A disbarred lawyer who has spent the past decade playing cat and mouse with prosecutors investigating deed theft was indicted for the third time in six years with defrauding homeowners.
Sanford Solny was charged Wednesday by Brooklyn District Attorney Eric Gonzalez with possession of stolen property, grand larceny and scheme to defraud. The case involves the theft of four homes from which Solny allegedly reaped nearly $2.3 million.
The scheme dates back to October 2012, a few months after the one-time lawyer lost his license for stealing $600,000 from an uncle before his death, the New York Daily News reported.
Between that fall and December 2022, prosecutors allege, Solny duped four Brooklyn homeowners facing foreclosure into turning over the deeds to 1247 Albany Avenue in East Flatbush, 10 Pleasant Place in Ocean Hill, 1429 East 100th Street in Canarsie and 1100 Sutter Avenue in East New York.
Read more
Commercial
New York
City subsidizing rent at deed fraudster's properties: report
Residential
New York
3 arrested in Queens deed theft ring, 5 at large: AG
Commercial
New York
NY AG pushes to criminalize deed theft
Solny would typically lure owners in by offering to arrange a short sale, in which owners in financial distress sell their home under lender-approved terms for less than they owe on the mortgage. In exchange, the lender drops the foreclosure action and forgives the balance of the mortgage.
But after the short sale, Solny’s targets would emerge still carrying debt.
In the case of the East Flatbush home, for example, the owner’s sister had signed off on the sale, but the property had a reverse mortgage and additional debt, the New York Times reported.
The deal closed for $35,000 but the sister said she only got $5,000 and the debt was not paid off.
In other instances, Solny would tell homeowners that the lenders required them to vacate the property for the short sale to occur. They would vacate, and he would transfer the deed to himself and start collecting rent on existing tenants or those he brought in.
When the duped owners would ask what was happening with the sale, he would tell them that negotiations were pending.
In all, Solny raked in nearly $64,000 leasing units he did not own, according to the Brooklyn DA.
The arraignment comes after Solny was charged with crimes related to deed theft in Queens in 2016 and in Brooklyn in 2020, the New York Times reported.
Deed theft, which lacks its own statute, is notoriously difficult to prosecute. Intent needs to be shown and victims often sign legally-binding documents, allowing perpetrators to frame schemes as legal business deals.
Solny has been able to avoid jail, despite previous charges. He was sentenced to five years’ probation in Queens after pleading guilty to criminal possession. As of July, a verdict had not been reached in his previous Brooklyn case.
In the latest case, Solny is due in court March 22.