Five people have been indicted in connection with an alleged real estate investment scheme that defrauded victims of nearly $3 million, including money tied to the purchase and sale of a Long Island property, Queens District Attorney Melinda Katz announced Thursday, Oct. 8.
The defendants allegedly convinced investors to take out loans and obtain credit cards to fund a company called World Business Holdings, which claimed to purchase distressed properties, renovate them and sell them for profit. Instead, prosecutors said, much of the money went toward personal expenses and maintaining the appearance of a legitimate business.
According to prosecutors, Mauricio Villamarin, 55, of Maspeth, and Julian Velez, 46, of Rego Park, recruited investors by promoting the company’s real estate ventures. The two also taught courses on entrepreneurship and real estate investing to attract potential victims.
When prospective investors said they lacked the necessary funds, Villamarin and Velez allegedly directed them to a consultant who could help obtain loans and credit cards in their names. Investors were told the company would cover their monthly loan and credit card payments through Zelle until their investments became profitable.
Linoshka Guzman, 35, of the Bronx, allegedly visited victims’ homes to complete loan and credit card applications, sometimes accompanied by Villamarin. Prosecutors said the defendants inflated applicants’ incomes to secure larger loans and higher credit limits.
Long Island property involved in alleged scheme
Some investors were told their money was being used to purchase and renovate specific properties in Corona, Long Island and Westchester County.
Investigators determined that the defendants never purchased the identified properties in Corona or Westchester County. However, records showed that a company controlled by the defendants did purchase, renovate and sell a property on Long Island.
Rather than use the proceeds for the investors’ benefit as promised, prosecutors said the defendants diverted the money into bank accounts they controlled.
The district attorney’s office did not identify the Long Island property’s address or municipality.
Prosecutors also alleged that the defendants fraudulently transferred ownership of a Connecticut couple’s home to a company they controlled by using the couple’s signatures and a fake notarization stamp. They subsequently obtained a mortgage on the property without the couple’s knowledge. The family now faces possible foreclosure.
Investigators said some of the money was spent on office rent in Long Island City, while other funds paid for restaurants, airfare, hotels, transportation, Netflix and luxury purchases from retailers including Louis Vuitton.
Victims were allegedly left with substantial loan and credit card debts. Some faced lawsuits from lenders, damaged credit and bankruptcy.
Five defendants face charges
The defendants were charged in a 78-count indictment that includes varying counts of first-degree criminal possession of stolen property, fourth-degree conspiracy, first-degree scheme to defraud, first-degree identity theft, first-degree falsifying business records and second- and third-degree grand larceny.
In addition to Villamarin, Velez and Guzman, the indictment names Diana Leal, 44, formerly of Jackson Heights and now of Florida, and a 61-year-old defendant formerly of Forest Hills who remains at large.
Three defendants were arraigned Oct. 6 before Queens Supreme Court Justice Leigh Cheng and are scheduled to return to court Oct. 29. One defendant was apprehended in Florida and is awaiting arraignment, while another remains at large.
Each defendant faces up to 25 years in prison if convicted.
The investigation involved the Queens District Attorney’s Office, the U.S. Secret Service and the NYPD’s Financial Crimes Task Force.
The charges are allegations, and the defendants are presumed innocent unless proven guilty.
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