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Update #2: Buffalo, NY, Landlord Finally Sentenced in Huge Real Estate Fraud Case
A Buffalo, New York, landlord who pled guilty in April to charges in connection with fraudulent real estate deals, has finally been sentenced. Fifty-one year-old Robert Palano was sentenced yesterday in New York State Supreme Court to serve one year in jail and pay $1.5 million in restitution.
As FlippingFrenzy.com first reported this spring, a 15-month civil investigation by New York state’s Attorney General’s office revealed that, between 1998 and 2002, Palano fraudulently obtained more than $4 million dollars in mortgage loans on 104 rental properties he owned on the Buffalo’s east side. After pocketing the loan proceeds, Palano took off for Florida, leaving at least ten lenders with defaulted loans secured by properties worth far less than the debt. By December of 2003, Palano had defaulted on all 104 loans and as a result, lenders were left holding collateral that was inadequate to pay off the balance.
The consequent foreclosures on Palano’s properties resulted in the eviction of dozens of families, and caused further blight in and around many neighborhoods as boarded up houses were left vacant for months.
Filed under: Mortgage Fraud,New York,Real Estate Fraud,Uncategorized
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I did time with Palano at alden… He’s not really such a bad guy.
Comment by J.H — April 5, 2007 @ 11:23 am