2017-03-10 DOJ SDNY press_release 124 KB 8,386 chars

Manhattan U.S. Attorney Announces Extradition Of Defendant Charged With Fraud And Money Laundering In Connection With Deceiving Homeowners Into Selling Their Homes

Caption: United States v. Herzel Meiri

summary

Herzel Meiri, extradited from Ukraine in March 2017, was charged with wire fraud, bank fraud, and money laundering for deceiving distressed homeowners in the Bronx, Brooklyn, and Queens into selling their homes to his company Launch Development LLC under false promises of foreclosure relief, resulting in millions in illicit gains and luxury spending.

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Herzel Meiri orchestrated a fraud scheme through Launch Development LLC and the fraudulent Homeowners Assistance Service of New York (HASNY), tricking vulnerable homeowners—many elderly or in poor health—into signing documents they believed would secure loan modifications or short-sale relief, but which instead transferred ownership of their homes to Meiri’s company at below-market values. The scheme, active since at least 2013, generated millions in illicit proceeds that Meiri laundered through shell companies and spent on luxury items, while victims were often misled into thinking they could repurchase their homes within 90 days or remain in them indefinitely. Meiri faces charges including conspiracy to commit wire and bank fraud and multiple counts of money laundering, with potential sentences of up to 80 years in total if convicted.

narrative

Herzel Meiri, extradited from Ukraine to the U.S. in March 2017, was indicted on fraud and money laundering charges for leading a scheme that preyed on distressed homeowners in the Bronx, Brooklyn, and Queens from at least 2013. Through the fraudulent entity Homeowners Assistance Service of New York (HASNY), Meiri and his co-conspirators falsely promised loan modifications or foreclosure relief to vulnerable victims, many of whom were elderly or in poor health, luring them to sign documents under the impression they were securing financial help. In reality, the documents transferred ownership of their homes to Launch Development LLC, a company Meiri owned and controlled, often without the homeowners understanding the legal consequences or even reading the papers—some of which were blank. Meiri misled victims into believing they could repurchase their homes within 90 days or remain as tenants, while the properties were quickly resold or refinanced, generating millions in illicit profits. These proceeds were laundered through shell companies and used to fund Meiri’s lavish lifestyle, including luxury purchases. Meiri was the seventh defendant indicted in the case, which involved multiple co-conspirators and spanned several years, drawing coordinated action from the FBI, SIGTARP, and the New York State DFS. He faces up to 80 years in prison on charges including conspiracy to commit wire and bank fraud and multiple counts of money laundering, with his arraignment scheduled before Magistrate Judge Ronald L. Ellis.

Enriched metadata

Scheme: affinity-fraud (90%)
Court: Southern District of New York
Outcome: indicted · 2016-03-16

Classified affinity-fraud(confidence 90%). EDGAR detection: forms Form D· recall 58% / precision 2%. detection rule →

Extracted insights

Entities 7

person christy goldsmith romero
agency Federal Bureau of Investigation
person fourth superseding indictment
person herzel meiri
person maria t. vullo
person Preet Bharara
person ukrainian authorities

Triples 16

Manhattan U.S. Attorney Announces Extradition Defendant Charged With Fraud And Money Laundering In Connection With Deceiving Homeowners Into Selling Their Homes
Herzel Meiri Charged With Advertising Help Those Seeking To Avoid Foreclosure In Order To Deceive Homeowners Into Selling Their Homes
Preet Bharara Announced The Extradition Herzel Meiri From Ukraine
Ukrainian Authorities Arrested Herzel Meiri On October 27, 2016
Herzel Meiri Indicted On March 16, 2016 Fraud And Money Laundering Charges In Connection With A Scheme To Fraudulently Induce Distressed Homeowners To Sell Their Homes
Herzel Meiri Arraigned In Front Of Magistrate Judge Ronald L. Ellis Today
Case Assigned To United States District Judge Edgardo Ramos
Herzel Meiri Was The Seventh Defendant To Be Indicted In Connection With The Scheme
Preet Bharara Said Herzel Meiri Allegedly Concocted A Callous Scheme To Swindle Desperate Homeowners Out Of Their Homes
Meiri Lied To His Victims Who Thought That They Were Getting The Financial Help They Needed But Instead Were Being Trick Into Signing Over Their Homes
FBI Supports Partnerships Within The Financial Industry And Law Enforcement As They Work Together To Combat This Serious Crime
Christy Goldsmith Romero Said Herzel Meiri Is Charged With Preying On Struggling Homeowners Trying To Avoid Foreclosure
Meiri And His Co-Conspirators Allegedly Promised Victims Mortgage Modifications When In Fact They Were Swindling Them Out Of Their Homes
Maria T. Vullo Said These Allegations Paint The Portrait Of A Con Artist Who Cold-Heartedly Preyed On Financially Distressed Homeowners
Department Of Financial Services Proud To Have Worked With Fellow Law Enforcement Partners In Helping To Bring This Defendant To Justice
Fourth Superseding Indictment Unsealed In November 2016 According To The Allegations In The Fourth Superseding Indictment

View original DOJ press releasejustice.gov

Extracted body text (8,386c)

