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'Scourge' of Property Fraud Robs Bed-Stuy Owners of Homes, Advocates Say

By Camille Bautista | November 17, 2016 3:44pm
 Richard Flateau (center), founder of Flateau Realty Corp., recalls his experience of falling victim to property fraud after his signature was forged on a power of attorney document for his building.
Richard Flateau (center), founder of Flateau Realty Corp., recalls his experience of falling victim to property fraud after his signature was forged on a power of attorney document for his building.
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DNAinfo/Camille Bautista

BEDFORD-STUYVESANT — A "scourge" of property fraud which is conning Bed-Stuy owners out of their homes has community leaders working to stamp out the crime.

“We know that we have some of the most valuable real estate in the city and the state of New York,” central Brooklyn Councilman Robert Cornegy said. He called the problem a "growing scourge" that often targets the elderly.

“It started by little, subtle ways that people would offer you money, and now they’ve gotten so aggressive that they’re literally defrauding deeds and forging people’s signatures and literally outright stealing people’s properties. And we can’t stand for that.”

Elected officials, real estate brokers and representatives of the Brooklyn District Attorney’s office, the Brooklyn NAACP and other community stakeholders came together in front of 1424 Fulton St., near Brooklyn Avenue, Thursday to tell locals about resources available to victims.

Brokers Richard Flateau and Gloria Sandiford became the latest targets in the neighborhood after Flateau’s signature was forged on a new power of attorney document for their Fulton street building, they said.

Flateau, who founded of Flateau Realty Corp., and Sandiford, president of the Bedford-Stuyvesant Real Estate Board, have hosted a series of panel discussions in the neighborhood warning residents of the crime.

Organizers Thursday asked locals to speak up and seek help if they came across suspicious activity related to their properties.

“They are directly targeting our neighborhoods, they are looking for you not to respond," said L. Joy Williams, president of the Brooklyn chapter of the NAACP.

"They want you to be silent. And we want you to speak up and we will stand with you to preserve what is rightfully yours.

“We want people prosecuted for attempting to steal what is ours in the community.”

Several owners along Bed-Stuy’s Business Improvement District have fallen victim to fraud, said Michael Lambert, executive director of the BID.

“This is a neighborhood right now that is undergoing a lot of positive direction and this is something, I think, trying to pull on the coattails of that forward momentum.”

Both Flateau and Sandiford encouraged owners to register with the Automated City Register Information System, or ACRIS, which will alert them to any new documents filed on their properties.

Residents can contact real estate organizations in the neighborhood for advice, Sandiford said.

“I know of people that I literally cry with, that they’ve walked away from their home of 70 years because they do not know who to turn to,” she said.

“We are here for you working every day, professional real estate brokers see this kind of behavior every day and I can tell you that it’s very serious and you are not alone.”

Others urged residents to reach out to elected officials and legal counsel if they are targeted, and to check in on elderly neighbors “for their financial health and safety.”

The City Register must record deeds that meet certain standards, which include that it be certified by a public notary, bear the seller’s signature and have all required documents, according to a February testimony from Jacques Jiha, the city’s Commissioner of Finance.

“There is not much room for us to negotiate the law. This is a challenge for municipalities throughout the country — their registrars, like our City Register, are legally obligated to record deeds that meet these basic standards,” Jiha said in his testimony.

The Department of Finance implemented steps to curb property fraud, such as training staff to review suspicious documents and installing cameras in offices where deeds are recorded.

In 2015, the agency oversaw 511 investigations of deed and property fraud citywide, 117 of which turned into criminal cases with the city’s district attorney’s offices, a DOF spokeswoman said. A total of 14 arrests were made, according to the agency.

Still, more needs to be done to combat the crime, community leaders said, with Cornegy adding that he is working on legislation to protect the privacy of deed holders.