n\n\n\n

Brownstone #2: 135 W. 131st Street<\/strong><\/p>\n\n\n\n

Here again, the alleged thief set up a shell company. This building was occupied. The renters received eviction notices from one of Makhani\u2019s shell companies. And when Makhani\u2019s rights to the building were challenged, he allegedly filed a forged deed to move the property into his company \u2014 a deed supposedly conveyed by the heirs of the building\u2019s last owner of record.<\/p>\n\n\n\n

Eventually, Makhani faced a court judgment for neglecting the property. When Makhani walked away from the building, New York City foreclosed on it.<\/p>\n\n\n\n

Makhani has pleaded not guilty to the stolen property and fraud charges. If convicted, he could be imprisoned in New York State for up to 25 years. Makhani, like all other defendants, is presumed innocent until found guilty in court.<\/p>\n\n\n\n

Bad Deeds Won\u2019t Go Unpunished, the A.G. Signals<\/h2>\n\n\n\n

Deed theft happens whenever someone transfers a real estate deed to someone else without the voluntary and knowing consent from a home\u2019s legitimate owner. Attorney General James is stepping up efforts to confront the deed swindlers who do it. Here\u2019s a brief timeline so far:<\/p>\n\n\n\n