A real estate fraudster is accused of seizing two Harlem brownstones now worth $4.7 million, forcing the real elderly owner to live in a homeless shelter.
Long Island man Joseph Makhani, 60, of Kings Point, was charged and charged with stealing two brownstones at West 118th Street and West 131st Street.
Makhani allegedly stole both houses in 2012 in a scheme that used forged and forged documents along with shell companies to cover up and carry out the thefts.
New York Attorney General Letitia James said Makhani claimed to have paid just $10 for each property according to New York State tax returns.
In reality, the homes had a combined value estimated at more than $4.7 million.
Joseph Makhani, 60, has been charged with stealing two Harlem brownstones through deed theft and mortgage fraud
At the $1.9 million home on West 118th Street, Makhani forged deeds and used other fraudulent documents, donating companies to steal the brownstone from an elderly and vulnerable owner
In Makhani’s second illegal property on West 131st Street, also obtained through forged documents, shell companies and other fraudulent tactics, the house was previously registered to an elderly owner who died in 1975
But Makhani’s actions went beyond just owning the buildings and resulted in a frail and elderly homeowner, Veronica Palmer, 81, being forced to live in a homeless shelter.
Palmer, a former city jail officer, is the real owner of one of the properties, now valued at about $2.9 million, but authorities and family members have been unable to reach her.
Palmer’s younger brother John Jackson, 78, told the New York Post he believes his sister has been mentally ill for decades, but knows she would never have sold the brownstone.
“We’re worried about Ronnie and finding her,” Jackson said.
Jackson explained how Palmer had repeatedly shunned help from family and mental health professionals and at one point was living without heat, water and electricity, ending up in a homeless shelter in Brooklyn.
Makhani claimed to have paid just $10 for each house, which is now valued at $2.29 million and $1.9 million
Joseph Makhani is indicted in the Manhattan Supreme Court on a seven count indictment by Attorney General Letitia James
Joseph Makhani is charged with mortgage fraud for stealing the home of 81-year-old Harlem resident Veronica Palmer by offering her $10 for the property she never received
State Attorney General Letitia James is pictured Monday in the Manhattan Supreme Court
In the other building that Makhani claimed to own, he tried to evict tenants, causing them stress and confusion.
Makhani was arraigned Monday in the New York County Supreme Court, where he pleaded not guilty to two counts of first-degree criminal possession of stolen property and one count of first-degree fraud.
He faces a maximum sentence of 8 to 25 years in state prison.
“Shameless thieves like Joseph Makhani target vulnerable homeowners and steal their most valuable and personal belongings,” said Attorney General James.
“This crime harms entire communities, especially those affected by displacement and gentrification. The fear and confusion that erupts on New Yorkers when they learn that their home has been stolen from under them is something no one should have to experience. I will continue my efforts to crack down on deed theft and hold people like Joseph Makhani accountable.”
Makhani’s actions forced one of the building’s real owners to live in a homeless shelter, while Makhani collected $12,000 a month rent from the tenants.
“Shameless thieves like Joseph Makhani target vulnerable homeowners and steal their most valuable and personal belongings,” said Attorney General James
At the home on West 118th Street, Makhani forged deeds and used other fraudulent documents, and ransacked businesses to steal the brownstone from an elderly and vulnerable owner.
In a New York state tax return, a Makhani-controlled company claimed to have paid just $10 for the dilapidated brownstone, when the real owner would collect the cans from the street.
A mortgage application subsequently filed by Makhani falsely claimed that he paid $975,000 for the brownstone and then obtained a $650,000 construction loan for renovations.
Makhani then refinanced and received a $1.2 million long-term mortgage loan on the property he was using to renovate and convert into apartments.
Makhani then applied to the New York City Department of Housing Preservation and Development (HPD) to convert the building into market-standard rental apartments.
Between 2016 and 2023, Makhani rented out each unit for between $3,000 and $3,400 per month, allowing him to collect a monthly rental income of more than $12,000.
Meanwhile, the real owner of the brownstone, now worth about $2.9 million, lives in a Brooklyn homeless shelter and has never received any money from the rent.
In Makhani’s second illegal property on West 131st Street, also obtained through forged documents, shell companies and other fraudulent tactics, the house was previously registered to an elderly owner who died in 1975.
In 2012, Makhani approached one of the building’s tenants and told them he had purchased the brownstone.
Makhani secured the tenant’s signature by pretending to offer him a job before filing a new deed with a forged signature, misrepresenting the tenant as the owner.
As with the previous property, Makhani turned the brownstone over to a company he controlled before beginning to evict the tenants.
When Makhani’s ownership of the brownstone was questioned by those he coerced, he filed another fraudulent deed claiming that the heirs of the last registered owner transferred ownership to his company.
HPD sued Makhani in 2013 and was awarded a judgment of more than $1 million in 2015 for his failure to properly maintain the brownstone, estimated to be worth $1.8 million.
Instead of paying, Makhani left the property foreclosed by the City of New York.