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Landlord Indicted for Mortgage Fraud
April 11, 2017
Dean Galasso, owner and operator of several New York City apartment properties, has been indicted on six felony charges, including mortgage fraud. “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,” said Attorney General Eric Schneiderman.
The case started when tenants complained of harassment and unsafe conditions at 43 Essex St., a tenement building on Manhattan’s booming Lower East Side.
That got the attention of New York’s multi-agency Tenant Harassment Prevention Task Force. They found evidence that Galasso allegedly lied in an application to Investors Bank to obtain a $5-million mortgage to finance the purchase of the 10-unit building. That works out to $500,000 of debt per apartment. Galasso allegedly faked the rent roll for the building and certain apartments leases, to make it appear the building was producing enough income to support his acquisition loan.
Pictured: Eric Schneiderman.
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