Press Release Manhattan U.S. Attorney Announces Extradition Of Defendant Charged With Fraud And Money Laundering In Connection With Deceiving Homeowners Into Selling Their Homes Friday, March 10, 2017 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Herzel Meiri is Charged with Advertising Help to Those Seeking to Avoid Foreclosure in Order to Deceive Homeowners into Selling Their Homes Preet Bharara, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (“SIGTARP”), and Maria T. Vullo, Financial Services Superintendent for the New York State Department of Financial Services (“DFS”), announced today the extradition from Ukraine of HERZEL MEIRI, who was indicted on March 16, 2016, on fraud and money laundering charges in connection with a scheme to fraudulently induce distressed homeowners to sell their homes to a company he owned and controlled. MEIRI, who arrived in the District yesterday, had been arrested by Ukrainian authorities on October 27, 2016. He will be arraigned in front of Magistrate Judge Ronald L. Ellis today. The case is assigned to United States District Judge Edgardo Ramos. MEIRI was the seventh defendant to be indicted in connection with the scheme. U.S. Attorney Preet Bharara said: “Herzel Meiri allegedly concocted a callous scheme to swindle desperate homeowners out of their homes. As alleged, Meiri lied to his victims, who thought that they were getting the financial help they needed but instead were being tricked into signing over their homes. Thanks to our law enforcement partners – the FBI, SIGTARP, and DFS – Meiri is now in U.S. custody and will have to answer for his alleged crimes.” Assistant Director-in-Charge William F. Sweeney Jr. said: “When desperate homeowners fall prey to false relief schemes, their vulnerabilities are often exploited by those who seek to benefit from their misfortune. As alleged, Meiri’s behavior caused serious damage to struggling families who unknowingly funded his extravagant scheme. The FBI continues to support partnerships within the financial industry and law enforcement as we work together to combat this serious crime.” Special Inspector General for TARP Christy Goldsmith Romero said: “Herzel Meiri is charged with preying on struggling homeowners trying to avoid foreclosure. Meiri and his co-conspirators allegedly promised victims mortgage modifications when in fact they were swindling them out of their homes. SIGTARP thanks U.S. Attorney Bharara, Superintendent Vullo, and the FBI for their commitment to protecting taxpayers from TARP-related crime.” DFS Financial Services Superintendent Maria T. Vullo said: “These allegations paint the portrait of a con artist who cold-heartedly preyed on financially distressed homeowners – some of whom are among our most vulnerable – to satisfy his selfish greed. The Department of Financial Services is proud to have worked with our fellow law enforcement partners in helping to bring this defendant to justice.” According to the allegations in the Fourth Superseding Indictment, which was unsealed in November 2016, as well as the Complaints previously filed in this action[1]: Since at least 2013, MEIRI and his co-defendants have defrauded distressed homeowners throughout the Bronx, Brooklyn, and Queens. MEIRI and others falsely represented to these homeowners – some of whom were elderly or in poor health – that they could assist them with a loan modification or similar relief from foreclosure that would allow the homeowners to save their homes. But rather than actually assisting these homeowners, the defendants deceived them into selling their homes to Launch Development LLC (“Launch Development”), a for-profit real estate company owned and controlled by MEIRI. MEIRI and others lured victims through Homeowners Assistance Service of New York (“HASNY”), which purported to provide assistance to homeowners who were seeking to avoid foreclosure of their homes. As part of the scheme, MEIRI directed employees of Launch Development to solicit owners of distressed properties and invite them to meet with HASNY representatives so that they could learn more about avoiding foreclosure and saving their homes. When a homeowner arrived at the HASNY office, he or she met with a co-conspirator, who typically advised the homeowner that HASNY could assist him or her with a loan modification. In other cases, the homeowner was advised that a loan modification could not be completed, but that the homeowner could engage in a type of short sale in which the homeowner would sell the property to a third party, Launch Development, and then within approximately 90 days arrange for a relative of the homeowner to repurchase the property from Launch Development. Homeowners were typically advised that they could remain in their homes throughout the entire process. At the closing that followed, a homeowner who had been led to believe that he or she was about to receive a loan modification or transfer the property to a trusted relative was encouraged to sign documents presented by another co-conspirator, which in some cases were blank. Unbeknownst to the homeowners, by signing the documents, they were selling to Launch Development the homes they had hoped to save. Homeowners often were then forced to vacate their homes soon thereafter, and Launch Development re-sold many of the homes, which were purchased at fraudulently deflated prices, for an enormous profit. In addition, MEIRI and a co-conspirator transferred the proceeds of the home sales from Launch Development to other companies MEIRI owned and controlled, falsely describing the transfers as, among other things, rent payments. The proceeds were ultimately transferred back to Launch Development or spent on luxury items for MEIRI. MEIRI is charged with one count of conspiracy to commit wire fraud and bank fraud and one count of conspiracy to commit bank fraud, each of which carries a maximum term of 30 years in prison. In addition, MEIRI is charged with two counts of money laundering, one of which carries a maximum term of 20 years in prison and one of which carries a maximum term of 10 years in prison, and one count of conspiracy to commit money laundering, which carries a maximum term of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. * * * Mr. Bharara praised the outstanding work of the FBI, SIGTARP, and DFS for their investigative efforts and ongoing support and assistance with the case. The prosecution of this case is being overseen by the Office’s General Crimes Unit. Assistant U.S. Attorneys Jaimie L. Nawaday and Andrew Thomas are in charge of the case. The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. [1]Links to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. As the introductory phrase signifies, the entirety of the text of the Indictment and the Complaints, and the description of the Indictment and the Complaints set forth herein, constitute only allegations, and every fact described should be treated as an allegation. Updated March 10, 2017 Topics Consumer Protection Financial Fraud Mortgage Fraud Component USAO - New York, Southern Press Release Number: 17-078

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