Michael Shah, principal at DelShah Capital
The real estate investment firm DelShah Capital, whose specialty is acquiring assets tied up in court, paid $3.4 million at auction for a package of 21 three-family homes located in Brooklyn’s East New York.
The houses were auctioned in Brooklyn after developer Thomas Kontogiannis pleaded guilty in 2010 in Brooklyn federal court to conspiracy to commit bank and wire fraud. Prosecutors said Kontogiannis orchestrated an illegal $92 million mortgage scheme using straw buyers and homes in Brooklyn and Queens, defrauding lenders DLJ Mortgage Capital and Washington Mutual. Nine people were charged in the alleged scam, eight of whom pleaded guilty, while one died in the course of the proceedings. A federal judge in 2011 said it appeared to be “one of the largest mortgage-origination frauds on record.” [more]