White Plains developer sued for $17M over alleged fraud scheme

Already facing lawsuits over a failed condominium project in Manhattan, White Plains developer Michael P. D’Alessio has been hit with three new suits brought by seventeen investors who are seeking at least $17 million in damages. The new suits claim D’Alessio’s Michael Paul Enterprises defrauded investors with his plan to buy Manhattan townhouses and convert them into condos. D’Alessio had allegedly promised quick repayment for loans but investors filed their first suits in the case once he stopped making payments. In a letter to his investors, D’Alessio wrote, “I am terribly sorry for these turns of events,” blaming city inspectors and a changing market for delaying his projects. [WBJ]