A property proprietor and supervisor are being punished for his or her roles in an actual property rip-off in Rockland County, in line with the lawyer basic.
Through the course of a two-year investigation, the New York Legal professional Basic’s workplace discovered that an reasonably priced housing cooperative improvement in Spring Valley was at risk of foreclosures on account of unlawful misuse of co-op funds by Russell Mainardi and his girlfriend, who was performing as a property supervisor for the co-op.
The investigation discovered that in 2014, Mainardi satisfied the previous board president to rent him to help the co-op with its funds however charged inflated charges. They are saying Mainardi misrepresented his expertise and background, having by no means labored with a low-income co-op and hiding his felony conviction for mortgage fraud and tax evasion. He then put in his girlfriend right into a place as a “no-show” property supervisor, double billing the co-op for a similar administration duties allegedly carried out by each of their entities. Mainardi additionally arrange the board president in order that he was paid a wage because the superintendent and didn’t need to pay any upkeep for his co-op unit, in violation of the co-op board guidelines.
Beneath an settlement with the state, Mainardi and his collaborators had been ordered to pay $148,681 in restitution to the co-op and $250,000 in penalties. The settlement additionally requires Mainardi to vacate $696,647 in liens he had improperly positioned towards the property. It additionally forces his girlfriend to resign as property supervisor and completely bans Mainardi from actual property improvement or financing exercise in present residential properties in New York.
