The owner of a small Manhattan property management company was arrested today and accused of stealing more than $1.3 million from the operating accounts of six clients, according to the office of the Manhattan district attorney.
Prosecutors claim Mark Modano, owner of Mark Modano LLC, co-mingled funds from buildings including 805 Madison Avenue between November 2003 and November 2008, and covered losses in one building using cash from others.
His responsibilities as manager included collecting rent, paying building expenses, renovations of apartment units and paying property taxes, authorities said.
He allegedly placed all the funds in larger master accounts, instead of maintaining them in separate accounts as required. He used the money from the master accounts for his own use, prosecutors said.
The greatest claim of fraud was at 805 Madison Avenue, between 67th and 68th streets, which lost $634,978, a spokesperson for the DA’s office said. The other properties he managed included 305-307 East 84th Street; 142 Duane Street; 172 East 80th Street; 12 West 18th Street; and 747 Ninth Avenue.
Modano was charged with multiple counts of grand larceny and scheme to defraud, and faces up to 15 years in prison if convicted of the most serious charge.