LES landlord indicted for mortgage fraud

Dean Galasso allegedly lied about rent roll to land $5M loan

New York /
Apr.April 07, 2017 08:32 AM

New York State Attorney General Eric Schneiderman charged a Lower East Side landlord with lying about his rent roll to land a $5 million mortgage.

According to a statement released Thursday, the AG accuses Dean Galasso of submitting forged documents inflating the rental income at the multifamily walkup 43 Essex Street to land an acquisition loan from Investors Bank. He bought the building for $6.9 million in 2014, records show.

The mortgage fraud charges stem from an investigation into tenant harassment at the 10-unit property. Residents accused Galasso of turning off cooking gas for a year, as well as heat and hot water ahead of a January 2016 snow storm.

“Bad landlords are now on notice: if you attempt to break the law, we will find you and prosecute you to the fullest extent of the law,” Schneiderman said in a statement. [NYP] — Konrad Putzier


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)
Hudson Yards megadevelopment inspires a new line of sex toys
Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Vornado’s Steve Roth and 888 Seventh Ave (Getty, Google Maps, iStock)
Vornado sues Hongkun USA, seeking $1.1M in rent
Vornado sues Hongkun USA, seeking $1.1M in rent
Mauricio Umansky, Rainy Hake Austin and Robert Reffkin (Getty)
The Agency sues Compass for blocking exec from recruiting former colleagues
The Agency sues Compass for blocking exec from recruiting former colleagues
SmartRent's Lucas Haldeman and Fifth Wall's Brendan Wallace (iStock)
What SmartRent’s $2.2B SPAC means for multifamily
What SmartRent’s $2.2B SPAC means for multifamily
US developers face Israeli bond market reckoning
From slam dunk to junk: US developers face Israeli bond market reckoning
From slam dunk to junk: US developers face Israeli bond market reckoning
Signature Bank CEO Joseph DePaolo (Getty, Google Maps, iStock)
Signs of success, trouble for property lender Signature Bank
Signs of success, trouble for property lender Signature Bank
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...