Pittsburgh Tenants Face Eviction As Landlord In Foreclosure Flees Country; Rent-To-Own Agreement Turns Out To Be Bogus

In Pittsburgh, Pennsylvania, KDKA-TV Channel 2 reports:

• A real estate tycoon who promised to revitalize a number of local neighborhoods has taken off to Brazil while many of his tenants are about to be kicked out into the streets because his properties are in foreclosure. Bernardo Katz, a former Brazilian opera singer, built a multi-million dollar real estate empire in our area, but now he's returned to his home country leaving the banks and his tenants holding the bag.

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• This week, 17 of Katz's properties went up for sheriff sale, including a home in Bethel Park where Eileen and Paul Karras thought they were building equity. Instead, Karras says their rent-to-own agreement with Katz turned out to be a fraud.

Reportedly, Katz is under investigation by the Federal Mortgage Fraud Task Force which includes the FBI, IRS and the U.S. Attorney's office. No charges have been filed to date.

For more, see Tycoon Flees To Brazil, Leaves Renters In Lurch.

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