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New York Landlord Sentenced in Mortgage Fraud

Wednesday, September 27 2006 06:00

Robert J. Palano, Buffalo, New York, was sentenced to a year in prison after pleading guilty to mortgage fraud last year and also admitted to stealing from one of the lenders that financed his real estate deals. He paid $1.5M in restitution, most of which will go to FNMA, and is prohibited from owning rental property in Buffalo, New York. Palano was one of the largest landlords in Buffalo but allowed over 100 properties to enter foreclosure when he left town after his guilty plea. According to media reports, court papers say Palano's fraud began when he obtained more than $4 million in home-equity lines of credit on properties he owned between 1998 and 2002, maxed out the lines of credit, pocketed the money and stopped making payments on the loans in December 2003, allowing the houses to fall into foreclosure.

2 comments

  • Comment Link Steve Homan Tuesday, April 19 2011 17:33 posted by Steve Homan

    Spirited Tastings Inc. of the Bronx used to be a fine establishment. But since its owner, Roger Parson, has to be a landlord and rent out his third floor, he has gone downhill. Bedbugs and toilets that need replacing go nowhere. He defrauded his mortgage company by asking us, his tenants of five years to sign a two-year lease even though he knew we had to leave because he wouldn’t keep the rent low (which he had done for us when I got laid off in 2009). He also didn’t tell us to measure our normal size sofa and bed before moving in, so that we could arrange to have them taken apart and reassembled in the apartment. We lost both of them. Now, he will not give us $1680 in security, because he accuses our 10-year-old of “jumping” on tiles next to the leaking toilet that should have been replaced. I hope he doesn’t run Spirited Tastings Inc. of the Bronx the same way.

  • Comment Link Caligirl Wednesday, September 30 2009 10:54 posted by Caligirl

    My landlord is using my address for his mailing address and telling his loan company that he lives at my property so he can get a loan modification. How do I report him for fraud? He has not oaid the mortgage in 8 months

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Rachel Dollar Rachel Dollar, the editor of Mortgage Fraud Blog is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors.
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