Man Cops Plea To Using Forged Deed, Phony Mortgage Satisfactions, Unwitting Notary To Swipe Co-Owner's, Lenders' Interests In Bronx Comm'l Building

From the Office of the U.S. Attorney General (New York City/Southern District):

• PREET BHARARA, the United States Attorney for the Southern District of New York, announced that MARK M. BENUN pleaded guilty today in Manhattan federal court to perpetrating a mortgage fraud scheme involving the sale of a $5.9 million building on 161st Street in the Bronx.

According to the relevant court documents:

• In June 2006, BENUN and a real estate company operator (the "co-purchaser") purchased a commercial property located at 67-79 E. 161st Street, near Yankee Stadium, for approximately $9.5 million. BENUN bought the property with $4.5 million in cash that was contributed by the co-purchaser, and a $5 million mortgage to be paid by BENUN and the co-purchaser. The next month, BENUN and the co-purchaser obtained an additional $700,000 mortgage from the seller, and several months after that, BENUN obtained a $2 million line of credit from a bank, guaranteed by the co-purchaser and secured by a further mortgage on the property. BENUN held a 25 percent interest in the property; the co-purchaser held the remaining 75 percent interest.

• In 2009, BENUN, purporting to be the sole owner of the property, sold it for approximately $5.96 million to another buyer who paid $4 million in cash and gave BENUN a note for the remaining $1.96 million. Shortly after the sale, BENUN sold the note for $1.46 million. To establish his apparent sole ownership of the building, BENUN created false satisfactions of the three mortgages on the property, and a fraudulent transfer of ownership of the co-purchaser's 75 percent interest in the property to BENUN.

• BENUN persuaded a notary who worked across the hall from his office to notarize the forgeries, claiming that the individuals whose signatures were on the documents were stuck in traffic.

For the U.S. Attorney press release, see Property Owner Pleads Guilty In Manhattan Federal Court To Fraudulently Selling Bronx Building For $5.9 Million.