New York Attorney General Letitia James and New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas announced the preservation of an affordable housing cooperative development in Rockland County that was in danger of foreclosure.
According to a press release from James”™ office, a two-year investigation into the property at 18-36 Columbus Ave. in Spring Valley found that Russell Mainardi, a convicted mortgage fraudster, managed to get hired as a financial adviser by a former board president at the development. But Mainardi mismanaged the funds for his personal gains, which included setting up a phony property manager job for his girlfriend.
James and Visnauskas, working with the Rockland Housing Action Coalition (RHAC), the Community Preservation Corporation (CPC, and the law firm Nixon Peabody, were able to preserve and stabilize the property both financially and physically. As part of this settlement, Mainardi and his collaborators will pay $148,681 in restitution to the co-op and $250,000 in penalties. Mainardi will also be forced to vacate $696,647.00 in liens he had improperly placed against the property and will be banned from real estate development and financing on existing New York properties, while his girlfriend will be forced to resign as property manager.
“No one should be at risk of losing their home because of someone else”™s illegal and fraudulent actions,” said General James. “Mainardi and his associates scammed their way into managing this affordable building and put residents on the brink of losing their homes because of their fraud and deception.”
“Through no fault of their own, homeowners at 18-36 Columbus Ave. were at serious risk of foreclosure, long-term financial distress, and the loss of their hard-earned homes,” said Visnauskas. “The state”™s intervention has guaranteed that this cooperative will remain affordable, well-managed, and in good condition.”
Photo courtesy Apartments.com
