Developers Admit Submitting Phony Invoices to Lender
J. Christopher Daly and Michael Abreu, two executives at the Sheldrake Organization, a real estate development and management company, pled guilty in Manhattan, New York, federal court for their roles in a scheme to fraudulently obtain $2.2 million from a foreign-owned bank.
Daly, who was the owner and President of Sheldrake, and Abreu, who was the Director of Asset Management, used the funds obtained from the Lender to support the construction and operation of a $573 million luxury condominium project in Battery Park City, New York, called "Riverhouse."
According to the criminal Information filed in US District Court, Southern District of New York, Abreu and Daly defrauded the lender by submitting invoices that had already been paid by the lender and/or by falsiyfing invoices to obtain additional funds to which they were not entitled.
Daly pled guilty on April 25, 2012, and Abreu pled guilty on April 24, 2012, before U.S. District Judge Naomi Reice Buchwald.
Preet Bharara, the United States Attorney for the Southern District of New York, and Ronald J. Verrochio, the Inspector-In-Charge of the New York Division of the U.S. Postal Inspection Service ("USPIS"), announced the guilty pleas.
source: Mortgage Fraud Blog