Guilty plea in $1M real estate scam

May 17, 2010 05:12PM

One of two men charged with running a $1 million real estate scam from an office in the tower at 230 Park Avenue in Midtown pleaded guilty today, authorities said.

Sharmon Wade, of Jamaica, Queens, admitted to enticing individuals into giving him and a partner $1 million using bogus claims that they would as much as double investors’ money in 60 days, without any risk, through investments in commercial real estate such as a nail salon and a church, the office of the Manhattan district attorney said.

Wade was a principal with Covenant Equity Group, a bogus company prosecutors said was created to profit from the fraud. The company did not invest any of the money. Actual addresses were not provided by authorities.

Wade and co-defendant Claudius Hannah were arrested and charged in March 2009 with the scheme. Charges against Hannah remain pending, court records show.

Wade, 37, pleaded guilty to grand larceny, securities fraud, scheme to defraud and violation of tax law, authorities said. He faces up to 15 years in prison for the most serious grand larceny charge. TRD