New York homeowners now have additional shields from deed theft with a new law on the books taking effect.
Attorney General Letitia James recently revealed the expansion of her ability to prosecute anyone who steals a property owner’s home title or deed in the state.
There are infrequent reports of scammers who have forged the fake signatures of homeowners onto a deed or stories of financially desperate homeowners who were talked into signing the title to their home over to seemingly legitimate mortgage lenders, but then end up signing away the rights to their home.
Earlier this month, James announced the sentencing to prison of 48-year-old Marcus Wilcher of Bay Shore, Long Island for his part as the leader of a five-member deed theft crew that forged documents, marketed, and sold the homes of elderly and disabled homeowners in Jamaica and St. Albans, Queens. In one case, Wilcher even created documentation that made him appear to be the son of an elderly female homeowner, so that he could sell her home, valued at $320,000, to investors. Another Long Island-based fraudster, 60-year-old Joseph Makhani, used forged documents and shell companies to purloin two Harlem brownstones located at 107 West 118th Street and 135 West 131st Street. Makhani reportedly paid $10 for each property, which were later jointly valued for as much as $4.7 million.
Although unusual, such cases have been taking place in many of New York City’s rapidly gentrifying neighborhoods. This past November, The City reported that “[o]ver the last decade, at least 3,500 complaints of deed theft have been filed in New York City, according to the New York City Sheriff’s Office. Most of the complaints originate in Brooklyn and Queens.”
“Communities like mine in Central Brooklyn are particularly vulnerable. I’m grateful for Attorney General James’s partnership in strengthening our laws to prosecute deed theft and protect New Yorkers’ homes,” State Sen. Zellnor Myrie said.
Assemblymember Landon Dais added, “This landmark bill will protect the homeowners in my district and across the great state of New York from con artists that are specifically targeting the seniors that own homes. Our bill will provide the attorney general and district attorneys across the state a strong legal tool to prosecute the scam artists taking advantage of homeowners in our state.”
Deed theft now means prison time
Under the new law, deed theft now qualifies as larceny. Instead of being handled in civil court as a case of one person in a contract dispute with another, anyone accused of deed theft can now be charged with different felony classes.
The attorney general’s office lists the felonies as:
- Grand Larceny in the First Degree, a Class B Felony applies to deed theft of a residential real property that is occupied as a home by at least one person and is a home that is owned by someone who is elderly, incapacitated, or physically disabled, or deed theft of three or more residential real properties, regardless of monetary value.
- Grand Larceny in the Second Degree, a Class C Felony applies to deed theft of one residential property, one commercial mixed-use property with at least one residential unit, or two or more commercial properties, regardless of monetary value.
- Grand Larceny in the Third Degree, a Class D Felony applies to deed theft of one commercial real property, regardless of monetary value.
“Deed theft is a merciless crime that robs New Yorkers of their homes, communities, and financial stability,” AG James said. “By making deed theft the crime we know it to be, this law gives my office and district attorneys more power to stop these scammers from taking advantage of hardworking people.”
New Yorkers who believe they may be a victim of deed theft can contact the attorney general at 800-771-7755, by emailing deedtheft@ag.ny.gov, or by filing a confidential complaint. Homeowners who need free housing counseling and legal assistance can contact the Homeowner Protection Program at HOPP online or call 855-466-3456 to get help.