Palano leaves New York Properties in Foreclosure

An interesting story about Robert Palano's move to Florida and the foreclosures that are expected as the notorious landlord pulls out of Buffalo, New York.  Palano has a checkered history that includes payment of $250K in fines and restitution three years ago in connection with state prosecutor allegations that he was running a scam cheating low income home buyers.  

At the time, State Attorney General Eliot Spitzer called him a "maggot at the bottom of the housing market."

He also received a federal sentence of five months and $125,000 in restitution some ten years ago in connection with charges that he defrauded a home loan program. 

Apparently lenders are taking a closer look at some of his loans:

"We are in the process of investigating Mr. Palano's loans and are cooperating with law enforcement officials in New York," said Sandy Cutts, a spokeswoman for Fannie Mae, one of the nation's largest mortgage lenders.