NEW YORK CITY— Brooklyn real estate developer Daniel Melamed pleaded guilty to a 13-count indictment on Monday.

Melamed confessed to engaging in real estate schemes that defrauded banks and the US Department of Housing and Urban Development by creating shell corporations and forging documents to illegally purchase and sell multiple Brooklyn properties between 2011 and 2014. New York Attorney General Eric Schneiderman brought charges against Melamed in November 2016.

In a Brooklyn court, the defendant pleaded guilty to residential mortgage fraud; two counts of grand larceny; four counts of forgery; four counts of criminal possession of a forged instrument; and two counts of attempted grand larceny.

Melamed with Carmen Morales and Abraham Perez created and submitted false documents which fabricated Perez's income and created the appearance that he intended to occupy 185 Hale Ave. in Brooklyn, which was a requirement to receive the HUD loan. Based on the false submissions, Perez was approved for the loan, and within two years defaulted. HUD, a taxpayer funded agency, paid more than $480,000 to cover the loss.

Melamed and David Soufeh reached out to individuals who were in foreclosure, promising them under the table cash and relief from mortgage debt. Melamed, Soufeh, Curt Joseph and Denise Morales created and submitted multiple false documents.

Melamed and Denise Morales cut and pasted signatures of bank employees and letterhead from banks onto false proof of funds letters. Melamed, using a fraudulent corporation set up to look like an entity owned by Denise Morales, illegally purchased property for $250,000 in 2013 and sold it a year later for $1,250,000.

Melamed, Denise Morales and Christopher Magliocca attempted to deceive JP Morgan Chase into approving a short sale of property owned by Melamed's mother to a corporation controlled by Melamed.

Melamed pleaded guilty before State Supreme Court Justice Danny Chun.

Back in June of this year, following a bench trial before Judge Chun, Melamed was found guilty of three counts of unlawful eviction of rent-stabilized tenants from a 14-unit multifamily building at 1578 Union Street in Crown Heights. Melamed had purchased the building in 2012 for $1.6 million, then proceeded to turn off the heat and perform illegal demolition and renovation work, driving all but three families to leave the apartment.

He continued the demolition and construction work around the existing tenants, which included a six-year-old child. He endangered their health by exposing them to hazards including toxic, lead paint dust. Melamed had been arrested in June 2015 in the first case brought with the assistance of New York City's Tenant Harassment Prevention Task Force.

According to The Brooklyn Daily Eagle, Judge Chun gave Melamed the option to pay a $200,000 fine at his sentencing date to reduce his time behind bars to only 20 days. He would also be barred from buying or selling rent-controlled properties while on probation.

Prosecutors argued for more jail time as a deterrence to possible future offending conduct. Defense attorney Kevin Keating argued his client had handled transactions of more than 800 properties without incidents.

Melamed will be sentenced by Judge Chun for both the unlawful eviction and fraud cases on Jan. 25, 2018. Keating did not respond to GlobeSt.com's requests for comment and additional information.

Instant Insights /

Brooklyn Real Estate Developer Defrauded HUD and Banks

Related Stories

Recommended For You