NY AG Files Suit In Buffalo Home Flipping Scam

New York Attorney General Andrew M. Cuomo announced on Wednesday the area’s first major house flipping lawsuit against

• "East Coast Capital (ECC), LLC and others of defrauding unknowing investors through an elaborate Ponzi scheme involving over 50 properties throughout Buffalo. In the scheme, high returns are paid to investors with money paid from other investors instead of actual profits from the real estate venture. ECC duped investors by promising high returns if they invested in distressed real estate by providing mortgages that – also unknown to the investors – grossly exceeded the market value."

For more, see:

NY AG's Press Release - East Coast Capital’s Ponzi scheme netted over $2 million while blighting Buffalo neighborhoods

The Buffalo News - Cuomo suit alleges plan to defraud investors in ‘house flipping’ scam (no longer available online).